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Beautiful route to success

Beauty may be fleeting but the business of beauty is certainly not.

Did someone say beauty lies in the eye of the beholder? That may be a sample of poetic truth, but the fact is, beauty also lies in the hands of those who have made it their business to make others look attractive, pleasing and, more importantly, impressive. With the ever increasing awareness of health, beauty and personal grooming among both men and women, this multi-billion dollar industry offers a whole array of opportunities to youngsters. According to Indian Retail Survey 2009, the current size of the beauty care industry is about Rs 6000 crore and is growing steadily at a robust 25% each year.

Beauty consciousness has dawned with rising affluence. With an increase in the number of households upgrading to a higher consumption lifestyle, there is an explosion of growth in the Indian beauty space. Consider the Living Standard Measurement (LSM) classification, which is the new socio-economic classification to gauge consumption patterns: between LSM 1-4, which is the lowest level, and LSM 8-plus (top end), there has been an 80-fold jump in growth in the consumption of beauty products and services.

” Successful and unsuccessful people do not vary in their abilities, they vary in their desires to be successful – John Maxwell.” While our country is in the midst of a tough economy, the beauty industry, especially salons and hairdressers, are also being hit hard on both fronts. Owning a salon/spa business is creating many hardships in time, sacrifice, money, and energy spent. Trying to find solutions to these challenges will require determination, hard work, and ongoing education especially in the business management aspect of salon ownership. The spa and beauty salon business is roaring due to the aging “boomer generation” in its anxious pursuit of longevity and the desire to look fit and beautiful. It is also greatly influenced by the rapid expansion of the spa and wellness communities that are expanding over the world. Interest in spa in a multitude of ways is no longer an American beauty boom. It’s a global boom with an evolution taking place across the world,

The excitement surrounding the future of this industry and its ever-increasing demand for qualified estheticians/beauty therapy specialists presents numerous opportunities for well-trained individuals enthusiastic about building a career in the beauty industry.

Changing Scenario

There used to be a time when young women would enroll in short-term beautician courses merely to keep themselves occupied during vacations rather than as a serious career. Some others, with genuine interest and aptitude would perhaps open their own parlours or take up part-time jobs. As a whole, not many people were quite aware of other avenues these options actually led to. But with awareness of the importance attached to personal appearance and the global opportunities this opens up, the demand for trained professionals in this field has shot up manifold.

Mr. Jawed Habib, MD of Jawed Habibi Hair & Beauty says, Beauty Industry is recession free because everyone needs a haircut irrespective of the economic situation. Hair will always grow, whether you have money or you don’t have money you will always need a haircut, you will always need a service related to hair to look good. Everyone wants to look good!

That explains why Jawed Habib Hair & Beauty (JHHB), which has grown from 37 salons in 2006 to around 225 at the end of November 2010, is eyeing a similar growth. Or why foreign chains like the contemporary French beauty salon, Jean-Claude Biguine, with annual revenues of 150 million euros, are setting up salons to groom the Indian consumer. “Step back and look at the way consumption has changed in India. Growing affluence has resulted in increased experimentation. Although not completely recession proof it has been proven time and time again that in economic strife the hairdressing industry is one of the last to be hit.

Looking good is such an important aspect of people’s lives that they would forego all other luxuries to ensure they get their hair pruned. This world-wide phenomenon seems to be no different in India; the beauty services market grew at 30% in the last two years in spite of the downturn… and this is expected to rise to 35% CAGR over the next few years. Such numbers represent a very exiting opportunity for those looking to invest in retail.

However there are many examples of salon chains failing because of their desire to grow at all costs; B:blunt has built a reputation of such quality that we are very selective about our franchise partners. We believe in quality over quantity so we are looking for a handful of franchisees who want to be involved in creating the most respected and exciting brands in India. After all who can lay claim to working on the biggest Bollywood films, the glossiest magazine shoots, the finest fashion shows as well as running the most sought after academy and salons in the country?”, says Mr. Thomas Dawes, Director; B:Blunt. Hence this proves as accelerated the growth of beauty categories. Salons are at the centre of that growth. So it’s a big opportunity.

Boost Factors

India is a very price sensitive market and the low per capital expenditure on personal products has offered impressive growth opportunities to this industry. Greater interest in personal grooming, along with increasing disposable incomes has helped the industry reach this stature. Moreover, with enhanced living standards, growing competition, marked shift in consumer attitude towards spending, coupled with aspirational lifestyles and quality products available at affordable prices, cosmetics have grown from being luxury products to necessity products. The increase in the number of working women has definitely led to an increase in the usage of cosmetics.

