Salons new shops for beauty products

Swati Anand & Anshul Dhamija / TNN / May 15, 2007, 00:42 IST

Text Size

Small
Medium
Large

Industry figures estimate that the unorganised sector of the Indian beauty services industry is around Rs 1,600 crore, while the organised beauty sector is conservatively pegged at Rs 200 crore.

BANGALORE: Quick question: When are you more likely to pick up a top-end hair mousse - off the shelf from your neighbourhood departmental store or when recommended by your stylist on a salon visit? The answer is fairly simple. Call it expert's recommendation or fear-induced purchase, but nothing works more convincingly than a stylist's word. Brands are increasingly beginning to realise the power of expert opinion and are leveraging with salons and parlours like never before.
Henkel's premium haircare brand Schwarzkopf, for instance, has official tie-ups with 800 salons and at least 400-500 more stock their products."We're planning an over-the-counter retail segment in all our salons this year," says Ashok Namboodiri, country head of Schwarzkopf.
Future Group's Star and Sitara salons have tied up exclusively with L'Oreal to provide their haircare products and the brand is splashed across the skin care section as well. "We want to assure our customers that reasonable pricing does not mean low quality products and the best way to ensure that was to tie up with a well-known credible brand," says Rahul Bhalachandra, head (health and wellness) of the group.
Industry figures estimate that the unorganised sector of the Indian beauty services industry is around Rs 1,600 crore, while the organised beauty sector is conservatively pegged at Rs 200 crore. This organised sector, which constitute A-grade beauty salons, is growing rapidly with many sprouting in every neighbourhood not just in the metros but in small cities as well.

"The media and increasing global travel have brought about an awareness on the importance of grooming oneself to look good," says Gauri, who runs the upmarket Spratt Saloon in Bangalore. The ratio of men and women who regularly visit a salon is almost 50:50 — another factor that's leap-frogging the growth in the organised beauty services sector.
A salon has now become a networking place between brand and customer. "Where else can you get instant customer feedback and reaction?" points out an industry expert. No wonder these salons are increasingly becoming points of sales and marketing of major haircare and skincare brands such as L'Oreal, Wella, Schwarzkopf, Toni & Guy, Bed Head and Shiseido. Most major brands like L'Oreal and Schwarzkopf also train staff on the right use of the products.
"A certificate from a top firm bolsters customer's confidence. This adds to customer loyalty to the salon and to the brand," says Yasmin, who runs Mumbai's Nalini and Yasmin salons.

End of Article