Are you a fashion or beauty enthusiast looking for an exciting opportunity with a renowned brand? Does your current business belong to the Hair & Beauty Salon Industry and planning to play long with a minimum risk? Or, Have you been searching for Lakme Salon business but don’t have complete details of it?
Starting a Lakme Salon Franchise may prove to be an enticing opportunity for the interested applicant, but there is a catch. In this article, we’ll guide you through the process of owning a Lakme Salon Franchise, along with its costs, application procedure, and profit margin – and answer some of the commonly asked question on this chain.
We’ll also answer some of the most interesting and key question about the chain;
- What’s the Background of Lakme Salon business?
- What’s the Hair and Salon business industry growth?
- What kind of location should you choose for the Lakme Salon?
- and Finally, Does Lakme Salon REALLY worth investing?
- Company: Lakme Salon
- Founded: 1952, India
- Industry: Personal Care and Beauty Parlour
- No. of outlet: Over 450
- Model: Franchise
- Area served: Countrywide
- Franchise Fee: ~₹10 lakhs
- Area Required: Min. 900 sq ft
- Total Initial Investment: ₹50 Lakhs to 60 Lakhs
Table of Contents
Overview of Lakme Salon Franchise
Started as a Lakshmi beauty products in 1952, a 100% subsidiary of Tata Oil Mills later sold to Hindustan Unilever for ₹200 Crore in 1998 and rebranded as Lakme. Lakme is one of the India’s leading and most popular cosmetics brand that started its state-of-the-art Salon business in India and became instant hit.
Lakme as a brand mainly sells a wide range of cosmetics products, such as lipsticks, eyeliners, and skincare cream. Currently, Lakme Salon boasts over 450 locations across over 150 metro and smaller cities. With its future plan to add two outlets in every two weeks will definitely create tremendous opportunities for interested entrepreneurs to join in the ever-growing Hair and Salon Industry.
Having renowned for its commitment to excellence, innovation, and customer satisfaction has helped the Lakme Salon chain to position itself as a preferred destination for individuals seeking top-quality beauty and wellness treatments. Some of its exciting and diverse portfolio of premium service includes, haircuts, hairstyling, hair coloring, facials, makeup, nail art, spa treatments, and more to both men and women.
As of June 2023, Lakme plans to continue to hold 10% of the salons as company-owned and operated model, while the majority of its expansion will be done through franchising concept. Out of 450 locations, Lakme holds about 52 Salons, while rest are on the franchise model.
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What’s the Hair and Salon business industry growth in India?
Undoubtedly, the India’s hair and salon business industry has exhibited a significant growth in recent years, which is influenced by several factors such as;
- Rising disposable income
- Changing lifestyle patterns
- Growing awareness about personal grooming
According to the official website, the Hair & Beauty Salon industry is valued at Rs 17,000 crores which is mainly divided into organized and unorganized sectors. The franchise expects the industry to grow at an enormous pace of 15-20% annually, with the organized sector growing doubly at 30% annually.
As per the research performed by the Lakme, They see a increasing interest in appearances and a surge in spending power, with 61% men and 54% women visit salons on a monthly basis, spending between Rs 1,000-2,000. So, obviously, there is a lot of room for expansion and earning.
It is important to note that the wedding market, which includes pre-bridal products, is worth Rs 3,200 crores and is expanding at a rate of more than 30% each year.**Important facts**
Key Facts on Lakme Salon
|1||Trade Name||Lakme Salon|
|2||Industry||Hair and Beauty|
|4||Founders Or Parent Company||Hindustan Unilever|
|6||Number of locations||Over 450 +|
|7||Area served||Across 150 metro and small cities|
|8||Model||Majority – Franchised|
|9||Service offering||haircuts, hairstyling, hair coloring, |
facials, makeup, nail art, spa treatments
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Why Consider Owning a Lakme Salon Franchise?
The reason for owning a Lakme Salon business may vary depending on prospect’s interest, knowledge, and passion for the industry. There is no doubt in stating that the industry has been growing at an exceptional rate and we see a huge demand in upcoming years.
- Majority of outlets are owned by Franchisee:
- Apart from being a formal hair and beauty chain, the majority of Lakme salon are owned and operated by the franchisee itself. To be precise, over 52 outlets are company-owned and more than 400 outlets are franchisee-owned.
