How to survive a beauty salon in a crisis. Against all winds: management in a beauty salon during a financial crisis
Always be aware
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In spite of all winds: management in a beauty salon in conditions financial crisis
Cosmetology in conditions of financial crisis:
-decline in demand
-decrease in solvency
-decrease in revenue and profit
Prices. Increase or decrease?
In a crisis, even the rich will count money. Demand for non-essential goods and services decreases. This also applies to cosmetology. With a decrease in the number of procedures, the depreciation load per visitor naturally increases. Thus, it is necessary to pay for the maintenance of the salon with fewer clients. We need to raise prices. But then some more clients will leave, and those who remain will count every ruble. Or maybe it’s worth showing loyalty to consumer problems and lowering prices?! Survive the crisis, try to retain your own, and even snatch some clients from more expensive competitors...
Staff. Cut or regret?
Do you know “good” specialists who talk beautifully about their achievements, but are not able to contribute a decent penny to the salon’s wallet? In a crisis, everyone is obliged to take on something more, expand their competencies and participation - for example, a massage therapist can carry out body wraps, a manicurist can master a spa, etc. Doesn't want to -... Quietly get rid of the ballast.
Current expenses. Reduce.
For what? You can’t turn off the heating, you won’t save much in the world. It is impossible to offend valuable employees when it comes to their salaries. Maybe reduce the cost of the procedure itself?
Cost of drugs.
Find a professional series that gives you the opportunity to reduce the cost of providing services and the price of the services themselves - both the price of drugs and the cost of accessories. Please note that sometimes the start of an already expensive series also includes the cost of training and a minimum set of drugs. Have you considered when learning some exotic massage pays off? Therefore, especially in times of crisis, use the most understandable, simple and accessible technologies.
Services. Expand?
Have you been to the restaurant? Then remember that, for example, the selection of wines and drinks on the menu is not only for every taste, but also for every budget. Offer your clients a choice of the same service from two or three series of drugs - both expensive and more affordable. With the corresponding price for the service itself. You will see for yourself which one is financially more effective. By the way, it is not a fact that all wealthy clients are willing to overpay for the prestige of a brand. The client trusts the cosmetologist to choose the drug. In a crisis, the result and the money saved (thanks to you) are more important.
Paradoxical business.
At a time when everyone is moaning and crying, make a surprise - bring to the market a service that no one was expecting at that moment. For example, SPA! It is not at all necessary to use VIP programs and rebuild the salon - it is enough to master and introduce SPA elements into the price list - inexpensive body wraps, non-injection mesotherapy, sliding massage, SPA manicure... Keep in mind that during a crisis, most people need an outlet, at least half an hour of relaxation away from everyday life. problems. Give it to them. And if there is also a result...
So, an affordable cosmetic SPA:
- clarity and simplicity of technologies and step-by-step programs
-material accessibility to the middle class
-reducing the cost of drugs and accessories
-high efficiency and perfect results
-comfort and satisfaction of the client
-traditional prestige of SPA
-not survival, but development, success and prosperity of the salon
For example, this concept has been provided by Irish spa technology for several years in the joint “Spani” series. Simple - because without any cleverness, effective - because it is not based on just any local source, but raw materials and components from all over the world, created by biologists and doctors according to European technologies and standards, reliable - because it has been tested and used by hundreds of practicing cosmetologists. Why is it affordable - because the final production is in Ukraine. In connection with the current financial crisis, the “Spani” series is ready to help the cosmetology market in Russia, Kazakhstan and other countries. For this purpose, it can negotiate with general and regional distributors on certification and supplies.
In the idea of SPA, we see the use of natural technologies and preparations with natural composition and natural methods of application in conditions of maximum comfort and pleasure. Whether it is a hotel on the ocean, thermal springs in the Alps or a beauty salon in Tula, the SPA principle is the same - obtaining mental well-being and physical benefits for the client. And arrived to the master.
SPA with “Spani” is not at all sophisticated exotic. Now this is already a standard in cosmetology salon services. SPA technologies are natural, they imitate the environment: baths - swimming in the sea, wraps - warming up on the sand or in a hot mineral mud spring, SPA cryotherapy imitates winter cold, SPA peeling - cleansing the skin with sand, SPA mesotherapy tightens and rejuvenates the skin without injections, masks - nourish with minerals and plant juice, etc.
It is difficult for us to adopt the traditions of Western or Eastern SPA, which imply privacy, location of a salon or hotel near a mineral spring in a suburban area, an abundance of water treatments, exoticism and chic surroundings. Let's look at it realistically - our consumer is more likely to go to Thailand for exotic things, and we, accordingly, are forced to look for the most optimal projects for investment. There is only one way out - to introduce a spa that is realistic for your consumer, expanding the demand of existing clients. This solution is the idea of “Day-SPA” - a day spa in a salon. We are for the concept"Time-SPA", that is, time spent in the salon with your cosmetologist on SPA programs.
Marketing and SPA management in each beauty salon.
The law of any market: you need to look for new products for your own, already native consumer, expanding the range of services, quality of service, increasing demand and frequency of attendance of procedures, and as a result - the overall financial result. This solution is the mastery of the idea of an affordable salon cosmetic SPA. It will not be a revelation that the most massive and stable client is the middle class. It is its representatives - managers, entrepreneurs, lawyers - who are and remain the main consumers of cosmetology services. Therefore, if you are counting on mass appeal and not exclusivity of your salon, you need to focus on the needs busy man with average income – and in a balanced pricing policy, and in a sufficient, but not flashy, level of interior and service, and in the choice of programs designed for the limited time the client spends in the salon (maximum 1-1.5 hours).
