Beauty Salon Business Plan in India 2020

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We all have heard or have gone beauty salons many times in our life. It is a very essential service for everyone’s daily life.

Everyone needs these essential services like shaving, hair cutting, threading, waxing at least once in a month for the basic grooming.

We have seen many salons in our region. But all salons are not the same because they are operated with different target customers. Because of that, their infrastructure, service professionals, and other services are different for different customer segments.

In this blog, we will see a complete discussion about the Beauty Salon Industry. So that you don’t face any problem while starting your Beauty Salon Business.

Firstly let’s check what major topics we will discuss in this blog:-

  1. Introduction
  2. Types of Beauty salon
  3. Services in Beauty salon
  4. Top Indian & International Beauty salon chain.
  5. Growth of the salon industry in India
  6. Beauty salon business plan
  7. The market size of the salon industry in India
  8. Marketing strategy for beauty salon
  9. Conclusion
  10. Frequently Asked Questions

Introduction

Beauty Salon Industry

Beauty salon or parlour is a place where they provide beauty services. In this, they offer services such as threading, waxing, straightening,  manicure, pedicure, facial, bleach, hair cut, shaving, hair treatments, skin treatments, etc.

Salons are meant for basic grooming, relaxation, and refreshment. In this busy life schedule, people don’t have “Me Time”. In fact, they don’t have enough time for their skin and hair. 

People exposed to so much dirt and pollution. Due to this it affects skin and hair and looking dull. So people go to a beauty salon for skin & hair treatment, relaxation, and refreshment.

Types of Beauty salon

Beauty Salon or parlours are mainly categorized into two categories.

  1. Gender
  2. Services

According to Gender

We have mainly three types of Salons, according to Gender.

  1. Men’s Grooming Salon
  2. Ladies Beauty salon/parlour
  3. Unisex Beauty Salon

1. Men’s Grooming Salon

Men’s grooming salon or normally men’s salon is mainly established for male and serve all services related to male. The basic grooming services are Shaving and hair cutting.

But nowadays Men also interested in other grooming services like facial, bleach, waxing, manicure, pedicure, hair spa, etc. Now they also spend money on self-grooming.

2. Ladies Beauty Salon/parlour

They are mainly girls and women concentric beauty salons. And according to a survey ladies spend their 35% money on Beauty products or services.

 In this salon, they serve basic essential services like threading, waxing, haircut to the ladies. Besides these, they also provide other services like bleaching, facial, cleanup, tanning massage, manicure, pedicure, hair spa, hair straightening, hair smoothening, hair coloring, highlighting, skin treatments, hair treatments, etc.

3. Unisex Beauty Salon or Family Beauty Salon

These salons established for both males and females.  It is also called Family salon because people can go with the family for the services.

 In this type of salon, they create an atmosphere where both males and females can take services without any hesitation. Different separate sections made for some services like makeup, spa, etc.

According to Service

There are many salons that deal only with specific service segments. These service segments are:-

1. Hair Salon

Hair Salon

In this type of beauty salon, they focus only on hair related services and treatments. They mainly serve Haircutting, Hair spa,  hair straightening, hair smoothening, hair rebonding, and chemical works also.

They have specialization in hair works. In the haircutting section, they also work from basic to advance hair cut. Likewise, Hair colouring, highlighting, etc have come under the chemical section.

They also serve hair treatment like hair spa, dandruff treatments, treatments for damaged hair.

Do you have Hair Problems? So, read the blog Hair problems and their Treatments.

2. Beauty Salon

Skin treatment

In the beauty salon, they mainly serve skin related services.  They serve facial, cleanup, bleach, tanning massage, and also body polishing. Additionally, they provide treatments such as acne treatments, wrinkle treatments, etc.

Know The Best Skincare Products for your skin. Read this Blog.

3. Nail Salon

manicure
Woman in nail salon receiving manicure

It is established mainly for Nails related works. They serve manicure, pedicure, nail extension. They also work on Nail Art.

4. Makeover Salon

makeup by artist

It is a type of salon that focuses on makeup and styling only.  They provide services such as Bridal makeup, party makeup, hair styling, saree draping, etc by makeup artists or professionals.

5. Spa Salon

Spa salon

In the spa salon, they serve relaxation to the customers. They provide body massage, head massage, bear massage, sugar massage, etc.

