Tag: Why The Wellness Business Is Booming

The beauty and wellness industry in India is booming with tremendous potential for growth. In fact, it is said to be growing twice as fast as the markets of the United States and Europe. India is also the second-largest consumer market in the world. India, by contrast, is forecast to grow as a result of strong consumer demand to reach INR 2,463.49 billion by 2024, expanding at a compound annual growth rate (CAGR) of ~18.40% during the 2019-2024 period. Beauty and personal luxury ad spend in India are projected to be 15.2% higher in 2022 than it was in 2019. This includes beauty products, beauty salon and spa businesses. The CAGR of the beauty and wellness business in India has been around 18%. Another prominent feature is that herbal beauty care has driven the growth of the beauty business models in India. 

Today, awareness of beauty products and treatments is at an all-time high in India. There is greater awareness of the ingredients in products, and customers make choices based on their increased awareness. This is attributed to exposure to global trends, rising disposable incomes, changing lifestyles, increasing number of women in the workforce and so on.

The retail sector is also booming. No wonder, foreign companies are targeting the Indian market. Many kinds of beauty products for varied purposes are now available based on individual skin and hair type — from sunscreens and moisturizers, to specialized cleansers, face wash, toners, astringents, scrubs, masks, nourishing creams, serums, shampoos, conditioners, hair tonics, hair serums, hair-dressing products as well as cosmetics. It is an ever-growing list. Men’s personal care and anti-ageing products are slated for growth. The retail format is also boosting the growth of the beauty business, with malls becoming popular shopping destinations not only in metros, but also in tier-2 cities. Malls are making shelf space available to beauty brands. An important feature is the tremendous growth of e-commerce, with online stores also becoming popular shopping destinations. The beauty business as a service sector offers great scope for employment and entrepreneurship for women.

The Internet has changed the way we do business. Today, websites are a dynamic system of providing information about your company, the products, and services. Websites increase a product’s visibility and the desire to buy it. This is true of beauty products, where glamour seems to be just a click away. Ever since we started our online portal, the Shahnaz Husain online store has become a popular destination for online shopping.

With the ‘total wellbeing’ concept gaining ground, spa treatments are becoming more popular. There has been an increased need for spa treatments, with salons being converted into day spas, offering both salon and spa treatments. In fact, service industries like spas and Ayurvedic centres are slated for growth. The West is also looking at India’s herbal traditions. My dream is to see India lead the international beauty industry in the next decade.

Till recently, the majority of the beauticians working in the neighbourhood parlours learned the tricks of the trade through the apprenticeship model, without going through a formal training process. They devoted almost six days a week in salons and slogged for 10–12 hours in inadequate working conditions. The business value that beauticians generate for the salons is huge, but it doesn’t translate into profit for the employees. Even salons have to maintain real-estate and other associated costs. So, other than various salons and wellness parlous, some apps like Urban clap and HouseJoy has come up in the business to give the beauty and wellness a better platform like-

UrbanClap has brought together a host of services under one roof where you can rent their service for home cleaning, interior designing and even get beauty services sitting right at your home. Established in 2014, this app was launched for services in Mumbai, Delhi, Chennai, and Bangalore. There are more than 10,000 professionals registered with the platform who are thoroughly verified by the company. The service has really caught on with the busy urban population with their busy life and the company crossed the mark of $10 million in revenue quite recently.2015 based out of Bangalore. Initially, the company was able to raise $4 million in the first round of funding from Matrix Partners. The company was received favourably by the Indian population, who make around 4,000 orders per day, resulting in 30 to 40% weekly growth of the company. Till date, the company has raised $24 million in funding from different investors such as Amazon, Vertex Ventures, and Matrix Partners.

The app for the company was launched in August 2017 and within six months it posted theastonishing figure of profit. Now, it has become one of the fastest growing home servicing start-ups in India and has raised 63 crore INR in funding from Accel India and SAW Partners.

And the other is HouseJoy, and it has also been able to write its success story by having a good business model, managed expenses and costs and efficient management. HouseJoy was able to earn revenues worth $4.72 million in the financial year 2015 – 2016, recording an increase of 66%. Both HouseJoy and UrbanClap have been the fastest growing companies and the top players when it comes to offering home services.

The core idea of these platforms is to offer consumers high-quality services and at the same time create employment opportunities. While these companies facilitate all kinds of services, beauty is a big business. And these companies have portrayed these beauticians as the face of their service delivery. Most of the customers avail localized services in their neighbourhood, which do not follow high standards of hygiene or quality of products. Moreover, the equipment is also local. There is a demand for high-quality services in the market, at affordable prices. These companies have used technology to structure the highly unorganized services market in India.

When beauticians approach them, they are first invited to understand the basic skills required for the jobs listed on the app. Once they come on board, these beauticians have to undergo a 10-day rigorous training process and are also equipped to use the app efficiently, before they can start taking up assignments on their own.It is a partnership model, where beauticians can easily register with these companies through their app and start tracking customer requests in their neighbourhood. However, they have to notify about the non-availability of their service two days in advance or else pay penalty. The companies only register women with two–three years of experience in the beauty service, and different beauticians enrolled on these platforms sensed a high level of satisfaction and empowerment. They could now send their children to good schools and provide a better lifestyle to the family.

Besides training, advertising and promoting their services through the app, women also stay tuned to the latest products and technologies in the market. For every new service introduced, they undergo a refresher training course. Beauticians can purchase products as well as portable equipment needed for the services at a discounted price from these, which also ensures that the products are standardized across the chain.

The number of professionals joining these platforms has witnessed a three-fold increase in the last one year. This proves the efficiency of these platforms as employers or facilitators.

Future prospects:

Consumer lifestyles along with growing influence of global trends are now changing the face of wellness and making wellness a part of a consumer’s everyday life. While Indian players have forayed in the beauty and wellness industry, the potential still remains largely untapped. This is also attributable to the challenges that the players face, mainly due to the nascent stage of the industry.

The government on its part has to ensure that there are systemic checks for monitoring and that certified and licensed personnel are employed in critical service areas. Consumers and their needs will continue to evolve, driving the transition from remedial care to a more holistic view on preventive care. This augurs well for the wellness industry in India. Considering the challenges prevalent for the beauty wellness sector, each stakeholder needs to have a clear focus on issues corresponding to their area of operation.

Conclusion

Brands with purpose will have more compelling stories to tell. Consumers will vote for sustainable beauty and wellness with their time and wallets.
The future is always bright – but only if we are well-equipped and surefooted as we move forward. Easy and efficient access to capital, start up support, and well governed public-private partnerships for beauty and wellness will create the necessary impact. Franchising is a great tool to attract more entrepreneurs into this industry and create jobs.