Salon revenue could drop 40 to 50 compared to 2019 Shahnaz Husain

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The beauty and wellness sector has been one of the most affected by the pandemic. While product sales may fall by around 30% and salon revenues by 40-50%, online sales have more than doubled. The group has approximately 650 franchises and associated businesses in India and overseas, which include franchise salons, outlets / counters and beauty training academies. Chairman and CEO of Rs 850 crore Shahnaz Husain Group, Shahnaz Husain shares with Ashish Sinha the negative impact of Covid-19 on the sector and the way the group is dealing with it without laying off any of its employees. Extracts:

How has the pandemic impacted the activity of beauty salons?

Like all activities, the Beauty & Well-being activity was also negatively impacted. In fact, the negative effects are more pronounced when it comes to the activity of beauty salons. In salon treatments, touch is inevitable, for treatments such as facials, massages, threading, waxing, etc. Therefore, we knew the business would have to reopen in a very controlled environment. Now the salons are open and follow strict protocols. There is a “new normal” that is being followed because this pandemic has taught us new ways of working and interacting with our customers and clients. Activity is slowly picking up because customers are still reluctant to go to the salons. Attendance has decreased by 40-50%, as few customers are allowed at a time, in order to maintain social distancing. As a result, costs are higher and salons have to recoup their costs by setting prices higher than before for their services.

How did it go for your business? Did you pay them wages during the lockdown, or did you fire them? What protocols do you follow in your salons?

The salons have been closed for almost four months and naturally there has been no income from our salons during that time. We expect total salon revenue for 2020 to drop 40% to 50% in 2020, compared to 2019. We did not lay off anyone and we continued to pay our salon employee salaries during this period. .

We had to adopt rigid security protocols and measures to ensure the safety of customers as well as employees. We were already following a clinical system, where we use disposable items and sterilize instruments. A temperature check is in progress. Customers should wear masks, use hand sanitizers, and the Aarogya Setu app installed on their phone so that their safe status can be confirmed.

How big is the beauty salon industry in India? How many are employed there?

In India, the beauty business is booming. According to reports, the Indian beauty salon industry is estimated at around Rs 10,000 crore. Over the past two years, the beauty service industry has not only continued to thrive, but the demand has increased. Indians spent a lot more on beauty than before. This figure is estimated to double over the next 5 years. However, there is now a drop in numbers due to Covid-19 and containment. According to the Ministry of Skills Development, it has been estimated that the beauty salon segment will create around 7 million jobs in India.

How many belong to the organized segment and how is it evolving?

About 30 percent of beauty salons belong to the organized sector and this sector is expected to grow at a higher rate of about 20 percent. According to industry estimates, the number of salons in India was 65 lakhs, but only 30% are registered. The high-end branded sector or the organized sector consisting of Rs 2500 crore. It is also estimated that salons and spas together account for 31% of the total size of the beauty and wellness market.

How has the beauty products industry been impacted? What about the retail of beauty products?

The effect of the coronavirus pandemic on beauty brands and retailers will be far greater than during the recession. Before we were hit by the coronavirus pandemic, India’s beauty industry continued to thrive. During 2018-2019 our revenues closed with a turnover of Rs 850 crore thanks to a significant retail expansion which took our franchises to nearly 100 cities across the country. Indians were spending a lot more on beauty products than before. This figure is estimated to double over the next 5 years. However, there is now a drop in numbers due to Covid-19 and the lockdown. Previously, the beauty industry was among the few industries that survived recession trends and demonstrated resilience. But, the lockdown and Covid-19 have certainly had a negative impact on the beauty industry, especially in categories like skin and hair care products, color cosmetics, and perfumes. Make-up cosmetics and perfumes represent 15 percent of the total market. The changes are also reflected in the fact that the supply chains of several makeup items have been disrupted. Sales of lipsticks and even foundations are trending down. With half of the face covered with a mask, the use of lipstick and foundation decreased. However, sales of eye makeup products are better. Consumers are also spending less on makeup and beauty products, due to anxiety over job losses and wage cuts. It is estimated that in 2020, revenue from product sales could drop by 30%. This is due to the fact that online sales of cosmetics increased compared to 2019 figures. Imports of cosmetics were also negatively impacted. It has also affected the beauty industry in India.

Are there any new trends in the manufacture of beauty products? Have you launched any new products after the Covid-19?

We have launched a new series of Germ Fight herbal products, ranging from hand sanitizers, hand cleansers and body cleansers, to hand creams, gadget sprays, surface sprays, body cleaners. floors and toilets, etc. Consumers also favor products known to be organic and hygienic. Actually, we focused on selling our skin and hair care kits and different face kits, which can be easily used at home, as they come with step by step procedures.

Is there a growth in e-commerce and online sales of cosmetics?

During the pandemic and its aftermath, the only bright side was e-commerce and selling products online. Online sales of cosmetic products, post Covid, would be twice as large as pre-Covid sales. Experts believe there should be a 20-30% increase in online sales. In fact, it’s becoming a digital world. In fact, one can even find his skin profile online and select products accordingly. This is actually suitable for a business like ours, which is based on personalized beauty treatments. In fact, we’ve been successful in staying in touch with customers through content marketing, on our website, on social media, and our regular online columns. Most brands focus on promotions and even offer discounts on products to collect. With the reopening of shopping centers, sales of cosmetics in stores are expected to pick up, albeit slowly.

With people wearing masks for several hours, are there any skin issues to watch out for?

With the spread of the Covid-19 pandemic, wearing a mask is not only life saving, but also mandatory. It is absolutely necessary for protection. But, it is also essential to keep in mind that even if you are wearing a mask, you should still strictly follow all other protocols. The constant wearing of masks can also cause certain problems. The mask can trap oil and sweat deposits from the skin, or cause a collection of stale breath in the mask. Cotton is considered the best for face masks because it provides good ventilation and less moisture that builds up from breathing and sweating. Synthetic materials should not be used to make masks. The mask should also be snug, so that it provides adequate protection and should not be too tight. With cotton masks, you can wash them easily and dry them in the sun. Constantly wearing masks can also lead to skin irritation, due to the buildup of stale air, or even saliva and mucus inside the masks. It can even lead to some kind of dermatitis, which will require medical attention. Yet another problem is that the mask trapping oil and sweat deposits from the skin can lead to acne condition. For rashes and allergic reactions, it is best to consult a dermatologist. Apply sunscreen or gel to the exposed area before going out in the sun.


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