Hair Extensions and Facial Products

Table of Contents

Executive Summary3

Industry Analysis3

Consumer Analysis5

Competitor Analysis7

Company Description7

Products8

Hair extension8

Spa facial products8

Marketing plan9

Management team11

Critical risk11

Financial Plan12

Hair Extensions and Facial Products

Executive Summary

This is the business plan of a company which I own. The company, which I am anticipating to initiate, basically intends to manufacture and sells hair extension and spa face care products. Out of all the segments, beauty and personal care segment has witnessed growth after the recovery from economic downturn. Women being the major consumer of this segment represent the target audience for this business concern. The positive aspect of this segment is that, women are having increased opportunities to work and gain higher incomes than ever. Furthermore, they are more concerned with their looks and want to stay young for longer time periods. In the pursuit of careers the culture of delaying marriages is visible. These women are particularly concerned about their looks. Teenagers often face acne problem and seek solution for them.

For the skin care products I am planning to initiate a natural based with more focused on teenagers and aged women. Anti-Acne product for teenagers, anti-wrinkle and anti-age spots creams targeting the older segment will be offered. The hair extension will be synthetic to avoid the ethical concerns over the human hairs.

Industry Analysis

Beauty industry compromises of diverse set of business lines that help people look more beautiful and smell great. It is increasingly becoming a ritual, previously for ladies, but now for men as well, that going through beautification in our own personalized way. This personalized ritual includes shave and shower of morning, weekly nail trim, and monthly haircut. Periodic massage and spa treatment is also gaining much popularity. This trend is not new; however, this trend has seen mushroom growth in past decades. This trend is partially because of women working on jobs, increased incomes of females, and extending the beauty product category to males.

Beauty industry now encompasses much more than skin care and cosmetics products. However, they still claim a significant portion. The average annual growth rate for this industry is 1.3% since 2007 (Euromonitor, 2012). The industry provides employment to 53,619 individuals. Industry in 2010 continued to recover from the financial crunch, and marked a 5% value growth against 4% growth in the last year. Premium products were the most gaining sector in 2010, which registered a 3% value growth after 0.5% declines in 2009 (Barbalova, 2011).

U.S.A. and France were the two key markets of the industry which registered positive growth of just under 1% in 2010, while in the certain markets, perhaps the debt-ridden economies and high un-employment continued to hamper growth (IBIS World, 2009). As a result, various countries including Spain, Ireland and Japan continued to show negative growth rates in the year 2010. Interesting to note is that, Brazil, Russia, India and China (BRIC), registered double digit growth in 2010 (Euromonitor, 2012).

Premium products have witnessed an increase growth rate in all the markets after 2009. Although the focus of beauty industry is still the mass ...