Please note that injection and many hardware techniques are approved for use only by specialists with medical education in appropriate sanitary conditions. Safe, effective natural technologies can be a profitable purchase for those salons that do not have a medical license, or do not want to risk using aggressive drugs.
So, how, without closing the salon for reconstruction, and without investing significant money, can you master the spa and increase the prestige of the salon and each specialist?
1.
Mastering spa technologies:
a) Choose a line (series) of SPA products that is easy to use for yourself and financially affordable for your clients.
b) Get trained, carefully study the methodological instructions for the use of drugs, follow the protocols of the programs.
c) During a crisis, do not rush to purchase expensive equipment. At a minimum, spa programs require a couch and water - this way you have all the basics.
c) Do not forget that SPA programs for the face are no less effective and wonderful as for the body.
2. SPA Marketing:
a) In the opinion of the population, a spa is an unaffordable luxury. Make it clear to your regular customers that they can afford to touch the world of spa, thus increasing their status in their own eyes and giving rise to discussions about your new product among their friends.
b) Like in a restaurant, offer your customers a choice of two or three series of SPA products - both expensive and more affordable - like the “Spani” series. Do not rush to purchase expensive imported drugs “in reserve”.
c) Select a separate section in the price list: “SPA”, “SPA care” or “SPA services”, determine their list and cost. Their low, affordable price will be a pleasant, enticing surprise for customers. You will be able to raise prices and really earn good money in a few months - when a “wide path has been trodden” to your salon.
The ideal result of a SPA procedure is the client’s desire to fall asleep, give him this pleasure for 5-10 minutes. Enjoy visiting the procedures yourself, experiencing the sensations of your clients.
Ways to Promote
profitability and profitability of the salon
1. Increase in income:
a) an increase in prices for services (fraught with the loss of some existing clients and, as a result, on the contrary, a drop in income)
b) increasing the number of visits and services:
- existing clients (offering new popular services, the price of which is affordable to existing clients)
-attracting new clients (reducing or maintaining prices through the use of more affordable drugs; expanding the list of services; introducing unusually interesting and effective programs - such as SPA; introducing SPA programs to improve the image and status of the salon and, accordingly, attract more affluent clients)
2. Reducing drug costs:
a) saving on the completeness of program implementation, reducing the cost per procedure (fraught with loss of efficiency and, accordingly, the image of the salon and loss of clients)
b) the use of financially more affordable professional series of SPA preparations and truly affordable SPA programs (which allows you to significantly increase the margin between the cost of drugs and the cost of SPA services)
Some salon owners have already passed on rising costs to consumers, admits Roman Gorelkin, director of the Union of Hairdressers and Cosmetologists of Russia. It is clear that this state of affairs will not last long. Both premium-class establishments and economy-class hairdressers will fall under the skating rink of the crisis. Gorelkin predicts that by 2020, out of three thousand Moscow salons, only half may remain.
Until recently, it was possible to get a haircut or a manicure mainly by appointment. Nowadays there are no ceremonies. If, walking past the salon on the street, you feel the urge to immediately get yourself in order, feel free to come in: the chance of getting to a free master is very high.
Hairdressers are located at every step. They are usually divided into premium-class establishments, “middle-class” establishments and economy barber shops. Luxury hairdressers in the capital can be counted on one hand. One of them is located in its own separate building on Novy Arbat.
Although “hair salon” is said too modestly. Naturally, we're talking about about a luxury beauty salon. The interior in rich black and pink colors looks so expensive and stylish that you can take excursions. Only a few can afford such luxury.
“You understand what the situation is now,” says administrator Anna with a perfect smile. - It is clear that now some of the clients have left, but we hope that this is temporary.
Anna says that there are people for whom status comes first. “And they are used to our hairdressers, so we can say that everyone has their own personal master. We don’t need to attract a client, ours will stay with us, and a random person from the street is unlikely to come here,” says Anna.
Indeed, not everyone dares to come here: visiting several masters can result in the monthly salary of a simple saleswoman.
There are noticeably more people in middle-class barber shops. Of course, here they take it not in luxury, but in prices. As visitors themselves admit, being among the usual jars and tongs is much more comfortable for them than in pretentious luxury salons. Hair salon employees react skeptically to the news about the closure of half of Moscow establishments.
Most people won’t walk around with overgrown hair, and they won’t even cut their hair,” says Ekaterina, an administrator with 15 years of experience. - If you like informal, choppy or uneven haircuts, you can take up the scissors yourself. But people come to the salon for well-groomed hairstyles.
Hairdresser Maria, looking up from her haircut for a moment, said that she once worked in an economy salon. But she couldn’t stand it for long. “They save on everything: there are no craft bags for processing instruments, disposable instruments are used several times. If we dye a girl blonde in our salon, then we get White color, not yellow,” the master shares with us.
Today we already had eight clients, we also have an appointment for the evening,” the administrator calculates. With us, people actually call the hairdresser and sign up for treatments.
Each salon has its own “tricks,” the girl shares. - We give savings cards to regular customers and offer discounts on their birthdays. We try to find our own approach to everyone.
And this, by the way, is very important point. A freshly cut girl, Anna, told us about her bad experience visiting cheap establishments: “I liked short haircuts, and at first the salon master coped with the job. But when I asked to change the look of my hair a little, I was surprised to receive the same haircut as after previous procedures. There was a strong feeling that they knew two or three standard hairstyles and literally cut everyone with the same brush.”
