The Hindu Business Line : Lakme Lever focusing on new retail formats

Bangalore April 25 Lakme Lever is looking at new retail formats like express salons and corporate centres to reach out to more consumers. "With the organised beauty services segment pegged at Rs 200 crore and growing at 31 per cent, we're at an inflection point today," says Ms Reena Chhabra, Business Manager, Lakme Lever.

Footfalls

Lakme has a chain of 93 salons across 37 cities experiencing an average of six lakh footfalls per annum. Ms Chhabra said the company plans to expand its presence in Pune, Mumbai, Delhi, Hyderabad, Kolkota, Kochi and Coimbatore. Of the 93 salons, Lakme Lever owns five and has franchised the rest, she said.

Commenting on the rising ticket value in professional salons, Ms Chhabra said that women in the North spend close to Rs 900 per visit at the salon, while in the South it varies between Rs 700 and Rs 1,000.

"The average profile of our customers is working women of ages between 25 and 30. Most of them spend on hair care and skin care," she said.

Challenge

The biggest challenge facing the Rs 1,600-crore beauty services industry in the country is `good retail space' and `trained personnel,' she said. Lakme Lever has tried to overcome the HR challenge by setting up a training centre in Mumbai where staff is trained in both technical and soft skills aspects of the job. "Training is the heart of our business as customers are looking for experiential delight at salons," according to Ms Chhabra. The chain directly or indirectly employs close to 1,500 people.