Are you interested to open Day Spa Center. Read all about Spa industry in India.

Services in beauty salons

In this section, we will know about the services which serve in the beauty salons. There are different types of beauty services. Some are as follows:-

Beauty services:-

Facial, cleanup, bleach, waxing, manicure, pedicure, Tanning Facial, etc. Treatments like acne treatments & skin-related treatments are also served in this category.

Hair services:-

Haircut, hair spa, hair straightening, hair smoothening, hair rebonding, hair colouring, highlighting, etc. Treatments like dandruff treatments & hair treatments also come in this category.

Want to start a Home delivery of Beauty Services. So read the blog Beauty Service at Home Business Model.

Top Indian & international beauty salon Chains

S No.Salon NameCountry
1.Lakme salonIndia
2.Jawed Habib SalonIndia
3.VLCCIndia
4.NaturalsIndia
5.Shahnaz Herbal salonIndia
6.JCB salonFrance
7.Toni & GuyUK
8.SAKUK
9.Trufitt & HillUK
10.DessengeFrance
Top Salon chains operate in India

Growth of Salon Industry in India

It is no more hidden subject in India that the Salon industry is growing very rapidly with a huge customer base as the population is also growing.

There is a lot of potential in the Beauty salon Industry. Salon industry in India has grown about 94% between 2012-2017. In India, there are approx  8 Million salons and the growth rate of this industry will be 22-24% for the next year accordingly.

Source:- FICCI

Want Know about Cosmetic Industry Growth In India. Read this Blog also.

Beauty Salon Business Plan

To start a salon or beauty parlour firstly we need to consider some points in our mind. So,  These are as follows:-

  • Location:- The main factor for this business is a better Location where people can engage with the salon directly. We have to choose a shop at the location of the market or sometimes near the residential area.  But nowadays Mall is the first choice for the beauty salon business.
  • Experienced workers:- The most important point we have to keep in mind is to choose the best professional for the salon. Because they are the one who interacts directly with clients. People expect the best service from them and If they are not good in their work then its direct loss for your salon.
  • Relaxing Atmosphere:- The salon atmosphere should be very relaxing because clients come there for relaxation and refreshment. So, the atmosphere should not be overcrowded or noisy of your salon.
  • Best service:-The priority for beauty salon should be the best service by the use of hygiene products and cleanliness.
  •  Hygiene Products:- The product use for service should be hygiene and branded. Don’t use local products.

The market size of the salon industry in India

The market size of the Salon Industry in India is very big.  There is a rapid growth rate in this industry with a rate of 22-24%.

According to the report of KPMG, the total market size of the salon industry is ₹95,640 crore in 2018-19 and it will be more than ₹1 lakh crore in 2020.

Marketing strategy for beauty salon

Mouth publicity plays a crucial role in this business. Overall, The best and simplest marketing tool for beauty salons is satisfied customers.

Apart from this, Social media marketing, pamphlet distribution, exclusive offers, are also used as marketing tools.

Conclusion

In conclusion, the Beauty Salon Industry is one of the fastest-growing industry in India. In India, there are approximate 80-90 lakhs small and medium-size salons. You can also start your beauty salon even you don’t know any skill. You may also start your Salon with the help of Salon chains.

Frequently Asked Questions

1. How salon workers are paid?

Ans:- Salon owners pay their workers in three ways:-
1. They give them a fixed salary directly.
2. They pay a fixed salary with some incentives (10-20%)
3. They also give a 40-50% commission on the total work of the worker.

2. What are the problems faced in the Salon industry ?

Ans:- 1. Lack of professional workers:- It is so tough to find well-trained workers for salons.
2. High competition:-  The competition in this industry is so high. Even Every day new salons open that increase the competition level so fast.

3. What will be the best location to start a Salon?

Ans:- A location in the market area or a crowded area where people can easily find your shop is best for Beauty Salon business.

4. What is the Market size of Salon industry?

Ans:- the total market size of the salon industry is ₹95,640 crore in 2018-19 and it will be more than ₹1 lakh crore in 2020.

5. What is the profit Margin rate in Salon Industry?

Ans:- Profit margin for this business is so high. It can be from 50% to 80% which depends on your sell and expenses.

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