We go to those same economy class cabins. Many of them employ visitors from Central Asia. At first, about 15–20 years ago, such establishments opened illegally on the territory of Vietnamese and Chinese markets to cut “their own” hair for symbolic money, or even for free. But gradually they migrated “to the city.” We came to one of the cheap hairdressing salons, located on the ground floor of an ordinary residential building.
In the modest but clean room, half the seats are occupied. A pensioner is waiting on a sofa in the corridor. “Mostly visitors come here,” the woman shares with us. - Occasionally I meet old women like me, they also usually get their hair cut in the morning, there are discounts for pensioners up to 12 o'clock. For my short hair That's exactly 100 rubles. But you can’t drag my granddaughter here on a lasso. On principle, she doesn’t go to such places. Not even because it is not prestigious. He says he’s afraid of lice and some other infection.”
However, we did meet one young woman in an economical hairdressing salon.
“I once came to a similar salon and ended up with a wonderful master,” she says. - He is Uzbek by nationality, but he cut his hair exactly the way I wanted. I have fine hair and it's difficult to manage. Then he moved to another salon, and I followed him. Then to another - I’m there too. He just lived and worked illegally, so he ran back and forth. After some time, the guy completely disappeared, I never saw him again... I have no hostility or prejudice towards migrants. If only they worked well and were inexpensive. I’m not a Muscovite myself, I came from Siberia...
A sharp reduction in the number of hairdressers and beauty salons in major cities in the coming years is really highly likely,” says financial analyst at IH “FINAM” Timur Nigmatullin. - On the one hand, the difficult economic situation and the fall in real incomes of the population will have an impact. On the other hand, now the financial indicators of businesses with low margins in the service sector are under pressure from the growth of tax deductions, high rental rates (due to the transition of landlords to paying real estate taxes according to the cadastre) and high oversaturation of the market. I don't think economy class cabins have an advantage in this regard. Most likely, the market will shrink more or less evenly due to all segments.
Of course, planning until 2020 in the current circumstances is quite difficult. But in general, I am forced to confirm: the trend towards a reduction in the infrastructure of offerings in the market of household services, in particular cosmetics and hairdressing salons, is clearly pronounced. There can be no doubt, says Dmitry Nesvetov, chairman of the consumer services committee of the Moscow branch of OPORA Russia. - We made our measurements based on the results of the first quarter of this year. The drop in revenue and turnover is quite significant - up to 25%. And the structure of supply changes to approximately the same extent. In the sense that the company begins to either reduce its points of presence in the market or move into cheaper segments of this area.
For what reasons does this happen? Firstly, despite the assurances of the federal and regional authorities, the tax burden on small businesses is increasing and costs are rising. The calculation of rental rates based on the cadastral value of land and real estate results in considerable sums. The authorities say that these burdens do not affect small businesses. It's true - they don't touch directly. But the bulk of hairdressing salons - experts put the figure at 95% - are located in rented premises. And they are forced to either move to less prestigious areas or go out of business altogether.
I know of many cases where an enterprise that has been operating for several years mall with high traffic - luxury or premium, it doesn’t matter - we were forced to move deeper into the block, into some residential building,” continues Dmitry Nesvetov. - And this is especially noticeable in beauty salons, as well as dry cleaners and laundries.
Another reason for the unprofitability of the business is the use of mainly imported equipment and consumables (up to 70%). And the ruble has devalued almost twice in a year. It is clear that businesses are looking for cheaper options, but it is no longer possible to return to previous prices.
Some high-end salon owners have begun lowering the bar for potential clients. So there is another trend: premium salons are gradually becoming mediocre hairdressers. “This is already clearly visible in Moscow,” says the expert. - It started in February-March. And now it has become a mass phenomenon. When costs exceed sales volumes, no economy can sustain it.”
According to Rosstat, the fall in effective demand will be at least 10% by the end of the year. However, economists suggest that this figure is too low. The overall unstable economic situation is changing consumer priorities. People save primarily on household services.
Most of all, according to masters, the demand for hair coloring, manicures and facial care has decreased. Unlike haircuts, these procedures can at least be done at home, saving a lot of money. Let's calculate: even if you do a manicure with a permanent coating not every week, but twice a month, the service in a beauty salon will cost an average of 4 thousand rubles. Hair coloring or tinting - another 2–3 thousand rubles. Face mask - 1.5–3 thousand rubles. It runs up 7.5–10 thousand rubles. For many Muscovites, this amount is 15–20% of income. An unaffordable luxury in our time.
Analysts also talk about the transfer of the consumer services sector to the illegal market. Salons are closing, but people need somewhere to work. And they are forced to leave the legal market. More and more masters, without officially registering, do manicures, pedicures, and haircuts at home.
On the one hand, costs are rising, on the other, effective demand is falling, and therefore turnover. Businesses are in this grip. It is absolutely clear that fiscal policy needs to be changed - playing with new taxes will not lead to good,” sums up Dmitry Nesvetov.
Meanwhile
The decline in purchasing power was also reflected in the automobile market. Russians buy new cars less often, and therefore have a higher need for repairs than before, as statistics very eloquently testify to. According to a study by the city information service 2GIS, the number of car services and service stations has increased significantly throughout the country.
The most significant increase in automobile enterprises was noted in Krasnodar: since the beginning of the year it amounted to 45.7% (there are now 376 services in the city). Yaroslavl is in second place: the number of service stations there has increased by 43% (143). Moscow closes the top three, where the number of car services increased by 39.2%. However, in absolute terms, the capital is ahead of the rest of Russia - now there are as many as 2,882 car repair enterprises in the city.