Mr. Varn Sharma, GM, The Body Shop India, stated “Indian beauty market is experiencing strong double digit growth from last 2 years. The Body Shop is one of fastest growing beauty brands today in India having 70 stores in 26 cities. Over the next three years The Body Shop plans to increase its store numbers to 150 stores in India with a strong presence in more than 35 cities of the country. This expansion involves opening stores in Tier 2 and 3 cities along with increasing presence in major metropolitan cities of India. The brand has also equipped itself for this massive expansion in terms of training, operations, marketing and real estate. Our Idea of growth is sustainable growth driven by increased transactions in our old stores and growing smartly in new locations. Our endeavor is to hold on to our loyal consumers by increasing our focus towards customer service and increasing our reach to new customers by our expansion in new cities and also by inducing trials by initiatives like sampling”

Increased exposure to international splendor, fashion and lifestyle trends all put together is giving a great impetus to the industry. In a nutshell, researcher says, “The cosmetics and perfume segments are witnessing growth due to a variety of supply and demand drivers. Factors increasing the growth of these segments include increasing incomes, the growth of modern trade, Indian consumers’ desires to look, feel and smell good, increased emphasis on personal grooming and the impact of global lifestyle influence’s. There is a lot of money to be made in beauty, now more than ever. Every month, there seems to be a new product on the market promising youth for older women and glamour for younger women. Every magazine has a huge beauty section because the advertisers are willing to pay big bucks for huge glossy ads about eye shadow or lipstick. And it’s no wonder beauty is a big business: it doesn’t cost a lot of money to produce a small tub of cream but women will dole out their cash to buy it.

Over the past five years or so, celebrities have become spokesmodels for beauty products, unseating the ‘Supermodels’ of the late 80’s, early 90’s. This reflects a general trend in advertising. “We have also witnessed an enormous role played by Bollywood in the growth of this industry. Actors and actresses are the youth style icons and various companies have roped them in as brand ambassadors to create greater attraction for their products. The growth of the industry is leading to various innovations, to further catch the attention of more people.

At a time when most industrial sectors are reeling under recessionary pressures, the beauty industry in India has successfully managed to buck the trend. Its unorganized segment – including mostly small and regional players who comprise more than 50% of the wellness market – has continued to maintain a steady growth rate despite the challenging times.

Mr. Sandeep Ahuja – MD of VLCC Health Care Ltd, says “With the economy growing, opportunities and disposable incomes are also increasing; people are investing more in themselves and in their personal grooming. Increased awareness & feel -good factor are driving people towards such services. Additionally there has been a clear shift in the mindset of the people from a beautiful skin to healthy skin and from fitness to wellness. This shift in consumer behavior is motivating many companies to remodel their offering. Beauty is no longer the preserve of the rich and the famous. The masses have always desired beauty; but only now are they really beginning to spend on it, like the rich always have been. That’s what is making the business model of beauty quite exciting now. Looking at the opportunity that lies in the beauty industry many international players, large MNCs and local entrepreneurs are vying for the pie in the growing and untapped beauty Industry.”

The Growth Drivers

Though the beauty sector in India is still in a nascent stage, it has been growing at a phenomenal rate over the past few years. A joint report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and Ernst and Young has projected that this industry will grow at an exceptional rate of 30-35% per annum. This growth is expected to be fuelled by the small and mid-sized beauty centers and spas that are mushrooming across the country.

Mr Kashiff Khan, Director, Aura Thai Spa, says “The beauty Industry is recession proof as we all desire to treat ourselves with a little luxury that doesn’t break the bank! The industry is rapidly growing in India. Daily life has become very stressful and there is a need to just sit down and relax. Spas and salons help to make life less hectic and more holistic. We have made beauty treatments more accessible to people by shifting them from luxury hotels to exotic neighborhoods. From luxurious pedicures to therapeutic massages, spas and salons have now become a popular choice for the busy people in India looking to indulge in relaxing treatments in a serene environment.”

The growing demand for wellness therapies, beauty and Health Care Products, fitness, slimming and rejuvenation programmers and cosmetic surgeries among women as well as men in India has prompted several small and mid-sized companies to enter this burgeoning market. In addition, a specialization in the beauty and wellness sector is proving to be a big money-spinner for several doctors and cosmetologists who have set up their own small clinics and salons. The sector is also drawing the interest of a number of investment firms. These are looking to make huge investments in innovative projects in the sector in order to get rich dividends in the future, which can be done by direct setting of the business or taking a franchise route.

Changing lifestyles, encouraging market demographics and rising consumerism are likely to spur the growth of small players in the beauty sector. The ‘looking-good and staying-healthy’ mantra is fast catching the fancy of most Indians. Moreover, the beauty industry is a self-driven sector, fuelled by demand from within the economy rather than external factors.


