&

Present

INDIAN SALON
Awards

CONGRESS 2012
National Convention on Business of Salon

INDIAN SALON

AWARDS 2012
National Awards on Excellence in Salon

March 21 & 22, 2012, Hotel Claridges, Surajkund, Delhi

Conference Exhibition

Business of Beauty, Growing in Bounty

Scale is the way forward for the business of beauty

Gaurav Marya President, Franchise India Holdings Limited

growth or corporations who are investing tremendous amounts of money in promotions for salons designed to increase their market share. Equipment manufacturers too estimate business growth anywhere from 30 per cent to 50 per cent over the next few years. What is most significant about the salon industry demographics is that it contains one of the highest service-based spending groups - a combination of the older generation as well as the maturing generation. Just as with any good investment portfolio, diversification is a vital component to a strong service-retail mix for the salon industry. Today salons see the need to evolve as overall wellness centre beyond the traditional role of helping people clean up to offering full-on spa services. In addition, one of the most profitable opportunities for expansion is the addition of private labels to the retail product mix that can, if marketed right even give salon operators a chance to attract new customers. Taking note of this robust growth, and in lieu of matching up with the international counterparts the time is ripe for the industry to come together and deliberate on these pertinent points of getting in finances, retaining skilled personnel, bringing in standardisation in processes, creating quality consistency via policy intervention and more through the course of this two day comprehensive conference. I welcome you all aboard to be a part of the Salon Congress, and be a change agent by varying your perception about the business of looking good.

oday, India is enjoying unparalleled prosperity. When it comes to service-based businesses such as beauty salons, one of the main criteria to a growing industry is how the economy is faring overall. At no time in memory have Indians felt more optimistic about the future and with good reason. We can look back at the last decade as one of the brightest decades in memory and look forward to a future perhaps even more luminous. What has this meant for the salon industry? Over the past 5 years the organised salon industry is growing at 30 per cent rate, against the industry average of 25 per cent. Today, the Indian beauty products and services industry is pegged at Rs 13,200 crore. The real sign of health in an industry is when it begins to grow from within and today more than 60 percent of the growth in the Salon industry is coming from within the industry itself. In other words, 60 percent of the new salons are current salon owners either expanding or opening another location. There is a complete transformation in the attitude of salon owners who are entering the market. Either they are professional entrepreneurs looking for long-term

It is given that the next chain salon will slowly but surely capture the market share of the typical neighbourhood mom & pop beauty parlour. The time calls for the salon owners to rethink their business strategy, which would now be the difference between their growth, survival or imperishment. It is time for you to trade smaller tasks for bigger accomplishments and pave your way to become the next salon business conglomerate.

Inaugural session 21st March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 1

Beauty forecast 2012

Changing paradigm of Indian beauty services
Cosmetic Appliances & Equipments Sanitary & Hardware Training Spa

`
Beauty Treatments Private Label Location Financing

Insights into the personal care market: Spotting trends for 2012 The immediate, short, and long term horizon of your business growth Regulatory environment - standards and regulations in beauty services Going International - Understanding the regulatory challenges when reaching for international markets Which global markets are the hot spots for beauty?

Salon industry overview

Era of fast moving consumable beauty services Magnanimous growth graph
The beauty services consumption is soaring higher and higher with each passing day and creating growth records with each passing year. The organised beauty segment is amplifying at 30 per cent per annum, and salons stand at the realm of this growth wave, riding on high opportunity and even higher scope for growth and diversification in the field of beauty services. Industry estimates peg the salon

market at Rs 6,900 crore, which includes both services and the value of professional care products retailed through salons. Yet, cutting through the clutter will not be easy as the salon space is highly fragmented. According to industry estimates, the organised and semiorganised beauty services industry alone account for about Rs 1,600- Rs 1,800 crore, and major stake lies with the unorganised players.

Trend watch

` 98500

` 13200cr
Overall Beauty Industry

Branded players changing beauty landscape

2012 stands as a year that will lead change through the beauty services business. The growth of the organised section is catapulting the industry towards a greater paradigm shift. Driving this growth wave are big national and international cosmetic companies that have ventured into the salon business and expanded their business boundaries to be a part of the beauty services industry.

` 29800 ` 6900
2012 2015 2020

` 2000
2005

Beauty Services

` 6900cr

(Value in Crore)

Consumption trends
Paramount beauty spending

Consumers are growing affluent and aspiration driven. With more easily disposable income at hand, they are spending more on how they look.