Natalya Veluga
Commercial Director of the chain of business class salons "May"
- Graduated from an MBA course and has a Master's degree in Business Administration, specializing in human resource management
- Opened and made 13 beauty salons successful
- Teaches the course “Beauty Salon Management” at the May Academy Business School
According to analysts, 2015 will be a difficult year for business in general and, in particular, for the service sector.
The crisis came knocking on our door with the new year 2015: with sanctions that only the lazy have not imposed against our country so far. With the rise of the dollar and euro. With the price of oil already halved and with a further drop in its value. With pressure on our country from the United States and European Union countries. With promotion key rate Central Bank and lending rates. And inflation, which will reach 15-17 percent in March-April.
Need to continue?
And it seems that this has not affected you and your business yet. And there is hope that the crisis will pass and everything will subside on its own. And everything will be fine again.
Remember one most important rule:
Hope is the worst business strategy.
This is not even a strategy, but a blind denial of facts and reality. And, as a rule, it ends in failure.
We need to prepare for the crisis now. Faster than your competitors.
First and most useful,
What you can do is face the truth and accept the facts we have to work with:
— The population will have less money
— Demand for beauty salon services will fall
— Your clients will start saving money on their appearance
— Competition will increase, and a real fight for customers will begin
— The cost of purchasing equipment and consumables will increase, and therefore the expenses of your business will increase
Once you stop hiding your head in the sand and honestly assess the situation in your business, you can move on.
I'm sure that in New Year When the chimes struck, you didn’t set yourself a goal: “in 2015, I want to close my business and be left with debts.” So let's figure out what you need to do to successfully navigate difficult times.
Second thing you need to understand:
every crisis is an opportunity for growth. This is an opportunity to become number one in your niche. The possibility of explosive growth of your business and increasing its profitability.
You are lucky to live in such times. You are lucky to have the opportunity to become more efficient and make your business more successful.
Accept it with gratitude. And then suddenly you start to see opportunities.
Third: in difficult times you want to work less because it is difficult and scary. But the truth is that you need to work harder. Do more and better than usual. Do better and more than everyone else. Even when you don’t want to, even when little happens, even when everything goes wrong.
Now about specific techniques and tools.
Understand that a beauty salon is a business. This is a business like any other.
And this business works (or doesn’t work) according to standard laws. The time has passed when it was enough to simply open a salon with the right repairs, and there would already be a queue to get in. Nowadays there is a beauty salon in every quarter, and when purchasing power falls, some salons suddenly begin to experience difficulties with clients. And sales and money are the lifeblood of any business.
In our network of beauty salons “May” we make this beautiful business profitable. With the right innovative marketing, built-in effective business processes and one of the best salon management programs in Russia.
Please note that before implementing any tools, you need to learn how to test and measure the impact of your actions on your business.
Control and management of any process begins with its measurements. In other words, in order to control something, you must first measure it.
Questions for you:
What indicators do you measure in your business?
Do you measure at all?
And if you don’t measure, then how do you even run your business?
The first area of work for a beauty salon during a crisis, which requires close attention, is attracting potential clients.
How often do we talk in its network of salons "May"– building a queue of potential clients. Yes Yes. You heard right. There is really a queue at our salons and we almost always have a full appointment.
What's the secret? Let's figure it out.
Step-by-step instructions for proper marketing in times of crisis:
3) If you have decided to go solo, then the first thing you need is to reduce the cost of attracting clients. Note. Don't misunderstand this as cutting down all advertising. You need to promote your beauty salon. You just need to leave only those advertising channels that give guaranteed results and remove all unnecessary things.
4) The next step is to increase conversion at each step of the sales funnel. That is, work on your selling website, write/rewrite a conversation script for the salon administrator on an incoming call, write a script to confirm a visit to the salon and start this process. Your task is to get more clients while maintaining (or better yet reducing) advertising costs. This technical problem and it's quite easy to solve
5) The most important thing! You must answer the main question: why should a client come to your salon and not to your competitors’ salon? How are you different from all other beauty salons? And if you suddenly decide that you want to compete/distinguish yourself with the lowest price, then know that you are making the biggest mistake - competing in a crisis based on the price category. You must find the real difference from your competitors.
6) And the last thing for today. You need to work with your existing customer base. And in times of crisis, do this more actively. Your task is to revive your base and bring your old clients back to your salon. The main value is that you don't have to invest money to attract these customers. They already know you and it’s enough for them to just do good special offer so that they return to your salon.
These simple recommendations will be enough to start “saving” your beauty salon now.
In the following articles, we will talk to you about the next steps for running a beauty salon during difficult times. If you want to find out now another option for developing a beauty salon under a strong brand, follow the link - http://maysalon.ru/franshiza
Critically important! After reading this article, you need to take action. Knowing what to do and taking those actions are two completely different processes. The results in your business depend on what you do.
Therefore, right now we invite you to set aside one hour of time to draw up a specific action plan and take the first step to develop your beauty salon.
