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Health and Beauty Industry to follow organic growth via Franchise Route

Health and beauty Franchise

In 1990’s, there was very less population which was considerate and conscious about their  physical or mental beauty. Getting pampered was considered as a luxurious activity for  people. The affluent ones were able to think about it. The lesser number of people were  aware about the concept of ‘rejuvenation of body and soul’. With the advent of a lifestyle  which had growing disposable income and sedentary life style, people started looking for  health and wellness options. They also started getting very particular about how their  physical appearance. These factors have witnessed the growth of health industry in India.  Let it be salon, spa, fitness & slimming, hospitals or pharmacies.

The health and beauty industry in India is still an unorganized sector. But on the other side,  there are brands in health industry which are trying to make it organized through    franchising. Expansion via franchise route is one of the organic ways to expand the  business concept all over the world. Many of the Salon and Spa Brands offer  Franchise Opportunities in India. One of the ways is to expand via Franchise Owned and Franchise Operated (FOFO) Model. In this, franchisee owns and operates the whole business. The franchisor supports the franchisee in terms of equipment required, site selection, vendor management, providing ERP solutions, branding and marketing etc. The income generated through the operations is owned by the franchisee except the portion of royalty.

For detailed know-how, let us go through few subcategories of Health Industry franchise

Salon and Spa

20 years back, getting a haircut was considered essential because of hygiene factors. Now even the middle class segment aspire to get their favorite haircut from a well know salon in their city. Not just the haircut, people also visit salons to access other beauty services. This has led to the tremendous growth of Salon brands present in India. Those brands whose services are highly demanded, they look forward to maximize their reach by offering business opportunities to the like-minded business people who wants to take the franchise of salons. The brands like Lakme Salon, Jawed Habib Signature Salon, Jawed Habib Hair Xpreso, Green Trends Hair and Style salon, F Salon Naturals Beauty Salon offer franchise opportunities in India. Lakme started its franchise operations in the year 2000. Till 2013, Lakme had 135 franchise outlets.

India has always been a hotspot for travelers and this has been one of the biggest reasons for the unprecedented growth of spa industry in India. The spa offers ayurvedic and healing experiences, gemstone & bamboo massages, face therapies, body massages, anti-cellulite by Endermologie, color healing, yoga etc. Aura Thai body spa, Four Fountains Spa, Seven Seas Spa, Anandam Spa, F Spa are well known players in this industry which offer franchise opportunities in India.  The investment for getting a spa franchise ranges from 1 crore and above.

Fitness and Slimming

According to Euromonitor international, ‘Growing health consciousness was clearly visible in increased preference for exercising, gyms and weight control over the last few years of the 2008-2013 review period’.

Mentioned earlier, the rise of sedentary lifestyle and high work stress in India has led to obesity and certain diseases like diabetes and Coronary heart diseases. This sector is highly fragmented except few players in the slimming and fitness industry, i.e, VLCC, Kaya, Snap fitness, Gold’s Gym, Talwalkars, Anytime Fitness, Bikram Yoga. VLCC is the market leader in slimming segment. It has presence in UAE, Nepal, Sri Lanka & Bangladesh including India. These leading brands in slimming and fitness Industry offer franchise opportunities in India and other countries as well. The investment budget for the franchise in Slimming industry starts from 30 Lakhs, for fitness industry it is 1 crore and above.

Pharmacies & Hospitals

Apollo Clinics have been one of the pioneers of the franchise in India. As compared to the other industries, pharmaceutical sector in India is relatively unorganized. The leading player in this industry are-Apollo hospitals and pharma, Guardian pharmacy, Fortis, Reliance Health and Pharma. These brands also offer franchise opportunities in pharmaceutical sector.

The health, wellness and beauty segments offer lucrative Business Opportunities in India. Though it requires high capital investment, but the returns are huge. This industry has high potential to grow via franchise model, especially in Tier 2 and Tier 3 cities.

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