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 outlines 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, haircare, nailcare 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 which measures the income and spend
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:

1. Women are naturally drawn
to the beauty industry

2. Women have an eye for
detail

3. Women salon owners are
empowering other women

4. The retail hours of nail
salons suit women with families

5. 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.

Faselis