Wishing you success in your business
Natalya Veluga, commercial director of the May beauty salon chain
Union of Hairdressers and Aestheticians of the North-West.2015
Alexander Khodakov
I am not trying to make predictions - whether an economic crisis will occur in Russia, whether the Motherland will become infected with this dangerous virus that has hit America, or whether adversity will pass by. There are economists who study macroeconomics for this. And we, with our beauty salons, are more of a micro-economy and are engaged in business not on a city scale, but rather on a regional scale. That is, we serve only our quarter of the city. But we don’t live in a vacuum - if an economic recession begins, then people who have lost their money would rather buy sausage than go to a beauty salon, right? This means that a possible future crisis could seriously hit us in the pocket. And it would be nice to think about this in advance, at least try to understand what to do, where to run and what to grab onto if hard times come. So take what I’m writing only as an attempt to answer the question: how dire the consequences could be for a particular salon business and the beauty industry as a whole if an economic downturn does occur.
According to the forecasts of some analysts, the financial crisis has already reached Russia and in the near future should provoke consequences that are more tangible for ordinary citizens than the fall stock market. Of course, the government is taking many measures to mitigate the effect of the crisis, in fact lending to banks, but financial possibilities are not unlimited. According to a columnist at politcom.ru: “Unfortunately, the Prime Minister’s statement that Russia has enough accumulated over the past last years financial “airbags” do not sound very convincing. A simple calculation shows that the gold and foreign exchange reserves of the Central Bank, with the current volumes of funds being pumped into the market, will last for a maximum of a month. And, despite the fact that the state has other accumulated reserves, the position is so strong Russian economy doesn't look like it. Moreover, we should not forget that at any moment in Russia, bankruptcy of organizations that have been actively growing in recent years along with the stock market may begin.».
Any economic downturn increases the risks of any business: people are forced to save. What can beauty salons expect from the economic crisis, if, of course, it comes? According to the recollections of our colleagues from the restaurant business, during the previous crisis in 1998, people did not stop going to restaurants, although they did it less often. But how exactly might a recession affect the salon business? How to assess risks, what to fear, and do you need to prepare for anything? The luxury market is the first to react to any changes, so before making predictions, let's place a thermometer on this hot spot.
Let's take a closer look at the Luxury market
Russian premium beauty salons are now not at all complaining about the lack of consumers. More precisely, the number of clients that middle and business class salons would call insufficient for themselves is the perfect norm for luxury beauty salons. This does not initially imply line service. When choosing the format of his establishment, focused on expensive clients, any owner of a chic salon realizes in advance that there will be few clients, for each he will leave in the cash register “for himself and for that guy.” It’s like when fishing - one person will catch a bucket of minnows in a day, and another, let alone one, but a very large pike. The weight seems to be the same, but a pike gives a fisherman much more pride. It’s the same in a luxury beauty salon - because among the clients there are a couple of politicians, an oligarch and several TV stars, the revenue is not much more than in that salon where there is a full appointment, but the prices are three times lower, but how nice it is to tell your friends! And yet, what awaits premium salons if the events of the economic crisis do not develop, to put it mildly, according to the most favorable scenario for Russia?
Let's look around what's happening in Tiffani boutiques, Ferrari showrooms, expensive restaurants and nightclubs, where a bottle of champagne costs not even hundreds, but sometimes thousands of dollars. You look at the latest acquisitions of some of our compatriots, and somehow you can’t believe that the rich are going to save. Especially on luxury goods. However, in not the richest natural resources, but wealthy people in industrialized countries have already felt the consequences of the global economic downturn. There, more and more millionaires are forced to temporarily abandon their usual wasteful purchases in order to save their business and capital.
What about them?
The new Stonehage Affluent Luxury Living index was recently published. It is calculated based on sales data for most ultra-expensive goods in the world. This year's study found interesting feature luxury consumers. Luxury buyers are people who are accustomed to being at least a few steps ahead of history. Otherwise, it is impossible not only to earn a decent fortune, but also to preserve what was acquired by previous generations. In addition, owners of impressive capital are a priori better informed about events in the financial world than others. They are familiar with analysts' forecasts. No, not those forecasts for mass consumption that are published in business magazines, where a fee of several hundred dollars is paid for an article. The rich of this world can afford to pay well those analysts who know their worth and do not exchange it for magazine fees. Few would argue that in our time the most expensive commodity is information. Those who can afford the most accurate forecasts and have access to the latest knowledge see much more and further. It was information about the possible adverse consequences of the financial crisis that forced luxury lovers to tighten their belts. This is a clear signal for any entrepreneur, unless he is deaf and blind. It would be a mistake to miss it. What's in the Stonehage Affluent Luxury Living report? This year's index showed a decrease in demand for a number of luxury goods. This has led to a slowdown in price increases for luxury goods. In particular, in the UK in April, price inflation in this segment decreased year-on-year by almost half. And some goods, such as premium cars and watches, even showed deflation, that is, they became cheaper.
This shows that some wealthy Britons have decided to stop buying expensive goods for a while. Apparently, millionaires from other countries followed suit, but we just don’t know about it. According to some information, an even more alarming situation has developed in the Spanish luxury market. But it’s too early for producers of goods with “high added value” to worry. Big international brands are unlikely to feel the impact of Britons and Spaniards spending less on luxury. After all, there remain such large markets as the Middle East or China. Or Russia...
What about us?
Judging by the latest publications of the RBC information and analytical agency, we in Russia are also experiencing a transformation in demand. As long as we are not talking about falling - It’s just that Russian buyers have become smarter and more stylish, says fashion historian Alexander Vasiliev. “Most buyers are coming to the realization that glitter and excess are no longer in fashion. In addition, a few years after the mass passion for luxury, it becomes clear to many that the vast majority of these products are made in China or Taiwan. They're just unreasonably overpriced.", says the expert.