Mr. Arpit Shah, Director, SevenSeas Spas, says Beauty Industry has observed strong growth and is growing dynamically. The rise in annual disposable incomes among individuals, coupled with the growing level of health awareness, has created strong opportunities for existing and new entrants in this sector. People are experimenting with new concepts and treatments. The Indian spa market is on an upward curve with spas spread across the country generating around USD 400 million annually. An expected increase in hotel spas by 20 per cent and day spas by 30 per cent over the next two years have set the foundation for a buoyant market in India. Global beauty companies are entering Indian market as they know the huge potential of growth in the country. One of them is “LA Ric “ an Austria based company specializing in pedicures-Manicures and present in the best of hotels around the world like Burj Al Arab ,Dubai,Ritz Carlton Paris ,Atlantis Dubai etc.

Anything But Skin Deep

Beauty matters most, though, for reproductive success. A study by David Buss, an American scientist, logged the mating preferences of more than 10,000 people across 37 cultures. It found that a woman’s physical attractiveness came top or near top of every man’s list. Nancy Etcoff, a psychologist and author of “Survival of the Prettiest”, argues that “good looks are a woman’s most fungible asset, exchangeable for social position, money, even love. But, dependent on a body that age, it is an asset that a woman uses or loses.”

Beauty is something that we recognize instinctively. A baby of three months will smile longer at a face judged by adults to be “attractive”. Such beauty signals health and fertility. Long lustrous hair has always been a sign of good health; mascara makes eyes look bigger and younger; blusher and red lipstick mimic signs of sexual arousal. Whatever the culture, relatively light and flawless skin is seen as a testament to both youth and health: partly because skin permanently darkens after pregnancy; partly because light skin makes it harder to hide illness. This has spawned a huge range of creams to treat skin in various ways.

Then again, a curvy body, with big breasts and a waist-to-hip ratio of less than 0.8—Barbie’s is 0.54—shows an ideal stage of readiness for conception. Plastic surgery to pad breasts or lift buttocks serves to make a woman look as though she was in her late teens or early 20s: the perfect mate. “Mimicry is the goal of the beauty industry.”

Mr. Martins Jaunzems, Head Sales, Attirance, stated, “The beauty industry in general is growing on the global scale. The consumer demand is growing more in the developing countries, where people are less familiar with the global market players. Nevertheless, the consumers are becoming more and more educated with the offer and product quality is becoming more and more important for the consumer. Consumers start to appreciate brands that value natural beauty products to enhance their personal charm and comfort. It is certain that the industry will continue to grow over the next decade, in the meantime creating a more competitive market environment.

Basic instinct keeps the beauty industry powerful. In medieval times, recipes for homemade cosmetics were kept in the kitchen right beside those used to feed the family. But it was not until the start of the 20th century, when mass production coincided with mass exposure to an idealised standard of beauty (through photography, magazines and movies) that the industry first took off.

The desire to be beautiful is as old as civilisation, as is the pain that it can cause. In his autobiography, Charles Darwin noted a “universal passion for adornment”, often involving “wonderfully great” suffering. The pain has not stopped the passion from creating a $160 billion-a-year global industry, encompassing make-up, skin and hair care, fragrances, cosmetic surgery, health clubs and diet pills. Americans spend more each year on beauty than they do on education. Such spending is not mere vanity. Being pretty—or just not ugly—confers enormous genetic and social advantages. Attractive people (both men and women) are judged to be more intelligent and better in bed; they earn more, and they are more likely to marry. The fact is that neither moral censure nor fears about safety will stop people from wanting to look better. The desire is too entrenched. An 18th-century British law proposing to allow husbands to annul marriages to wives who had trapped them with “scents, paints, artificial teeth, false hair and iron stays”, had no effect on women, who continued to clamour for the latest French skin creams. During the Second World War, the American government had to reverse a decision to remove lipstick from its list of essential commodities in order to prevent a rebellion by female war workers. The beauty business—the selling of “hope in a jar”, as Charles Revson, the founder of Revlon, once called it—is as permanent as its effects are ephemeral.

The future prospects for this industry seem to be very good. With increasing awareness, more disposable incomes and the low per capita spend on cosmetics in the country; this industry will surely soar in the time to come. As the Indian cosmetics industry is still small, compared to international markets; it points that there is greater growth potential. Ever since it was formally recognized as an industry 100 years ago, it is rumored to have always overtaken GDP growth. Ah the ironies of life…beauty may be fleeting but the business of beauty is certainly not. One of the most stable, recession proof and profitable business that can ever be!

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