This could be the big for 'Retailing' in india
Often the organised sector participants complain of having a tough competition from the unorganised players. What if they had left a big market totally for the unorganised players, without a single participation from any organised players, especially for those who boast of having interest in Retailing.
The market which is bigger than the Air-Condition market (Rs. 1600 cr), the market which is equal to, if not bigger than, the Branded Garments market
( Rs. 2500 cr.).
Still not guessed, yes it’s a weird market………………..called the Gents Beauty Parlour!!!!
This market is totally at the disposal of small unorganised players…..the next stop barbers and a few chain of hair cutting saloons in few big cities.
It can be a big opportunity for corporate players, having an estimated market potential of Rs. 2500 cr. annually (on a modest estimation).
Analysis of and assumption for the market potential:
India’s estimated population:100 cr. (Conservative)
Taking 55% male population
So, No. of males: 55 cr.
1. Hair cut:
Assuming atleast 75% of them use to have hair cut,( to leave the poverty stricken people). The figure comes out at 41.25 cr.:
• Out of it 50% use to get it once in a 2 month ( generally in rural areas) and average charge they use to pay is Rs. 3 per hair cut. It comes to 6 times a year.
• Another 35% use to get the hair cut once in 1.5 months (semi urban and towns) and average charge they use to pay is Rs. 5 per hair cut. It comes to 8 times a year.
• Rest 15%, who comes in elite group ( like me!!!) use to get it once a month (cities and metros) and the average charge comes to be Rs. 7 per hair cut. It comes to 12 times a year.
2. Shaving:
Assuming out of the 41.25 crore males , only 10% use to hav
e shaving from the next door barbers (this does not include me…..). To make calculation more realistic, so that the critic may leave me, let us assume that out of the 4.125 cr. males (i.e. 10% of 41.25 cr.):
• 70% use to get it once in 2 weeks, thus 26 times a year, and pays Rs. 3 per shave.
• Rest 30% use to get it once a week, thus 52 times a year, and pays Rs. 5 per shave.
Calculation of the estimated market potential:
• Hair cut
20.625 cr.x 6 times x Rs. 3 = Rs. 371.25 cr.
14.4375 cr.x 8 times x Rs. 5= Rs. 577.5 cr.
6.1875 cr.x 12 times x Rs. 7= Rs. 519.75 cr.
Total Rs. 1468.5 cr.
• Shaving:
2.8875 cr.x 26 times x Rs. 3= Rs. 225.25 cr.
1.2375 cr.x52 times x Rs. 5 = Rs. 321.75 cr.
Total Rs. 547.00 cr.
Overall Calculation:
Hair cut: Rs. 1468.5 cr.
Shaving: Rs. 547.0 cr.
Other premium services Rs. 484.5 cr.
Total Rs. 2500 cr.
So, the retail group, supposing to have an interest in retail sector expansion, is invited to take a pie in the virgin market, and also have the first mover advantage. So, the Rahejas (Shopper Stop), the Goenkas (Food World), the Kasliwals (About to make a debut) et al should wake up and pull up their socks to conquer and leave a mark on the upper terrain of men, and pay an unsolicited consultancy fee to the under-signed.
The market which is bigger than the Air-Condition market (Rs. 1600 cr), the market which is equal to, if not bigger than, the Branded Garments market
( Rs. 2500 cr.).
Still not guessed, yes it’s a weird market………………..called the Gents Beauty Parlour!!!!
This market is totally at the disposal of small unorganised players…..the next stop barbers and a few chain of hair cutting saloons in few big cities.
It can be a big opportunity for corporate players, having an estimated market potential of Rs. 2500 cr. annually (on a modest estimation).
Analysis of and assumption for the market potential:
India’s estimated population:100 cr. (Conservative)
Taking 55% male population
So, No. of males: 55 cr.
1. Hair cut:
Assuming atleast 75% of them use to have hair cut,( to leave the poverty stricken people). The figure comes out at 41.25 cr.:
• Out of it 50% use to get it once in a 2 month ( generally in rural areas) and average charge they use to pay is Rs. 3 per hair cut. It comes to 6 times a year.
• Another 35% use to get the hair cut once in 1.5 months (semi urban and towns) and average charge they use to pay is Rs. 5 per hair cut. It comes to 8 times a year.
• Rest 15%, who comes in elite group ( like me!!!) use to get it once a month (cities and metros) and the average charge comes to be Rs. 7 per hair cut. It comes to 12 times a year.
2. Shaving:
Assuming out of the 41.25 crore males , only 10% use to hav
e shaving from the next door barbers (this does not include me…..). To make calculation more realistic, so that the critic may leave me, let us assume that out of the 4.125 cr. males (i.e. 10% of 41.25 cr.):
• 70% use to get it once in 2 weeks, thus 26 times a year, and pays Rs. 3 per shave.
• Rest 30% use to get it once a week, thus 52 times a year, and pays Rs. 5 per shave.
Calculation of the estimated market potential:
• Hair cut
20.625 cr.x 6 times x Rs. 3 = Rs. 371.25 cr.
14.4375 cr.x 8 times x Rs. 5= Rs. 577.5 cr.
6.1875 cr.x 12 times x Rs. 7= Rs. 519.75 cr.
Total Rs. 1468.5 cr.
• Shaving:
2.8875 cr.x 26 times x Rs. 3= Rs. 225.25 cr.
1.2375 cr.x52 times x Rs. 5 = Rs. 321.75 cr.
Total Rs. 547.00 cr.
Overall Calculation:
Hair cut: Rs. 1468.5 cr.
Shaving: Rs. 547.0 cr.
Other premium services Rs. 484.5 cr.
Total Rs. 2500 cr.
So, the retail group, supposing to have an interest in retail sector expansion, is invited to take a pie in the virgin market, and also have the first mover advantage. So, the Rahejas (Shopper Stop), the Goenkas (Food World), the Kasliwals (About to make a debut) et al should wake up and pull up their socks to conquer and leave a mark on the upper terrain of men, and pay an unsolicited consultancy fee to the under-signed.
posted by Vikas Maheshwari, CFA at 8:59 PM
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