Tech-driven home services and clinics disrupt India's beauty market, challenging traditional salons

India's beauty and wellness market, estimated at over ₹56,500 crore, is undergoing a significant transformation, with tech-enabled home services and expert dermatology clinics rapidly gaining ground against traditional salon chains. Platforms such as Urban Company, which reported ₹262 crore in revenue from its consumer services vertical (including beauty and grooming) in Q2 FY26 with 24% year-on-year growth, are capitalizing on the demand for convenience and instant gratification. This growth contrasts sharply with established salon chains like Lakmé Lever, which reported ₹366.9 crore in total business for FY25. Other on-demand platforms like Yes Madam and GetLooks are also witnessing substantial booking growth, especially during festive seasons.

The market is evolving to cater to different consumer needs: convenience for frequent, basic services and expertise for specialized treatments. While salon chains emphasize the 'experience' and 'me time' offered by their physical outlets, they are seeing growth shift towards dermatology clinics offering higher quality expertise, such as Kaya Skin Clinic and Sakhiya Skin Clinic, which are planning IPOs. The Indian aesthetics and dermatology market is projected to nearly double to ₹30,000-32,000 crore by FY29.

**Impact** This trend indicates a significant disruption for traditional salon businesses. Companies that adapt by integrating technology, focusing on specialized services, or enhancing the in-salon experience might thrive. Tech platforms and specialized clinics are poised for substantial growth, attracting investor interest through IPOs and acquisitions. The overall impact on the consumer services sector is a push towards innovation and customer-centric models. Impact Rating: 8/10

**Difficult terms:** * **Net Transaction Value (NTV):** The total value of customer orders processed through a platform before any deductions. * **Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortisation):** A measure of a company's operating performance and cash flow, excluding financing and accounting decisions. * **IPO (Initial Public Offering):** The process by which a private company becomes public by selling shares to investors on a stock exchange. * **Compound Annual Growth Rate (CAGR):** The mean annual growth rate of an investment over a specified period longer than one year.