Business Plan for Jawed Habib’s Hairxpreso

As ‘feel good’ is becoming very important in today’s high stress urban environment, beauty treatments at salons, gyms, massages, the spa experience and so on, have become a part of people’s lifestyles. There’s a distinct premium placed on looking and feeling good and the desire to be attractive is on the rise.

Jawed Habib’s HairXpreso intends to target the lower and middle sections of the society. The new brand plans to specifically target the unorganized segment of the hair salon industry pegged by observers to be around Rs. 000 crore. Jawed Habib – a premium brand of the Hair ; Beauty industry with 120 Salons operational under his leadership along with Mr Zafar Khan – a renowned Franchise consultant and specialist have entered into partnership to start Jawed Habib’s HairXpreso. A 10 X10 X 8 ft booth will be opened in shopping malls, airports and railways stations with high foot-falls across India. Jawed Habib’s HairXpreso has selected the ‘Franchise’ route for its expansion as it is the most convenient and time tested way of doing business.

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Franchising offers a win-win situation for both the franchisor and franchisee. While the franchisor’s business expands multi fold, the franchisee can gain by a great income and a flexible work style. Compared to a start up business, as a franchisee, your risk factor is very low. Once you run your business smoothly, ROI (Return of Investment) starts to flow in almost immediately. Over the past few years, a lot of Indian franchisees have been successful like NIIT, Aptech, Apollo Hospitals, Bharati, VLCC and Talwalkar.

Small and medium entrepreneurs who do not wish to take open business risk will do well by joining an organised corporate entity, to avail of the benefits of a readymade brand, systems and support via Franchise system, many entrepreneurs to set-up a very low investment project for themselves / their spouse. The total investment for the project is Rs. 15. 50 lacs out of which the franchisee’s component is only Rs. 5.

60 lacs as we will assist the franchisee to get the balance of the CAPEX as a term loan by banks. Therefore, the actual exposure to capital taken by the franchisee is not over Rs. . 60 lacs, whereas the franchisee is projected to realise 60% Return on Investment, from which he will service his loan repayment. Jawed Habib is a strong brand present in many cities and with an almost 100% recall in tier 1, tier 2 and tier 3 towns.

With the use of latest technology and a sound Human Resource Management, Jawed Habib’s HairXpreso has tremendous potential of improvising on the ever expanding grooming industry and the future is very promising. Industry Scenario Belying the recessionary blues, the Hair ; Beauty business is also growing at a fast pace.

Though highly fragmented, the market has the presence of organized and unorganized players. Quality services are limited to 5 star hotels, Boutiques and Salons. There is one marked lapse across the industry – the lack of uniformity in providing the same standard of service and maintaining the basic hygiene practices. There is a growing demand for branded quality services in this segment.

In the Global Market for luxury, India is one of the tiniest players with less than 2% of the total market spends. The good news is that the number of affluent consumers with opulent purchasing power is on the rise.

The Consumer Insight division of Technopak, The Knowledge Company (TKC) has estimated that there are 1. 6 million households in India with a disposable income of at least INR 4 Lakhs per annum to be spent on discretionary fashion, lifestyle products and services. With changing demographics, the concept of health and wellness crossed over its conservative definition. Gentler forms of exercise that promote better sleep, longevity, reduced stress, increased energy and an overall sense of well being are competing with traditional strengths, weight loss and other forms of exercise programmes.

Today, it is all about developing all aspects of human body – physical, emotional and spiritual. Various factors have contributed to this, like consequences of urbanization such as change in lifestyle patterns, diet and stress, among many others. Size of Beauty Saloon Industry is estimated between Rs. 1,500 to 1,800 crore in India and it’s growing at an average of 40% per year. Looking at the current scenario, it is essential to improvise on the current opportunity and provide a quality service, and hence the Jawed Habib’s HairXpreso is launched.

This venture’s motto is to provide “Quality of organized sector at price of unorganized sector”. Basic Features: • Quick Service. • Service Standards ; Styling as endorsed by Jawed Habib. • Universal Presence. Key Assumptions 1.

If a renowned brand offers designer hair-cuts at the price of the unorganised sector, in the surroundings of a mall, then it should find many takers. 2. If ladies hair-cut is offered at 1/3rd the price of the unorganised sector, then style conscious working women should make a beeline for our services. 3.

Husbands accompanying family at the mall often get bored due to differing interests in merchandise and will grab the opportunity to get a quick hair-cut.

4. Families shop and entertain at malls and look for small purchases, especially the middle class. Our services should attract them. 5. On an average a mall receives about 5,000 visitors per day and lakhs on weekends. Each one of the visitors is a target customer.

Hence, we need only 1. 2% of them to react to our offering. Same seems to be highly plausible. 6. Unorganised sector (salons) gets approximately 10 haircuts per chair per day.


Demand for hair professionals requires availability of hair courses 8. If outlets and stores can generate product sales then mall where number of people coming is high will increase accessibility and sale of products. Brand Vision • To create a one-stop booth that provides hair-cuts at Rs. 99 and carries the entire universe of hair-styling and hair-care products.

Brand Mission • To recruit 100 franchisees to set up HairXpreso Salon-cum-retailing outlets at high floor traffic malls, before 2010. Brand Values • To create a business that will benefit all stake-holders i. e. franchisor, franchisee staff and patrons.