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Jun, 2017

The business opportunity in Beauty Services

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The beauty services consumption in India has been increasing exponentially since last few years. Consumers are becoming more aspirational which has led to the concept of grooming and beauty to become more important for both men and women.

This spells good news for many beauty professionals planning to start their own profitable business in the beauty industry. With specific skills or relevant experience any individual can start his/her own entrepreneurship in beauty industry.

The beauty & spa services industry of India has also been witnessing increased competition in number of international players. The market which was earlier women centric has started concentrating on male grooming and is coming up with large numbers of unisex salons. Existing players in the market are adopting franchisee route for expansion.


Rising consumer income and changing life styles are driving the global beauty and personal care product industry. It is forecasted that beauty industry globally will reach around $265 billion by 2017. The beauty and personal care industry was affected by recession in 2009 but recovered in 2011 as the global economy improved. As per the study, increased awareness has resulted in higher demand for luxury products, especially cosmetics.

Increased demand for multi-feature products such as moisturizing cream with sun protection and anti-aging or anti-wrinkle properties are likely to drive market growth. Hair care is the second largest segment and indicates good future growth potential. The cosmetics segment also has growth potential as demand is increasing for premium cosmetics in the expanding middle class in developing nations.

Business Ideas:

There are many profitable business plans available related to the beauty industry, such as:

  1. Beauty Salon:

A beauty parlor / beauty salon is one of the most trending business ideas in the retail consumption segment. It provides products &services that enhances client’s physical appearances and mental relaxation. Opening a beauty parlor is a lucrative but also a very competitive business. There are many competitors in this business as the demand is high. It is important to have specific knowledge about hair, beauty, and personal care. While starting a beauty salon business any entrepreneur / aspiring beauty professional must have business management ability to successfully run the business.

An entrepreneur can step into the beauty salon business by either opening their own salon or becoming a franchisor of a reputed brand.

  1. Aroma Therapy:

Aromatherapy is therapeutic treatment with aromatic essential oils. It can be used by anybody for physical, physiological, mental, spiritual well-being daily or as and when required. It not only has skincare properties but also medicinal properties as well.

Aromatherapy is essentially a skilled and controlled use of essential oils for physical and emotional health and well-being.

Ladies, students, beauty parlors, salon owners, housewives, anyone can start this business. However, the entrepreneur must have knowledge of aromatherapy and passion for learning new things in this field. A lot of present successful entrepreneurs in this trade started their business right from their home.

  1. Spa:

Setting up a Spa business is as easy as starting any business in India. The Spa & Wellness industry is highly unorganized in the country. Beauty spa or day spa business one of the most profitable beauty business ideas. With proper management skill and marketing strategy any individual can initiate beauty spa business with substantial capital investment. There are no specific licenses for starting a Spa (except for in Goa), only Gumatsa and GST (after 1 July’17) will be required.

  1. Body Piercing:

As being inspired by the western countries, many youngsters are interested in getting their body arts pierced. Opening your own body piercing shop can be a realistic and profitable business venture, provided you have piercing skills and can put in the work to make your business successful in the coming years. Make sure you keep it as hygienic as possible.

  1. Cosmetic manufacturing:

An entrepreneur can start a cosmetic manufacturing plant either on small scale at home or on a large scale by manufacturing in a factory. If done at a large scale, vast capital investment will be required by the entrepreneur. A lot of research will be required along with applicable licenses such as Gumatsa, FDA, Udyog Aadhar, etc.

Once the company is started with all required licenses, it can either manufacture under its own brand or get contracts for other well-established brands as many brands are usually manufactured by same company.

  1. Cosmetic distributor / Stockist:

Cosmetic distributors / stockist are the people who pick up the products from the manufacturing company and deliver it to the retail shops. It is a trading business which requires little capital investment. The entrepreneur must have a ware house or a godown to store the materials.

  1. Cosmetic Store:

A cosmetic store is one of the most trending beauty business ideas in the retail sector. It is a lucrative business to start from any location across the globe. Even this business is profitable in small towns and suburban areas. You can sell various kinds of products in a cosmetic store, such as skin care, hair care, personal care, essential oils, aromatherapy products etc. The entrepreneur must take into consideration few things before setting up a shop, such as market demand, popularity of certain products, weather conditions etc.

There are three ways to do this business:

  1. Launch your own brand.
  2. Start a franchise of a reputed brand.
  3. Start an online retail beauty supply store.

8. Fragrance business:

Starting a fragrance business is an idea that combines artistic personal expression and business management. If approached correctly, it can result in an excellent profit margin. The entrepreneur has to do apt research before stepping into the fragrance industry.

