WHAT fit in with their peers and be

WHAT MAKES INDIA THE BEST ANDMOST ATTRACTIVE MARKET? Market size -Treatwell is awell-established business and online booking platform for hair and beauty whichis available across Europe and operates in 11 countries.

The brand will be the most lucrative in the Indian market as the marketresearch shows a very positive result. With a gigantic population –  having one ofthe largest populations of millennials in the world and developing middleclass and more profound cell phone infiltration, India is potentially one ofthe greatest markets for world organizations running on innovation. Accordingto a market research conducted, India is the 3rd biggest smartphonemarket where it sold around 100 million handsets in the year 2015.

  Expansion of middle class – The consumermarket in India can be comprehensively separated into rural and urban, itlikewise includes a gigantic working class, accepted to be a moderately richclass with consumers consumption expenditure expected to show a dramatic increaseby the year 2025 thus, looking at the growth of the middle class and theirincomes per annum, many Indian households will be worldwide citizens who willdemand the best of design, technology and performance. With a rapid change inthe rise of the income of citizens in India, as the society is evolving thereis a noticeable and significant shift in the consumer behavior and attitude andspending pattern. The biggest desire of many aspirer households in India was toown a house or a car but today many of the consumers are willing to lavishlyspend on beauty and apparel which makes them look and feel good, gaining moreconfidence and self-satisfaction in them. These shifts have a huge implicationon how Treatwell will position themselves in the Indian market.

As emphasizedin the paragraph above, the internet is an increasing factor for the rise inthe e-commerce business in India and the influence will only keep expanding.Social media plays a big role and people want to fit in with their peers and besocially acceptable.  Increased revenue in beautybusiness – The beauty market in India is divided into 3 categories.

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One beingbeauty and wellness, second being the slimming and fitness segment and thirdand the last one being the rejuvenation segment. Studies have shown the beautyand wellness segment and the slimming and fitness segment covers 48% each of thebeauty market and the rejuvenation segment covers 4% of the market. This shows thatIndia has a potential growth and is a great opportunity for Treatwell tocapture the market. Apart from that, in 2012/13 the estimated of the beauty andwellness market was an estimate of 41,224 crore and it is expected to grow to80,370 crores in the year 2017/18 which is a massive growth in size. The annualgrowth rate in this sector is to grow by 20-23%.  First mover – The most importantand attractive reason why India is a great market to invest in is that Treatwellis the most mover to enter in the Indian market where they will gain asustainable competitive advantage by establishing themselves before anycompetitors enter the market. ·    India does not have any specialized and individualplatform for beauty where the consumers can book their appointments anytime inthe day and anywhere as per their convenience and also check reviews ofdifferent saloons all under one roof.

This will make a lasting impression oncustomers which can lead to brand recognition and brand loyalty. They thus havemore time to refine their processes and perfect their service. ·    They also have an advantage of controlling resourceswhere they can get an exclusive contract with premium suppliers. ·    The buyers switching costs is high and the business isthe first one to be established in the market so it may be inconvenient forconsumers to switch to another new brand as the consumers tend to not want toinvest time in learning about other products and avoid the risk of beingdissatisfied. Thus, the first mover has the opportunity to shape consumerpreferences.

 CHINA – China is the second-mostattractive market for Treatwell to invest in. There is a lot of potential for Treatwellto grow in this market however there are significant and unavoidable risks aswell which cannot be ignored.  The market share of the beauty and personal care products and servicessold online in China has skyrocketed since the last 6 years. Studies have shownthat it has increased by nearly 6 times. This is an indication of howprofitable the Chinese e-commerce industry is. According to Euro monitor International, skin careand hair care products accounted for more than half of the market share in2014.Just like India, there has been an increase in the spending power of theChinese citizens and the middle class is expanding and are willing to splurgetheir income on beauty services.

The millennials are a new breed of consumerswho are set to shape the future of commerce. Their values are set to become thenorm and they are a global generation. There is a drastic difference in themindset and priorities of the millennials from that of the previous generation.

They are conscious however, they want to experience a fun-oriented lifestyleand are thus redefining consumption. They admire the western lifestyle andbelieve it to be more sophisticated.  However, China is the second-best market to invest in as there are a fewnegative criteria’s for Treatwell to enter the Chinese market.  Rise in Competition – China is a hugemarket and has a bottle neck competition. There are many players in thee-commerce beauty industry and services that already exist.

The biggestcompetition for Treatwell will be Meituan Dianping which is a Beijing basedcompany. It has a dominant position in the market and is a leader for internetbased services which can be booked via smartphone apps. For local businesses,it’s the most powerful online partner and is widely used in China in around2300 cities.  Government Intervention – In order tostimulate the growth of local businesses, the Chinese government intervenes inthe decisions of foreign investment which is a major risk for the foreigncompanies to enter the Chinese market. The government steps up the restrictionsin the pricing of capital which ultimately curbs the return on capital. Thereare new rules and regulations been formed every now and then which restrictforeign investors to enter the market.

 BRAZIL – Brazil, much thesame as any other emerging and developing market seems to be well positionedfor new growth opportunities. Brazil is the 4th largest beautymarket in the world after the United states, Japan and China. According to euromonitor, the beauty market accounts for 1.8% of the total GDP in Brazil. Thisshows that beauty and personal care is very important in brazil.

