Why Indian Salons Are Shutting Down Within 6 -18 Months of Opening

Industry Experts Highlight the Gaps and Solutions for Sustainable Salon Businesses

By Chirag Manochaa Director Anayil Ventures (OPC) Pvt Ltd

A growing number of salon businesses across India are struggling to stay afloat, with many shutting down within 6 to 18 months of launch. Despite stylish interiors and strong branding efforts, industry experts point out that most salon owners are neglecting the foundational aspects required for long-term success.

Key Gaps Hindering Salon Sustainability

A recent analysis reveals four major gaps in execution:

1. Lack of Business Systems:
   Most salons operate without standard operating procedures (SOPs), proper financial controls, or structured client management systems.
2. Poor Feasibility Study:
   New salons often open in unsuitable locations without conducting proper market research or analyzing rental viability and local demand.
3. Weak Leadership & Team Management:
   Owners frequently lack training in leadership and staff management, leading to high attrition rates and inconsistent service quality.
4. Neglecting Client Retention:
   There is a heavy reliance on walk-in traffic with no long-term strategies in place to convert one-time visitors into loyal clients.

 Proven Solutions to Build a Sustainable Salon

To counter these challenges, experts recommend a structured approach:

1.     Conduct Detailed Feasibility and Location Analysis: Ensure the space is viable both financially and demographically.

2.     Implement SOPs: Streamline day-to-day operations, enhance service consistency, and improve client experience.

3.      Develop Leadership & Training Programs: Equip salon owners and managers with essential leadership and staff development skills.

4.      Focus on Client Retention: Introduce loyalty programs, regular follow-ups, and upselling strategies to nurture long-term relationships.

5.      Set Up Financial Monitoring: Track profitability, manage costs, and maintain a healthy cash flow through robust financial systems.

6.     Invest in Business Education: Enroll in mentorships and professional training to stay updated with industry best practices.

As the Indian salon industry continues to grow, sustainability lies not in glamour but in groundwork. Building a successful salon isn’t just about aesthetics—it’s about systems, people, and strategy.

READ MORE: DIY Homemade Potato Face Masks For Glowing Skin