The Hindu Business Line : Beauty's promise

TIME and again, kind elders and considerate friends have reassured us that beauty is only skin-deep. Nevertheless, it continues to be a big concern. Health is also getting redefined as wellness: it's no longer enough to be free of illness; wellness is a state of physical, mental, social and spiritual well-being.

This quest for a holistic and harmonious state of life is spawning a major industry, which was the focus of BeauWell India 2005, India's first ever conference on beauty and wellness organised by the Confederation of Indian Industry at Chennai last week.

While estimates of the beauty, fitness and wellness industry vary widely (from Rs 2,700 crore to Rs 80,000 crore depending on what sectors are taken into consideration) it emerged that the various components that make up these sectors are poised for spectacular take-offs. There is increasing awareness and expectations of the products and services on offer and with rising incomes, more willingness to spend on them. In the beauty business, this translates into a slew of products at all price ranges, and sophisticated services that come with great promises.

There is a discernible shift from fairness to healthy skin, from beauty salons to spas that offer holistic health, and more male interest in all these categories. True, much of this is still niche, but waiting eagerly to come into full bloom.

The latest trend in the beauty business is the focus on skin. Skin care has gone from cold cream and snow to cleansing, moisturising and toning to firming, lightening, anti-scar/wrinkle products, of which each company in the business has several ranges.

Says Radhika Chadha, Principal, Paradigm Management Knowhow, a Chennai-based management consultancy, "The importance given to good skin is growing considerably. In the last five or six years, there is more focus on the texture and sensuousness of skin. The quality of advertising has made the skin experience more tactile than before, which has had an impact on aspirations." She says that with the range of products on offer, it is not impossible for a fairly large number of people to have access to cutting-edge solutions.

Cashing in on this need for better skin, Marico Industries launched Kaya Skin Clinics two years ago, and is on a roll ever since. From 14 in last September to 32 now, it has notched up 35,000 customers. Says Mrinmoy Mukherjee, Head (Marketing), Kaya Skin Clinic, "Integrated and scientific cosmetic and dermatological services were not easily available, and we stepped in to fill this need." According to him, all the services, which include laser hair removal, scar and pigmentation reduction, micro-dermabrasion and dark circles' removal are all result-oriented. They are approved by the US FDA and certified by the Kaya Skin Advisory, a team of 35 eminent dermatologists in the country. The clinics, which employ qualified dermatologists, are designed to offer a "Zen-like holistic experience," he said. All services are preceded by a skin analysis and the doctors advise the client on the course of action, the recommended nutrition and medication.

Compared to the usual facials in beauty parlours, these services are expensive but "consumers see enormous value for money and stay with us," Mukherjee told Catalyst, claiming that over 97 per cent rated them highly. However, he does not foresee competition coming up soon. "It takes Rs 1.5 crore to set up each clinic," he explains, adding that his company is eyeing a turnover of Rs 100 crore in three years from this business.

K. Jagdish, Head (Retail), Trends in Vogue (the retail division of CavinKare), points out that women today visit beauty salons not as much to look better as to feel good and have some time for themselves. They want to pamper themselves and are constantly on the lookout for new experiences. "The preference for natural treatments is on the rise so our salons' offers like the strawberry facial and pina colada pedicure are in great demand."

Men have also begun to spend a considerable amount of time on grooming. Along with a haircut, most men avail themselves of head massages, hair washes and pedicures. According to Jagdish, a male today on an average spends an hour-and-half in a salon, as against 40 minutes just two years ago. Almost 35 per cent of the VLCC clients are men, says Sandeep Ahuja, Director, VLCC.

