Indian Salon Industry Report

March 2013

Executive Summary

► Beauty consciousness has dawned due to rising affluence of consumers. With an increase in thenumber of households upgrading to a higher consumption lifestyle, there is an accelerated growth inthe Indian beauty space. Branded salons have emerged as a key growth constituent. Growingaffluence has resulted in increased experimentation and the desire to look better This has acceleratedaffluence has resulted in increased experimentation and the desire to look better. This has acceleratedthe growth of beauty products and services. Salons are at the centre of that growth.

► With this industry perspective salon chains like Jawed Habib Lakmé VLCC etc are speeding up to► With this industry perspective salon chains like Jawed Habib, Lakmé, VLCC etc. are speeding up toestablish their presence across the country. In addition to home grown players, foreign chains likeJean-Claude Biguine, Saks, Toni & Guy are also setting up salons to groom the Indian consumer.

► The current size of the salon market in India is estimated to be around Rs. 82 Bn in 2010, which hasgrown from Rs. 39 Bn in 2005 at a CAGR of 16% p.a. The urban market has been growing at a fasterpace of 20% p.a. from 2005-–2010 compared to the rural market which has been growing at a CAGRof 13%of 13%.

► The urban salon market in India is spending Rs. 36 billion annually on salon services. This is far lowerthan the world standards We are expecting this number to grow to Rs 77 billion by 2015 Similarly thethan the world standards. We are expecting this number to grow to Rs. 77 billion by 2015. Similarly thetotal market as per our estimates is expected to cross Rs. 156 billion by 2015. The roughly Rs. 10billion organized salon market is growing at ~35-40% every year. At this rate, it has the potential tobecome a Rs. 39 billion by 2015.

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Table of ContentNo Title Inclusions

1. Executive Summary

2. Wellness Industry Overview Background

The Wellness Cluster

3. Indian Salon Industry Overview Market Opportunity

Growth Drivers

Nature of IndustryNature of Industry

Porters Five Force Analysis

Key Challenges of the Industry

Business Model

Key Success Factors

Unit Economics

4. Geographic Overview City-Wise Market Size

Key Players and Number of Outlets

Pricing Analysis

5. Private Equity Interest in the Industry – including valuation multiples

VLCC, YLG and Enrichvaluation multiples

6. Player Profiles – including Locations, Pricing, Financials till FY 11

Affinity, Anoo’s, b:blunt, Belleza, Enrich, Green Trends, Jawed Habib, Juice, Lakmé, Looks, Naturals, Strands, VLCC, YLG, International Players in India

7 Global Pla ers Regis Corporation Other Global Pla ers7. Global Players Regis Corporation, Other Global Players

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