Lakme Franchise Cost, How to Start? Requirements, Profit Margin, About Company
Lakme Franchise Cost: If a person has an interest in cosmetics and beauty products and wants to invest in the cosmetics industry, then this is the right place for him. And today, the cosmetics industry has taken the world by storm. Also, the cosmetics industry has existed in the world for centuries. But today, the industry has spread to different parts of the world and is estimated to reach a value of US$2.68 billion by the end of 2020. Demand for beauty and skin care products. And when it comes to cosmetics in India, one name that every person in the country knows is Lakme. Be it in the categories of makeup, haircare, or skincare, Lakmé provides high-quality products to consumers. At a time when many brands just make empty claims, Lakme is one brand that people in India trust.
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About Company:
Lakme is an Indian company that sells cosmetic products to its customers. The company was started in 1952 by the parent company Tata Oil Mills (Tomco), which owned 100 percent of Lakme. The name Lakme was derived from a French opera of the same name, which itself was believed to be a French version of Lakshmi (a goddess in Indian mythology), who was worshiped for prosperity and beauty.
The company came into existence when the first Prime Minister of independent India, Pandit Jawaharlal Nehru, worried about the fact that a large amount of foreign exchange was being spent by Indian women on cosmetic products that were made in other countries. Hence, Pandit Nehru requested Jehangir Ratanji Dadabhai Tata to manufacture cosmetic products in India. In 1996, the shares of Lakme were sold by the Tatas for Rs 200 crore to HUL (Hindustan Unilever Limited), which now owns the company.
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Today Lakme is the number 1 cosmetic brand in the country. In the year 2012, the Brand Trust Report ranked Lakme 104th in India. The following year, the same report ranked Lakme as the 71st most trusted brand in India. And in the same report in 2014, the company had secured 36th rank in the list of Most Trusted Brands in India. Lakmé Company is also the sponsor of Lakmé Fashion Week, a fashion event held twice a year. The event was started by the company in 2000 and is organized in the city of Mumbai.
Lakme Salon is India’s first and leading beauty salon chain providing services related to make-up, hair care, and skin care. The company has a dedicated team of over 3500 trained professionals who work hard to deliver the highest quality services to the customers.
Lakme Salon has been in existence for more than 35 years since it was launched in 1984. Since then, the company has spread across India with over 400 Lakmé salons in 125 cities in the country.
Lakme Absolute Salon was also launched by the company in 2012, providing state-of-the-art beauty services in the cities of Delhi, Mumbai, and Bangalore.
Lakme Beauty Salon Franchise in India:
One should not miss the Lakme Franchise business opportunity as the company is scaling new heights every year. The company started franchising Lakme Salons in the year 1998 and has continued to grow throughout the years. The number of Lakme Cosmetics Franchise Outlets across the country is around 360 with over 300 franchising partners.
Lakme Salon was awarded the ‘Franchisor of the Year award at the 16th Franchisee India Awards in the year 2018. The Lakme Cosmetics franchise was also listed among the Top 100 Franchise Brands in India by Franchising World, India’s No. 1 franchising magazine.
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The company has popular celebrities like Kareena Kapoor and Ananya Panday as its brand ambassadors which adds a lot to the image of the company. With all the awards and achievements. It becomes quite clear that a Lakmé franchise business opportunity is something an investor should seriously consider.
Another thing about opening a Lakme Beauty Salon franchise. It is that one gets various kinds of help and support from the company. When a person chooses to open a franchise of Lakme Salon. The company assists him/her in finding the right location to open the outlet. Assistance is also provided by the company with respect to operational and audit areas. Which helps in simplifying the management and improving the quality of professional service. Lakmé Salons not only assist the franchisee in recruiting staff. But also ensure that the staff is properly trained in basic salon fundamentals such as CRM software, billing, staff scheduling, management, etc.
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Lakme Salon Franchisee Requirements:
As is the case with any franchise, there are certain requirements that a person has to fulfill in order to become a Lakme franchise owner. The first requirement a person needs to fulfill in order to become a Lakme Cosmetics franchise owner is with regard to the area of the outlet. The area of the outlet should be sufficient so that it has room for all the equipment needed to run the salon. The area required for a Lakme franchise ranges from 900 to 1,200 square feet.