There has always been a distinct premium attached to looking and feeling good, the desire to be attractive has never seen a recession, keeping the salon and beauty industry recession proof. The concept of grooming and beauty is only evolving with time and hence it is not surprising that both men and women are seeking the services of beauticians and hairstylists for enhancing their appearances. It is this innate aspect of the industry that has kept the consumer spends growing higher than ever before.

Trend watch

` 1,500-2,000
is average consumer spend in an organised parlour/salon

` 500
is average spend in local/unorganised salons

Women in the age group of 30 and above have more cash and spend more on how they look Eighty-fold jump in growth in the consumption of beauty products and services Five times increase in spend on skin and hair care by average Indian male Market spend to grow from $1.2 per capita today to $5 by 2015

2nd session 21st March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 1

Male teenagers Expenditure Per month on cosmetics

Mapping consumption trends

An Aware Consumer Base What women want Paradigm shift in the male consumption pattern Why brand loyalty starts young Growing consumer awareness accredited to media exposure Consumption majorly aspiration driven Demand for more variable and multiple service formats

` 3000-4000
Cosmetic/skin care audience today

40 % Male

`1000
Year 2000 Year 2011

60% Female

Extending business
Widen customer reach and riches

Forward and backward integration of services helps expand customer base and has a positive recurring effect on the revenue and returns on tangible assets.

The Indian beauty services market is trapped between high infrastructure and real estate costs, and a price and value conscious consumer. Thus, to make a successfully platter of services, which will render customer satisfaction as well as profitability in business venture, it is important for every salon operator to device his own profitable business format. This can be done by foraying into ancillary products and service manufacturing, or creating and working on multiple beauty services models in a chain salon format.

Trend watch

30%
growth in business of private labels cosmetics

Very few salon operators have succeeded in establishing formal training institutes in India Private labels offer better margins; a winwin solution to both retailers and end consumers Majority of salon operators, extend business scope to offer spa services and vice versa Only few premium salon operators succeed to establish cosmetics private label Most of the salons offer on the job training and charge the person for the same

Retail cosmetic sales

80%

3rd session 21st March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 1

Growing the pie

20%
Indian Private Labels National & International cosmetics brand

Backward and Forward Integration of Services Combining beauty services with beauty treatments Doing the full cycle the hair salon, nail salon, beauty salon and day spa business Create a niche service in-house Combining a beauty training school

4th session 21st March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 1

Creating service perfection

Personnel training for beauty services The reception protocol: Why salon receptionists need to be more than mere secretaries? Why is there shortfall of trained personnel for spa and salon services? Filling the skill gap by on-the-job training Tough task of retaining trained manpower Creating training standards and modules for uniformity of services

Training for services

Absorbing from the latent talent pool

A loyal staff member is essentially more valuable than a loyal customer because it is ultimately the loyal staff member who creates the loyal customer.

The Indian salon industry has long been plagued by the lack of organised training institutes, training standards and a motivating remuneration system, leading to a huge gap in the required and available manpower to render services to the beauty industry. But the situation is now changing, with the advent of branded players, who are getting in their private label in the products as well as the training space.

Trend watch

500 haircuts
Minimum experience required to be classified as trained personnel for job at a branded salon

Manpower demands to go up by

20% per annum

Shortage of skilled talent stands as major price point hurdle Major players set up their own training institutes, charge them for the training and absorb them The larger challenge is talent retention after training, as staff prefers to set up their own salons after a few years of experience 6,00,000 skilled personnel falling short in the present growth scenario

People in beauty industry

Required 3 Million

1 Million

2011

2022

Sprawling spa business

A new player in the growing business of beauty services

The overall beauty services industry is growing rapidly in India. The spa segment in India is also attracting a lot of attention with the growing affluence in major cities.

The spa business stands as a new entrant in the beauty services industry in India. The growth drivers stand beyond the spa horizon in India and the growth lies beyond the number of spas; numbers are churned to include the diverse forms of spas, as well as spa products available. The future of spas lies with this integration of spa services with a wellness or beauty service concept. The Indian spa industry is plagued by high real estate and infrastructure costs, and also needs standardisation to cover lack of licensing regulations and formal training.

