In the words of Victor Kiam, an American entrepreneur, “In the world of business, competition will bite you if you keep running and if you stand they will swallow you.” These two lines sum up competition very well. If you are in the beauty industry, you need to beat your competition after knowing them. And how do you do that?
Read on about the 5 reasons Indian beauty business owners need to know their competitors to run a successful beauty business.
1. To Understand What Customers Think of Them
You need to understand your competitors and customer’s opinion of them. This will allow you to know what the customers like or dislike about the competition. For instance, if your customers like the competitor because it is offering head wash at a good cost while the pedicure is costly, you can benefit from it. You can keep the cost of the pedicure low and offer head wash by using a better product (like shampoo) to beat the competition.
2. To Know About the Marketing Tactics that Work [restrict]
A good reason to know your competition is that it helps you to know marketing tactics that work. For instance, if your beauty business is located in a society where brochures and flyers work more than social media, you can adapt. This will save a lot of time and effort that you could have made to woo the customers by investing in social media advertisements.
3. To Know the Gaps in Market
Another smart reason to know your competitors is that it allows you to identify market gaps. When you have a look at all the products/ services offered by the competition, you can know which product/service can be uniquely yours. You can then use this information to create a product/service that can lure the customers who need it. For instance, the owner of The Home Salon, Rishika Chandan realized salons were not easily accessible for urban women. So, she brought the salon to customers’ homes and attained great success.
4. To Let You Price Your Products Right
You should also know your competitors because it will help you to set an attractive price for your products. It will also let you offer customized services that are uniquely yours. An example of a beauty brand that attained success through this method is Jawed Habib. The chain of Jawed Habib salons offers professionally brilliant and affordable haircut services in India. In the beginning, the haircuts were priced at INR 99 that lured a lot of middle-class customers. It played a major role in making the brand a success in India. Jawed Habib brand also worked with franchisees from different backgrounds to ensure maximum reach.
5. To Know About New Methodology/Technology
When you know your competitors, you will be able to know which methodology/technology is being adopted and which is not even tried. It will help you to use a unique methodology/technology that serves a need and makes specific customers attracted towards your brand. An example of a unique technology that attained success is the use of candle flames to trim beards. It is being used by Mahesh Narain’s dressing salon in Delhi’s East Patel Nagar. This technology is quite popular among Sikh customers who usually don’t use a scissor on hair due to religious reasons.
To conclude, it can be said that the day you decide to know your competitors, you will be doing your business a favor. The benefits of competitor analyses far outweigh its costs. Hence, it is a worthy investment.
If you have never done any research to know your competitors to date, then you should take the help of a market research company. It will ensure that you get the data in the right manner, at the right time and the right cost.