Indian Salon Hair and Skin Products Industry Report Report Information Number of Pages: 135 Publisher Name: Reevolv Advisory Services Pvt. Ltd The growth of salon products industry is a direct fall out of the surge witnessed in demand for salon industry in India. The salon products industry has seen a similar trend as observed in the salon industry due to the direct correlation of the services offered by salons and the products which form the part of these services. The industry has seen a sea change from limited product offerings to a wider product portfolio especially targeted towards professional salon segment. Hair care and skin care are the main constituents of this industry. The two categories show a distinct trend with hair care being dominated by a few international brands like L’Oreal, whereas the skin care category is highly fragmented with multiple options of domestic and international brands. Table of Contents 1. Executive Summary 2. Salon Products Industry Overview i. Market Opportunity (including market size, growth rate etc.) ii. City Wise Market Analysis iii. Growth Drivers 3. Business Dynamics i. Evolution of the Industry ii. Salon Products Category Differentiation iii. End Consumer Psyche iv. Business Model v. Buying Criteria of Salons vi. Porters Five Force Analysis vii. Key Success Factors viii. Key Challenges of the Industry 4. Brand Spread i. Organised Salons (Salon Chain wise) ii. Unorganized Salons (City wise) 5. Primary Surveys/ Interviews i. Salon Professionals ii. Distributors iii. End customers 6. Professional Products Pricing i. Hair products ii. Skin products 7. Equity deals with valuation i. Forest Essentials ii. Rich Feel 8. Player Profiles – including detailed Financials (wherever (21 players across India) (L’Oreal, Wella, Schwarzkopf, Streax, Blossom Kochhar Aroma Magic etc.) Key industry insights through salons survey included in the report: • Salon Hair and Skin products market size in India • Hair and Skin brand presence across tier 1, 2 and 3 cities in India • Hair and Skin brand presence across tier 1 cities in India • Hair and Skin brand presence across North, South Key industry insights through end customer survey included in the report: • Monthly expenditure on salon services by gender • Advanced hair and skin services by gender, services etc. • Frequency of visits by gender • Type of salons preferred for hair and skin services • Brand preferences for hair and skin services To order a copy of the Indian Footwear Industry Report or select extracts please contact Kaustubh Kulkarni / Shilpa Bhattar Landline: +91 22- 26000505 Email: research@reevolv.in

1. April 2015
Reevolv Advisory Services
Private Limited
Indian Salon Hair and Skin Products Industry Report
For any queries or detailed information
contact us on +91 – 22 – 2436 3161 /+91 - 22 – 60022001 or
email at research@reevolv.in

2. Indian Salon Hair and Skin Products Industry Report
2
Table of Contents
Particulars Page Nos.
1. Executive Summary 4
2. Salon Products Industry Overview
2.1.Market Opportunity 6
2.2.City Wise Market Analysis 9
2.3.Growth Drivers 11
3. Business Dynamics
3.1.Evolution of the Industry 14
3.2.Salon Products Category Differentiation 17
3.3.End Consumer Psyche 18
3.4.Business Model 19
3.5.Buying Criteria of Salons 25
3.6.Porters Five Forces Model 27
3.7.Key Success Factors 29
3.8.Key Challenges of the Industry 31
4. Brands Spread
4.1.Organized Salons (Salon Chain wise) 32
4.2.Unorganized Salons (City wise) 33
5. Primary Surveys / Interviews
5.1.Salon Professionals 42
5.2.Distributors 46
5.3.End customers 48
6. Professional Products Pricing
6.1.Hair Products 53
6.2.Skin Products 53
7. Private Equity Deals with Valuation
7.1.Forest Essentials 55
7.2.Richfeel 56
7.3.Hygienic Research 57

3. Indian Salon Hair and Skin Products Industry Report
3
Particulars Page Nos.
8. Player Profile Summary 58
9. Player Profiles
9.1.L’Oréal 61
9.2.Richfeel 68
9.3.Schwarzkopf 71
9.4.Streax 73
9.5.Wella 78
9.6.Astaberry 82
9.7.Blossom Kochhar Aroma Magic 85
9.8.Biotique 89
9.9.Christine Valmy 91
9.10. Dermalogica 94
9.11. Ekta Cosmetics Limited 97
9.12. Ess Kay Beauty Resources 100
9.13. Forest Essentials 103
9.14. Headstart International 107
9.15. JCKRC 110
9.16. Jovees 114
9.17. Lotus Herbals 117
9.18. O3+ 121
9.19. Shahnaz Husain 125
9.20. VLCC 127
10. Annexure: Ratios 131

