Due to the impact of Covid-19, more South Africans are looking to become the master of their own destiny by starting a business. The beauty industry is known to be recession-proof and where beauty meets franchising, the opportunities are definitely lucrative.
Melany Viljoen, Founder and President of Tammy Taylor Nails SA outline how women can become business owners and benefit from local trends in the beauty sector.
Career women in our country are struggling to find employment or have lost their job security following the economic meltdown brought about by the global pandemic. While they may have not thought about starting a business in the past, in 2020 they may have to for survival.
I believe we should consider this time as an opportunity to not only survive but thrive! Where we are today is in a time where women empowerment and business ownership can be ours. We just need the right opportunities.
Entrepreneurship is not only triggered by the desire to earn an income and be your own boss but a desire to do something we are passionate about, for having fun, being happy, and collaborating with other women. There are many opportunities for women to lean into these desires by participating in the business world, not just for profit but doing something meaningful at the same time.
Female entrepreneurship is an important source of economic growth as women create jobs for themselves as well as others and help support many more families through skilled empowerment. In Africa, there are fewer women business owners than men, and women don’t always have the same support their male counterparts enjoy. However, the beauty industry is where we can play and we can play big.
Look at two of the biggest opportunities women have today; the booming beauty industry and the lucrative franchise industry. South Africa’s beauty market in total is worth over R27 billion according to 2017 figures. In the US alone the nail salon industry is booming and is worth over $5 billion a year.
Even though the nail salon industry is well-established in the country, there are still many opportunities for entrepreneurs who are committed to making a success of their business. In fact, Africa’s beauty market achieved a compound annual growth rate of 8% according to the Beauty and Personal Care Market in Africa Report: 2015 to 2019, published by global insights firm Research and Markets.
An article also published by Africa-focused website ‘The Africa Report’, says that South Africa and Nigeria are the biggest markets for personal care and cosmetics in Africa, with an estimated worth of US$3,29-billion and US$1.75-billion respectively.
Also, in South Africa on average, franchises turn over more than R700 billion per year – equivalent to 15.7% of the total GDP, according to the Franchise Association of South Africa (FASA). Franchise systems also employ an estimated 370,000 people in the country.
It makes sense then that a franchising opportunity in the beauty sector would make an excellent investment. There are 15000 people a month looking into franchising and becoming involved. It is a system that works because your success comes from the support of a proven business model, systems, and people that you can rely on to help make your business a success.
The world’s most powerful consumer – women
There is another element that makes the beauty and nail salon industry attractive and that is the demand side. What is powering growth in this sector? The world’s most powerful consumer: women.
The purchasing power of South Africa’s 18 million female consumers is not something to take lightly. According to research company Nielsen, 21 million female consumers were expected in the local market by 2025 and their labour force participation numbers were also set to increase from the current 9.5 million to 11 million (by 2025).
According to research, greater exposure to high-quality brands and a growing interest in global fashion trends makes the African market an excellent target for beauty brands. There’s also an increasing focus on appearance among African women who have money to spend. According to Datamonitor Consumer’s 2014 survey, about three-quarters of women in Nigeria, Ghana, South Africa, and Angola attribute high levels of importance to looks and appearance.
What does that mean for women entrepreneurs?
There is a big target audience of women who will have money to spend. Granted, where women spend their cash will depend on their life stage, earning capacity, and lifestyle. However, one thing is for certain every woman walking the earth needs some form of beauty treatment. From skincare, cosmetics, hair care, nail care, and so on, there will be a gap in the market for someone who has the desire to make a business in this sector succeed.
When you find a business idea and product that meets a consumer need in a completely different way to the competition, then your career as an entrepreneur is pretty much set. For example, the Tammy Taylor brand is high-end and glamorous. We focus on giving a luxury experience that offers something unique – the combination of personal attention, beautiful surroundings, top quality products, and value for money. We even install natural diamonds in our client’s nails while they sip on champagne. Our brand has an edge. It is this edge that makes the brand relevant.
Of course, you can’t be everything to everyone. One area where we focus on as the Tammy Taylor brand is to cater to trendy, fashionable women in the high LSM target segment. LSM is a living standard measure that measures the income and spends levels of consumers. These women have money to spend, are aspirational, trendy, and in-tune with their fabulousness; they want the best brand and the best experience. And they will pay for it.
There are many good reasons for women to own a beauty salon business in 2020 and beyond, but here are our top 5:
- Women are naturally drawn to the beauty industry
- Women have an eye for detail
- Women salon owners are empowering other women
- The retail hours of nail salons suit women with families
- Women run businesses with flair and style
Also, in the beauty industry, we have the ability to create jobs for other women and empower people through skills. The skills these individuals acquire is something that no one can take away from them ever.
Despite a rocky start to 2020 due to the global pandemic, the beauty industry will keep on growing: new products are invented, new technology evolves and people always want the latest and greatest of what is out there. Women want to look and feel great and they will cut other costs before foregoing their beauty regime.
I am really passionate about entrepreneurship and love every second of bringing this brand and concept to the African continent. As women, now is the time to be in charge of your own destiny and make sure you are never again in the hands of someone else’s agenda.
To find out more visit Tammy Taylor nails franchise South Africa