The Noida-based firm is looking to scale up its domestic operations in north-western India before expanding to other parts of the country.
Yes Madam, one of the leading Salon at Home brands in India, is looking to strengthen its foothold in the online beauty grooming market in India and come up with 100 franchises across the country by 2020. The Noida-based firm is looking to scale up its domestic operations in north-western India before expanding to other parts of the country.
Since its launch in 2016, Yes Madam has built a massive customer base in Delhi and NCR including Noida, Greater Noida, Gurgaon, Ghaziabad, and Faridabad. The company has been stepping up efforts to reach more customers via franchise route and is now looking at 5x the number of hubs in the next six months.
Mayank Arya, Co-Founder, Yes Madam, “We are planning to offer around 100 franchises across 60-70 newer towns which would include tier I to II territories spread over south, west, north and east region. We believe that there is a huge business potential in Tier I and II markets. Consumers in these cities are well informed about the latest trends in the beauty industry. Through this business model, we aim to reach out to them and give them a world class beauty grooming experience at affordable prices.”
The company has already tied up with one channel partner in Lucknow, however, looking for key expansion in major hubs including Delhi, Haryana, Himachal Pradesh, Jammu and Kashmir, Punjab, Uttaranchal, and Uttar Pradesh. The area and investment for franchise will be 250-300 sq ft. and Rs 10-12 lakh.
The online beauty grooming stores will be operated on 'franchisee-owned, franchisee-operated' model. This will help the company scale up its domestic operations at a faster pace without increasing its balance sheet size, resulting in improved return on capital employed and return on equity.
“We will handhold our franchisee partners in the initial stages to take them through the learning curve of doing business with us and serving customers of YES MADAM-The Original way. We intend to pace ourselves comfortably through the process to ensure we do not compromise on quality,” Arya added.