Archive · 9 Nov 2025
Indian Salon Chains Face Pressure from Home Services and Dermatology Clinics
Imagine you want your hair cut or a facial.
For a long time, you had to go to a salon.
But now, new apps let someone come to your house to do your hair or give you a beauty treatment, which is super convenient!
Big companies like Urban Company are growing really fast because people like the ease of getting services at home.
Traditional salons, like Lakmé, have been around for many years but aren't growing as quickly.
Also, special skin doctor clinics are becoming very popular for advanced treatments.
These clinics offer very expert care and are taking away customers who used to go to salons for high-end services.
Some people in the salon business worry if the home service model is sustainable because it costs a lot of money.
Others think that salons offer a special 'me time' experience that home services can't match.
It seems like all these options will exist together, but salons need to adapt to keep up.
Tech-enabled home beauty service platforms are rapidly growing, capitalizing on convenience and instant gratification.
Urban Company, a leader in at-home beauty services, shows significant year-on-year growth in its consumer services segment.
Traditional salon chains like Lakmé Lever are growing at a slower pace compared to newer tech-based competitors.
Dermatology and specialized skin clinics are increasingly drawing customers for high-end treatments, impacting salon revenues.
The future market may see coexistence between home services, traditional salons, and specialized clinics, with an emphasis on adapting to evolving customer needs.
- Who
- Salon chains in India, on-demand home beauty service platforms (Urban Company, Yes Madam, GetLooks), and dermatology clinics (Kaya Skin Clinic, Sakhiya Skin Clinic).
- What
- Salon chains are experiencing slower growth and pressure from the rapid rise of tech-enabled home beauty services and specialized dermatology clinics, which are capturing significant market share.
- When
- Ongoing trend, with notable growth reported during recent festive seasons (August-October 2025) and strong financial quarters (Q2 FY26 for Urban Company, Q1 FY26 for Kaya Skin Clinic).
- Where
- India, with specific mentions of Bengaluru and Noida.
- Why
- Home services offer convenience and instant gratification, while dermatology clinics provide higher expertise for premium treatments, drawing customers away from traditional salon chains.
Home Service Platforms
Traditional Salon Chains
Market Growth & Sustainability
Home Service Platforms
Home service platforms like Urban Company are experiencing rapid growth and taking a significant share of the market due to convenience and instant gratification, with Urban Company's consumer services segment revenue growing 24% year-on-year.
Traditional Salon Chains
Traditional salon chains argue that the home service model's high revenue requires substantial investment (e.g., burning over ₹5,000 crore to reach ₹700-800 crore turnover) which may not be sustainable, and that the salon experience offers rejuvenation and 'me time' that cannot be replicated at home.
Customer Needs & Service Types
Home Service Platforms
Home services cater to the need for convenience, especially for frequent, low-end hygiene-type services where customers don't want to waste time traveling or waiting.
Traditional Salon Chains
Salons provide a different experience focusing on pampering, rejuvenation, and 'me time,' which is distinct from at-home services. They also emphasize professional salon experiences, hygiene, and expert care.
Impact of Dermatology Clinics
Home Service Platforms
Dermatology clinics are capturing a significant portion of the premium beauty market with higher expertise in facial and skin treatments, representing a bigger hit to salons' revenue, contributing significantly despite lower footfalls.
Traditional Salon Chains
While acknowledging the growth of dermatology clinics, some salon leaders believe that different market segments will co-exist, similar to AI's impact, where those who adapt smartly will succeed.
- Overall Indian Beauty & Wellness Market Size (2024)
- ₹56,500 - ₹58,500 crore
- Projected Market Growth (through 2029)
- 9-10% CAGR
- Urban Company Consumer Services Revenue (Q2 FY26)
- ₹762 crore (NTV), ₹262 crore (Revenue)
- Lakmé Salons Revenue (FY 2024-25)
- ₹366.9 crore
- Yes Madam Bookings (October 2025)
- 2.45 lakh (80% YoY jump)
- Indian Aesthetics & Dermatology Market Size (FY24)
- ₹17,000 crore
- Projected Aesthetics & Dermatology Market Size (FY29)
- ₹30,000 - ₹32,000 crore
- Kaya Skin Clinic Revenue (Q1 FY26)
- ₹106.8 crore