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Why Your Beauty Store Location Matters in Malaysia

Why Your Beauty Store Location Matters in Malaysia

Choosing a store location is an important decision to make during the early stages of your business establishment.

This is especially true for brick-and-mortar beauty stores. Much of their business’s ability to generate sales and make a profit is largely influenced by their store’s location.

Here’s why your beauty store location matters in Malaysia!

1. Accessibility

You will clearly want to choose a location of your beauty store where it will be easily accessible, either in a mall or shop lots. Your store’s location should be ideally nearby lots of traffic (both foot and four-wheeled variety) and as well as parking availability.

Does your beauty store require your customers to search for the location? Or is it easily seen from the main road or on the way to their homes?

Is it a highly populated area? Do people frequently flock to this area for their daily necessities?

In Malaysia, spas and salons are typically located within major shopping malls and shophouses. They are usually either located within residential areas or within the streets of major cities.

For example, a beauty salon located in a popular mall such as Pavilion Kuala Lumpur is likely to attract more customers than a beauty salon located a run-down part of town.

The store location of a business has the power to influence the ability of a business to market itself.

A spa with a storefront on a busy street such as in Bangsar’s Jalan Telawi has a higher chance of attracting more customers than one located in an area that is newly developing.

You will also want to make sure that your surrounding environment has proper lighting and is safe.

2. Competition [restrict]

Another factor worth looking into is whether there are other similar businesses nearby.

This is because being located nearby your competitors will allow you to capture some market share, be a competitive player and most importantly have direct access to your target market and customers – those interested in beauty, spa and wellness. 

Furthermore, the location of your beauty business can affect the competition you will face from businesses with similar products and services like yours. Again, it’s important to know your business’s target market. 

For instance, an upscale neighborhood in a major city such as in Bukit Damansara might have more salons or spas that cater to the upper-middle class market,  while a beauty service business in Sungei Wang mall may cater to the masses.

Therefore, it is necessary to note that starting your beauty store in an area with few direct competitors can increase the likelihood of attracting your target customers.

3. Cost

Your business’s location can also influence your total cost of operation.

It is costlier to rent a storefront on a popular street or in a popular mall with high footfall rather than opening a store in a small commercial district in a residential area.

Hence, it is common for tenants of strip malls to complain about hefty marketing and maintaining fees being built into the leases. So make sure you inquire about them beforehand.

If you manage to find a storefront property to lease in a bustling downtown area, grab it immediately! Why? Because it is the most straightforward way to maximise footfall.

Conversely, a business could still be better off running in an area that is cheap, even if it bears fewer total sales.

This is where it would be a good idea to target residential areas. Locating your beauty store in a residential area may not give you a wider customer reach, but helps you obtain loyal customers.

It helps you in terms of sustainability and in increasing your prices as the quality of your services and products improve.

Need some funding advice? Click here for tips on how to get funding for your beauty business in Malaysia!

4. Taxes and Regulations

The location of your beauty store determines the state and local taxes you will have to pay as well as regulations you will need to follow.

The income tax and sales tax for a business owner vary from one area to another, significantly impacting earnings.

Government zoning laws can limit the size and construction specifications of your store and your usage of signs.

State and local laws can also have an effect on the types of permits and licenses necessary to operate your business.

Read Deloitte’s 2018 report on Taxation and Investment in Malaysia for more information.

Actionable Takeaway:

Thoroughly research the location you are interested in setting up your store before deciding to launch it.

It is also important for you to learn about the culture of the people in the particular area you are looking into. Obtain the demographic breakdown of the location to obtain more insight.

Lastly,  be aware of the of the different land sizes of different areas, know how much of room your beauty store will require and the costs involved.

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