indian salon congress 2012

8/2/2019 Indian Salon Congress 2012

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Business of Beauty, Growing in Bounty

Exhibition Awards Conference

INDIANSALONCONGRESS 2012

March 21 & 22, 2012, Hotel Claridges, Surajkund, Delhi

National Convention on Business of Salon National Awards on Excellence in Salon

INDIANSALONAWARDS 2012

Present

&


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Gaurav Marya

President, Franchise India Holdings Limited

It is given that the next chain salon will slowly but surely

capture the market share of the typical neighbourhood

mom & pop beauty parlour. The time calls for the salon

owners to rethink their business strategy, which wouldnow be the difference between their growth, survival or

imperishment. It is time for you to trade smaller tasks for

bigger accomplishments and pave your way to become

the next salon business conglomerate.

growth or corporations who are investing

tremendous amounts of money in promotions

for salons designed to increase their market

share. Equipment manufacturers too estimate

business growth anywhere from 30 per cent to50 per cent over the next few years. What is most

significant about the salon industry

demographics is that it contains one of the

highest service-based spending groups - a

combination of the older generation as well as

the maturing generation.

Just as with any good investment portfolio,oday, India is enjoying unparalleled diversification is a vital component to a strong

prosperity. When it comes to service-based service-retail mix for the salon industry. TodayTbusinesses such as beauty salons, one of the salons see the need to evolve as overall wellnessmain criteria to a growing industry is how the centre beyond the traditional role of helpingeconomy is faring overall. At no time in memory people clean up to offering full-on spa services.

have Indians felt more optimistic about the future - In addition, one of the most profitableand with good reason. We can look back at the last opportunities for expansion is the addition ofdecade as one of the brightest decades in memory private labels to the retail product mix that can, ifand look forward to a future perhaps even more marketed right even give salon operators aluminous. chance to attract new customers.

What has this meant for the salon industry? Over Taking note of this robust growth, and in lieu ofthe past 5 years the organised salon industry is matching up with the international counterparts

growing at 30 per cent rate, against the industry the time is ripe for the industry to come togetheraverage of 25 per cent. Today, the Indian beauty and deliberate on these pertinent points ofproducts and services industry is pegged at getting in finances, retaining skilled personnel,Rs 13,200 crore. The real sign of health in an bringing in standardisation in processes, creatingindustry is when it begins to grow from within and quality consistency via policy intervention andtoday more than 60 percent of the growth in the more through the course of this two daySalon industry is coming from within the industry comprehensive conference.itself. In other words, 60 percent of the new salons

I welcome you all aboard to be a part of theare current salon owners either expanding orSalon Congress, and be a change agent byopening another location. There is a completevarying your perception about the business oftransformation in the attitude of salon owners wholooking good.are entering the market. Either they are

professional entrepreneurs looking for long-term

Scale is the

way forwardfor thebusiness ofbeauty


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Salonindustryoverview

Private LabelBeauty Treatments Financing

`

Location

Cosmetic Sanitary & Hardware Training SpaAppliances &

Equipments

Beauty forecast 2012

Insights into the personal care market: Spotting trends for 2012

The immediate, short, and long term horizon of your business growth

Regulatory environment - standards and regulations in beauty services

Going International - Understanding the regulatory challenges when reachingfor international markets

Which global markets are the hot spots for beauty?

Session brief: Day 1Inaugural session21st March 2012, Hotel Claridges, Surajkund, New Delhi

Branded players changing beauty

landscapeMagnanimous growth graph

market at Rs 6,900 crore, which includes both

services and the value of professional careproducts retailed through salons. Yet, cuttingthrough the clutter will not be easy as the salonspace is highly fragmented. According toindustry estimates, the organised and semi-organised beauty services industry aloneaccount for about Rs 1,600- Rs 1,800 crore, andmajor stake lies with the unorganised players.

