AGE OF DIGITAL distribution

Technology is the way forward for the salon industry. One way to integrate it into salon operations is by streamlining your procurement processes. Ayush Ahuja, Co-Founder, Zalon, gives Kanishka Ramchandani a lowdown on how a digitalised B2B procurement platform can help salons do better business.

Inventory management is a real challenge for salons, especially small and mid-sized ones, as they lack adequate manpower. The Indian salon sector has been slow in adopting technology to automate back-end processes. But all that is about to change. Digitalisation is inevitable and there are tech-based start-ups such as Zalon that are leading innovation on this front.

Zalon is a digital platform for B2B procurement for salons in India. Zalon brings together salon owners and service providers, addressing procurement challenges and revolutionising the way salons operate in the digital age.

Ayush Ahuja, Co-Founder, Zalon, answers our questions about his venture.

What is the idea behind Zalon?

Post-COVID, we were looking at the world in the new normal and several changes came to our notice.

Emergence of social media, women workforce, increased awareness about appearances, men’s grooming, celebrities and influencers, opening up of global markets, information on your fingertips, rise of GenZ and much more.

Reports about the personal care and beauty markets were encouraging, with analysts such as KPMG and McKinsey predicting 10 per cent growth rate year-on-year.

But when we started looking at the industry, we realised that there were many gaps. Demand was not an issue because the market is huge. So, it all boiled down to the kind of workflows salons are using. The processes are old-fashioned, like paper-based ordering system, and there is no access to modern software. So, the salon owners end up contacting different suppliers for different products and use up their weekly day off placing orders in-person with their suppliers. So, procurement, software and training are the major pain points. I partnered with Sunil who comes from a software background and we started building a digital platform that would replace manual processes for salons. We decided to create an application that would positively benefit different participants in the salon’s supply chain. That’s how Zalon was created!

How does Zalon work?

It’s a B2B procurement application designed to be used only by salon owners. We have started with Gurgaon and have 300 salons on-board. All they need to do is log in and look at the product offerings. We have a warehouse in Gurgaon where we house an extensive inventory that’s sourced directly from brands or authorised dealers. So, the salon owners can buy products directly from the application as it works just like an e-commerce website or app. They can also find deals, offers and promotions on Zalon.

By bringing multiple brands and their products on a single platform, we make sourcing easy for salon owners and cut out the step wherein they have to meet multiple vendors.

Our USP is that all the products are authentic as duplicate products are the biggest problem that both brands and salons have to face. We provide authenticity certificate for all the products. We never buy any products without bills and always with GST, including non-branded items like disposables, head steamers, etc.

Don’t authorised distributors see you as competition?

Right now, our volumes are not so high. Few manufacturers have already identified us as digital distributor and have given us distribution rights. So, we are a digital distribution partner for them. It will take us time to earn the trust of salon owners. As they are following old methods of procurement, they don’t care even if the products are fake. That is what we’re trying to solve here by digitising the whole beauty industry.

How do you tackle the issue of credit that brands and distributors can offer?

With modern technology, we have options like ‘buy now, pay later’(BNPL) companies as third-party apps. We will eventually start extending 15- or 20-day credit to salons based on their buying and payment history as soon as our integration with BNPL companies is complete.

What challenges do you face in managing an inventory at your warehouse?

Technology definitely helps a lot in this. Data analytics helps us plan our inventory and make intelligent decisions on how much to order. Seasonality also comes into the picture. In summertime, we get ready with items such as wax, wax heaters, etc. Similarly, we will do for festive season like Diwali and the bridal season. How do you manage the logistics?

We have hired a new in-house team, and our point-ofcontact reaches every door. But we as our reach expands, we will integrate a third party, too, which is a last man delivery company. We have put strong SOPs in place for inventory management and auditing.

The salon industry is new for us, and each day we are learning something new. In the last six months, we have learned a lot of things.

If I am a salon owner and I want to place orders through Zalon, how do I go about it?

You need to download the application from PlayStore and register yourself. We will get a notification and our sales staff will reach out to you to explain the SOPs. If your salon is in Gurgaon, then your profile will be activated and you can start buying. However, if you are in Jaipur or any other city, our team will give you further instructions about our upcoming plans.

Additionally, we will be launching a SAAS software to manage POS, billing and CRM at salons. You can avail of this software once you have downloaded Zalon and you can start using it from day one. The software will have chatbot application for troubleshooting. We will also provide both online and offline customer service. The SAAS software is free to use for salons. The brands, too, don’t have to pay anything to be on our procurement platform. Once we scale up to a desirable number of salons, we will start charging the brands for promotions.

How are you managing the funding?

Right now, we are bootstrapped. Very soon we will be going for our first round of seed funding. We are already in talks with investors.