Tier-II cities hold a massive potential, yet they have a very underdeveloped market eager to be discovered by those in the beauty sector.
Salons and spas have experienced rapid growth in the last few years. In the form of products for beauty or services, the demand for them has rapidly increased.
It is estimated that the Indian Beauty and Personal Care industry is growing at $26.07 billion according to 2024 numbers. The market is predicted to grow every year by 4.64 percent (CAGR 2024-2025).
Although it’s a well-known fact that spas and salons in cities with large populations have seen rapid growth and have myriad choices for customers, the market for beauty and wellness within these cities is slowly reaching its peak. Therefore, the beauty and wellness industry is now in a different location and not in the skylines rising that surround Mumbai, Delhi, or Bangalore and in the remote tier-II towns and cities such as Kochi, Bhopal, and Ambala.
The growth of these emerging markets in tier II cities isn’t a surprise since this pattern is seen across the world. For India, its own country, Surat and Ludhiana hold the top spot for sales of luxury cars in the market. In addition, the beauty and wellness sector isn’t far from that. In actuality, around 38 percent of the demand for beauty services in D2C products and services is in tier II and tier III cities. This is a very profitable market.
This is among the most intriguing changes to the market witnessed in the past two decades. The difference can be seen among the younger generation in the smaller cities. The younger generation is more focused on self-awareness and well-informed about the various aspects of the business and can purchase more. The market’s perception changes and the towns and cities are rapidly evolving. They no longer classify them as being only interested in the primary and essential living needs. They are savvy business owners, avid travelers, and forward-thinking thinkers who consume the most innovative and cutting-edge products available products on the market.
Tier-II cities possess a massive potential, but a relatively undeveloped market is eager for exploration by those in the beauty industry. Research has shown that the consumers of Tier-II cities are well-aware of the most recent trends, products, and hair treatments offered not only in India but also internationally. One of the main factors of this shift in the way people live is the rise of social media and its potential to impact people’s lives, especially young people. The people don’t just want to appear attractive, but they want everyone to be aware that they’re living the most fulfilling lives. This doesn’t only apply to primarily metropolitan cities.
Whether the location is Bhopal, Kochi, or Vasai, the world is constantly using social media in one form or another. It gives people access to the most recent trends in fashion technology, beauty, and fashion. When they see trending, they’re keen to give it a try!
It’s a mistake to believe that fashion-consciousness or grooming is only appropriate in larger urban cities. Shortly, people living in the towns of tier II and tier III seek and request international recognition for the services that brands like ours provide.
Another change that cosmetics have witnessed over the last couple of years is the rise in demand for online beauty products. With the advent of online shopping platforms, customers have shifted to shopping online instead of sticking with brick-and-mortar stores.
Another reason these towns and cities are smaller and an excellent investment for salons is the lower cost of the property. Although the market for real estate in tier II and tier III is booming, it’s significantly lower than in metropolitan cities, where rents and expenses can be astronomically high. The idea is to provide the same services and equally skilled staff at comparable price points, however, and yet can keep your ongoing costs lower than metropolitan cities. It’s profitable from a business standpoint since the capital return is usually higher because of the lower overhead expenses.
The range of work available in tier II and tier III cities is constantly expanding. The public is eager and open to trying newer styles and the wide range of services and products in the beauty and wellness sector. They’re always trying to keep up with larger cities and, in turn, increase the need for a variety of services in salons. For extensive services, you’ll need a comprehensive team that will be educated to work within the language of the brand’s technical. In contrast to metropolitan cities, hiring in these towns will be simpler — there will be more people to recruit and, more important, the more eager to improve and learn. Capabilities.
Grooming is now a fundamental aspect of every person’s life, whether in larger cities or the smaller towns in India. People are no longer reliant on home remedies and are now looking to consult experts for their needs in beauty. Some cities in smaller cities are now opening to gender-neutral salons that allow men to have their beards trimmed and their cut hair trimmed and get an appointment for a facial, manicure, and pedicure.
The beauty industry has been a dream for the child or student who shops for smaller local brands and envisions themselves affording a global brand shortly. With the worldwide reach accessible via the web and social media today, people can see their future and strive to achieve it. If you’re on the brink of change, we’re ready to make that transition possible.