4. Indian Salon Hair and Skin Products Industry Report
4
1. Executive Summary
The growth of salon products industry is a direct fall out of the surge witnessed in demand for salon industry
in India. The salon products industry has seen a similar trend as observed in the salon industry due to the
direct correlation of the services offered by salons and the products which form the part of these services. The
industry has seen a sea change from limited product offerings to a wider product portfolio especially targeted
towards professional salon segment.
Hair care and skin care are the main constituents of this industry. The two categories show a distinct trend
with hair care being dominated by a few international brands like XXX, whereastheskin care category is highly
fragmented with multiple options of domestic and international brands.
The size of the salon products (hair and skin) market in India was Rs. XXX billion in 2016, of which hair
constituted XXX% i.e. Rs. XXX billion and skin constituted Rs. XXX billion The share of the urban market was
around XXX% i.e. Rs. XXX billion.
The key success factors of this industry are
•
•
•
•
The findings of the survey conducted across cities and customer groups are as under:
•
•
•
•
As per our estimates, the urban salon products market will more than double and reach Rs. XXX billion i.e. a
CAGR of XXX% (2016-2020E). The total salon hair products market in India is expected to reach Rs. XXX
billion and salon skin products is expected to reach Rs. XXX billion growing at a CAGR of XX% (2016-
2020E). However the industry has to overcome challenges like................................................. etc. which are
acting as an impediment to growth.

5. Indian Salon Hair and Skin Products Industry Report
5
2. Salon Products Industry Overview
2.1. Market Opportunity
The growth in salon industry is one of the major growth drivers for growth in salon products market mainly hair
and skin products. Consumers generally go to salons for hair services. In a typical salon, around XX% of the
revenues are from hair services (hair cut, colour, styling etc.) and balance XX% from skin services (facial,
cleanups, manicure/ pedicure etc.)
Total Market
The size of the salon products (hair and skin) market in India was Rs. XXX billion in 2016, of which hair
constituted XXX% i.e. Rs. XXX billion and skin constituted Rs. XXX billion The share of the urban market was
around XXX % i.e. Rs. XXX billion.
As per our estimates, the urban salon products market will more than double and reach Rs.
XXXbillion i.e. a CAGR of XXX% (2016-2020E). The total salon hair products market in India is
expected to reach Rs. XXX billion and salon skin products is expected to reach Rs. XXX billion
growing at a CAGR of XXX% (2016-2020E).
Salon Hair and Skin Products Industry Size (2005–2020E)
Rs. In billion 2005 2012 2016 2020E
CAGR%
(2012–16)
CAGR%
(2016–20)
Total
Hair
Skin
Urban
Hair
Skin
Rural
Hair
Skin

6. Indian Salon Hair and Skin Products Industry Report
6
Salon Hair and Skin Products - Urban Market — Tier 1, 2 and 3 cities
The salon hair and skin products market in urban cities (tier 1, 2 and 3 cities) was around Rs.
XXbillion in 2016 with tier 1 cities constituting more than XX% of the total market in Tier 1, 2 and 3
cities.
Salon and Salon Hair and Skin Products Industry Size — Tier 1, 2 and 3 cities
Tier 1 — Delhi-NCR, Mumbai, Kolkata, Bangalore, Chennai, Hyderabad, Pune, Ahmadabad (cities with population of more than 5
million).
Tier 2 — Agra, Allahabad, Amritsar, Asansol, Aurangabad, Bhopal, Coimbatore, Chandigarh, Dhanbad, Durg-Bhilainagar,
Vishakhapatnam, Gwalior, Indore, Jabalpur, Jaipur, Jamshedpur, Jodhpur, Kannur, Kochi, Kanpur, Kollam, Kota, Kozhikode,
Ludhiana, Madurai, Malappuram, Lucknow, Meerut, Nashik, Patna, Nagpur, Raipur, Rajkot, Ranchi, Srinagar, Surat,
Thiruvananthapuram, Thrissur, Tiruchirappali, Vadodara, Varanasi and Vijaywada. (cities with population of 1 to 5 million).
Tier 3 —— All the remaining cities not covered in above list
Cities
No. of
Cities
Salon market
Rs. million
Salon hair
products market
Rs. million
Salon skin
products market
Rs. million
Total Salon (Hair
and Skin
products) market
Rs. million
Tier 1 cities
Tier 2 cities
Tier 3 cities
Total
Tier 1 Salon Hair and Skin Products Industry
Size (2016)

