Health and beauty industry is the fastest growing in new franchisees

The health and beauty sector shared power with the top of the list of which grew in number of new franchisors in 2012, with 26 each. Study of Rizzo consulting Franchise, with more than 20 years of experience in the market, gives a preview of that, this year, the two threads can repeat the good performance. From January to June, both added 13 new franchisors each, which keeps them in the lead.
In the same study, if it is considered to be the growth of the franchised network, the health and beauty industry is in second place in the first half, with 722 new units from 19,108 to 19,830, second only to business and services, who won more 873 (16,245 to 17,118).
Stock of the Brazilian Franchising Association points out that the industry's sales of health and beauty, including sport and leisure, grew 21.4% in 2012, to $ 17,865 billion, second only to tourism and hospitality (97.8%), cleaning and maintenance (44.5%) and computers and electronics (32.5%).
The increased life expectancy of the population, the new C-class, the growth of the purchasing power of classes D and e, the male enrollment in this market and the increased participation of women in the labour market are factors that drove this segment in Brazil, according to Paul Bello, franchise consultant from Sebrae-SP.
Popular Date consulting research shows that, in ten years, spending of Brazilian families with health and beauty have grown 124%, half of this amount comes from the middle class. For this year, it is expected that the expenditure on these items to reach R $ 59.3 billion.
In 2012, according to Baker, the only Brazil stayed behind United States and Japan in this sector. But the Brazil occupies the top of the list in the market of perfumes and deodorants, being the second male hair, children's products, bath, sunscreen and hair removal, the third in cosmetics and oral hygiene and the room in skin care products.
The cost is also another contributing factor to the increase in sales. "The prices charged by the favor. There was a devaluation of the dollar, which also helped in imported prices, "says Baker.
For more than ten years in the market, the small CB Rao joined a friend and prepared a project of Salon franchises that includes a training center to train the team. The Wow! Hair Studio was born last year. "Our project aims to put together a nice layout, with first-rate products and a good price," he says.
The first shop was opened in July last year and in September, the training center, in São Paulo. The Wow! Hair Studio opened to franchise this year and, so far, has three stores and two franchises in the process of consolidation.
In order not to deviate from the proposed project, Rao seeks commercial point, mount the store and deliver the key to the franchisee. The initial investment is of R $ 130 thousand (including the r $ 40 thousand of franchise fee), plus 7% royalties on sales and 2% advertising fee. The average profit margin of 17% to revenues that can go from r $ 30 thousand to r $ 75 thousand.
With more than 15 years of experience in the market, the Medis Dental also joined the franchise market this year, after two years of study. And, with just a boutique, has won franchise only 18 in the first half of 2013, with expectation to close the year with 60. The success is attributed to the relatively low initial investment-$ 35,000 franchise fee, $ 20,000 initial stock, $ 3,000 business license and $ 7,000 for the deposit of products-and promising market. "The person ceases to buy clothes, but not remedy," says Márcio Roland, Advisor to the company.
Optimism aside, there are some snags in the franchise market. CB Rao, Wow! Hair, complains the price of rental properties in São Paulo. "The square meter in Itaim Bibi could reach $ 200! In other words, a rentals can go to $ 10,000, "he complained.