2012 stands as a year that will lead changeThe beauty services consumption is soaringthrough the beauty services business. Thehigher and higher with each passing day and

growth of the organised section is catapultingcreating growth records with each passing year.the industry towards a greater paradigm shift.The organised beauty segment is amplifying atDriving this growth wave are big national and30 per cent per annum, and salons stand at theinternational cosmetic companies that haverealm of this growth wave, riding on highventured into the salon business and expandedopportunity and even higher scope for growththeir business boundaries to be a part of theand diversification in the field of beautybeauty services industry.services. Industry estimates peg the salon

Era of fast moving consumable

beauty services

2005 2012 2015 2020

` 98500

` 29800

` 6900` 2000

Overall Beauty Industry` 13200cr

Beauty Services` 6900cr

Trend watch

Changing paradigm of Indian beauty services

(Value in Crore)


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What women want

Paradigm shift in the male consumption pattern

Why brand loyalty starts young

Growing consumer awareness accredited to media exposure

Consumption majorly aspiration driven

Demand for more variable and multiple service formats

Session brief: Day 12nd session21st March 2012, Hotel Claridges, Surajkund, New Delhi

Mapping consumption trends

An Aware Consumer Base

There has always been a distinct premiumattached to looking and feeling good, thedesire to be attractive has never seen arecession, keeping the salon and beautyindustry recession proof. The concept ofgrooming and beauty is only evolving with

time and hence it is not surprising thatboth men and women are seeking the

Consumers are growing affluentservices of beauticians and hairstylists for

and aspiration driven. With more enhancing their appearances. It is thisinnate aspect of the industry that has kepteasily disposable income at hand,the consumer spends growing higher than

they are spending more on however before.

they look.

Trend watch

Women in the age group of 30 and above have more cash andspend more on how they look

Eighty-fold jump in growth in the consumption of beautyproducts and services

Five times increase in spend on skin and hair care by average

Indian male

Market spend to grow from $1.2 per capita today to $5 by 2015

Cosmetic/skin care audience today

40 % Male

60% Female

Male teenagers ExpenditurePer month on cosmetics

Year 2011Year 2000

1000`

` 1,500-2,000is average consumer spend inan organised parlour/salon

` 500is average spend inlocal/unorganised salons

ConsumptiontrendsParamount beauty spending

3000-4000`


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Retail cosmetic sales

National &International

cosmetics brand

IndianPrivate Labels

20%

80%

ExtendingbusinessWiden customer reach and riches

The Indian beauty services market is trapped

between high infrastructure and real estate

costs, and a price and value conscious

consumer. Thus, to make a successfully platter

of services, which will render customer

satisfaction as well as profitability in business

venture, it is important for every salonoperator to device his own profitable businessForward and backward integrationformat. This can be done by foraying into

of services helps expand customerancillary products and service manufacturing,

base and has a positive recurring or creating and working on multiple beautyeffect on the revenue and returns services models in a chain salon format.on tangible assets.

Combining beauty services with beauty treatments

Doing the full cycle the hair salon, nail salon, beauty salon andday spa business

Create a niche service in-house

Combining a beauty training school

Session brief: Day 13rd session21st March 2012, Hotel Claridges, Surajkund, New Delhi

Growing the pie

Backward and Forward Integration of Services

Trend watch

Very few salon operators have succeededin establishing formal training institutes inIndia

Private labels offer better margins; a win-win solution to both retailers and endconsumers

Majority of salon operators, extend

business scope to offer spa services andvice versa

Only few premium salon operators succeedto establish cosmetics private label

Most of the salons offer on the job trainingand charge the person for the same

30%growth in business of private labels cosmetics


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Trend watch

Shortage of skilled talent stands as major

price point hurdle

Major players set up their own training

institutes, charge them for the training

and absorb them

The larger challenge is talent retentionafter training, as staff prefers to set up

their own salons after a few years of

experience

6,00,000 skilled personnel falling short in

the present growth scenario

People in beauty industry

500 haircutsMinimum experience required to be classifiedas trained personnel for job at a branded salon

20% per annumManpower demands to go up by

2011 2022

1 Million

Required 3 Million

The reception protocol: Why salon receptionists need to be more than meresecretaries?