Brazilianwomen spend through 11 times a greater amount of their yearly pay as a level oftheir aggregate pay on beauty and personal care items than ladies in the UK. Even though the beauty market is emerging in Brazil there are majorexternal factors that can challenge Treatwell to grow in this market. Thepolitical and economic environment issues are notably risky.  Political environment – The politicalsystem in brazil is very uncertain. The investors need to keep in mind that thegovernment can change the rules and laws which might harm the business returns.The economy is unstable and corruption and illegal donations are used to boostthe growth of businesses.

This can lead to custodial sentencing which meansthat the company might pay a high price for it.  Economic environment – The Brazilianeconomy has been encountering a constriction in GDP since 2014. However lately,because of falling product costs, this pattern has turned around. The recessioncaused a fall in internal demand that discouraged conceivable businessinterests in the nation. Lower pay levels and the diminishment in customers’confidence were what made up this reduction in demand. Charging high taxes isanother economic challenge for businesses to invest in Brazil. Tax collectionin Brazil can be an eccentric monster, with numerous local firms as of now combatingthe authorities over gigantic of tax revenue.  SUGGESTIONS AND KEY FACTORSFOR TREATWELL TO BE SUCCESSFUL IN INDIA –  ·     Investing in consumer education and visibility of the brand – Buyer awareness and trustassumes a key part in the development of the wellness products and services andadministrations showcase and in addition enlarging its consumer base.

Playershave taken up various activities to instruct and enhance purchaser awareness inregard to the advantages of wellbeing items and benefits, and are setting upsystems for professional dynamic buyer interface and feedback. Similarly,inside the excellence section, players have concentrated on teaching theirclients with respect to the advantages of fixings, for example, initiatedcarbon, AHA (in skincare) and keratin (in hair mind). ·     Developing innovative strategies in order to control cost pressure – Players in the industry are thinking about issues, for example,rising information, distribution and labour costs. To alleviate edge dangers,they must develop strategies being more responsive to market dynamics. ·     Diversifying portfolio to induce profitability – Treatwell should introduce andmanufacture products of their own for example “Treatwell moisturiser” or “Treatwellclay mask”. The service must diversify into products to reach a higher targetmarket.  ·      Providing consumers option to induce trial – In a push to focus on a more wider base ofconsumers and initiate trial among current non-clients, organizations areproviding small SKUs (sachets and tubes) even for their mass premium andpremium items and can likewise utilize coupon rebates.   References “This 44-Year-Old CEO is shaking up the £87 billionbeauty industry.

” Business Insider France,onlinewww.businessinsider.fr/uk/treatwell-ceo-lopo-champalimaud-transforming-beauty-industry-2017-5/.Accessed19 December 2017 “FIRST-MOVER ADVANTAGE.” Reference forBusiness, {onlinewww.referenceforbusiness.com/management/Ex-Gov/First-Mover-Advantage.html.

Accessed19 December 2017 Vimal Choudhary, Alok Kshirsagar, and AnanthNarayanan. “How multinationals can win in India.” McKinsey , onlinewww.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-multinationals-can-win-in-india. Accessed19 December “The New Indian: The Many Facets of a ChangingConsumer.

“online Https://Www.bcg.com,20 Mar.

2017, www.bcg.com/publications/2017/marketing-sales-globalization-new-indian-changing-consumer.aspx.Accessed 19th December 2017  “Rising purchasing power economic growth:OECD”onlinehttps://economictimes.indiatimes.

com/news/economy/indicators/rising-purchasing-power-drives-indias-economic-growth-oecd/articleshow/16839425.cmsAccessed 19 December 2017 “FIRST-MOVER ADVANTAGE.” Reference forBusiness, onlinewww.referenceforbusiness.com/management/Ex-Gov/First-Mover-Advantage.html.

Accessed 19 December “Five super-Trends that will shape the future ofinvestment.” South China Morning Post,19 May 2017 online, www.scmp.com/business/money/markets-investing/article/2094850/these-five-super-trends-will-shape-future.Accessed 19 December 2017  David Ramli, Lulu Yilun Chen, Yuan Gao. “MeituanDianping: Little-Known Chinese tech startup valued at $30bn.

” The Independent,Independent Digital News and Media, 20 Oct. 2017,online www.independent.co.

uk/news/business/indyventure/meituan-dianping-china-tech-startup-value-airbnb-space-30-billion-wang-xing-a8011281.html.Accessed 19 December 2017  Kwok, Karen. “Investing In China: Pros andCons.” MorningstarUK, online’www.morningstar.co.uk/uk/news/154379/investing-in-china-pros-and-cons.

aspx.Accessed 19 December 2017  “The Beauty Market in Brazil.” Fung Global Retail& Technology, onlinewww.fungglobalretailtech.com/research/beauty-market-brazil/.

Accessed 20 December  Cavallini, Laura. “The Risks of Investing inBrazil.” The Market Mogul, 7 Feb. 2017, onlinewww.themarketmogul.com/brazilian-risk-assessment-companies-invest-brazil/.Accessed 20 December