7. Indian Salon Hair and Skin Products Industry Report
7
Salon Hair and Skin Products - Urban Market — State wise
State-w
Total Urban Market — Key states and per capita expenditure (2016)
Key States
Urban Population [in
millions]
Urban Salon Hair
Products Market
Size [Rs. million]
Urban Salon Skin
Products Market
Size [Rs. million]
Total Urban Salon (Hair
+ Skin) Products
Market Size [Rs.
million]
Maharashtra
Tamil Nadu
Uttar Pradesh
Andhra Pradesh
West Bengal
Karnataka
Gujarat
Madhya Pradesh
Haryana
Rajasthan
Kerala
Bihar
Others
Total
Products (Urban) Market (2016) —
Market Size Rs xxxx Million

8. Indian Salon Hair and Skin Products Industry Report
8
2.2. City Wise Market Analysis
Cities
Population
(2011)
(mn)(1)
Population
(2020)
(mn)(2)
Population
Growth Rate
% (2016-
2020)
GDP (2005)
USD Bn(3)
GDP (2020)
USD Bn(3)
GDP
Growth
Rate %
Average
HH Income -
2007-08
(INR)(4)
Est. Size of
the Salon
Hair
Products
Market (Rs.
Mn)*(2016)
Est. Size of
the Salon
Skin
Products
Market (Rs.
Mn)*(2016)
Key salon
organised
players
No. of
Centres(201
7)
Tier 1
Delhi
Mumbai
Kolkata
Bangalore
Chennai
Hyderabad
Pune
Ahmadabad
Cities
Population
(2011)
(mn)(1)
Population
(2020)
(mn)(2)
Population
Growth Rate
% (2011-
2020)
GDP (2005)
USD Bn(3)
GDP (2020)
USD Bn(3)
GDP
Growth
Rate %
Average
HH Income -
2007-08
(INR)(4)
Est. Size of
the Salon
Hair
Products
Market (Rs.
Mn)
Est. Size of
the Salon
Skin
Products
Market (Rs.
Mn)
Key salon
organised
players
No. of
Centres
Tier 2
Surat
Nagpur
Chandigarh
Nasik
Kanpur
Lucknow
Coimbatore
Vishakap-
atnam
Indore
Aurangabad
Jaipur
Baroda

9. Indian Salon Hair and Skin Products Industry Report
9
2.3. Growth Drivers
Fig 10: Urban Population and Urbanization Rate %
2010 2015 2020 2025 2030 2035 2040 2045 2050

10. Indian Salon Hair and Skin Products Industry Report
10
3. Business Dynamics
Evolution of the Industry
3.1. Salon Products Category Differentiation
Hair Products Skin Products
3.2. End Consumer Psyche
3.3. Business Model
Salon Product Industry – Business Model

11. Indian Salon Hair and Skin Products Industry Report
11
Part I: The Product Company
Part II: Key Function of Product Company
Part III:
Salon Segments
Salon Segment Buying Criteria
Pricing Power
w.r.t. end
customer
Differentiation
3.4. Buying Criteria of Salons

12. Indian Salon Hair and Skin Products Industry Report
12
3.5. Porters Five Forces Model
No Five Forces Remarks Counter Strategies
1.
a. •
2.
•
3a.
•
3b.
•
4.
•
5a.
•
5b.
•
3.6. Key Success Factors
3.7. Key Challenges of the Industry

13. Indian Salon Hair and Skin Products Industry Report
13
4. Brands Spread
4.1. Organized Salons (Salon Chain wise)
Salons Skin Brands Hair Brands
4.2. Unorganized Salons (City wise)
Preamble
All India Professional Skin & Hair Products
Part 1: Brand Presence in Tier 1 Cities -Professional Skin &Hair Brands
Part 2: Tier Wise Brand Presence -Professional Skin & Hair Brands
1) Tier 1
2) Tier 2
3) Tier 3
Part 3: North East South West - Brand Presence -Professional Skin & Hair Brands
0
1
2
3
4
5
6
Category 1 Category 2 Category 3 Category 4

