The Indian retail industry is marked by high growth and intense competition, making it the fifth largest retail destination in the world. Growing at a CAGR of 28% for the last 5 years, the industry has been witnessing the growth of both domestic and international brands, opening their outlets across the country. Moreover, high disposable income, coupled with easy availability of credits has increased the average proclivity of consumers over the past few years. 

One segment within the Indian retail industry is currently showing a lot of promise – the beauty care market, thanks to the proliferation of shopping malls and branded outlets. The fragmented segment, primarily recognised by small beauty parlours in the neighbourhood is gradually becoming an organised market. The beauty care sector is regarded as a promising and a lucrative industry, which is marked by the entry of a number of international players in India. With the ever-increasing awareness on health, beauty and personal grooming among both men and women, this segment is growing at a fast pace and provides umpteen growth opportunities.

According to a recent survey on the Indian retail segment, the current size of the beauty care industry is about Rs 6,000 crore and it is witnessing a 25% growth year-on-year (Y-o-Y). The essence of the beauty care industry lies in its impeccable customer services, coupled with affordable pricing and international quality and standards.

It is also important to carve out a niche in the beauty segment. Jean-Claude Biguine for example, strategically adopted a ‘magic pricing’ menu for its Indian consumers to offer luxurious experience with French expertise at premium price points. 

The magic of 3Cs

Beauty salons and spas should adopt the 3Cs to remain competitive. This includes being ‘contemporary’, ‘consistent’ and ‘convenient’ in all its offerings. Contemporary services are about being innovative, yet locally relevant. It is also equally important to refresh services regularly and understand consumer needs. Today, consumers are globalised citizens keeping track of international fashion and trends. They need international services that are contemporary and trendy. Consistency is another important aspect, which needs utmost attention. This can be attained with efficient customer service. For this precise reason, training academies have been set up in every country in order to ensure uniform experience at any Jean-Claude Biguine salon across the world. Thirdly, convenience is best defined by how accessible the salon is for the consumer. Beauty salons should establish a distinctive identity and relate to the right target group. This would help them to identify the gap and address consumers’ needs and convenience. Pricing is

definitely one of the most important attributes that the international players have to bear in mind while entering the Indian value market.

In order to fully utilise the potential of the retail market, the need of the hour to create an organised sector with trained professionals. From the perspective of the beauty care industry, the services need to be customised and accessible and have local relevance. With the changing attitude of consumers, the beauty care sector will soon become one of the biggest revenue generators for the retail industry in India.

Dharmendra Manwani, CEO of Jean-Claude Biguine, Mumbai, India