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    Market Size of Salon Industry

    Uploaded by

    Yash Goyal
    The Indian salon industry is valued at $3.5 billion as of 2016 and is growing at a CAGR of 18.6%. While most salons are small and unorganized, organized salons are growing faster at 30% compared to less than 20% for unorganized salons. On average, Indians spend only $1.5 per year on salons compared to $15 globally. Major brands like L'Oreal and Schwarzkopf have a presence in Indian salons, with L'Oreal being the top brand found across different salon profiles. Product sales make up only 10% of salon revenues on average, with only L'Oreal successfully marketing hair treatment products through salons via staff

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    Market Size of Salon Industry

    Uploaded by

    Yash Goyal
    75 views6 pages
    The Indian salon industry is valued at $3.5 billion as of 2016 and is growing at a CAGR of 18.6%. While most salons are small and unorganized, organized salons are growing faster at 30% compared to less than 20% for unorganized salons. On average, Indians spend only $1.5 per year on salons compared to $15 globally. Major brands like L'Oreal and Schwarzkopf have a presence in Indian salons, with L'Oreal being the top brand found across different salon profiles. Product sales make up only 10% of salon revenues on average, with only L'Oreal successfully marketing hair treatment products through salons via staff

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    The Indian salon industry is valued at $3.5 billion as of 2016 and is growing at a CAGR of 18.6%. While most salons are small and unorganized, organized salons are growing faster at 30% compared to less than 20% for unorganized salons. On average, Indians spend only $1.5 per year on salons compared to $15 globally. Major brands like L'Oreal and Schwarzkopf have a presence in Indian salons, with L'Oreal being the top brand found across different salon profiles. Product sales make up only 10% of salon revenues on average, with only L'Oreal successfully marketing hair treatment products through salons via staff

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    75 views6 pages

    Market Size of Salon Industry

    Uploaded by

    Yash Goyal
    The Indian salon industry is valued at $3.5 billion as of 2016 and is growing at a CAGR of 18.6%. While most salons are small and unorganized, organized salons are growing faster at 30% compared to less than 20% for unorganized salons. On average, Indians spend only $1.5 per year on salons compared to $15 globally. Major brands like L'Oreal and Schwarzkopf have a presence in Indian salons, with L'Oreal being the top brand found across different salon profiles. Product sales make up only 10% of salon revenues on average, with only L'Oreal successfully marketing hair treatment products through salons via staff

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    Market Size Of Salon Industry

    Salons
    Size
    Indias salon industry is valued Indian
    at $3.5
    Salonbillion
    Industryas of 2016
    An AC Nielsen report estimates the haircare market in
    India at Rs 3,630 crore.

    The beauty and wellness industry in India is growing at a


    CAGR of 18.6 %

    Customers are willing to pay a premium for a beauty and


    wellness experience. Spending on beauty and wellness is
    no longer considered a luxury

    For a number of organized beauty and wellness players,


    over 50 percent of their new store additions during FY
    2013 have been beyond tier 2 and 3 cities.

    About a fourth of the sector is comprised of 5,000


    franchises totalling $1 billion in value; the rest is composed
    of independent stores and small to mid-sized chains.
    Indian Salon Industry
    Indian salon industry is largely unorganized with only around 2,500 crores forming the organized segment. But
    the organized segment is expected to grow at a much higher rate of 30% compared to the unorganized segment
    which is expected to grow at a rate less than 20%.

    With more than 1.2 billion people in India, the average per person annual spending on salons is only US$1.5
    (~Rs.80) per year compared to the global average of around US$15, US$230 in the US, US$10.3 in China, and
    US$30.2 in Malaysia.
    Brands Presence

    LOrealhasproductpresenceinover168,000independentsalonsinIndiaprovidinghaircare,coloration,
    andstylingproducts.

    LOrealsMatrixproductsaremostpopularbecauseoftheiraffordableprices.

    Schwarzkopf,apartoftheHenkelGroup,ispresentinabout5,000salonsinIndia.Itstophairproducts
    includeBonacure,IgoraRoyal,Glatt,StraitTherapy,NaturalStyling,andOsis.

    Our Findings About Brands

    The most premium salons have Shcwarzkopf Products.

    Loreal is found in all types of Salon Profiles and it occupies the highest Market Share. Even though it is found
    in Salon Profiles it differentiates itself by keeping a larger range of Loreal Products in the Higher and Medium
    Profile Salons
    Product Sales

    Product sales constitute a very low part of the revenues. In fact, it is only the large parlours that engaged in product sales.
    But this too contributed to only about 10% of the revenues.But this is one aspect of the business that is seeing a gradual
    rise because of people becoming more aware and conscious of their appearance and are willing to spend more money
    for them.

    Only LOreal appears to have has managed to successfully push its product line, especially the hair treatment products
    through the beauty salons. Some of the reasons for this being exclusive sales of LOreal products in the salons, regular
    training for the salon staff

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