13 mins

HANDY MANGEARING UP FOR GROWTH

The festive season is upon us and the salon industry has its fingers crossed as it navigates new waters of changed customer sentiment and market trends. Will this season bring in the much-anticipated boom or will we have to wait out 2021? The Indian salon industry is on the brink of experiencing a neverseen-before phenomenon. Kanishka Ramchandani takes you through the factors affecting this change, and presents you with a positive perspective, forecasting a boom in business.

Vurve Signature Salon

Professional Beauty has been the sourcing partner to India’s salon industry since 2012 with exhibitions across four cities in India. Before the pre-pandemic, we witnessed phenomenal footfall leading to our exhibitors logging in enquiries and pre-booking. This trend indicated a healthy optimism towards the festive season, and a thorough preparation to cater to the increased number of clientele.

The customer sentiment generally buoyed up at the beginning of festivities, and a salon visit was in order. The salons, too, in keeping with the norms, hiked up their marketing game and offers and discounts became the order of the day. Cut to 2021, we are two years into the pandemic, in a survival slash revival mode. Amid this scenario, what does the festive season 2021 mean for salon business in India?

The second wave and the subsequent lockdown dealt a much harsher blow to the salon industry than the first one. However, the festive season is the much-needed chance that salons need to increase productivity and improve bottom-line. Festive season is a phenomenon unique to the Indian market, and the sentiments are definitely optimistic around it. Festivities generally start from August onward, gaining momentum in November and December. This translates into a steady footfall at salons across these months as grooming becomes top priority for customers.

Salons across India have been taking utmost precaution to follow COVID-19 safety guidelines, and have received an encouraging responses from customers. The increased footfall during the festive season is going to test their mettle further.

Here are a few pointers that will help them maximise on this crucial time of the year
Vurve Signature Salon

• Sanitation and hygiene: A nocompromise policy on this front will go a long way in strengthening the customer’s faith. Regular sanitization of work stations and equipment, staff in PPE kits and masks, social distancing and temperature checks are some of the parameters that should continue stringently going forward.

• By appointment only: Encourage your customers to take prior appointments to avoid overcrowding and long waiting lines.

• Festive decor: Add a swing to your salon decor with props and decoration to channel the festive vibes.

• Promotions: Use social media, mass communication such as emailers and WhatsApp and in-salon flyers/posters to create hype around festive offers and packages.

• Merchandising: Adding customised gifts and attractively packaged products is a great way to engage your customers and increase sales.

• Retail point: Make your retail counter the focal point of your reception area with eyecatching displays and decoration.

• Rewards: Reward your customers with loyalty points for their spend and referrals.

• Staff engagement: Share the good vibes of the festive season with your staff by having team activities.

• Give back: Make a donation or contribution to a social cause or volunteer your services for a greater good. Festive season is a good reason to give back to society.

• Post-sales service: Be it a service or a product, no matter what your customer is buying from you, make sure you are catering to her needs even when she is not at your doorstep. Regular calls and messages along with reminders will go a long way in maintaining relations with the customers.

TARGET MAXIMISE

Pammy Kaul

The festive season is a golden opportunity for salons to make good the losses they have suffered at the beginning of the year. It is also a key decision-maker for those who are looking at either exiting the industry or entering it. Speaking about the importance of this crucial season, Pammy Kaul, acclaimed hair, nails and beauty expert, and Founder & CEO of Headmasters Salons, says, “The coming season is critical for the brick and mortar salons. Apart from reduced consumption of services, there is an apparent new competition from home service providers and freelancers. This has reduced the traffic in stores. Furthermore, a lurking danger that a repeat surge in pandemic cases can cause immense damage.”

Although she agrees that the customer sentiment is improving, there are several challenges that salons need to overcome to make this festive season a profitable one.

Rebecca Samuel

Rebecca Samuel, Founding Partner, Vurve Signature Salon, adds, “Every year, the festive season is important for Vurve, as our anniversary falls around the same time as well. There are amazing offers running through the month for all customers during our anniversary. This year, we believe it will be extra special as customers are stepping out of their homes post vaccination and it is predicted that they will be spending with a vengeance. The gradual month-on-month increase in footfall is a welcome surprise and is an indication that the festive season will be good for us.”

Sukirti Patnaik

Sukirti Patnaik, Founder, Indulge Salons, Odisha, underscores the importance of safety this festive season. The aim is to maximise business without compromising on the safety standards or flouting the COVID-19 protocol. However, she is also aware of the shift in customer’s behaviour. She explains, “They want to see happy smiling faces and forget what their friends and families have gone through. They have accepted the new way of life.”

