- 07 Nov 2022
- ICICIdirect Research
RELIANCE RETAIL TO ENTER SALON BUSINESS
News:
As per media reports , Reliance Retail is likely to enter the salon business and is in talks to buy a stake in Chennai-based Naturals Salon & Spa. As per the media report , It is in final stages to enter into a joint venture by acquiring about 49% stake in Groom India Salons & Spa, the company which runs Naturals Salon & Spa
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The Rs 20,000 crore salon industry in India has about 6.5 million players comprising beauty parlours and barber shops. It was among the worst hit segments during the Covid-19 pandemic. Naturals Salon and Spa has around 700 outlets across India and Reliance Retail would like to expand the presence multi fold. Also, Reliance Retail can leverage the spa chain to offer experiential sales and distribution points for its beauty products as it is also planning an enhanced presence in the beauty products business. The segment has good growth prospects and there has been increased demand for specialised grooming and beauty services. Reliance Retail’s entry into the salon business along with its increasing presence in the beauty products would enable it to garner higher wallet share in a fast growing market
Impact:
Positive