5th session 21st March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 1

Extend to spa business

Expand the niche service The case for spa and salon Creating the mix of training personnel in-house and external experts Revenue model - Is it worth it? Working on multiple spa formats to positioning beyond luxury- day spas, mobile spas and more Realising profits in value based Indian markets

Trend watch

70%
of spas in India run by local brands

3 out of 10
individuals from affluent setups visit a spa every month $ 80 billion global spa industry market share- Indian market very small 3,000 spas across three broad formatsDay Spas, Med-Spas & Destination Spas Spa treatment in India sold at one-third of an average spa treatment in the US Increasing cost of spa personnel Vs low cost of services in the Indian market
2009 2011

Spa market share in India

$ 384 million

$ 460 million

1st session 22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 2

In Salon retailing
Bundling Products With Services Innovative strategies and methods for cross selling Selling at Salons via product camps and point of sales Product aesthetics: Packaging and marketing to boost sales Sponsoring services and treatments to create brand prominence Training personnel to share product benefits and features

Economics of retailing for salons

Products vs Services

product and service consumptions that a salon operator needs to micromanage in order to build customer as well as revenue base. As the service stands at the major expectant and differentiator, its the products that render the revenue advantage in an economic ecosystem where the organised and unorganised players are battling on the same field. Leading organised players have expanded by 100 per cent and are further scaling up Local players will hold prominence, considering low entry barriers Professional product range earns more margins Local unorganised salons stand reliable for simple services but not preferred by customers for more complicated procedures High rate of conversation from unorganised to organised salons Major brands also retailing via salon outlets and sponsoring services to create brand prominence

Hair colouring industry (cumulative sum of services & retailing through service outlets)

2000 cr

With growing consumer aspiration and exposure, their beauty expectations are widening, and so are product and service challenges faced by a salon operator.
Services and products are essentially the two major functionalities rendering their support in the successful operation of a salon business. There are wide areas of

650 cr

2005

2012

2nd session 22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 2

Ace locales
Positioning for higher ROI Call of the mall Choosing apt location to increase footfall The new age salon design Real estate ROI - neighbourhood Vs high-street How to maintain location and design symmetry to create brand identity across salon chain

Location aesthetics
Looking good starts from here

Location is a differentiator only for up-market salons, those concentrating on mass consumption find maximum footfall within populated neighbourhoods.

Location is important for a salon, as it builds up consumer aspiration, but it cannot be valued as high as it would be for an apparel store. The most preferred location remains a high density residential area and the next is a high street. Malls are least preferred, for a customer needs to be in a comfort zone when visiting a parlour. Going to a mall would require getting ready and looking presentable, which one might not want to do if one is going to a parlour. The next crucial differentiator is the salon design. The salon interiors has to be build to add aesthetics value as well as render maintenance convenience.

Trend watch
Ideal retail/rental cost should not be more than

35% of the earnings

At a high street area, the ideal retail cost is 28-30 per cent and for a high density residential area, it is

High street Vs Neighbourhood Vs Mall Store rental per cent with regard to revenue

22%
Rentals in a mall remain very high so that adds to it not being a preferred choice A parlour does well on a first floor also because what is important in a salon location is convenience of reach Door-to-door service cannot be organised or consolidated by branded players Operational hassles in door-to-door services include tracking personnel visiting, products, services offered, payment received, etc

35-40% 30% 22%

Unisex SALON
High Street Neighbourhood Malls

Procurement and VRM

For uninterrupted growth

Partnering with apt suppliers for equipments and products will help build revenue, as it is a major investment in the business of beauty services.

The salon industry has doubled in the last five years, and so has the need for standard equipment suppliers and manufacturers. When it comes to products, international brands are preferred, but for equipments, the preference lies with indigenous and Chinese brands. Though Chinese products are not very durable or reliable, they are very cheap and offer a wide variety. The Indian equipment manufacturing industry is highly fragmented; there are a few big players and mainly small regional players. A salon prefers a player from his region due to constant servicing requirement for these equipments.

Trend watch
Salon services equipment market size is 3rd session 22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 2

` 300 crore
5-10 salons
opening everyday all over India Industry has doubled in the last five years 3-4 manufactures in North, 4-5 in South; West has the maximum number of 15-16 manufactures and rest are all importers The set up cost for a salon, depending on the size/area can be anywhere between Rs 3 lakh and Rs 40 lakh

Rules for vendor management

Partner for imperative growth How to vendor alliances help pocket more revenue Maintaining service quality via consistent product supplies Partnering with main suppliers for equipments and products- National vendors Vs local vendors Vendor selection technique imperative for growth Economic value addition opportunity with vendors Efficient resource management

The industry split

Indian high-end imports (German & Italian)

20%

20% 60%

Chinese imported equipments

Scaling for growth

Growing leaps and bounds

Franchising is witnessing robust growth in the salon and beauty services industry because it is a skill-based business concept offering easy replication.