Shekhar Sethu, General Manager (India), Schwarzkopf Professional, points out that the beauty industry today is all about speciality products, salons and services. "Consumers are open to colouring and straightening their hair and are constantly on the look out for `caring' (not too harsh) products." This is evident in smaller cities and towns too, so Schwarzkopf is planning to launch two mid-segment brands, Clinol and Indola, from its international portfolio, for these places while continuing to retail the Schwarzkopf brand only in the metros. It is also trying to create new hairstyles for the Indian market. In fact, the company's global ambassador Anthony Whitaker, the renowned hairstylist, will unveil the spring-summer collection of Schwarzkopf's latest hairstyles and hair colours in India next month.

Recognising the growing market for specialist and premium products, the CII meet saw a clutch of European companies scouting for partnerships in the country. Apart from Cosmexport (Italian Cosmetics Industry Promotion Export Consortium) there was Swiss company Intercosmetica Neuchatel, one of the top five cosmetic makers in Switzerland and a major exporter with its Swiss Nature and Swissological ranges; another was the Austrian company Styx Naturcosmetic; the Spanish Germaine-de-Capuccini and Energist from the UK, which supplies specialist equipment for hair removal and skin rejuvenation.

Healthy ageing, not anti-ageing; detoxifying, not weight loss; inner makeover, not extreme makeover; being more, not having more: these are what people want from the beauty and wellness business today, said Madeline McGrath, a spa consultant based in Dubai. Spas are moving from being "pamper parlours" to being places that offer the time and space for holistic and regenerative processes.

Samir Patel, General Manager (Spa Division), Indian Hotels Company, believes there is immense market potential for spas in India. Coming up with the right model for this nascent business is the challenge, though. They can be big draws for foreign tourists. In hotels, spas are turning out to be the second largest revenue generators (after rooms). In the case of Taj hotels, where he is spearheading the launch of the Jiva brand of spas, 20-40 per cent of the everyday occupancy accounts for spas' patronage in its resort hotels and 5-20 per cent in its business hotels, Patel said. Spas can contribute up to 15 per cent of a hotel's revenue.

There are many kinds of spas. Globally, day spas account for 75 per cent of spa locations. Resorts spas/hotel spas were the next big category, accounting for 12 per cent. Health club spas are also becoming popular. India has many locations which will suit the creation of destination spas, a popular model worldwide.

CavinKare's Jagdish says the market is not yet ready for pure spas. "Though they are coming up in a big way, most of them have a salon attached to them." This is what the company's Limelite brand of salons has done.

In any case, there are several challenges: The lack of trained manpower, the stigma attached to the profession, the narrow base of equipment suppliers, lack of exposure to spa operations of international standards and the fact that India has not been positioned as a wellness destination. However, these could become opportunities as well: ninety-three per cent of travellers look for day/resort spas, demand for spas is going up, low manpower costs, and the tremendous prospects that the nascent business provide for trained spa specialists and equipment manufacturers. He emphasised the importance of adopting international expertise, processes and products.

In fact, training of personnel is a key concern in the beauty and wellness business. How many times hasn't a customer been put off by a zealous salon attendant who's told her she had bad skin, hair and more and could do with more services? Or by the stylist who seems disinterested in advising her and only wants to finish the haircut as soon as possible? Quick and courteous service, honest and sincere advice, is that too much to ask? The consumer is willing to pay but expects certain service standards.

"There is one marked lapse across the industry - the lack of uniformity in providing the same standard of service and maintaining the basic hygiene practices," says a spokesperson for Lakme.

"The biggest challenge facing the industry today is lack of trained manpower," says CavinKare's Jagdish. "When we were recruiting for our salons we realised we were not able to offer consistency in services. So we started our own training academy, Trends, where our personnel are groomed into complete aestheticians. If a customer walks in for a facial, they are expected to ask them basic questions, do a patch test and suggest what suits her."

Says Sethu of Schwarzkopf, "Indian hairdressers need international experience and there has to be a rapid improvement in their education standards. We are planning to launch more training academies. We already have an academy each in Mumbai and Delhi, we are planning to launch one each in Kolkata and Bangalore this year."

An industry that is fuelled by hope in the quest for makeovers promises to transform itself. Watch this space.

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