- Satisfied Franchisee partner:
- Over the years, the Lakme has built a reputation of established brand and is constantly evolving. According to the official website, over 60% franchisees owning more than 1 salon which indicates a high level of satisfaction.
- Enormous growth potential for the chain:
- The India’s grooming industry is growing at an exceptional pace and has indeed provided staggering return to its investors and franchisees. With more outlets planned for future release will create tremendous opportunities for aspiring candidates.
- Unpenetrated sectors:
- While we see a huge demand incoming, one can’t deny that the Hair and Beauty industry is still dominated by the unorganized players. So, with penetration of renowned brands like Lakme in metro and smaller cities will create general awareness about the premium grooming, ultimately leading to a healthy growth and revenue for the franchise.
- Extensive training support:
- Lakme offers comprehensive training and support to its franchisees, including assistance in site selection, Interior decor, and other necessary stuff.
- High profit potential:
- As a franchisee, you may leverage brand’s highly profitable franchise model, and with right location and marketing strategy, Lakme Salon outlet holder may generate an impressive profit margin of 15-20%.
- Variety & Affordability
- Lakme’s provides a wide range of pocket-friendly and premium grooming experience with services including, haircuts, hairstyling, hair coloring, facials, makeup, nail art, spa treatments.
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How Much Does A Lakme Salon Franchise Cost?
The specific cost of owning a Lakme Salon outlet in India certainly requires a moderate investment and people with no background in the industry can apply for it. However, the cost of owning a Lakme Salon in India may depend on numerous factors, such as location, boutique size, market potential & conditions, and other major business-related considerations.
Nonetheless, to become an approved Lakme Salon Franchise owner, one may require to invest at least ₹ 50 Lakhs to ₹ 60 Lakhs for a floor area of minimum 900 sq feet(either owned/leased space).
It is also important to mention that the initial investment for Lakme Salon includes various components like franchise fees, equipment/machinery and inventory costs, boutique built-up or renovation expenses, and working capital.
How much is the Lakme Salon Franchise Fee?
The franchise fee is one of the major revenue streams for any franchisor like Lakme Salon, and the franchise for Lakme Salon in India will be approximately ₹10 lakhs. In addition to that, Interested candidates/partners may also require to meet the minimum financial requirement of at least a Net Worth of ₹ 1 Crores and at least ₹50 Lakh in liquid assets.
Moreover, At FranchiseGoal India, we always recommend contacting the respective team for accurate and current information for Lakme Salon.
Additional Cost for The Lakme Salon
Typically, to run and maintain a Lakme Salon’s location, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.
However, we aren’t sure about the Royalty fee as we couldn’t find any legitimate details.
|Type of Fee||Cost & Other details|
|Franchise Fee||₹10 lakhs|
|Interior Cost||₹10 lakh|
|Furniture expenses||₹5-8 lakh|
|Ad Royalty Fee||Unknown|
|Required Space||Min. 900 sq feet|
|Net Worth||₹1 Crore|
|Required liquid capital||₹50 Lakh|
|Total Initial Investment||₹50 lakh – ₹60 lakh|
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How Much is Lakme Salon Franchise Profit Margin?
The profit margin for a Lakme Salon location may depend on several factors, including outlet’s geographical location, boutique size, market conditions, and managerial capabilities of a franchise owner. Nevertheless, considering the Lakme’s experience, varieties in premium service offerings, competitive pricing, countrywide presence, comprehensive training and marketing support, and humongous loyal customer base may help new franchise owner to earn a healthy profit margin of 15-20%.
Additionally, the company expects an increase in grooms using its services during the wedding season, and its retail revenue accounts for over 20% of Salon revenues.
Financial Stats for Lakme Salon
|FY – 2023||FY – 2022||Stats Details|
|Revenue Figure||₹328 Crore||₹275 Crore||jump of 19.3%|
|No. of outlets||Over 450||400||jump of 12.5%|
Overall, Lakme has been offering consistent return to its investors and franchisee, except for the COVID period.
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What does it require to become a Lakme Salon Franchisee?
