%HDXW\ DQG JURRPLQJ LQGXVWU\ LV ERRPLQJ LQ ,QGLD %XVLQHVV 7RGD\ %XVLQHVV 1HZV KWWSZZZEXVLQHVVWRGD\LQPDJD]LQHIHDWXUHVYOFFFOVDHYHUVWRQHNSPJDFQLHOVHQUHSRUWVWRU\KWPO THE INDIA TODAY GROUP India Today Aaj Tak Business Today Men's Health Wonder Woman Cosmopolitan Oye! 104.8FM Travel Plus Bag it Today :( 5(&200(1' Why S-Class S 500 denotes luxury to Gautam I-T sleuths asked to give foreign firms a tax break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ome Business Today FEATURES Sep 14, 2014 Story Arunima Mishra Follow @Mishra_Arunima Edition:Sep 14, 2014 All Decked Up The beauty and grooming industry in the country is booming, thanks to the growing desire among both men and women to look stylish and feel good. /RRNV PDWWHU $Q $PELND 3LOODL EHDXW\ VDORQ LQ 'HOKL 3KRWRJUDSKV E\ 9LYDQ 0HKUD 0RGHO 5XVKDOL ,GRO 0RGHO 0DQDJHPHQW 025( BIZ WRAP MARKETS FINANCES INDUSTRY TECH FEATURES VIDEOS OPINION PHOTOS CASE STUDY
Transcript
9/6/2015 Beauty and grooming industry is booming in India - Business Today- Business News
THE INDIA TODAY GROUP India Today Aaj Tak Business Today Men's Health Wonder Woman Cosmopolitan Oye! 104.8FM Travel Plus Bag it Today
WE RECOMMEND
Why S-Class S 500denotes luxury to Gautam
I-T sleuths asked to giveforeign firms a tax break
MORE FROM THEAUTHOR
Delhi-based Anshita Arora, 26, recently started working aftercompleting her postgraduate studies in art history earlier thisyear. While her income varies depending on assignments shegets from art houses and museums, she spends Rs 7,000 to Rs10,000 a month on her appearance.
She prefers different salons for different services, be it hair careor skincare or dressing up for a party. "The amount spent maybe even higher if I have to attend a family wedding or a themeparty," she says.
"For skincare, I like herbal or natural products. For haircare, Iprefer international salon products. It feels good to pamperoneself." With Arora typifying a trend among Indians today,the beauty business is booming. "Clients want quality thesedays," says Diksha Gupta, co-owner of one of the Looks salons
All Decked UpThe beauty and grooming industry in the country is booming, thanks to the growing desire amongboth men and women to look stylish and feel good.
Looks matter: An Ambika Pillai beauty salon in Delhi. Photographs by Vivan Mehra; Model: Rushali, Idol ModelManagement.
MOREBIZ WRAP MARKETS FINANCES INDUSTRY TECH FEATURES VIDEOS OPINION PHOTOS CASE STUDY
Mall developers preferPVR as an anchor tenant:Ajay Bijli
Will PVR Cinemas retainits No. 1 position?
in Delhi. "We have clients who come for one service such as aneyebrow shaping or a haircut, but who, after enquiring aboutour other services, tweak their monthly budgets accordinglyand block another service for the next month," says Gupta.
Beauty expert Ambika Pillai, owner of a chain of salons, agreeswith Gupta. She says the urban salon market in India is smallby world standards but growing at a rapid pace. Indeed, aKPMG Wellness Sector report released in April this yearprojected that the size of India's beauty and wellness marketwould nearly double to Rs 80,370 crore by 2017/18 from Rs41,224 crore in 2012/13. Business is so good that it has caughtthe attention of private equity firms.
CLSA and Everstone have both invested in the VandanaLuthra-owned salon chain VLCC. "Every second day we get anenquiry from an interested PE firm," says Luthra.
"We are currently in talks with two more of them." Luthra, whoopened her first salon in 1989, now has 300 of them across 121towns and cities in 16 countries, including in Africa. Sheintends to scale up the Rs 1,000-crore company five times inthe next three years.
"We are growing at 30 to 35 per cent," she adds. Other well-known chains are also expanding. Chennai-based Naturals,launched in 2000, has 380 salons across the country, whichfounder Veena Kumaravel wants to increase to 3,000 by 2020.CavinKare's 12-year-old salon brand, Trends In Vogue, has 400outlets and intends to add another 100 this year, according toits Business Head, R. Gopalakrishnan.
One segment of the beauty business that is doing particularlywell is specialised haircare. An AC Nielsen report estimates thehaircare market in India at Rs 3,630 crore, with average annualgrowth of 20 per cent. Indeed, even L'Oreal's premiumKerastase treatment - in which a "Kerastase Ambassador", ahair specialist, examines the customer's scalp condition with aspecial camera before recommending appropriate haircare - isbecoming popular despite its steep price tag, with more than200 outlets in the country providing the service. "Our ritualprices range from Rs 1,000 to Rs 3,500, while the anti-hairlossprogramme can cost between Rs 1,600 and Rs 10,500," saysSmira Bakshi, General Manager, Kerastase India.
Another segment expanding rapidly is bridal makeup. Earlier,it was usually only the bride who visited the salon prior to thewedding ceremony, but now friends and relatives often join herand salons offer special packages for them. "Our bridal packagecost ranges from Rs 50,000 to Rs 5 lakh for 10 people, whichincludes head-to-toe grooming and makeup," says NirmalRandhawa, owner of a chain of salons and a spa in Delhi.
If it is the bride alone, Randhawa charges Rs 25,000. "Whenthey go to a location for the wedding, beauty professionalscharge Rs 50,000 and above per assignment," she adds. Spas -or medi-spas as they are popularly called - are also gainingpopularity, where customers undergo nonsurgical skin lifting,treatments for weight loss and more. Randhawa herself isturning her gym into a medi-spa with an investment of Rs 70lakh.
Quality beauty treatment calls for specialised knowledge - thustraining schools are also proliferating. Most salon chains havetheir own academies. VLCC, for instance, runs 75 differentcourses, with fees ranging from Rs 5,000 to Rs 26,000 for thebasic ones and Rs 30,000 to Rs 2.9 lakh for the advanced ones.Specialised courses in cosmetology cost between Rs 50,000and Rs 3 lakh, depending on their length and nature.
Every second day we get an enquiry from a PE firm. We are currently intalks with two of them, says Vandana Luthra, Founder and Vice
Chairperson, VLCC.
9/6/2015 Beauty and grooming industry is booming in India - Business Today- Business News
The government's Beauty and Wellness Sector Skill Councilalso runs various training schemes. Naturally, employmentopportunities in the sector are booming, too. The KPMGWellness Report estimates that workforce requirements in thebeauty and salon segment will grow from 3.4 million in 2013 to12.1 million in 2022. Salaries of makeup and beautyprofessionals vary between Rs 15,000 and Rs 65,000 permonth. Martha Ngade, 28, hailing from distant Senapati inManipur, is an employee at one of Looks' Delhi outlets. Shestarted on Rs 4,000 a month at a small-time beauty parlour,but for the last three years has been with Looks and now earnsRs 40,000.
"I have taken responsibility for my younger sister who isstudying in a Delhi college," she says. Since the investment insetting up a salon is relatively modest - as low as Rs 1 lakh foran outlet - many employees dream of setting up on their own.Five years on, Ngade hopes to go back to Senapati and start herown salon. So too Nisha Sharma, who trained at VLCC and nowearns Rs 20,000 plus incentives working at Naturals's Delhioutlet. "I'm excited at the prospect of opening my own salon,"she says.
