Beauty’s Bet: JCB plans to set up shop in India

THERE’S beauty in beauty. Given half a chance, that’s what international salon chains would dub the Indian beauty services industry, largely unorganised and pegged at around Rs 15,000 crore. The organised segment, say industry insiders, could stand firm at Rs 2,000 crore, growing at 25%-30% year-on-year. Enthused by the potential and growth in the Indian market, international beauty salon chain Jean-Claude Biguine (JCB) is setting up shop in the country. Perhaps the first MNC salon to set foot in India, it has trained its sights on Mumbai and Delhi initially. The Paris-based salon chain is patronised by some top names from the world of glamour. In 2007-08, they plan to roll out eight salons (four in each city) with the help of their fully-owned Indian subsidiary, JCB Salons India Pvt Ltd. With 20,000 dedicated clients and 350 stores globally, they’re eyeing India for more reasons than one. According to Dharmendra Manwani, director, JCB Salons India, 70% of the beauty services industry is shared between Delhi and Mumbai. And with growth in organised retail, there’s every scope for the beauty trade to prosper. “We’ll have three to four salons each in Mumbai and Delhi by 2007-08 and peg our prices in the aspirational zone, which is 20% higher than established salons,” says Mr Manwani. Scouting for retail space, JCB’s plans in India span two formats — spa and standalone salons. “In the first couple of years, we’ll operate our salons ourselves. We may then look at the franchisee model,” points out Mr Manwani. The investment per store is pegged at Rs 2.5 crore. He expects a break even of around 8-24 months. Among the organised players which are already there in the market, there’s Lakme Beauty Salon, VLCC, Shahnaz Husain Herbals, Keune, Marico’s Kaya Skin Clinic, Jawed Habib Hair & Beauty, besides others. This is where international salon chains like JCB would like to make a dent. Post FIPB clearance, JCB is all set to open its first pa-cumsalon in Mumbai. India is their third stop in the Orient after Japan and Korea. “We’ve studied the Chinese market and feel an acute lack of awareness among the gentry there for luxury goods and services,” points out Richard Wagner, another director with JCB India. The company is readying for 45-50 stores in the next four years in India, where it sees a host of high-end MNC salons such as Franck Provost and Jacques Dessange slugging it out for that good hair day.

Courtesy: EconomicTimes
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