- First and most important – One should have the required funding to partner with a Lakme Salon, and one should be ready to invest anywhere between ₹50 Lakhs to ₹ 60 Lakhs.
- One should be have a space of minimum 900 sq feet(owned/leased space) with a plenty of parking space. The location should be in a city center and should be accessible to its customers.
- Interested applicants are advised to dedicate themselves to the Lakme Salon business and follow the company standards and maintain their legacy.
- The franchisee should be passionate and devoted to managing business.
- The franchisor expects the franchisee to follow the customer-centric approach and willing to go the extra mile for customer satisfaction.
- Interested applicants must undergo and complete the necessary training program offered by Lakme Lever’s expert team and should possess the ability to build and manage a team.
What are the support offered by Lakme Salon Franchise?
To efficiently run a boutique at smooth pace, Lakme offers an extended support for its franchisee, and some of their prominent support includes;
- Finding a better location with proper site evaluation and selection.
- Ongoing HR and training support
- Product & Innovations (Hair, Skin & Make-up Experts)
- IT and continuous operational support
- Marketing and advertising support
- Image and Leadership build-up
Does Lakme Salon Franchise Worth Your Investment?
It heavily depends on the knowledge, enthusiasm, and interest of the franchisee in the sector. Additionally, a site with high customer traffic and improved outlet exposure ultimately attracts customers from the nearby neighbourhood, assisting the new franchisee owner in providing the services needed to turn their regular clients into devoted supporters.
It eventually makes the chain profitable and turn them into a long-term relationship with franchisor.
How to Get Lakme Salon Franchise?
Becoming a Lakme Salon outlet owner requires an moderate capital that may offers an impressive gross profit margin. Additionally, the Lakme Salon chain may provide several benefits, and interested candidates can take up franchise outlets in their city through their expertise and endless support systems.
One can avail this franchise using below mentioned steps;
- Visit its official website and navigate to the Become a Partner section;
- Fill in the details like Name, Email ID, Phone Number, Preferred city, Area location, required space and other necessary information.
|To get this franchise||Lakme Salon Franchise Form|
Final Takeaway – Conclusion
Undoubtedly, Lakme is one of India’s leading and renowned cosmetics brands that offers its boutique franchise with under the Brand – Lakme Lever Pvt ltd. We also know them at Lakme Salon, which offers a wide range of premium services, such as haircut, spa, makeup, and much more.
Currently, the chain operates at more than 450 locations across 150 metro and smaller cities. The company claims to hold 10% of locations as a company-owned entity. The Hair and beauty industry is growing at rapid pace and Lakme has planned for store expansion exceptionallu well.
With an Initial investment of ₹ 50 Lakhs to ₹ 60 Lakhs, the Lakme Salon chain may offer an outstanding profit margin to its stakeholders and one may anticipate an exceptional net profit margin of 15-20%. Nevertheless, Interested applicants are advised to speak to 4-5 Lakme outlet owners before applying for its franchise.
The Bottom line – In case you are interested in the Personal Care and Beauty Salon industry and want to take advantage of the opportunity with a moderate investment, you can apply for a Lakme Salon outlet in India.
So, what are you waiting for? Go and start your entrepreneurial journey with Lakme!!
Good Luck!! Happy Franchising!!
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How much does it cost to Start a Lakme Salon Franchise?
Ans: The initial investment for Lakme Salon will range from ₹50 Lakhs to ₹ 60 Lakhs for a floor area of a minimum of 900 sq feet. This initial investment for Lakme Salon involves costs like Franchise Fees, Equipment Fees, Marketing and other expenses.
Is Lakme Salon Franchise Profitable?
Ans: The profitability of a Lakme Salon business depends on factors like location, average customer footfall, service offering, and many more. Moreover, An average Lakme Salon expects over 61% men and 54% women customers on a monthly basis, spending between Rs 1,000-2,000.
Hence, A proper location with high outlet’s visibility may turn out to be a profitable investment for franchisee.
How much profit does a Lakme Salon Franchise owner make?
Ans: The income potential for the Salon franchise owner is highly dependent on the market conditions and customer footfall. Nevertheless, considering the brand’s offering, expertise, and over 3 lacs loyal customer base, one can anticipate to earn more than ₹50,000 to 1 lacs per month.