Vipul Chudasama

“This is an exciting time for us and also for the salon industry. We are anticipating a great response from our audience. The footfall has already increased and spending capacity is a bit higher. People no longer fear going to salons now as compared to last year, so business seems to be gradually improving,” comments Vipul Chudasama, Director, Vipul Chudasama Salon & Academy.

Renee' Melek

Adding a different perspective to the festive season is Renee' Melek, Owner, Renee' Melek Salon, “I don’t take a short term view of my business, and always aim for the long term. I prefer a client who stays with me for a long time and recommends my salon to her friends and family, and be a puller for my business. So, it is not festive season discounts or offers that offer the pull that my salon needs, but it’s my client who is the magnet factor here. Discounts will only appeal to people who are looking for cheap and quick service. Such clients are not looking for an artist, they are looking for a deal. You won’t get loyalty from clients who are with you only for discounts. Irrespective of the traditional concept of on-season (Diwali, Christmas or bridal season), I offer them the same kind of artistic services with utmost sincerity all the year round. So, no matter which festival she is celebrating or which event she is attending, my client will always come to me.”

RAPID FIRE

REBECCA SAMUEL, FOUNDING PARTNER, VURVE SIGNATURE SALON

• Most popular service: Haircut and colour

• Least popular service: Body massage

• Average ticket price per customer (off-season): Rs 3,300

• Target ticket price per customer (for the festive season): Rs 3,900

• Top selling product: Kerastase Discipline Shampoo

• ‘Discounts are the best way to lure customers during the festive season.’: Agree

SUKIRTI PATNAIK, FOUNDER, INDULGE SALONS

• Most popular service: Haircut and make-up

• Least popular service: Bleach

• Average ticket price per customer (off-season): Rs 1,000

• Target ticket price per customer (for the festive season): Rs 2,000

• Top selling product: Dermalogica and PH

• ‘Discounts are the best way to lure customers during the festive season’: Agree

PAMMY KAUL, FOUNDER & CEO, HEADMASTERS SALONS

• Most popular service: Hair cuts

• Least popular service: Body wrap

• Average ticket price per customer (off-season): Rs 1,400

• Target ticket price per customer (for the festive season): Rs 1,300

• ‘Discounts are the best way to lure customers during the festive season’: Depends. Give value for money.

Vipul Chudasama Salon & Academy Reaching out

REACHING OUT

Each salon has a tried and tested formula for offers and discounts. While customers appreciate popular services being clubbed under attractive packages at good prices, they are always on a lookout for discounts. Salon owners are divided on the question of discounts as it tends to dilute the efforts on one front and lead to unhealthy competition on the other front. The kind of offers that a salon has to offer largely depends on the catchment area and customers’ preferences.

While offers and discounts around the festive season were the order of the day in the past, today’s scenario calls for a change in approach. Well-thought out packages are more in trend than flat out discounts. Customers are keen on value for money services now more than ever. Kaul suggests holistic packages for the whole family as part of the festive season strategy.

Thumb rule of marketing – speak where you are sure to get heard. Today’s customers, no matter their age, gender and preferences, are all on social media. It is a powerful and pocket-friendly tool for you to reach out to your target audience. Maximising on the social media impact, influencing your followers, providing them with information they can use and offering them special perks are some of the ways in which you can engage your customers online. When asked about which digital platforms she would prefer to use, Kaul says, “Both Google adwords and Instagram will be used to drive traffic to the salons.”

In terms of staff engagement, Kaul has put in place a performance linked compensation plan for her team members. This helps them have steady goals and keeps them motivated. She believes this is the way forward for the industry as well.

Samuel expounds, “We have already begun reaching out to our customers about all our offers on social media, print campaigns, SMS and in-salon communication. Vurve has always been at the forefront when it comes to digital marketing. All our offers and plans have been a huge hit digitally and we will continue to use this forum to reach out to our customers and followers on all types of digital media.”

Patnaik has lined up combo offers for her clients at Indulge Salons. There will be different offers as per the festival to allow customers to take maximum benefit of the services. Additionally, she also intends to have a lucky draw at the salons to keep the customer interest piqued. Patnaik explains, “Today, digital platforms are the most effective and cost-friendly way of marketing.

We intend to train our managers to use it more effectively for each salon.”

In terms of staff management, Sukirit says, “Yes, we incentivise them with our annual awards and picnic. They all look forward to staying at a five star hotel.”