Therefore, we can expect that in the near future the decline in demand for luxury will reach us. Of course, this tendency, having traveled thousands of kilometers by road from the British Isles, will lose much of its severity. But luxury sellers should think about the fact that in Russia, too, the era of unbridled consumption of luxury goods will sooner or later end.
And although retailers are all Lately report about an unprecedented increase in sales of luxury real estate, most sensible people understand that investors do not build such houses and apartments for people to live in them. Who can afford a multi-million dollar apartment? Units! No matter how cynical it may sound, all new luxury real estate appears in order to become a profitable product that can be sold. Remember the naive children's question in Gianni Radari's fairy tale - why does a millionaire need three chic suits, because he cannot wear them at the same time? Right. And living in several places at once, no matter how luxurious these homes may be, is impossible. Some analysts are frank in their forecasts: trying to save your money in the event of a serious crisis by buying real estate, you can seriously lose - it may turn out that no one will need it at all. In our country, real estate has recently been considered one of the most attractive investment objects, but in the West this period is long behind us. There, the mortgage was the first to collapse - the same principle failed when housing was considered by financial structures primarily as a profitable product.
What ways will beauty salon clients have to save money in the event of a crisis?
Those Russians who have more or less serious money don’t have many options (if, of course, they manage to pull capital out of the stock market and banks in time):
- The first is to use the available cash to purchase some durable consumer goods or real estate, while being aware that another result of the crisis in the future may be a drop in apartment prices. In other words, after some time, any expensive item purchased will lose value.
- The second, taking the money out of the bank, if it was stored there, keep it at home in a safe in the form of cash converted into various currencies, trying to guess which of the available currencies (euros, dollars, rubles or, perhaps, for example, British pounds) will collapse as a result of the crisis, less.
- The third is the transfer of money that soon threatens to become nothing more than candy wrappers into the real sector of the economy, preferably into the small and medium-sized business segment. During a storm, when centuries-old pines collapse, nothing particularly terrible happens to the bushes. It’s the same in business – the least losses in the event of an unfavorable development of events will be suffered by entrepreneurs engaged in segments of the economy that are in one way or another connected with the basic needs of man. And there are not so many of them - food, warmth, safety, health.
What history teaches us, or how beauty salons survived the August 1998 crisis
Can the salon business be considered an essential service? Partly yes. At least, beauty salons “overwintered” the August 1998 crisis without any catastrophic consequences. And this is not just my memory. While preparing this article, I interviewed a dozen old-timers in the salon business who experienced the previous crisis and remember those times and circumstances very well. Just shortly before that crisis, many beauty salons appeared in a format that was quite modern, even for these times. They then stood out significantly against the background of banal hairdressing salons - remember, for example, YvesRocher on Tverskaya, Jacques Dessange in the Cosmos Hotel and on Lesnaya, Infanta, Embassy of Beauty, Aida and others.
I asked some old-timers of the Moscow market of capital services in the field of beauty and health to remember that period. Of course, much has been erased from memory; it has been forgotten that not all market participants survived; dozens of beauty salons have closed. But those who passed between a rock and a hard place became stronger. Although, however, the majority spoke out that the beauty industry, compared to many other industries, did not receive as many blows.
Marina Antipova (Ornate beauty salon): “ At that time I was managing one of the beauty salons of the Jacques Dessange chain, and I remember very well that after the August crisis it was difficult for us for just a month or two, but then almost all of our clients returned»
Andrey Andreev (VIP CLINIC company): “ Although we have been supplying equipment and professional cosmetics for more than 15 years, we have always had our own beauty salons - how could it be otherwise? After all, if you don’t have “home” salons, then you can break away from reality. But somewhere you need to try new products, somewhere you need to train staff, etc. So - during that crisis, no significant, catastrophic change in the workload of our beauty salons was observed. Our mentality is to blame: our women would rather deny themselves delicacies than be left without salon services. Moreover, at that stressful time, beauty salons seemed to be fulfilling a special mission, as if appointed by someone from above - in order to compensate for negative emotions, people went to practice their beauty».
Nikolay Denisov (Infanta chain of beauty salons): “ When a period of difficulty comes, few people feel good. But it is perceived differently and reflected differently. For some, the cabbage soup becomes leaner, while for others, the caviar becomes smaller. And about our Infanta salon - they continued to go as they did before the crisis. Perhaps a little less often. The only thing that was really unpleasant was that at that moment we had difficulties with the landlord. I remember this very well. We even had to move out and change premises».
Evgenia Komarova (beauty salon Fashionable Dvorik): “ It was really difficult for us, and it took us a long time to get out of this situation. It’s just that at that time the salon was only 4 months old, and we didn’t have time to gain momentum and didn’t pay in full for the salon equipment. The dollar exchange rate increased significantly, and we had a contract with a German company, which, as you understand, wanted to get its money for cosmetology equipment without losses. In short, being in debt to someone during a crisis is the last thing. To survive, we had to actively work with clients, give big discounts, come up with promotions - it’s not an easy path, but we managed to get through it. I noticed that some of the wealthy clients were lost during the crisis, but the “middle peasants” continued to come».