Another requirement that needs to be met is with regard to the number of staff at the Lakme salon. The franchisee will need to hire around 10 to 15 employees to run the daily operations in the store.
Lakme Salon Franchise Cost:
The cost of investment required for a franchise is a big factor that an investor takes into account when making their decision. An investor looking to own a Lakme franchise will need to make an initial investment of Rs 50 to 60 lakhs. This amount will include expenses like interior decoration, franchisee fees, furniture, and equipment required to run the salon. The franchisee also has to sign a franchise agreement with the company which lasts for 5 years.
Lakme Salon Franchisee Benefits:
Owning a Lakme Salon franchise is extremely profitable for an individual. The return on investment that the franchisee gets back from operating a Lakme franchise is 18 to 25 percent. As per information available on the internet, a Lakme franchise owner can earn a monthly profit of Rs 95,000. The franchisee can get back their entire investment amount within 4 to 5 years of opening the outlet.
How to get Lakme Salon Franchise?
There are certain steps that a person has to follow in order to become a Lakme franchise owner. First of all the person has to visit the official website of the company. Then the person has to select the options related to the franchise and then fill an application form to apply for the Lakme franchise. Personal and official details have to be filled by the individual in the application form. After the form is completed, the person has to submit it online. The support staff then evaluates the application and decides whether or not to follow up with the person.
The process to Apply for Lakme Beauty Salon Franchise in India
One should not ignore the great Lakme franchise business opportunity as the company is scaling new heights every year at a rapid pace. The company started franchising Lakme Salons in the year 1998 and has grown steadily throughout the years. The number of Lakme Cosmetics Franchise Outlets is around 360 across the country with over 300 franchising partners.
During the 16th Franchise India Awards in 2018, Lakme Salon was awarded the ‘Franchisor of the Year award. Lakme Cosmetics Franchise was also classified in the Top 100 Franchise Brands in India by Franchising World as it is India’s number one franchising magazine. Lakme Salon is India’s first and leading beauty salon chain offering hair care, makeup, and skin care services. The company has a dedicated team of over 3500 trained professionals working hard to deliver the highest quality services to its clients.
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Lakme Salon has been in existence for over 35 years since its launch in 1984. Since then, the company has spread across India with over 400 Lakme Salons in around 125 cities in the country. Lakmé Absolute Salon was also launched by the company in the year 2012, providing state-of-the-art beauty services in metropolitan cities such as Delhi, Mumbai, and Bangalore.
Another thing about starting a Lakme Beauty Salon franchise is that a person will get various types of support and assistance from the company. When a person plans to open a franchise of Lakme Salon, the company supports the candidate in choosing the appropriate location to start the outlet. Assistance is also provided by the company in respect of operational and audit areas which helps in simplifying the management and developing professional service quality. Lakmé Salons not only help the franchisee recruit staff but also ensure that the recruited candidates are properly trained in basic salon essentials like billing, CRM software, staff scheduling, management, etc.
FAQs on Lakme Franchise Cost
How can I get Lakme Franchisee?
To start your career as a Lakme Salon Partner, you need an initial minimum investment of Rs. 50-60 lakhs and a property of 900 sq. ft.
Is Lakme Franchise Profitable?
The cosmetic industry has been running successfully for centuries. It is certainly an ever-evolving industry or business in the world today. Now, owning a Lakme Salon franchise is extremely profitable. The return on investment for a Lakme Salon franchise ranges between 18-25%.
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How does Lakme make money?
In 1998, the Tatas sold their stake in Lakme to Hindustan Unilever for ₹200 crores (US$48.46 million). Lakmé primarily sells color cosmetics products such as lipsticks, eyeliners, and skincare creams.
What is the revenue of Lakme Salon?
The company, which operates 485 saloons, posted sales of Rs230 crore during FY21, as against Rs284 crore a year ago. The firm also turned loss-making with a net loss of Rs 19 crore during the year as against a profit of Rs 6 crore in FY20. “Profitability for the year has been largely impacted due to the Covid outbreak.
Is Makeup Business Profitable?
Additionally, profit margins for makeup businesses average 40% and can be as high as 80%. As a small makeup business, you’ll hit just below-average profit margins.
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