The second factor leading major players towards the franchise route is that it does not involve giving away equity. In addition, brand building and market penetration can be done at no additional cost. When opening a franchised outlet, the cost to a franchisor can be reduced to one-third. Another very important development, which is leading many home grown brands towards franchising, is that it offers an easy way out to the international markets. Also, with the opening up of international markets the industry has witnessed upsurge in international tie-ups leading to expansion of national brands abroad.

Trend watch

11-15%
growth in franchising of salon brands An additional profit of

Franchising can enable them to go international by developing a standardised model for future market dynamics The beauty industry is increasingly taking up franchising as a mode of expansion, especially for the untapped markets In a span of 3-4 years, almost 20-25 per cent of the organised beauty industry would be franchised

10-15%

can be easily realised from a franchised outlet Franchised salon and spa brands experience a growth of

70-80%

in the number of outlets

4th session 22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 2

Accelerating growth
Via Strategic Partnerships Crossover from salon to beauty treatments technology opportunities from external sources through partnerships Franchising for scaling-up: Survival of multi-chain salons Licensing to bring international brands to home ground Partnering challenges for startups and entrepreneurs

5th session 22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 2

Marketing 2.0
Reinforcing Your Brand Image The dilemma of marketing to two generations at once How national publicity builds credibility and regional media sells The digital age: New media for reaching new markets Levelling up with social media Selling through PR: A different approach to traditional (print & electronic) media

New age marketing

Going via social media and discount sites

Discount sites and social media are the new age marketing tools at the hands of the salon operator, which offer greater penetration at minimal cost.

Indian consumers consumption pattern is strongly driven by value offering and word of mouth publicity, hence social media and discount sites are paramount marketing tools for this sector. Social media networks and sites help in developing indirect promotion and help the business operator connect with the customer in real time. Discount sites, increase footfall and help retain customers. But the virtual worlds connect also comes with a price negative publicity spreads faster than service praise.

Trend watch

26%
deals listed on discount sites are spa and beauty services related Hair and skin care services discount up to

50-60%
Deals listed on the web

26% 20% 18% 15%

Traditional media still holds strong with a huge presence of direct marketing and print ads Deals and discount sites help create must-have value offers for customers and build prominence Social media helps map mass media marketing success across formats Spas offer, on an average, 70-85 per cent discounts Nail services account for only 2 per cent of the beauty services deals

13%

10%
Others

Beauty Services

Dental Restaurants Mobile & Fashion & & Health Accessories Lifestyle Services

The PE power
Bringing in the investor

Powered by growing consumer demand, salon and spa businesses are cutting their way into Dalal Street and grabbing the attention of investors.

Factors attracting equity investors towards the beauty services is the large scattered industry, which offers multiple services and exists in multiple business formats. Because of their unorganised existence, the beauty service providers offer scope for scale. Further to it is a fact that the Indian beauty services industry is riding on a growth wave, hence the scalable business model will naturally offer high return on investment. Another factor layering the risk of investment is that the beauty industry is unaffected by recession.

6th session 22nd March 2012, Hotel Claridges, Surajkund, New Delhi

Session brief: Day 2

Know the money players

Investors bringing scale Creating a scalable business model with high return on investment How to best market your company through various stages of a transaction Insights to select the best partner and the post-closing relationship between a company and investor

Trend watch
2009 Outset of PE investment in the salon and spa industry, with maximum investment of 2011 One of the major players, after accruing 32 per cent, returns files for

Rs 20 crore
in a single deal

Rs 60 crore
IPO, showing the robust growth and scalability of the salon and beauty services industry 2012 Many others following suit, by buying back shares from promoters and strategising for an

2010 The PE trend grows on, with multiple small scaled equity investments ranging between Rs 210 crore, and the maximum being

Rs 47 crore
These investments helped local players to expand on a national base

IPO

Salon Enterprise Awards

&
Present

Standalone Salon of the Year - North/South/East/West

A salon which has developed a unique and innovative culture, team, systems and strategies that make it a highly successful business venture.

brand image, marketing and promotional which plays active role in customer acquisition and retention.

INDIAN SALON

Customer Service Excellence Award

This award is aimed at the person responsible for ensuring all aspects of client care are accommodated, and how they monitor and develop this aspect of service excellence for the business.

