With the increasing number of trend-savvy consumers, the beauty service industry in the Philippines continues to boom, opening doors to entrepreneurs who are willing to take the risk.
Ateneo Graduate School of Business Marketing professor Bong Macasaet shares some ideas on how to open a successful salon business:
Build alliance with suppliers
Because of technological advancements, Macasaet urges entrepreneurs in the beauty industry to establish strong alliances with strong product brands to give the salon a better brand since the salon will be associated with the product brand.
Define your target market segment and value proposition
Macasaet says it's very important to offer specialized services that could cater to a wide-range of consumers ranging from pre-teens to adults. He added that salons should specifically define their target markets such as whether the salon would cater to a specific market, citing salons designed specifically for males.
Have something different
Macasaet reveals that nowadays, it's not about location, it's about differentiation. Up and coming salons should be differentiated from others since the business is of high-engagement.
Build your brand to gain loyalty
Macasaet tells entrepreneurs to build their brands so that consumer loyalty is not to the hairdresser but to the salon. Lots of salons are no longer offering services but are also building their brands such as entering salon franchising.
Continue to learn skills that are related to the business
Learn the skills and understand what is involved in giving the service. Many of the successful salons in the Philippines are owned by owners who are also beauty experts. Macasaet advises salon entrepreneurs to do continuous research since competition nowadays is very stiff. He suggests that salons get customer feedback and give incentives for such.