14. Indian Salon Hair and Skin Products Industry Report
14
5. Primary Surveys / Interviews
5.1. Salon Professionals
Interviewer 1: Director – Leading Salon chain
Questions Answers
What are the benefits of having single brand for hair
segment
How do companies market hair brands
What are the decision parameters for hair and skin
services
L’Oréal is the leader across India. Who according to
you command second position across India
What are the buying criteria for salon products
Why do customers buy professional products
What is your perception about salon skin care market
Interviewer 2: Head – Leading International Salon Skin Care Brand
Questions Answers
What is the difference between Indian and global
market
How many SKUs do you have in India
What is your product differentiation
What are the key challenges in the industry
What are the key selection criteria for salon
What is percentage share between men and women
for salon skin services
What is your take on male grooming market
What are your views on threats from fake products
Interviewer 3: Salon Manager
Questions Answers
Which products do you use in you salon for hair
and skin services?
What is the segment wise price differential for
across L’Oréal brands
What is the share of hair services and skin
services?
What is the broad price differential between
L’Oréal&Kérastase?
What is the gender ratio at your salon?
What kind of skin services opted by customers

15. Indian Salon Hair and Skin Products Industry Report
15
Which segment (Hair / Skin) depicts higher retail
sales? And why?
How is the training support from the product
companies?
Interviewer 4: Technical Head - Skin
Questions Answers
What are the parameters for selecting a skin brand by
salons?
Do the salons necessarily use single brand for skin
services?
From where the salons face competition for hair
services?
What is the percentage of services between basic
services and treatments?
How do you categorize your facials
Interviewer 5:Technical Head - Hair
Questions Answers
What is you perception about hair products across
leading brands?
Who is the market leader in hair products and why?
What is the degree of brand loyalty with the
customers?
What is the margin offered to salons by the product
companies
Do the salons necessarily use single brand for all
their hair services?
What are the categories for salon hair products? And
broad percentage share?
Do the customers walk in for greying cover up or
fashion for hair coloring services?
Interviewer 6: Executive – Leading Domestic Skin Care Brand
Questions Answers
What is the difference between consumer and
professional products
What are the challenges in professional segment
What is your take on metro market
What is the product cost for salons as a percentage
of service pricing

16. Indian Salon Hair and Skin Products Industry Report
16
5.2. Distributors
Preamble:
Questions Responses
What are the type of product segments you offer to
the salons?
Who are your customers?
What kind of Skin / Hair brands you distribute?
What is the product profitability in hair and skin
segment?
What are the margins offered to distributors?
What are the margins offered to salons?
What is the average inventory carried by the
distributors?
What is the % share of hair products and skin
products in total revenue?
What are your observations on professional hair
and skin products market of the distributors?
What are the criteria for you to choose a company
for becoming a distributor?
What is the ROI offered by the product companies?
Do you have your own sales force?
Is there any approval required from the existing
companies to take up new products for distribution?
What is the general geographic spread?
Are you open to try out new products?
What are the buying criteria of Salons?
Is it easy to make the salons switch or try out new
products?
What is the credit period offered by product
companies?
What is the credit period offered to salons?
Is exclusivity necessary for distributors?
What is the role of distributor?

17. Indian Salon Hair and Skin Products Industry Report
17
5.3. End customers
Preamble:
Part 1: General Take aways
a) Monthly Expenses (Rs/Month) on Salon Services
b) Advanced Hair Services Preferences
c) Advanced Skin Services Preferences
Part 2: Hair Services
a) Type of preferred salons
b) Hair Colour
c) Brands for Hair Services
Part 3: Skin Services
a) Salon Preferences for Skin Services
b) Brand preferences for skin products
c) Willingness to experiment with skin care brands

18. Indian Salon Hair and Skin Products Industry Report
18
6. Professional Products Pricing
6.1. Hair Products
The pricing is based on consumer / professional products available in the market across brands.
6.2. Skin Products
No Brand Cleansers Toners Moisturiser Mask/ Face pack Serum
Qty Price Range
(Rs)
Qty Price Range
(Rs)
Qty Price Range
(Rs)
Qty Price Range
(Rs)
Qty Price
Range (Rs)
No Brand Shampoo Conditioner
Qty Price range Qty Price range

