Presented By

PRESENTED BY: DEV SINGH PARMAR

In India consumer expenditure has grown at its slowest rate in the last 8 years, the wellness sector has bucked the trend and continues to grow from strength to strength. Resilience in consumer spending on wellness products and services is a reflection of increasing consumer awareness and acceptance of wellness as an integral part of their lifestyle. The large 700 billion INR

t it ff d b th I di ll i d t h k d th i t t f opportunity offered by the Indian wellness industry has sparked the interest of global and domestic entrants into this space, even as incumbents are directing their efforts on scaling up operations. This has also sparked increased levels of interest from the investor community interest from the investor community. This represents a growth of more than 18% over the previous year. Products continue to comprise a majority share of 55 to 60% of the total market share. Despite the slowdown in economic growth in 2012, the wellness industry has Despite the slowdown in economic growth in 2012, the wellness industry has shown little signs of downturn as consumer spend on wellness products and services continues to be resilient. While industry prospects still remain bright, companies are fine-tuning their business and operating model in order to drive sustained revenue growth and ensure profitability

40%50%60%

HAIR & CARESALON & BEAUTY …0%

10%20%30%

HAIR & CAREHAIR & CARE

SALON & BEAUTY SERVICES

A. CONSUMER SPEND IN WELLNESS CONTINUES TO BE BUOYANT :

According to the Central Statistical Organisation growth in consumption expenditure has slowed down to 4% According to the Central Statistical Organisation, growth in consumption expenditure has slowed down to 4% in 2012-13 compared to 8% in 2011-12. However, consumer spend on wellness products and services continues to be resilient with a marginal slowdown in value growth.

B. RISING COMPETITIVE INTENSITY IN THE WELLNESS INDUSTRY

High growth prospects and opportunities within the wellness industry have attracted a number of new entrants (global as well as domestic), and accelerated expansion plans of existing players. • For instance, the salon and spa services segment has witnessed the entry of a number of global players such as French hair-salon chain, Dessange International, Jean-Claude Biguine Salon and Spa, Saks Hair and Beauty salons, Toni and Guy, etc.

C INCREASED AVAILABILITY OF FUNDING IS SPURRING DEAL ACTIVITY WITHIN THE SECTOR

Increasing attractiveness of the wellness industry has given a boost to deal activity within the sector, which over the recent years has been on an upswing. Over 40 deals were inked since FY 2009 as compared to the pre- FY 2009 period where less than 15 deals were inked. Deal activity continues to be driven by strategic d l hi h h d f 65% f h l d l i 2009deals, which have accounted for over 65% of the total deals since 2009.

D EXPANSION TO TIER-2 AND 3 CITIES

Rising income, increasing awareness among consumers itier-2 and 3 cities, and lower rental/manpower costs are some of the drivers for expansion into tier-2 and 3 cities. • For a number of wellness players, over 50% of their new store additions, during FY 2013, have been beyond the top 15 cities.

100%

60%

80%

OTHERS

20%

40% TOP 35 CITESTOP 4 CITESTOP 15 CITES

0%LARGE SALON

SALON PLAYER

PLAYER

SALESSALES

BEAUTY TREATMENTSCOSMETIC PRODUCTSBEAUTY CENTERS

BEAUTY CARE

A. Consumer spend on beauty care continues to be resilient, with a marginal slowdown in value growth.

B. Within the cosmetic products segment, the hair and skin care sub-segment continues to dominate the market. However, the share of the colour cosmetics, fragrances and deodorants sub-segments have been steadily increasing over the years and are expected to account for over one-third of the total cosmetic products market by 2015.

KPMG BEAUTY & WELLNESS SECTOR REPORTKPMG BEAUTY & WELLNESS SECTOR REPORT

BEAUTY & WELLNESS 2014

BEAUTY & WELLNESS 2018

GROWTH RATE-WELLNESS 2014 – 41224 CRORE

WELLNESS 2018 -80370 CRORE

20-23 %

MAKE OVERS SEGMENT-6526 CRORE

ANNUAL GROWTH RATE – 28 %

BEAUTY SEGMENTS -41224 CRORE

ANNUAL GROWTH RATE – 20 –23 %

HAIR SEGMENT – 3630 CRORE

ANNUAL GROWTH RATE- 20 %

100%

20%40%60%80%

100%

COMPANY OWNED

0%20%

LARGE SALON NATIONAL SALON

FRENCHISES

SERIAL NUM. SALONS OUTLETS TONEOVER

1. AFFINITY 31 OUTLETS 5 TO 20 CRORES2. GITANJALI 14 OUTLETS 5 TO 15 CRORES3 TONY & GUY 8 OUTLETS 7 CRORES3. TONY & GUY 8 OUTLETS 7 CRORES4. MONSOON 9 OUTLETS 4 CRORES5. JAWED HABIB 12 OUTLETS 5 CRORES6. LOOKS 7 OULETS 6 CRORES7. B . BLUNT 3 OUTLETS 3 CRORES8. METODO 1 OUTLET 2 CRORE

ROSSANOFERRETTI:

9. CREME SALON 1 OUTLET 1 CRORE

Evaluating the current market situations is most helpful to understand specific needs & wants of potential customers . How to serve them , how to attract more market share & the leverage situation of salons .

