Jawed Habib to launch hair cosmetics range, two new salon brands

Varun Jain, The Economic Times

New Delhi, 30 March 2015

Jawed Habib Hair and Beauty Pvt. Ltd, which runs a chain of 480 salons in India, has licensed Jawed Habib brand name to launch hair cosmetic products. The company is also looking to introduce two salon brands this year, according to its founder, taking the brands tally to seven.

The company runs Jawed Habib Academy and salon and parlour brands Bevels, Hair Yoga, Jawed Habib Hair & Beauty and Hair Xpresso.

The licence for the hair cosmetic range, which will be known as "Jawed Habib Hair Yoga products", has been given to a retail company, Urban Life. The initial range would include a shampoo, conditioner, hair mask, serum and henna (mehendi), said Jawed Habib, founder of Jawed Habib Hair and Beauty.

The company is in the pre-production process and is expected to launch the products, which are likely to be in the Rs 350-500 price range, by May this year, he added.

Habib, who was once associated with Sunsilk as its brand ambassador, feels it is the right time to launch the hair cosmetics range.

"All Jawed Habib business models have received high consumer traffic, following which we thought of introducing something from our own label into cosmetic products", Habib said, adding that daily interaction with customers at the company’s salons has provided valuable inputs on what clients expect.

All of Jawed Habib Hair Yoga products will initially target salons, but in the second phase, they will be available at retail outlets, either through marketing offices or strategic tie-ups, Habib said.

The company is also looking to launch two new salon brands this year, which, according to Habib, could help the company reach 5,000 outlets in the next five years. For expansion, the company will have state-wise franchisees in the country, the founder added.

We are going to launch "Jawed Habib Beauty Parlour" and "Jawed Habib Barber Shop," this year, Habib said.

These two brands will be the neighbourhood beauty parlours and barber shops which will be converted into "Jawed Habib Beauty Parlour and Jawed Habib Barber Shop."

"Our study says there are 5 lakh unorganised salons in the country. Out of which, 3 lakh would be the barber shops and 2 lakh would be beauty parlours. Our research says that they are looking to be associated with a brand, but have no money. We are approaching these 5 lakh salons and asking if they are interested in becoming a part of Jawed Habib," the founder said.

The franchisee fee for this conversion model will be Rs 49,000 and it will be a one-year contract. Salon owners wanting to join will have to complete eight training sessions in order to renew the contract.

Sounding optimistic about the new venture, Habib said, "Though we are talking to convert 5,000 salons to Jawed Habib’s salon in five years, I am sure that this number is going to be much higher. And that is going to change the whole hair dressing scenario in the country."

Devangshu Dutta, chief executive of retail consultancy at Third Eyesight, said that launching hair cosmetic products will allow the company to penetrate the brand into customer’s home, as the product will not be limited to salons. He said the Indian market has a lot of growth opportunities for existing as well as new and upcoming brands.

"The market is growing and we are at a stage where sometimes availability drives consumption and growth. We are not in a mature-state economy where every growth opportunity has been pretty much taken. Due to the fact that our per capita consumption of most products are significantly lower than most of the markets around the world, I feel there is room for new brands to do well and create their own identity," Dutta added.

The company also plans to launch a range of hair care appliances, including hair dryers, hair straightening rods and scissors, among others. The range is expected to make its debut in the market by the first quarter of next year.

(Published in The Economic Times.)