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Long term growth story remains unchanged for the Indian hair salon industry

by Arun Shirishkar

Despite the emergence of home services for beauty and wellness, salons are expected to resume their activities and growth.

In a recent survey conducted by Red Quanta, 59 per cent of people consider visits to the spa and salon as their most missed activity during the pandemic lockdowns and are keenly awaiting resuming salon visits. The survey has also found that 79 per cent men have been unhappy with home given self-cuts and are already back to salons for haircuts. The research was conducted across 15 cities in India with a sample size of 1,516 people that fit the TG of premium and mass-premium salon chains.

The year 2020 saw a dip in business for the Indian salon industry and though it resulted in a shift to a DIY model with the organised at-home beauty services, this year salons will retain a generous market share and amplified margins basis multiple growth factors. The study highlights the dynamics in play, and why salons can expect to resume their growth trajectory from where they left off – despite the emergence of the at-home segment.

“Given the growing awareness for self-grooming and the increasing social media savvy consumer base demanding to meet benchmark beauty standards, the salon industry in India is seen as booming in the recent past. The introduction of more organised and widespread at-home services escalated during the lockdown paving the way for salons to upgrade to an experience-centric model, which is likely to lead to even more pronounced gains,” said Pankaj Guglani, Managing Director, Red Quanta.

Some key findings from the report that indicate salon recovery include:

Increasing Purchasing Power of the Indian Consumer: 8 per cent of the respondents reported an increase in household incomes since February 2020.

Greater inclination to spend on everyday lifestyle: 76 per cent people said they will spend more on leisurely activities than they did earlier once the vaccine is out.

Men’s growing interest in grooming: 29 per cent of the male respondents said they are used to getting specialised grooming services.

Large number of young people in the country: 50 per cent of the Indian population is below the age of 25 and 65 per cent is below 35.

Consumer sentiments, international trends and the recovery scenarios, so far, all point at a prosperous path ahead. To say the least, the dopamine rush of walking into an oasis of elaborate shampoos and steamy chambers is not declining any time soon.

For the complete report, CLICK HERE.

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