Why is there shortfall of trained personnel for spa and salon services?

Filling the skill gap by on-the-job training

Tough task of retaining trained manpower

Creating training standards and modules for uniformity of services

Session brief: Day 14th session21st March 2012, Hotel Claridges, Surajkund, New Delhi

Creating service perfectionPersonnel training for beauty services

The Indian salon industry has long been

plagued by the lack of organised training

institutes, training standards and a

motivating remuneration system, leading

to a huge gap in the required and

available manpower to render services to

the beauty industry. But the situation is

now changing, with the advent of

branded players, who are getting in theirA loyal staff member is

private label in the products as well asessentially more valuable than the training space.

a loyal customer because it is

ultimately the loyal staffmember who creates the loyal

customer.

Absorbing from the latenttalent pool

Trainingfor services


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Trend watch

$ 80 billion global spa industry market

share- Indian market very small

3,000 spas across three broad formats-

Day Spas, Med-Spas & Destination Spas Spa treatment in India sold at one-third of

an average spa treatment in the US

Increasing cost of spa personnel Vs low

cost of services in the Indian market

70%of spas in India run by local brands

3 out of 10individuals from affluent setups visit a spaevery month

Spa market share in India

2009 2011

$ 384million

$ 460million

The spa business stands as a new entrant in

the beauty services industry in India. The

growth drivers stand beyond the spa

horizon in India and the growth lies

beyond the number of spas; numbers are

churned to include the diverse forms of

spas, as well as spa products available. Thefuture of spas lies with this integration of

spa services with a wellness or beautyThe overall beauty services

service concept. The Indian spa industry isindustry is growing rapidly in plagued by high real estate and

infrastructure costs, and also needsIndia. The spa segment in India isstandardisation to cover lack of licensing

also attracting a lot of attentionregulations and formal training.

with the growing affluence in

major cities.

The case for spa and salon

Creating the mix of training personnel in-house and external experts

Revenue model - Is it worth it?

Working on multiple spa formats to positioning beyond luxury- day spas,mobile spas and more

Realising profits in value based Indian markets

Session brief: Day 15th session21st March 2012, Hotel Claridges, Surajkund, New Delhi

Extend to spa businessExpand the niche service

A new player in the growing business

of beauty services

Sprawlingspa business


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Hair colouring industry(cumulative sum of services & retailingthrough service outlets)

2005

` 650 cr

2012

` 2000 cr

Innovative strategies and methods for cross selling

Selling at Salons via product camps and point of sales

Product aesthetics: Packaging and marketing to boost sales

Sponsoring services and treatments to create brand prominence

Training personnel to share product benefits and features

Session brief: Day 21st session22nd March 2012, Hotel Claridges, Surajkund, New Delhi

In Salon retailingBundling Products With Services

product and service consumptions that a salon operatorneeds to micromanage in order to build customer as wellas revenue base. As the service stands at the majorexpectant and differentiator, its the products that renderthe revenue advantage in an economic ecosystem wherethe organised and unorganised players are battling onthe same field.

Leading organised players have expanded by 100 percent and are further scaling up

Local players will hold prominence, considering lowWith growing consumer aspiration and entry barriers

Professional product range earns more marginsexposure, their beauty expectations are Local unorganised salons stand reliable for simplewidening, and so are product and service

services but not preferred by customers for morechallenges faced by a salon operator. complicated procedures

High rate of conversation from unorganised toorganised salonsServices and products are essentially the two major

Major brands also retailing via salon outlets andfunctionalities rendering their support in the successfulsponsoring services to create brand prominenceoperation of a salon business. There are wide areas of

Economicsof retailing forsalonsProducts vs Services


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SALONUnisex

Call of the mall

Choosing apt location to increase footfall

The new age salon design

Real estate ROI - neighbourhood Vs high-street

How to maintain location and design symmetry to create brand identityacross salon chain