Salon Chain of the Year (National)

A multi-salon chain, developed under a single brand name which has developed a unique and innovative culture, team, systems and strategies that make it a highly successful business venture.

AWARDS 2012
National Awards on Excellence in Salon

Franchise Salon Owner of the Year

The award is for an individual who show great business acumen, by developing their existing franchise and also continually improving strategy to achieve future success and growth.

March 21, 2012, Hotel Claridges, Surajkund, Delhi

These are for the category leaders who enjoy the largest market share within their category and are also leading innovation for the growth of their respective market category.

Debutant Salon of the Year

A salon business entity having commenced its operations not more than a year ago (till March 2012)

Salon of the Year Aesthetic Design

A salon or a chain of salon standing out for its design and creating feel that appeals to the consumers.

Entrepreneurial Excellence Award for Salon Leadership

This award recognizes the entrepreneurial leadership style of the business owner/s related to the well-being and satisfaction of their employees. The key considerations include an assessment of their internal systems.

New Creative Force of the Year

Aimed a successful stylist/salon, who has achieved both professional and creative recognition in the beauty services industry.

Lifetime Achievement Award

This coveted award recognises the salon owners / professional who has achieved extraordinary success through managerial innovation, entrepreneurship, and has contributed significantly to the overall growth of the beauty services industry in India.

Salon Marketer of the Year

This award recognizes the external management of the business in regard to

Spa Service Awards

Best Destination/Resort Spa
An award recognising the best resort or destination spa of the nation, know for quality, consistency and service experience.

Premium Supplier Awards

Most Preferred Equipments Supplier for Salon Industry
Salon equipment and tools supplier company which has maximum client base in India, thus rendering standardization to salon systems and services.

Retail Excellence Awards

Salon Retailer for Professional Products Range
Salon-chain known for housing a retail range of popular professional rage of cosmetics in-house, and adding big numbers to the products sale count

Best Day Spa

Most coveted Day-spa, can be a part of a five star hotel, high-end salon, or even a stand alone spa, operating in a compact all-day format.

Best Technology Supplier for Salons

Aimed at the technology supplier/IT company has developed unique technological interventions to improve the various aspects of running a salon profitably.

Professional Cosmetic Brand Retailed Via Salons

A professional range of cosmetics, sold most popularly via salon outlets

Spa Chain of the Year

A multi-spa chain, developed under a single brand name which has developed a unique and innovative culture, team, systems and strategies that make it a highly successful business venture.

Best Creative Resource Supplier of the Year

Training school/ beauty institute churning out the best beauty professional in India.

Most Preferred Indian Private Label for Cosmetics (Professional Range)

An Indian Private Label - holding prominence as a professional cosmetic range and also having the largest market share amongst other players.

Most Admired Salon & Spa Consultant

A Consultant/ consultancy company having a record of setting up maximum number of successful and profitable spas and salons across India by sharing business acumen.

Organized by

For registration & more information call:

Call Amio +91 9312687253 Mail at kamio@franchiseindia.com

Payment method
Option 1: Cheque / Demand Draft drawn in favour of Franchise India Holdings Ltd payable at par and to be sent to 4th & 5th Floor, Charmwood Plaza, Eros Garden, Charmwood Village, Surajkund Road, Faridabad - 121009 Option 2: Wire transfer For account details, please contact the above. Option 3: Online payment www.franchiseindia.com/payment-gateway.php

Exhibition
The expo will be a showcase & branding opportunity for your product or services operating in the beauty service industry, to connect with salon and spa operators and beauty allied industries.

Conference registration fees

Regular Package: Rs. 15,000* per delegate Premium Package: Rs. 20,000* per delegate (includes networking dinner on March 21, 2012)
*inclusive of taxes

&
Present

INDIAN SALON
Awards

CONGRESS 2012
National Convention on Business of Salon

INDIAN SALON

AWARDS 2012
National Awards on Excellence in Salon

March 21 & 22, 2012, Hotel Claridges, Surajkund, Delhi

Conference Exhibition

Visit: www.franchiseindia.com/salon | SMS salon to 5667779

Conference Delegation Call Amio +91 9312687253
Mail at kamio@franchiseindia.com

Awards Nominations Call Neha +91 9310055559

Mail at awards@franchiseindia.com

Exhibition / Sponsorship Call Neeta +91 9311144600

Mail at contact@franchiseindia.com

Call Prakash +91 9323968158 Mail at mumbai@franchiseindia.com

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