The beauty care franchise sector is underdeveloped in Poland and therefore may have potential for the U.S. franchises. Poland, with a population over 38 million people, is considered the largest consumer market in Central Europe. Best prospects exist for those franchising concepts that target market niches, fashion products and treatments and novelties. This report presents an introduction to the beauty care franchise sector and focuses on face, body and nail care treatments, nonsurgical esthetic medicine, dietetics and body shaping, and spa & wellness franchise networks.
Financing is the most critical element for successful entry and penetration by U.S. franchisers. Willing and wellcapitalized Polish investors are difficult to identify. One of the best strategies for American companies is to establish a flagship operation in Poland or locate a partner in the U.S. or Europe who would be willing to purchase a U.S. master franchise and pursue the Polish market.
Market Overview/ Market Trends
Generally speaking, the Polish franchise market is considered to be mature. The market is dominated by domestic networks, and Polish franchises are expanding successfully abroad. The growth of this sector is projected at a rate of approximately 20% annually over the next several years.
According to PROFIT system, at the beginning of 2009 there were over 480 franchise networks, an increase of 25% over 2008 and employment exceeded 230,000 people. The most popular franchise types are fashion and catering in the retail and services sectors. In 2008, almost 19,000 franchisees owned 22,700 businesses and invested over USD 450 million in their own franchising businesses. The average investment amounted to USD 100,000, however the most popular are franchises valued at less than USD 20,000. This price is enough to invest in small retail or services outlet. The most expensive investments involve supermarkets and petrol stations at a cost of over USD 2 million.
The entire beauty care market is very competitive and growing steadily. There are a large number of local and foreign beauty salons offering a wide range of advanced and innovative face, body, hand and feet treatments, massages, water treatments, dermatologist’s advice and hair-dressing services. Body treatment programs include peeling, application of various cosmetic preparations, massage, spa capsule or electric blanket and tanning treatment. Beauty salons offer specially designed face and body treatments suited to the individual needs of the skin. The programs are continuously enriched by a new and appealing proposals and applications at the cutting edge of cosmetology. Salons often combine alternative and traditional approaches including acupressure, reflexology, and various types of massage techniques. Dermatologists solve both cosmetic and strictly dermatological problems and can perform advanced and highly specialized beautifying and curing therapies, including dermatological aesthetic treatments. Also, hair care studios offer a full range of hairdressing services including professional consultations, hairstyling, coloring, permanent curl, hair lengthening and thickening and others. Almost all hair care studios update their haircuts and coloring offer, follow the newest trends in hair fashion and provide training for their staff. There is a trend to provide extensive services. Most hair studios offer nail care treatments, facial make-up, waxing and similar beauty services. Also beauty care salons tend to extend their offers to meet customer’s expectations.
By Ewa Bogdanowicz