The Internet has changed the way we do business. It is the main trend influencing the beauty industry. Recently, the government has allowed 100 per cent FDI in online e-commerce sites, which has increased the growth potential of the beauty business. The business is going through a revolution, not only in terms of beauty and wellness, but also in retailing, with department stores and malls catching on as shopping destinations in India, not to mention the Internet.
According to Technopak, India’s leading management consultant, the beauty and wellness industry in India currently stands at Rs 61,534 crore with a CAGR of 14 per cent. The spa business has also seen a remarkable growth in recent times, with the “total well-being” concept gaining ground.
The Shahnaz Husain Group, for instance, is focusing on the “shop-in-shop” concept in malls and stores. Over the past decade, the herbal beauty business is driving the growth of the Indian beauty industry. Four decades ago, when I started my enterprise, herbal beauty care, as we know it today, did not exist. Both retailing of products and the beauty services industry were unorganised and fragmented. Only some basic beauty products were available, while the word “cosmetics” implied mainly make-up items. Today, greater awareness and exposure to global trends have influenced the beauty business here, as in the rest of the world, in terms of quality of beauty products and services. The last two years has been a year of expansion, in terms of product innovation and salon treatments. In fact, salons and lifestyle stores are becoming retail outlets for products. Today, Websites are a dynamic system of providing information about a firm, products and its services. E-commerce increases a product’s visibility and the desire to buy it.
One of the biggest challenges is the lack of professionally qualified personnel in the salon and spa industry. The days of apprenticeship training are over. Skill development is needed in the beauty and spa sector. Beauty care as a service sector offers great scope for employment. That is why we have seen a growth of beauty training schools and courses. Marketing is another important challenge, with the tremendous growth and potential in e-commerce.
Also, with globalisation, products and services are needed for the global market and this requires effort at various levels, from the government, research institutions, vocational training institutions, export development and trade agencies, etc. Markets need to be explored. It is essential to present the products globally in an attractive manner. With the Wellness and Spa business looking up, Day Spas are poised to become one of the most popular personal care services.
Salons are being converted to Day Spas, and including spa treatments along with their salon services. A major thrust in growth during the coming years will surely be the increasing demand for spa and wellness treatments.
We will see greater growth of technology in the manufacturing of beauty products, as well as in salon services, like applications of scientific analysis of the skin and hair, to guide clients. Natural beauty care will continue to rule by becoming a major international trend. Brands will go for greater interaction and involvement with consumers, through Websites. With Ayurvedic knowledge, India can lead the international cosmetic industry in the near future.
Guest Author
The author is Chief Executive Officer of Shahnaz Herbals
