Lakme Franchise Cost, Profit and How to Get Started in 2024

One of the most trusted and classic brands in an ever-evolving beauty & cosmetics industry that is right up there with new names like Nykaa Beauty is Lakme. Lakme, which was founded in 1952, has been synonymous with Indian beauty for over half a century as it was the country’s first home-grown brand that catered to the beauty needs of women and bridged distinct color palettes created specifically for Indian skin tones. In the years since, the brand has grown immensely to include a diverse range of goods and services including skincare and haircare products and beauty salons. Lakme Franchise is a front-runner in the retail cosmetic industry as well as beauty servicing and with always updating its brand to be innovative has never failed wrong!

About Lakme

Lakme belongs to the FMCG giant Hindustan Unilever Limited (HUL) an Indian household name. Lakme is known for its range of beauty products and also has a chain of salons under the brand name, Lakme Salon that gives best-in-class services all across India. Since then, SuperCuts has earned a name for itself by providing top-notch services to groom customers at pocket-friendly prices and this commitment of the brand towards its quality and service made it more valuable over one handpicked Indian clinic due to which it is proving as an extremely sound investment opportunity in India suiting perfect if you want to open your wings like an entrepreneur.

Key Details of Lakme Franchise

Brand Name: Lakme

Industry: Beauty and Cosmetics

Number of Outlets: 400+ Lakmé Salons across India

Franchise Cost: ₹50 lakhs to ₹1 crore

Profit Margin: 15% to 25%

Space Required: 900 to 1200 sq. ft.

Official Website: Lakmé India

Lakme Product and Service Range

Lakmé has a broad range of products and services that cater to various beauty needs. The brand offers:

Beauty and Aging Solutions:

The exhaustive list of products offered by the brand includes foundations, lipsticks, eyeliner lotions, and sunscreens for both men as well women.

They are pioneers in creating innovative products like Lakme Absolute, Lakmé 9 to 5, and the recently launched range of foundations called The Illuminate Look-(Tild or Mystic) – A brand known for its makeup line.

Lakme Salons:

Lakme Salons is a chain of high-end beauty parlors that provide various services such as haircuts, facials, bridal packages, and many more makeup options.

These salons are well equipped with trained beauty professionals who offer the best in class services aiming to inspire individuals on quite latest trends and techniques around makeup, hair care.

Lakme Franchise Models

Lakme offers franchise opportunities in two main models, depending on the level of investment and involvement of the franchisee:

Lakme Salon Franchise:

Through this model, franchisees can own and operate a Lakmé Salon. Lakmé provides support in training, branding, and marketing while the franchisee operates its manage day-to-day operations.

Retail Outlets For Lakmé Product Franchise:

In this model, franchisees may open a retail store to sell Lakmé beauty products. Though less of an investment than the salon franchises, this is a product/consumable franchise and not so much a service one.

Both models are highly profitable and cater to different types of entrepreneurs depending on their preferences and capital availability.

How Much Does the Lakme Franchise Cost?

Starting a Lakmé franchise requires significant investment, but the brand’s strong market presence and continuous customer demand make it a highly rewarding business venture. The typical Lakme franchise cost ranges from ₹50 lakhs to ₹60 lakhs, depending on the type of franchise and location. Here’s a detailed breakdown of the investment:

Infrastructure Investment: ₹15 to 20 Lakh, for Salon / retail space setup like Interiors equipment & Branding.

Franchise Fee: This is a one-time fee that ranges from ₹8 lakhs on the city and the category of franchise. The franchisee gets an area where he can operate using the brand Lakmé.

Salon Equipment: An essential row of salon chairs, styling stations, mirrors, etc ₹3 to 6 lakhs.

Marketing and Promotional Cost: It shall be around 5-10 lakhs for local advertising, and digital promotions to launch events that are required initially by the franchise.

Staff and Training Costs: ₹2 to 3 lakhs to cover staff hiring, salaries, and training sessions conducted by Lakmé professionals.

This initial investment covers most of the fundamental aspects of launching a Lakmé franchise, ensuring that the franchisee has a well-equipped and well-branded outlet ready for operations.