TARGET MARKET FOR SALONS OR WELLNESS:

SALES 2013

CHILDRENTEENSYOUNG WOMENADULT WOMENMENSMENS

POTENTIAL CUSTOMER.

GROWTH RATE 2011 2012 2013

CHILDREN( TO YEARS )

1.05 % 4.23 % 3.33 % 4.00 %( 3 TO 12 YEARS )

TEENS ( 13 TO 19 YEARS )

2.38 % 12.33 % 12.34 % 12.54 %( 9 )

YOUNG LADIES( 20 TO 30 YEARS )

4.27 % 55.45 % 53.78 % 55.89 %

ADULT WOMEN( 30 TO 50 YEARS )

3.38 % 22 65 % 25 .45 % 23.65 %( 30 TO 50 YEARS )

MENS 2 29 % 4 56 % 5 33 % 4 45 %MENS( 21 TO 55 YEARS )

2.29 % 4.56 % 5.33 % 4.45 %

IN THE MARKET ANALYSIS FOLLOWING FACTORS INVOLVED :IN THE MARKET ANALYSIS FOLLOWING FACTORS INVOLVED :

1. GEOGRAPHIC :Th i di t hi t t i th D lhi it & ti l it l The immediate geographic target is the Delhi city & national capital region with the total population of 2.17 cror .The geographic radius is 45887 sq . km .Total targeted population is 10000 per year .Delhi is having second largest population after tokiyo .

2. DEMOGRAPHIC :

CHILDREN TEENS YOUNG LADIES ADULT LADIES MENCHILDREN , TEENS , YOUNG LADIES , ADULT LADIES , MEN

SERIAL NUMBER AGE DEMAND

1. CHILDREN 1%

2. TEENS 14%

3. YOUNG LADIES 25%

4. ADULT LADIES 55%

5. MEN 5%

Delhi & NCR population is 2.17 crore which can divide into two i i & lit igroups - price conscious & quality conscious.

High net inviduals (HNI) who are the prime consumers of all retail sector will going to increase 3 times till by 2018 with annual rate of 8.8 percent percent .Marketing strategy should focus on price conscious & quality conscious. Example- cell phones, pvr cinema & salons.Women should be the centre of target in wellness field .Women should be the centre of target in wellness field .The young women & adult women who are employed , belong to well do families & engaged in higher education played more attention to their beauty & wellness work .Teens can also be targeted if the service trendy , fashionable & convenient .Men & children were now booming like a new sector with a hightd d ldemand value .

COMPANY OR HOST IF UNDERSTAND HOW CONSUMER WILL RESPOND TO PRODUCT OR SERVICE, PRICE, ADVERTISEMENT & YOUR PROMOTION ACTIVITY WILL CREATE A GREAT ADVANTAGE OVER YOUR COMPETITIOR.

A. INDIAN CONSUMER MARKET IS 100 MILLION $ WORK WHO CONSUME 1 TRILLION $GOODS & SERVICE.

B. REALATION SHIP BETWEEN MARKET & CONSUMER. .

CUSTOMER MARKET

MARKET OTHER BUYING MARKET STUMULI

E E

OTHER FACTOR

E

BUYING DECISION

T E• SERVICES

• PRODUCTS

• PLACE

• ECONOMIC

• POLTICAL

• CULTURAL

• PRODUCT CHOICE

• BRAND CHOICE

• DEALER CHAINL CE

• PROMOTIONS

CUL U L

• TECHNOLOGICAL

E LE C N

• SERVICE OR PRODUCT HISTORYHISTORY

• PRICE

PROBLEM OR NEED OR DESIRE- BUYING PROCESS STARTS WITH IT.INFORMATION GETHEREDEVALUATION OF ALTERNATIVEPURCHASE DECISIONPOST PURCHASE BEHAVIOUR