Session brief: Day 22nd session22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Ace localesPositioning for higher ROI

Location is important for a salon, as itbuilds up consumer aspiration, but itcannot be valued as high as it wouldbe for an apparel store. The mostpreferred location remains a highdensity residential area and the next isa high street. Malls are least preferred,

for a customer needs to be in acomfort zone when visiting a parlour.Location is a differentiatorGoing to a mall would require gettingonly for up-market salons,ready and looking presentable, which

those concentrating on mass one might not want to do if one isgoing to a parlour. The next crucialconsumption find maximumdifferentiator is the salon design. Thefootfall within populatedsalon interiors has to be build to add

neighbourhoods. aesthetics value as well as rendermaintenance convenience.

LocationaestheticsLooking good starts from here

High Street Neighbourhood Malls

30%

22%

35-40%

Trend watch

Rentals in a mall remain very high so that addsto it not being a preferred choice

A parlour does well on a first floor also becausewhat is important in a salon location isconvenience of reach

Door-to-door service cannot be organised or

consolidated by branded players

Operational hassles in door-to-door servicesinclude tracking personnel visiting, products,services offered, payment received, etc

High street VsNeighbourhood VsMall Store rental per centwith regard to revenue

Ideal retail/rental cost should not be more than

At a high street area, the ideal retail cost is 28-30per cent and for a high density residential area, it is

22%

35%of the earnings


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How to vendor alliances help pocket more revenue

Maintaining service quality via consistent product supplies

Partnering with main suppliers for equipments and products- National vendorsVs local vendors

Vendor selection technique imperative for growth Economic value addition opportunity with vendors

Efficient resource management

Session brief: Day 23rd session22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Rules for vendor managementPartner for imperative growth

The salon industry has doubled in the last five

years, and so has the need for standard

equipment suppliers and manufacturers.

When it comes to products, international

brands are preferred, but for equipments, the

preference lies with indigenous and Chinese

brands. Though Chinese products are not verydurable or reliable, they are very cheap andPartnering with apt suppliers foroffer a wide variety. The Indian equipment

equipments and products will helpmanufacturing industry is highly fragmented;

build revenue, as it is a major there are a few big players and mainly smallinvestment in the business of regional players. A salon prefers a player from

his region due to constant servicingbeauty services.requirement for these equipments.

Procurementand VRMFor uninterrupted growth

Trend watch

Industry has doubled in the last five

years

3-4 manufactures in North, 4-5 inSouth; West has the maximum number

of 15-16 manufactures and rest are all

importers

The set up cost for a salon, depending

on the size/area can be anywhere

between Rs 3 lakh and Rs 40 lakh

60%

Chinese imported equipments

20% 20%Indian

high-end imports

(German & Italian)

The industry split

Salon services equipment market size is

opening everyday all over India

5-10 salons

` 300 crore


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Crossover from salon to beauty treatments technology opportunitiesfrom external sources through partnerships

Franchising for scaling-up: Survival of multi-chain salons

Licensing to bring international brands to home ground Partnering challenges for startups and entrepreneurs

Session brief: Day 24th session22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Accelerating growthVia Strategic Partnerships

The second factor leading major

players towards the franchise route is

that it does not involve giving away

equity. In addition, brand building and

market penetration can be done at no

additional cost. When opening a

franchised outlet, the cost to afranchisor can be reduced to one-third.Franchising is witnessingAnother very impor tant development,

robust growth in the salonwhich is leading many home grown

and beauty services industry brands towards franchising, is that itbecause it is a skill-based offers an easy way out to the

international markets. Also, with thebusiness concept offeringopening up of international marketseasy replication.the industry has witnessed upsurge in

international tie-ups leading to

expansion of national brands abroad.

