The Franchise Factor

With the Professional Beauty Delhi Expo 2022 adding a business pavilion dedicated to the franchise business, we take a closer look at the changing face of salon business and the role franchising plays in the current scenario.

The franchise business model has been successfully adapted in India since the last two decades. According to OpportunityIndia.com, “The popularity of franchising business models in India can be seen by the fact that the franchised businesses have captured a market size of $7.2 billion with an annual growth rate of 30 per cent. While the pandemic caused a dip in business, the following revival has been positive for franchises as it has been to standalone and chain salons. The first franchise format of salons dates back to the ’70s when Shahnaz Husain initiated the concept. Since then franchising has been explored in depth by beauty entrepreneurs and various models have emerged to support it. Come 2022 and we are looking forward to franchising in every aspect of the beauty business - be it salons and spas, academies or distribution.

Top notch names

In the Indian beauty industry, the customer preferences are varied, and this has resulted in multiple categories of salons mushrooming across the length and breadth of our country. While the concentration of salons is mostly in the metros, tier I,II and III cities are fast catching up, too. Luxury and premium brands are exploring satellite cities and townships to expand their horizons. Given the labour and time-intensive nature of the business, for any brand looking for expansion has to eventually consider the franchise model of business. Apart from Shahnaz Husain, Naturals Salons is another brand that has changed the franchise business in the beauty circles. Before the lockdown in 2020, when Naturals completed 20 years in the business, they had around 650 doors in India and abroad.

The owners CK Kumaravel and his wife Veena have always encouraged women entrepreneurs to take up the opportunity provided by the franchise model to become financially independent.

While the Kumarvels and Husain have risen from the ranks of solopreneurs, a successful corporate name in the franchise arena is that of Lakmé. Lakmé Lever Pvt. Ltd (Lakmé Lever) is a 100 per cent subsidiary of Hindustan Unilever Ltd. It operates the chain of Lakmé Salons that has a footprint of over 450+ doors across 160 cities in India. The 150 + entrepreneurs who have partnered with Lakmé Lever as franchisees to own Lakmé Salons are provided with a comprehensive franchisee support model, while a master franchisee and multi-store franchisee are provided special support and benefits. Lakmé Salon franchise stores have access to education through Lakmé Lever’s alliance with Aptech; the Lakmé repertoire of products, runway trends courtesy Lakmé Fashion Week and much more.

Pragmatic approach

The reason why franchise salons work is the sound structure that’s at its foundation. What really works in its favour is the fact that it opens doors for entrepreneurs not experienced in the beauty field to also venture into it. The salon business is no longer the prerogative of hairdressers and beauty therapists.

Businesspeople, entrepreneurs, solopreneurs and corporate houses can also partake in it, thanks to the franchise model.

Reasons why the franchise model benefits salon owners:

1. Brand name: Franchisees are established brand names with a tried and tested marketing, social media and advertising strategy in place. As a franchisor, you get the advantage of being associated with a brand that is already wellrecognised and sought after. The brand name brings with it brand recall, awareness and a loyal customer base.

2. Success rate: A franchise model has a higher success rate and that’s a no-brainer as you have success stories of your predecessors to draw from. Moreover, the franchisor has a well-oiled system in place that you need to adapt to get into the business.

3. Cost-effective: A franchise model is more cost effective than starting your own salon from scratch. The costs of a startup outweigh the franchise fee and royalty. Franchising also allows you better options to scale up your business.

4. Support system: With a franchisor to back you up, you always have a support system behind you, to guide and help you. As your acceptance as a franchise is based on predefined parameters, your set-up is already in place when you start a franchise.

Does that mean it’s always bright and sunny in franchise-ville? That’s not what we are implying at all. The franchise model is after all a business model and like any other business it is likely to have its own set of challenges that includes technology, labour, investment, real estate/ rentals, etc.

Vandana Bhardwaj, Managing Director and Spokesperson, Marie Claire Paris Salons, said, “Every beauty professional seeks out a brand such as Marie Claire as the brand denotes quality, high standards and professionalism. Moreover sustainability and goodwill of the brand are top notch priorities for Marie Claire franchisees.

The main challenge we face is to maintain the quality of the brand and to sustain the business, and make it a winwin for our franchisees as well as for our customers.”

At close quarters

Headmasters Salon, established in 2002, is known for its high quality service standards in the city of Chandigarh.

Today, the brand has expanded to other cities in North India, using a franchise model, and owns a premium chain of 20 salons. The brand is now looking at expanding in other parts of the country, and is interested in partnering with entrepreneurs and companies who are ambitious to make it big in the industry. Taking us through his journey, Sukhi Gill, Owner, Headmasters Salon, said, “I started with Headmasters Salon as a franchisee in 2014 at Jalandhar. Choosing the Headmasters franchise was a great decision. The salon started making profits from the first month and profits are growing year on year. After the quick success as a franchisee, I further expanded to Patiala and also invested as a partner in a companyowned outlet in Ludhiana. Later, I got the opportunity to take over the brand Headmasters in 2020, and today my company is operating at nine locations as a salon and at two locations as an academy. Plus, the brand has twelve salon franchises and two academy franchises.”

“Choosing a reputed brand name like Headmasters brought organic footfall from day one, resulting in great margins,” he added.

Academically inclined LTA School of Beauty is all set to take the franchise highway. The Academy will be present at the Franchise Pavilion at Professional Beauty Delhi to meet beauty entrepreneurs who are interested in taking the torch of education forward. Biju Nair, Executive Director, LTA School of Beauty, said, “LTA is now reaching out to likeminded prospective partners whom we could collaborate with and set up high quality training centres across India.

I look forward to our presence at the Professional Beauty Expo. I would like to meet those who are interested in genuine quality training for beauty, hair, make-up and nail art, and also international quality certificates from CIDESCO, Switzerland; VDCT, UK; and Pivot Point, USA.”

The franchise model is predicted to grow exponentially in the years to come, giving the Indian beauty industry worthy entrepreneurs who will take the ‘Make in India’ dream ahead. Visit us at the Franchise Pavilion at the Professional Beauty Delhi Expo to know more about franchising opportunities. PBHJ