CULTURAL SOCIAL PERSONAL & CULTURAL

• SOCIAL

• SUB CULTURAL

SOCIAL

• ROLE MODEL

• FRIENDS

PHYSICOLOGICAL

• AGE

• LIFE CYCLE

• FAMILY

• REFRENCE GROUP

• SOCIAL WEBSITES

• OCCUPATIONS

• ECONOMICS

• LIFE STYLESOCIAL WEBSITES LIFE STYLE

• PERSONALITY

• SELF CONCEPT

• MOTIVATION• MOTIVATION

• PERCEPTIONS

• LEARNING

BELIEF• BELIEF

1. STRENGTH

Good relationships with the employees .Good relationships with customers.Flexibility of new services.Attractive prices.Employees should have more than 5 year of experienceEmployees should have more than 5 year of experience.Use of new technology , instruments & products.Good customer loyalty.

2. WEAKNESS

Poor development stretgy.Huge expenditure.Poor marketing stretegy.Huge rent , water & electric cost.g ,Lots of competitor.Untrained or less educated employees .Huge running cost.Depandency on season arrival.

Events like wedding asia , vivha & other competitions or exebitions provide more t th ll i d texposure to the wellness industry.

More & more tv commercials , education magazines , news channels were focusing on wellness & salon industry.Foreign wellness companies also investing in the wellness market.Metro politician cites were giving good platform to the wellness & salon industry

4. THREATS

Increasing competitions.increasing government taxes.increasing cost of equipments & cosmetics.technology changement everyday.

MARKETING IS ART AND SCIENCE OF FINDING, RETAINING AND GROWING THE PROFITABLE CUSTOMER…

A. MARKETING CONCEPTS STARTS WITH 5 STAGE FORMULAS.A. MARKETING CONCEPTS STARTS WITH 5 STAGE FORMULAS.B. 1 TO 3 STAGES ARE MEANT JUST TO UNDER5STAND CUSTOMER

NEED & VALUE.C 4 TH STAGE IS MEANT TO CHANGE THE CUSTOMERS NEED AND C. 4 TH STAGE IS MEANT TO CHANGE THE CUSTOMERS NEED AND

HIS/HER VALUE INTO HER WANT.D. 5TH STAGE IS MEANT FOR CUSTOMER RELATION MANAGEMENT.

MARKETING CONCEPTCAPTURE VALUE FROM

CUSTOMER TO CREATE PROFIT & EQUALITY .

UNDERSTAND THE BUILD A PROFITABLE MARKET, NEED & WANT OF

THE CUSTOMERRELATIONSHIP & CREATE

CUSTOMER DELIGHT .

DESIGN A CUSTOMER DRIVEN MARKETING STRETGY

CONSTRUCT A INTEGRATED MARKETING PROGRAMME

WHICH SUPPORTS CUSTOMER’S MARKETING STRETGY WHICH SUPPORTS CUSTOMER S NEED’S & COMPANY’S TARGET .

NEED FOR WANT FOR DEMAND FOR NEED FOR SALON

SERVICES

WANT FOR SALON

SERVICES

DEMAND FOR SALON

SERVICES

QUALITY

CUSTOMER SERVICE VALUE CUSTOMER SERVICE VALUE

PRODUCTS

A. MARKETING APPROACH…A. MARKETING APPROACH…

CUSTOMER FOCAL POINT .CUSTOMER RELATION MANAGEMENT .INTERRELATED MARKETING APPROACH-CUSTOMER + ORGANISATIONANALYTICAL APPROACHSTAFF MIND SET TEAM ORIENTEDSTAFF MIND SET- TEAM ORIENTEDLIFE TIME VALUE

B. RELATIONSHIP MARKETING

A. TRUST BETWEEN CONSUMER & HOST SHOULD BE EMPHASISEDB. HARD & SOFT BOTH MARKETING STRATEGYB. HARD & SOFT BOTH MARKETING STRATEGYC. HARD SKILL- OUTLET,TECHNOLOGY,INTERIORS,STANDIESD. SOFT SKILL- INTERELATION BETWEEN SALESPERSON &

CUSTOMERCUSTOMER.