Scalingfor growth

Trend watch

Franchising can enable them to go

international by developing a

standardised model for future market

dynamics

The beauty industry is increasingly takingup franchising as a mode of expansion,

especially for the untapped markets

In a span of 3-4 years, almost 20-25 per

cent of the organised beauty industry

would be franchised

can be easily realised from a franchised outlet10-15%

growth in franchising of salon brands11-15%

An additional profit of

in the number of outlets70-80%

Franchised salon and spa brands experiencea growth of

Growing leaps and bounds


12/16

Trend watchIndian consumers consumption

pattern is strongly driven by value

offering and word of mouth publicity,

hence social media and discount sites

are paramount marketing tools for

this sector. Social media networks and

sites help in developing indirectDiscount sites and social promotion and help the businessmedia are the new age operator connect with the customermarketing tools at the hands in real time. Discount sites, increase

footfall and help retain customers. Butof the salon operator, whichthe virtual worlds connect also comesoffer greater penetration atwith a price negative publicityminimal cost.spreads faster than service praise.

New agemarketingGoing via social media anddiscount sites

The dilemma of marketing to two generations at once

How national publicity builds credibility and regional media sells

The digital age: New media for reaching new markets

Levelling up with social media

Selling through PR: A different approach to traditional (print & electronic) media


Marketing 2.0Reinforcing Your Brand Image

26%

20%18%

15%13%

10%

Deals listed on the web

BeautyServices

Dental& HealthServices

Restaurants Mobile &Accessories

Fashion &Lifestyle

Others

Traditional media still holds strong with a huge

presence of direct marketing and print ads

Deals and discount sites help create must-havevalue offers for customers and build prominence

Social media helps map mass media marketingsuccess across formats

Spas offer, on an average, 70-85 per centdiscounts

Nail services account for only 2 per cent of thebeauty services deals

26%deals listed on discount sites are spa andbeauty services related

50-60%Hair and skin care services discount up to


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Creating a scalable business model with high return on investment

How to best market your company through various stages of a transaction

Insights to select the best partner and the post-closing relationship between acompany and investor


Know the money playersInvestors bringing scale

Factors attracting equity investorstowards the beauty services is thelarge scattered industry, which offersmultiple services and exists inmultiple business formats. Because of

their unorganised existence, thebeauty service providers offer scopefor scale. Further to it is a fact that theIndian beauty services industry isPowered by growingriding on a growth wave, hence theconsumer demand, salon andscalable business model will naturally

spa businesses are cutting offer high return on investment.Another factor layering the risk oftheir way into Dalal Street andinvestment is that the beauty industrygrabbing the attention ofis unaffected by recession.

investors.

Trend watch

2009 Outset of PE investment inthe salon and spa industry, withmaximum investment of

Rs 20 crorein a single deal

2010 The PE trend grows on, withmultiple small scaled equityinvestments ranging between Rs 2-

10 crore, and the maximum being

Rs 47 croreThese investments helped localplayers to expand on a national base

2011 One of the major players, afteraccruing 32 per cent, returns files for

Rs 60 crore

2012 Many others following suit, bybuying back shares from promotersand strategising for an

IPO

IPO, showing the robust growth andscalability of the salon and beautyservices industry

Bringing in the investor

The PEpower


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Premium Supplier AwardsSpa Service Awards

brand image, marketing and promotional which plays active role in customerStandalone Salon of the Year - North/South/East/Westacquisition and retention.

A salon which has developed a unique and innovative culture, team, systemsand strategies that make it a highly successful business venture. Customer Service Excellence Award

This award is aimed at the person responsible for ensuring all aspects of clientSalon Chain of the Year (National)care are accommodated, and how they monitor and develop this aspect of

A multi-salon chain, developed under a single brand name which hasservice excellence for the business.developed a unique and innovative culture, team, systems and strategies that

make it a highly successful business venture. Franchise Salon Owner of the Year

The award is for an individual who show great business acumen, byDebutant Salon of the Yeardeveloping their existing franchise and also continually improving strategy to

A salon business entity having commenced its operations not more than a year achieve future success and growth.ago (till March 2012)

Entrepreneurial Excellence Award for Salon LeadershipSalon of the Year Aesthetic Design

This award recognizes the entrepreneurial leadership style of the businessA salon or a chain of salon standing out for its design and creating feel that

owner/s related to the well-being and satisfaction of their employees. The keyappeals to the consumers. considerations include an assessment of their internal systems.