The 1998 crisis gave impetus to the development of the beauty industry
The more I researched the consequences of the August 1998 crisis, the more paradoxical aspects I found. It turns out that, despite the fact that some of the beauty salons that did not have reserve capacity were lost, many new beauty salons opened within a year after the crisis. Take MONE, for example - the first salon of this strong and now well-known business class chain of beauty salons opened at the height of the crisis. And today they are celebrating their 10th anniversary by opening three beauty salons in Rostov-on-Don. I can add something on my own behalf: it was then that we (the Department for Creating a Salon Business) began to engage in consulting, helping to open new beauty salons for newcomers who pulled their capital out of the financial market and began to place it in the real sector of the economy. In the portfolio on our website there are several beauty salons madein 1999, madein 2000 - they are still alive, and some are still leaders in individual microdistricts of Moscow. Of course, the peak of the opening of beauty industry enterprises began later, around 2002-2003, when the bulk of the population finally overcame the consequences of the crisis, began to receive decent money, and conditions were created for the salon business. active growth. But even in the post-crisis period, we had orders to create turnkey beauty salons. So if the story turns out that you don’t have a salon yet, a crisis has come, and you’ve chosen the third option to save money – come, we’ll help. Not for the first time.
Another interesting fact, noted by those beauty salon owners whom we interviewed, is associated with the development of supporting infrastructure. In particular, it was noted that in the post-crisis period, manufacturers of Russian cosmetics received a powerful impetus for development. Due to the fact that the economic crisis made everything Western expensive, the market offered the option of replacing imported consumables with domestic ones. And although today foreign cosmetic lines dominate again, domestic professional cosmetics will definitely win back new positions in the event of a new economic crisis.
Summary
When I started preparing this article, I was not optimistic in my forecasts. And now the prospects for possible hard times do not make me happy at all. But I can draw some of my own conclusions, which may be paradoxical for some: since history always repeats itself, my forecast for the salon services market will be relatively positive. Not so optimistic that beauty salons will not notice the crisis at all - that would be fantastic. Of course, some clients will be lost, some will not be able to visit salons, at least as often as now. Of course, the weakest market participants who do not meet the client's expectations will not stand the test and will die. So they are doomed anyway - and without a crisis, it’s only a matter of time, since more and more strong players are coming into the salon business, capable of immediately making a name for themselves. Approaching the creation of a beauty salon in detail, trying to get through the start without mistakes, they initially build into their business model an advance compared to surrounding salons. But anyone who takes the matter seriously can (and should) do this. We talk about this at our seminars, we write about this in magazines, and we constantly repeat this on the pages of our website. If you absorb all this, then our efforts are not in vain.
Important note: everything you read is my personal opinion. I don't force it on anyone. In my opinion, if a crisis does happen, it will be like winter. But the sun will come again, the snow will melt, and the salon business will flourish again. Winter is intended by nature in order for renewal to occur, cleansing of everything weak, unviable, and unsustainable. The main thing in times of crisis is not to be weak. And to become strong, the salon business needs to constantly develop. Grow. Act. I’m not opening America for you, am I?
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Main points of the interview
- Occupation: manicurist and extension artist, makeup artist
- Location of business: Russia, Bryansk
- Occupation before starting a business: schoolgirl
- Date of start of business activity: 2014
- Organizational and legal form of doing business: individual entrepreneur
- Initial investment amount: RUB 100,000.
- Source of initial capital: own savings
- Payback period: several days
- Formula for success: Love beauty and aesthetics, treat clients kindly, be demanding of yourself and your own work.
Hello Yulia, tell us how you came up with the idea of opening your own beauty salon?
I had the idea of opening my own business quite a long time ago, since my school days. The beauty industry attracted me the most. After graduating from school, I completed courses as a manicurist and began to develop in this direction. After working in a beauty salon for six months and studying this area from the inside, I decided that in the future I would open my own salon.
Why did you choose this direction?
This direction completely coincided with my interests; since childhood, I have been drawing and constantly watched programs on changing images for girls and women. Then I started trying different nail art options, I was pretty good at drawing patterns, mixing colors and decorating my nails with glitter. It seemed magical and creative to me!
What field of activity did you work in before getting nail extensions?
I started doing nails right after school; I didn’t work in another field and didn’t have any special desire.
How long did you provide home services before you decided to open a salon? What prompted this?
Before opening the salon, I worked from home for 5 years. This was the ideal work schedule for me. I liked that I could manage my own time, I didn’t have to depend on anyone, obey other people’s rules, I could eat or relax between clients at any time. Working from home gives you good inclinations for running a business in the future; you get used to relying only on your own strengths. Plus, I clearly understood that the salary goes straight into my hands, unlike working in a salon, where you give part of the money to the employer.
To receive clients, I equipped a separate room, hung the certificates received there, and beautifully arranged the accessories. Clients almost always watched interesting films during the procedure, so time passed quickly and unnoticed. It is very important to create an aesthetically pleasing atmosphere, especially if you work from home; no one will like to go to a specialist who greets visitors in the kitchen or bedroom with a half-disassembled bed. If you decide to receive clients at home, you should allocate a separate corner for a mini-salon!
What prompted you to open own business?
In my work, I increasingly had to work with materials such as acrylic. This is a fairly durable material; nails do not need correction for a long time. But many craftsmen know that acrylic has a persistent, specific odor. At home, it became difficult to work with it due to the inability to constantly ventilate the room. The smell accumulated, ate into the wallpaper, often caused headaches, and loved ones constantly complained. This is how the idea of changing the work space arose.
What services are available in your salon?
My salon provides hair treatment services, all types of hairdressing services, manicure, pedicure, gel polish, nail extensions, makeup and eyebrow correction. We can also select and create an evening or wedding look.
What equipment did you need to open the salon?
Often the equipment was already available - lamps, disinfectants, vacuum cleaners, machines and manicure tools. It was necessary to purchase only furniture and equipment for hairdressing and pedicure services.
How much money did you spend on opening? Was it cash or credit?
