Transformation of Beauty Business
Written by: Nithin Narayanan
The Indian beauty business is at the threshold of growth. In the past couple of years this industry has grown leaps and bounds. Now a parlor is as common in a local market as a departmental store. But beauty services are primarily unorganized and mainly are operated by stay -home moms in their houses.
Increasingly organized beauty sector has successfully penetrated the Indian market in the past few years and are steadily growing at a healthy pace of 35 to 40 percent annually. There is a general perception that these so called organized salons are better than the unorganized ones. And this is largely true as it provides a host of services to the customer under one roof.
The word 'Metro Sexual' is now in vogue among those sections of the population which ironically don't even know the meaning of the same. Now every body wants to look and feel good about themselves and they are not hesitant to spend a good part of their income to achieve this goal.
But these beauty services come at steep price and as every body knows Indian consumers are largely price-sensitive. Not many can afford the services of these fancy salons and parlors. This is where unorganized beauty services come in. they are largely located in or near to residential areas and are have lesser prices. Due to the same they still manage to occupy a large share of the market.
Specialized services such as Laser Treatment cannot be and should not be done by amateurs. This is where organized sector scores as it provided cutting- edge services to their clientèle.
One aspect of beauty services that is posing as a hindrance is that there is no uniformity in the industry. Information and transparency in production methods of these beauty products is critical in building customer base. In turn educating the staff of these establishments and focusing on Customer Relationship Management (CRM) would in all probability consolidate the industry further.
Many retailers are also entering this fast growing segment. Reliance retail, Pantaloon Retail and other major players are revamping their strategies to cash in this trend.
Well as they say' Looking Good Is Always In' (True even in business).