C. INTERNAL CUSTOMER CARE (EMPLOYEES)

A. FRIENDLY & COOPERATIVE STAFF MEMBERSB. MUTUAL COUTESEY & RESPECTC STAFF SHOULD BE EFFICIENT FRIENDLY& INTELLIGENTC. STAFF SHOULD BE EFFICIENT,FRIENDLY& INTELLIGENTD. CARRE & CONCERNE. PLEASEANT APPROACHF. EXPECTATION BEING TAKEN CARE

A. PROMOTIONA. PROMOTIONPromotion is an activity directly concerned with the product. Promotion should inform the pcustomers of the establishment, make them aware of existence, persuade them to buy and convince h f h i d li f h d hithem of the image and quality of the product. This

is done by way of:PERSONAL SELLINGA. PERSONAL SELLING

B. ADVERTISINGC. SALES PROMOTIONS

A. PERSONAL SELLINGPersonal selling is doe through contacts with local organization and committees, or moreDirectly through the restaurant staff taking to guests. All employees who are in contact withy g g g p ythe customer must be made aware of the importance of selling the products to increase profitsand provide a satisfactory experience for the customers.B. ADVERTISINGThe medium used for the advertisement may be The medium used for the advertisement may be television, radio, newspapers, magazines, internet, pamphlets, static poster sites, sponsorship, cinema and direct mailers. The selection of the medium depends on the budget and the target audience. Advertising should convey messages which influence customer behavior. Advertisements should convey and result in:A. an immediate increase in salesB. awareness of the existence of the establishmentC informing the public of the name and location of the establishmentC. informing the public of the name and location of the establishmentD. telephones and faxes of the establishmentE. timing and dates of operationF. style of food and drink offeredG. whom to contact for whatH. advertising messages should define and clarifyI. menu offeringJ. target customerJ. target customerK. media types to reach targetL. timing of the advertisement

C. SALES PROMOTION

Sales promotion is a day to day operation relating to discount offers, price reduction andy y gSpecial offers. They are designed to appeal to a certain section of the market or the targetAudience. Food festivals, for example, are held to promote cuisine and beverages of aparticular region or country. A theme promotion may help the business and promote sales byway of volume of sales increased during off peak periods by attracting new customers gainway of volume of sales increased during off-peak periods by attracting new customers, gainpublicity in local media circle, and stimulate and regular groups.

D. OTHER SOURCES

New strategies like internet and environmental marketing are emerging as key components of any successful restaurant like:-

1. CREATE A WEBSITE.More and more, consumers across the nation are turning to the Internet to decide where they will have their services. If salon does not have its own website, it may lose a lot of potential customers.

2. HOST EVENTSTurn store into a venue for community and family gatherings, parties, family Turn store into a venue for community and family gatherings, parties, family function and other events. This will help you to attract new customers and give your regular customers a reason to keep coming back.

3. TRY UP-SELLING

Increasing the average check size at store is one of the smartest ways to improveprofits. By teaching servers or cashiers to read the customer and suggest appropriate services & products , it will simultaneously increase sales and improve the customer experience.4 . PROMOTE THROUGH EMAIL.

Wh d ith di t il k ti il k ti i f t d When compared with direct mail marketing, email marketing is faster and more efficient, saves paper, reduces marketing expenses and is more likely to convert to a sale..Involve customers in a contest. Having customers sign up for a contest or giveaway at your store is always a smart strategy It will help you build your giveaway at your store is always a smart strategy. It will help you build your marketing database, and it will also give customers a reason to come back

5. DIGITAL MARKETING5. DIGITAL MARKETING

Digital marketing is new concept in order to reach new customer . Modes of digital marketing are Mobile marketing , Sms marketing , Social media marketing ,

Apps etc .

• MAILS• SEARCH ENGINE

• DTH• SEARCH ENGINE• WEBSITES• SOCIAL MEDIA

TELEVISIONTELEVISION-

53 %

INTERNET-88%

MOBILES-94%

ELECTRONIC MEDIA- 42%

• SMS• MMS• APPS

• INFOMEDIA

94%MEDIA 42%

In Delhi or rest part of India salon industry is keenly based on 3 sectors In Delhi or rest part of India salon industry is keenly based on 3 sectors : Beauty , Hair Make ups Make ups.

In India salon industry increased its tone over during the wedding season which starts from October to till end of April of next year . In these 6 months salons gains most of the profit In order to understand this we have to see the info graphic of weddings most of the profit. In order to understand this we have to see the info graphic of weddings, which clearly show why salon industry gain most of its profit during wedding season time .

INFOGRAPGIC

INDIAN WEDDI

NG INFOGRAPGIC : NG INDUSTRY SIZE – 15000 CRORE COST

ON PER 1

CRORE INDIAN

WDDINGS

WEDDING – 5 LAKHS TO 10

CRORES22% PERCENT

MARRIAGES PER

YEAR

WEDDING

INDUSTRY

GROWTH RATE

WEDDING PLANNERS

COSMETICSBRANDS

In the and we can come on one conclusion in In the and we can come on one conclusion in India salon & wellness industries is at it’s booming stage. With this present scenario we can come on one estimation that wellness going to be emerge as a revenue generating & cost ff ti t ith 18% th teffective sector, with a 18% growth rate.