There has been a rise in organized, on-demand players in the beauty industry since the pandemic. With the increase in disposable income and aspiration levels, these standardized at-home services are booming. The Urban Company is one of the gainers with more than 40% revenue coming from these services. In fact, its revenues have seen a 13.8% hike between FY 2020 and FY 2021 increasing from Rs 210 crore to Rs 230 crore.
According to Expert Market Research report, the Indian personal care and beauty industry will expand at a CAGR 11% between 2022-2027, of which the beauty salon market is set to have a CAGR of 38%.
To add to this, Mukund Kulashekaran, Chief Business Officer, Urban Company said that the main change in the beauty service market due to enhanced quality. Till the market was divided no money was invested in improvement of services, product innovation, and training. The smaller players did not have the resources to make the shift. However, now a lot of time is being spent training and in product innovation.
Companies like Urban Company are now investing in creating their own products too so that they are more accessible and can compete with other players. There is a strong focus on quality as well and companies are spending time on continuous testing and feedback from customers.