Chudasama adds, “We have always reached out to our customers via social media, whether it is the festive season or otherwise, and for us it is wonderful. We receive 90 per cent of our clients from social media as they can see our work there. The majority of our clients are coming to us through Instagram as well as word of mouth. Insta has been a great medium for us to reach out to people, and we also have festive offers running where consumers can come and experience our services for prices as per their comfort level. Digital platforms and social media channels are an essential ingredient for any modern company. We strategise several promotions to engage with new consumers.”

FESTIVITIES

• Ganpati

• Navratri

• Dussehra

• Karva Chauth

• Dhanteras

• Diwali

• Bhai Dooj

• Tulsi Vivah

• Christmas

• New Year

POPULAR SERVICES

• Hair colour

• Hair straightening, rebonding

• Protein, deep conditioning, keratin treatments

• Anti-dandruff, scalp treatments

• Facials

• Medi-facials

• Waxing and threading

• Manicure and pedicure

• Gel nails and nail art

• Full body massages

Vipul Chudasama Salon & Academy
Headmasters Salons
Vipul Chudasama Salon & Academy

RALLYING FOR RETAIL

The retail sales share of a salon has considerably increased, especially after the lockdown of 2020. However it is proving to be increasingly difficult to maintain the momentum. As Kaul points out, “Retail sales is a challenge in salons, because brand owners are selling professional hair and beauty products from online platforms. Customers end up buying more from the online channels.”

Patnaik believes that making the customer more aware is the key to increasing retail sales. Informing them about counterfeits and low-quality products and the hazards of using duplicate products will go a long way in improving retail sales. She added, “Educating the client about home care is important. We give out samples to help them make an informed decision.”

Vipul Chudasama Salon & Academy

RETAIL OVERVIEW

As per the retail business survey by the Retailers Association of India (RAI), which was published by a leading newspaper, “Retail businesses in the North and the South of India have indicated sales nearing recovery in August 2021 with sales at 98 per cent and 97 per cent respectively, of the pre-pandemic levels (August 2019), as against 78 per cent (North India) and 82 per cent (South India) sales in July 2021.”

Similarly, the sales in western and eastern markets reached 76 per cent and 81 per cent of pre-pandemic levels (August 2019). The figure stood at 57 per cent and 69 per cent, respectively, in July 2021. “However, beauty and wellness, which includes salons, apparel, footwear and jewellery, are yet to catch up to the pre-pandemic levels of sales. The overall industry sentiment will improve when the clothing and accessories category shows growth,” the report stated.

Headmasters Salon

HIGH ON OPTIMISM

In spite of the many hurdles that each salon owner has to overcome to have a successful year, this festive season holds a lot of potential. “I am hoping all the segments - hair, skin and make-up - will do well this season. It’s only when all segments do well that the business will be sustainable in the long run.”

Samuel continues, “We have noticed that customers have gradually begun to step out. We feel that although the salon industry received negative publicity post Covid, clients continued to visit and support those brands that took an effort to follow all the Covid rules and norms. They are still concerned about hygiene and safety precautions and I think we need to live with this sentiment for a while.”

Patnaik is expecting the hair and skin segments to do well during the festive season. She believes that innovation and education hold the key to a successful and profitable season for salon owners.

Chudasama sheds light on an important aspect of consumer behaviour: “Since the last two months, we have not seen any sentiment from the customer's side indicating fear of COVID or its symptoms. While predictions about the third wave are running high, we do not see any signs of that, which is again a positive sign. It is evident that people are open to spending money, traveling and visiting salons.” He concludes, “Initially, they asked so many questions about hygiene, health, and safety, but since the last two months, we don't see that apprehension any more. Having said that, we do take all the necessary precautions such as mandatory masks, COVID consent forms, sanitising our equipment and surface, before we take the client into the salon.”

In spite of the heavy strain on business that salon owners have experienced earlier this year, they are investing their best efforts to make the festive season a success.

This goes to show that while we are not entirely free of uncertainty, this festive season, there is hope in the air. Salon owners have made the COVID-19 safety protocol a way of life and integrated the same in their processes. In spite of the heavy strain on business that they experienced earlier this year, they are still at the grind, and are investing their best efforts to make the festive season a success. We at PBHJ wish them a rocking festive season in 2021!

This article appears in the Oct-Nov 2021 Issue of Professional Beauty/ Hairdressers Journal India

Click here to view the article in the magazine.
To view other articles in this issue Click here.
If you would like to view other issues of Professional Beauty/ Hairdressers Journal India, you can see the full archive here.

COPIED
This article appears in the Oct-Nov 2021 Issue of Professional Beauty/ Hairdressers Journal India