The fragrance is a multi-billion-dollar industry globally. It includes scents, perfumes, deodorant, body spray etc. You can establish a production business or you can only sell these products with an exclusive retail agreement of a reputed and reliable fragrance manufacturer.

  1. Hair Salon:

Just like skin-care and make up, hair grooming industry is also a billion-dollar industry globally. People want to look groomed from head to toe and are willing to spend the asking price for it. The entrepreneur will have to make sure the salon looks clean and have attractive interiors to appeal customers. There are 2 ways to conduct this business:

  1. Work with a reputed brand as a franchisor.
  2. Start your own hair salon.

The entrepreneur must have suitable knowledge about hair styling, cutting and grooming and hire skilled employees in order to run a successful business.

  1. Image Consultant:

Image consulting business is all about providing advises to your clients about beauty makeover, clothing fitness, color basics and instructions for enhancing self confidence that help them to look and act their best professionally. An individual having enough knowledge about this field, true passion and interest in helping other can initiate this business as part time from his/her home location.

Image Consultants can offer the kind of advice that can help people, land a job, get a promotion, find someone to love, or just feel good about themselves.

One can also do it as a freelancer.

  1. Dermatologist clinic:

Dermatologist are doctors who help its customers with skin-issues. For opening a dermatologist clinic, the entrepreneur must have a doctor’s degree and medical license. For people who have skin issues which cannot be solved by generic products, dermatologist is the next option. It is not only available for cosmetic issues but also for health issues.

The entrepreneur will be required to hire skilled assistants or fellow dermatologists.

  1. Natural Skin care products manufacturing:

The growing awareness of the hazards that everyday skin care and household products can cause, natural products and skin care are getting more popular in the market. The availability of herbal and complimentary ingredients and ready-made natural products are also growing in the Indian market. Consumers are now able to take more control of the quality and safety of the products that they utilize on their body and in their homes.

Brands like Patanjali have made a huge impact on the Indian skincare industry by launching natural products in the market. They are giving major competition to the big international brands. Products from Patanjali not only claims to be organic and natural but also are very affordable.

The increased awareness in health and wellbeing has created a great demand for natural soaps, lotions, skin care products and natural fragrances. Natural skin care products are often packaged beautifully, and they make wonderful gifts.

  1. Tattoo Parlor:

There is a growing demand of body art all over the world. Many number of tattoo parlors are coming up in the country. For opening a tattoo parlor, the entrepreneur must have advanced knowledge in the field of tattoo as it leaves a permanent mark on the body and one mistake could prove costly. There are many courses and apprenticeship available to train an individual as a professional tattoo artist. The entrepreneur must be a trained professional and have proper experience as a tattoo artist.

One can even work as a freelance artist or at someone else’s tattoo parlor. If you decide to do it as a freelancer, the requirements would be only a tattoo machine, needles, tattoo ink, stencils of designs etc. The marketing strategy must be effective in order for the business to grow.

The tattoo artist needs to make sure the tattoo application process is as hygienic as possible. Post application services are also offered such as healing creams.

  1. Make-up artist:

Putting on make-up is also considered as face art. If you enjoy doing make up on other’s face and know how to create magic with different cosmetics, you can start this business from your home location and as part time also. As make-up artist, you will offer service to the clients look their best for weddings or other special events, give beauty makeovers to people who want to update their everyday images.

All you need is various kinds of make-up tools, make-up products suiting different skin tones, skin types etc. and ability to do make-up professionally on your clients. One can also be a professional make-up artist in the field of theatre and films.

Many of the above-mentioned services can also be provided online through website or an app, in which customers can request for beauty services online and enjoy those services at their home on their desired time. This reduces the infrastructure cost for the entrepreneur.

Basic Documents required:

The basic documents for all the services mentioned above are given below:

  1. Gumatsa
  2. Udyog Aadhar
  3. GST registration.
  4. FDA license (in case of manufacturing products)

The entrepreneur must do apt research and ask in their municipal offices if any other licenses required for specific businesses.

 Investment & Finance:

All the above-mentioned services require initial capital investment, some less and some more. The entrepreneur is required make the decision wisely taking into consideration their financial capability, passion for the business and qualification.

If you need help for financing, you can also contact us at

A snapshot of the typical formal financing terms and conditions is given below:

  Contribution by Bank Contribution by Entrepreneur
Capital Investment 75% 25%
Working Capital Gap (Raw Materials+Debtors-Creditors) 75% 25%
Tenure of Loan 5-7 years  
Moratorium 6 months to 1 year  
Can be funded by Scheduled Commercial Banks, Co-Operative Banks
One can also enjoy the Mudra Yojna Scheme & Standup Scheme launched by the Government of India

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