19. Indian Salon Hair and Skin Products Industry Report
19
7. Private Equity Deals
7.1. Forest Essentials (Mountain Valley Springs India Private Limited)
Year Investor Amount
invested
Instrume
nt
Equivalent stake Current Stake
(%)
Deal Multiples
Assuming that FY2008 numbers would have been achieved without any fund infusion
Estee Lauder International Inc.
FYXXXX
(Trailing*)
FYXXXX
(1 yr forward*)
FYXXXX
(2 yr forward#)
Pre-money equity
valuation (Rs. millions)
Post-money equity
valuation (Rs. millions)
EV (Rs. millions)
Sales (Rs. millions)
EBITDA (Rs. millions)
PAT (Rs. millions)
P/Sales
EV/Sales
EV/EBITDA
PE

20. Indian Salon Hair and Skin Products Industry Report
20
7.2. Rich Feel Health and Beauty Private Limited
Year Investor Amount
invested
Instrument Equivalent stake Current
Stake (%)
Deal Multiples
Bennett Coleman & Co. Limited
FYXXXX
Pre-money equity valuation (Rs. millions)
Post-money equity valuation (Rs. millions)
EV (Rs. millions)
Sales (Rs. millions)
EBITDA (Rs. millions)
PAT (Rs. millions)
P/Sales
EV/Sales
EV/EBITDA
PE

21. Indian Salon Hair and Skin Products Industry Report
21
Brand Equity Treaties Limited
FYXXXX
(Trailing*)
FYXXXX
(1 yr forward#)
Pre-money equity
valuation (Rs. millions)
Post-money equity
valuation (Rs. millions)
EV (Rs. millions)
Sales (Rs. millions)
EBITDA (Rs. millions)
PAT (Rs. millions)
P/Sales
EV/Sales
EV/EBITDA
PE

22. Indian Salon Hair and Skin Products Industry Report
22
8. Player Profiles
8.1.
8.1.1. Overview
Company Name
Company Profile
Promoters Name
Brands
Year of Inception
Product Segments
Men’s Range
Production Facilities
Training
Distribution / Geography
Key Clientele
Future Plans

23. Indian Salon Hair and Skin Products Industry Report
23
8.1.2. Financials
Profit & Loss Account for the year ended 31st December (Rs. Mn)
FY 2014 FY 2015 FY 2016
Sales
Total Revenues
Direct Costs
Personnel Expenses
Administrative Expenses
Selling & Distribution
Advertisement and sales promotion
Total Expenditure
EBITDA
Depreciation
EBIT
Financial expenses
Profit before Tax
Profit after Tax
Balance Sheet as at 31st December (Rs. Mn) FY 2014 FY 2015 FY 2016
Share Capital – incl. share application money
Reserve & Surplus
Shareholders’ funds
Secured Loans
Unsecured Loan
Loan Funds
Deferred Tax Liability
Total Liabilities
Gross Block
Net Block
Capital Work in Progress
Investments
Net Working Capital (excl. cash & bank)
Cash & Bank
Net Working Capital (incl. cash & bank)
Total Assets

24. Indian Salon Hair and Skin Products Industry Report
24
Key Ratios FY 2014 FY 2015 FY 2016
Profitability Ratios
PBT %
PAT %
Return Ratios
ROCE %
ROE %
Financial Ratios
Capital Employed
Total Debt/ Net Worth
Secured Debt/ Net Worth
Total Debt to EBITDA
Turnover Ratios
Working Capital Turnover Ratio
Net Fixed Assets turnover ratio
Inventory Days
Debtors Days
DuPont Analysis
EBIT/ Total Income
PAT/EBIT
PAT/ Total Income
Total Assets/ Net Worth
Total Income/ Total Assets

25. Indian Salon Hair and Skin Products Industry Report
25
About Reevolv
Reevolv is a boutique consulting and investment banking company offering a "One Stop Shop" in the areas of
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We service our clients in their constant re-evolution process through our in-depth industry research, domain
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industry dynamics.
Founded in 2008, Reevolv is a team of CAs, MBAs and Engineers with functional and industry expertise and
diverse background of investment banking and management consulting.
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U74140MH2011PTC215709
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