It took about 100 thousand to open. It was cash.
We use almost all types of advertising - we lead a group ( https://vk.com/miledibryansk) and pages on social networks, place advertisements in newspapers, order banners and advertising signs. We always give each new client several business cards so that she can distribute them to friends and relatives.
How do you attract clients? What benefits can you offer them?
We already have an established customer base. They choose our salon for the optimal price-quality ratio.
Advantages - conscientious work, inexpensive, stylish and high quality! Also, in the Milady salon there is always a friendly, friendly atmosphere, clients come and relax, laugh, and tell interesting life stories. Sometimes you go to premium salons, everything is incredibly beautiful and fashionable, but too strict, there is no warmth.
Do you have any promotions?
Approximately once every three months we organize drawings for free manicures and provide discounts on all types of services.
We also often offer clients small pleasant bonuses, for example, a free SPA treatment for hands, we can draw a flower or cover several nails with rhinestones, without including this in the price. It is important to emphasize that the procedure is intended specifically for a specific client. It’s a small thing, but it’s nice for visitors!
How many people did it take to start the business?
Now I have two manicurists and a hairdresser working for me. They have been cooperating with me from the very beginning. One girl is my friend, I taught her how to do nail extensions and manicure.
What difficulties did you encounter when opening the salon and during the work process? What worked right away and what didn’t?
Probably the only problem is the lack of finances at first. I worried for a long time that I couldn’t buy all the necessary furniture and equipment. I immediately wanted to furnish the salon as cozy and comfortable as possible, I was sensitive to the opinion of each client. But then I began to perceive it more simply, the main thing is to maintain cleanliness and order.
Nowadays, much of the furniture and accessories have already been purchased; when I have free money, I spend it on the missing items for the salon.
What organizational and legal form of doing business have you chosen?
How many people do you serve per day on average? Is there seasonality in the beauty industry?
On average 10 people. In summer, the demand for nail services is, of course, greater than in winter. A sharp influx of clients is observed before the New Year and other major holidays. The decline is noticeable in autumn and January.
What goals and objectives are planned for the future? Are you planning to expand and introduce new services?
In the near future I would like to find a good cosmetologist, and also provide
a full range of hair treatment and restoration services.
How long did it take you to become self-sufficient?
Self-sufficiency came almost immediately.
How do you position yourself in the price segment?
Economy, in which quality does not depend on price. We provide services at the premium salon level, but at affordable prices.
Can anyone learn how to do nail extensions?
Not everyone, it is important to have a heightened sense of beauty and aesthetics, and to be able to draw well. Getting beautiful nails is half the battle; they should last until the next extension, which is 3-4 weeks. Sometimes you have to correct the work of other masters, and you immediately notice how carelessly and unprofessionally the manicure was done.
What courses does a future highly qualified hair extension specialist need to take and what certificates does he need to obtain? What achievements do you have?
To become a sought-after master, you need to have a lot of theoretical and practical knowledge. The main courses that any professional should master are nail extensions with gel, acrylic, nail design, painting, manicure, pedicure, gel polish. I mastered these courses at the very beginning of my career.
Of course, theory alone is not enough; real mastery comes with age. They often say: “You don’t need a great mind to work in the beauty industry.” But why do clients always go to one master and avoid another? Why do professional nail extensions last a month, but low-quality extensions can deteriorate in a week? It’s all about the skills and experience of the master; clients choose him based on these qualities and are willing to pay money.
Also, several years ago I received certificates as an eyelash extension artist and took courses as a makeup artist, but my main path is nail extensions and design.
There is a chance for a beginner to immediately achieve success in this business, how do you understand that you can move to the next level?
A newcomer has very little chance; the beauty industry is now replete with many offers. To open your own business, you need to be well versed in this. Just visiting beauty salons is not enough, you need to work in this area personally and study everything well. It is important to develop a client base, earn trust and firmly establish a foothold in this market.
I would recommend that beginners practice for a while on their friends or run promotions at reduced prices, since in case of poor-quality service they can earn a bad reputation. Be sure to ask if you liked the result and mark your mistakes. Evaluate the quality of your manicure after a week; if your nails look perfect and no flaws are visible, it means it was done well.
Now the economic situation in the country is difficult, people are trying to save on many things, including beauty. Does this affect the number of clients?
Yes, the crisis is having an impact. Compared to last year, there are significantly fewer clients. But it’s difficult to say exactly the reason; the time period may also affect it; autumn is not the best time for beauty salons.
What advice would you give to those who want to open a beauty salon during a crisis? Should they try?
I think it’s worth it, everything depends on the person himself, and not on the crisis and other circumstances. If you approach the matter responsibly and can highlight the advantages of the salon, you will definitely find clients. In addition, some companies are now closing to make room for others.
What is your advice to aspiring entrepreneurs?
You should not go into the beauty field considering it fashionable, in demand, or with the opinion that you can earn good money this way. This should be really interesting to you. It is also important to understand that nail extensions are not only about beautiful results and sparkles, but about painstaking and often monotonous work every day. Dust is constantly flying, you have to breathe harmful paint, your fingers and back often hurt, but these are disadvantages, of course there are more advantages!
I would also advise you not to skimp on the necessary equipment for treating nails; the necessary equipment greatly simplifies and speeds up the work. And the issue of time is important for many clients; no one wants to sit for 4-5 hours during an extension procedure if it can be done twice as fast.
What is your formula for success?
If you decide to become an entrepreneur, stop thinking and start acting, and if you act, then go all the way!