About the Market

Fast growing and prolific, the beauty salon industry is built on products and services that help us look
our best. Consumers driven by social media trends have led to the evolution of the concept of grooming
and beauty for both males and females. The beauty salon industry can be segmented into hair, skin, nail,
cosmetics, perfumes and colognes, deodorants, antiperspirant, feminine cleaning, oral hygiene etc.
Skincare has the highest market share. The growth potential of beauty salons depends on a variety of
factors including demographics, population growth, and latest beauty techniques. The majority of global
premium cosmetics sales is concentrated within the developed markets (mostly the US, Japan, and
France) but cosmetic markets of the developing countries (Brazil, Russia, India, China) have been
growing very fast and accounted for approximately 25% of the market. Small salons contribute heavily
to the industry while the 50 largest companies draw just 15% of overall revenue. With a growing market,
India is witnessing increased number of international players. The market which was earlier women-
centric has started concentrating on male grooming as well, resulting in a large number of unisex salons,
opening opportunities for business expansions in the segment. Lakme Beauty Salons, Jawed Habib Hair
& Beauty, and L'oreal are some of the leading players in the market.

About the Geography

The Philippines is one of the largest markets in Southeast Asia with an estimated 103 million people and
ruled by a presidential democratic republic. With the 12 largest population and the 30 largest economy,
there is certainly scope for development, as it has grown from being an agriculture-based toservices-
based economy in the early 21 -century.

In comparison to its neighbors like Indonesia, Malaysia, and Thailand, Philippines have failed to meet
expectations in terms of the volume of FDI. However, recent economic resurgence brought about by
strong and consistent economic growth since 2010, new anti-corruption measures and credit rating
upgrades have improved their international reputation and created a new impetus for attracting FDI’s
into the country. The Aquino government helped with this by the passage of laws to liberalize the entry
of foreign banks into the country, relaxing the Cabotage law allowing foreign vessels to ply import and
export within the archipelago. The Customs Tariff and Modernization Act of 2016 to meet international
standards, reflects efforts of the nation towards increasing FDI.

In spite of all this, the World Bank ranked the Philippines at the 103 place (out of 185 economies) for
ease of doing business. The major challenges for doing business include bureaucracy, corruption,
restrictions on ownership of land by foreign companies, and restrictions on investment in certain
sectors. The islands of Philippines are strategically placed among high growth countries like Mainland
China, Malaysia, and Singapore, which makes it easier for export to these Asian countries. Also, a large
English-speaking population and strong services sector are factors that make the Philippines an obvious
choice for companies looking to take advantage of the low domestic wages and an educated workforce.