Vanity industry sees flat growth this year

CEBU, Philippines – As vanity expenses becomes the first casualty off one’s priorities in times of difficulties, David Salon expects nothing this year but a flat growth, however, remains bullish of a sustained foothold in the industry.

In an interview with hair dressing expert David Charlton he said that because of the financial crunch David Salon outlets all over the country have to adjust its pricing scheme to stimulate the weak market.

“The general rule of thumb [now] is to adjust prices,” Charlton said revealing that for David Salon’s outlets hairdressing services is now priced down to as low as P70 to P120.

However, he said there is still a good market in the Philippines, especially penetrating the countryside areas, wherein sophisticated hairdressing service is not yet offered.

Recently, Charlton said the chain has opened its Surigao City outlet. This is to start up its thrust to expand in the provincial and sub-urban areas around the country, he said.

Currently, there are a total of 191 David Salon outlets nationwide. These are managed by partners and franchisees. In Cebu, David Salon chains are managed by Max and Jojing Telford, who recently opened its Ayala Center Cebu outlet.

Instead of being very active in its expansion program, Charlton said the chain is currently investing (together with partners) on improving its services, including renovation and improvement of salon facilities all over the country.

“There is still a big market in the Philippines,” Charlton said stressing that this time however, while consumers are tightening their belts, vanity industry in general has suffered the effects.

Unlike before that the salon opens two to three outlets per month, this time Charlton said frequency of opening new outlets have slowed down.

In Cebu however, franchisee of six outlets here Jojing Murillo-Telford, she said that since Cebu is an urban area, business still provides encouraging returns, thus the Telford invested P3 million recently for the opening of its 80square-meter salon called “Lounge Kerastase by David’s Salon.”

So far, according to Telford, the vanity market in Cebu is “consistent” getting lesser effects of the financial crunch.

In fact, she said now that financial difficulty is threatening every consumer, more and more are looking for quality services that will provide more value “for their money.”

Confident that the crisis is just a temporary “phenomenon”, Charlton said the chain is also working on its international expansion, starting with its two outlets that are already operational in the United States.

In the Philippines, Charlton is also looking at local partners, those who are interested to open a David Salon outlet in their respective localities. After all, he said vanity and hairdressing services may be a bit affected by economic hitches, but demand will not certainly die. — Ehda M. Dagooc