New Creative Force of the Year Lifetime Achievement AwardAimed a successful stylist/salon, who has achieved both professional and

This coveted award recognises the salon owners / professional who hascreative recognition in the beauty services industry.

achieved extraordinary success through managerial innovation,entrepreneurship, and has contributed significantly to the overall growth ofSalon Marketer of the Yearthe beauty services industry in India.

This award recognizes the external management of the business in regard to

These are for the category leaders who enjoy

the largest market share within their category

and are also leading innovation for the growth

of their respective market category.

Best Destination/Resort Spa

An award recognising the best resort or destination spa ofthe nation, know for quality, consistency and serviceexperience.

Best Day Spa

Most coveted Day-spa, can be a part of a five star hotel,high-end salon, or even a stand alone spa, operating in a

compact all-day format.Spa Chain of the Year

A multi-spa chain, developed under a single brand namewhich has developed a unique and innovative culture,team, systems and strategies that make it a highlysuccessful business venture.

Most Preferred Equipments Supplier for Salon Industry

Salon equipment and tools supplier company which has maximum clientbase in India, thus rendering standardization to salon systems and services.

Best Technology Supplier for Salons

Aimed at the technology supplier/IT company has developed unique

technological interventions to improve the various aspects of running asalon profitably.

Best Creative Resource Supplier of the YearTraining school/ beauty institute churning out the best beauty professional

in India.

Most Admired Salon & Spa Consultant

A Consultant/ consultancy company having a record of setting up maximum

number of successful and profitable spas and salons across India by sharingbusiness acumen.

Salon Retailer for Professional Products Range

Salon-chain known for housing a retail range of popular professionalrage of cosmetics in-house, and adding big numbers to the productssale count

Professional Cosmetic Brand Retailed Via Salons

A professional range of cosmetics, sold most popularly via salonoutlets

Most Preferred Indian Private Label for Cosmetics(Professional Range)

An Indian Private Label - holding prominence as a professional

cosmetic range and also having the largest market share amongstother players.

Salon Enterprise Awards

Retail Excellence Awards

National Awards on Excellence in Salon


March 21, 2012,Hotel Claridges, Surajkund, Delhi

Present

&


15/16

Exhibition Awards Conference

INDIANSALONCONGRESS 2012

March 21 & 22, 2012, Hotel Claridges, Surajkund, Delhi

National Convention on Business of Salon National Awards on Excellence in Salon


Present

&

Organized by

Option 1: Cheque / Demand Draftdrawn in favour ofFranchise India Holdings Ltd

payable at par and to be sent to 4th & 5th Floor, Charmwood Plaza,

Eros Garden, Charmwood Village, Surajkund Road, Faridabad - 121009

Option 2: Wire transferFor account details, please contact the above.

Option 3: Online paymentwww.franchiseindia.com/payment-gateway.php

Payment method

Call Amio +91 9312687253

Mail at [email protected]

For registration &

more information call:

Regular Package: Rs. 15,000* per delegate

Premium Package: Rs. 20,000* per delegate(includes networking dinner on March 21, 2012)*inclusive of taxes

Conference registration fees

The expo will be a showcase & branding

opportunity for your product or services

operating in the beauty service industry,

to connect with salon and spa operators

and beauty allied industries.

Exhibition


16/16

Visit: www.franchiseindia.com/salon | SMS salon to 5667779

Call Neha +91 9310055559Mail at [email protected]

Awards Nominations Exhibition / Sponsorship

Call Neeta +91 9311144600Mail at [email protected]

Conference Delegation

Call Amio +91 9312687253Mail at [email protected]

Call Prakash +91 9323968158Mail at [email protected]

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