Lakme Franchise Profit Margin and Return on Investment (ROI)

In the case of Lakme, the potential profit margin for franchisees ranges between 15% to 25%, however, the exact margins depend on factors such as location, footfall, and operational efficiency. Because of the popularity that Lakmé holds in people’s hearts, generates a consistent crowd walking into your door and assures you a good ROI.

ROI for Lakme franchises comes within 2 to 3 years of time! Regular income flows are a key feature of beauty services and products which will always remain in high demand. Moreover, continued introduction of new products in the marketplace via periodic launches helps customers stay engrossed with the brand leading to increased sales and eventually fatter bottom lines.

Space Requirements

To open a Lakmé franchise, space is a critical factor to ensure smooth operations. The space required for a Lakmé Salon or retail store varies but typically ranges between 900 and 1200 square feet. The salon space should be designed to accommodate:

Reception Area:  A place where clients are greeted and waited for their appointments.

Treatment Rooms: Individual rooms for facials, massages, and other personal beauty services.

Hair Styling Area: Cool chairs with mirrors reserved for haircuts, coloring, and styling.

Product Display Area: This involves a section being created for the display of Lakmé products both in makeup, skincare, and hair ranges to ease sales increment.

Staff Rooms: Areas designed to allow staff a break from the work environment as well as storing of personal belongings

Benefits of Lakme Franchise

Investing in a Lakmé franchise offers several significant advantages:

Established Brand Value: Lakmé has always been a strong name in the Indian beauty market and this gives franchisees an instant edge as most customers knowingly opt for a reliable brand.

Full Support: Lakmé provides complete support in training, operations, marketing, and technical staff hiring. They are therefore appropriate even for people who tune in to the franchise business once it is quite a while back.

High Demand: There is always a demand for beauty products and services, especially in the case of an established brand such as Lakmé. This will guarantee regular footfall sales.

Marketing Support: By providing promotional tools like social media campaigns, local ads, and print materials Lakmé makes sure that franchises are more visible to their target audience.

Regular Innovations:  Lakmé introduces new products every year and keeps updating stuff that prevents our franchisee from being out of the market

Training Programs: Lakmé offers rigorous training programs for staff to maintain high standards of service and customer satisfaction.

Documents Required for Lakme Franchise

To apply for a Lakmé franchise, potential franchisees need to submit several documents, including:

Franchise Agreement: A written contract containing detailed rules for operating the franchise and payments to a franchisor.

Identification Proof: For an applicant, a city-proof identity proof such as an Aadhaar Card / PAN Card or any other government-issued ID.

Registration Docs: The registration documents of the business like GST Registration, Trade License & other Legal documents

Financial Documentation: Financial Statements, demonstrating the financial means to cover initial investment and day-to-day business operation expenses.

How to Apply for a Lakmé Franchise?

Applying for a Lakmé franchise is a straightforward process that involves several key steps:

Contact Lakmé: Visit the official Lakme website or contact their franchise department to express interest in opening a franchise.

Submit an Application: Fill out the franchise inquiry form with your personal and business details. You may be asked to submit financial documents and business plans.

Documentation Review: Lakmé’s team will evaluate your application and documents. If you meet the criteria, you’ll be contacted for further discussions.

Franchise Agreement: Upon approval, you will need to sign the franchise agreement and make the necessary payments for the franchise fee.

Training and Setup: Lakmé will assist you in setting up the salon or retail store, including staff recruitment and training programs to ensure smooth operations.

Grand Opening: Once the store is ready, Lakmé will help promote the grand opening event to attract initial customers and boost visibility.

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Conclusion

Conclusion, Lakme Franchise Cost, Profit and How to Get Started in 2024. The Lakme franchise is something entrepreneurs entering the world of beauty and cosmetics should consider. Lakmé has high profitability and growth potentiality strong brand presence, continuous product innovation, and a robust support system Invest in a Lakmé franchise and join hands with the most trusted beauty brand in India to benefit from increased demand for various beauty services & products across PAN-India.

The Lakme franchise model provides you with options on whether to run a complete salon or just a retail outlet giving the flexibility of any other retailer and margin structures making them highly amicable for 2024 and also as it is an assesible pride name.

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