Critical Success Factors of Beauty Industry in Hong Kong: the case of Modern Beauty Salon Holdings Ltd.
Chapter I
Introduction
Today’s definition of beauty is relative. Beauty in its traditional notion refers to the attribute of being physically attractive. However, this does not seem to be enough as it seems to be an essential yet insufficient condition. and (1994) wrote that substantial indication has been collected, apart from cultural changes in its meaning; beauty is an effective trading commodity. Beauty has been an active part of consumer lifestyle. Lifestyle is the outward expression of a consumer’s needs, desires and values, reflected through patterns of demographics, purchasing behaviors, activities, interests and opinions ( 1996). Consumer lifestyle can be practically referred to as the manner on how people live, how they spend their economic resources, and how they allocate their time. On this case, beauty products and services are purchased for personal consumption and the relative importance of social factors is reflected to consumer approval or final decision. Consumer lifestyle can change dynamically under social environmental influences and are also derived from the individual’s personal value system and personality ( 2003). This fact is among the reasons why beauty industry continuously innovate products and services that cater to the changing needs of the beauty and lifestyle conscious consumers.
Background of the Study
Hong Kong Special Administrative Region (HKSAR) is known to be one of the most exceptional and vibrant tourist destinations in the world because of its aura of magnificence, efficiency, and state-of-the-art competence (2002). Hong Kong, as it is popularly referred by most visitors, is also recognised for maintaining its continuing competitive advantage especially in Asia’s hotel and restaurant into the bargain of the entire tourism and hospitality industries (2006; 2001). With a booming tourism and hospitality industry, Hong Kong’s beauty industry can be presumed as similarly booming due mainly to the fact that some beauty related businesses are covered by said industry. Beauty salons, spas, and other establishments are linked with modern hotels and beauty products and services are included in their accommodation packages.
Beauty industry undeniably shares a significant portion in Hong Kong’s economic growth. As tourists flock their ways to the city, there is a high probability of using at least one or more beauty products and services that are offered in various leading beauty related establishments like salons and spas. For example, Modern Beauty, according to its corporate domain, is a leading beauty salon group in Hong Kong that offers a comprehensive range of beauty and wellness services to mid- and high-income customer groups who pursue quality living. It offers eight (8) services that are categorized into the following main lines: Beauty and Facial Services, Spa and Massage Services, Deluxe Spa and Massage Services, Slimming Services, Fitness Services, Men Salon Services, Men’s Products, Healthcare Centre, Beauty Expert International College, and Distribution of Beauty Products and Equipment. These beauty products and services are offered to all lifestyle consumers, both local and foreign in nature. It has been identified that Modern Beauty has grown over the years of its operations using its multi-brand strategy to capture diverse market segments. It expanded its 18 large-scale service centres that feature state-of-the-art equipment with modern and luxurious flair design that aim to leave an aura of relaxation and comfortable ambience for all its customers. For this year, Modern Beauty recorded HK$ 227 million and 28% growth in its annual profit. Using the net profit margin, the Group is remains stable. The Group has competitors in spas products and services such as Elle Spa Repulse Bay, The Firm, Indulgence, Landmark Mandarin Oriental Spa, Plateau Spa, The Spa at the Four Seasons, and other salons and spas operating within its specific locations. Other competitors are first-class hotels that offer same beauty products and services that the Group is offering. With the clear success that Modern Beauty is showing, it is apt to identify its critical success factors that reflect the condition of the overall beauty industry in the city. This study is conducted to explore the beauty industry of Hong Kong and point out its current trends and developments using Modern Beauty as case example. Also, because of the growing importance of beauty in lifestyle of modern consumers, it is very important to know the trends and development in the beauty industry that, in one way or the other, can affect marketing and management practices of people working in this industry.
Objectives of the Study
This study generally provides a background of the beauty industry in Hong Kong. It primarily focuses on the identification of the critical success factors of the industry using the case of Modern Beauty Salon Holdings Ltd as example. It also elaborates on the role of beauty industry, including salons, spas, and other lifestyle and beauty related businesses, in enhancing the economic condition and the marketing strength of Hong Kong as among the world’s top tourist destination.
Statement of the Problem
The following problems are answered in this study:
Significance of the Study
A case study is an extensive evaluation or examination of a single instance of a phenomenon of interest. Given this fact, this case study has many functions in which it will primarily serve. This study was conducted with the intention to provide information and details to the critical success factors of the beauty industry of Hong Kong using the case of Modern Beauty Salon Holdings Ltd as example. Generally, this research case study is for knowledge acquisition and awareness. The importance of this study lies to the eventual presentation of data that seek to answer the question on the critical success factors of the beauty industry in the city.
Theoretically, this study is intended for marketing management practitioners, academicians, and business or managerial personnel and students in providing body of knowledge that they may use in the performance of their own individual duties. It is also an attempt to contribute on the literature focusing on the said subject. Moreover, this study seeks to give information on issues ranging from the critical success factors of the beauty industry and its role in enhancing the economic condition and the marketing strength of Hong Kong as among the world’s top tourist destination. Empirically, this study is intended as a theoretical basis that can be used in problem-solving and decision making and taking situations in the academic setting.
By being aware of these factors that affect the success (or failure) of the beauty industry in Hong Kong, the readers of this research will be able to validate their existing preconceptions by linking such with the results and findings of the study. Also, this study would benefit future researchers in the field of marketing and management in general. Finally, to the researcher, this study will increase the knowledge that is innate to herself. The interests that she posses in relation to marketing, management, and its applications will flourish as she continue to explore the adventurous and challenging world of marketing and management. From this research study, the researcher will be able to contribute to the existing body of knowledge within the limits of her academic environment through the study’s results and findings. Additionally, the development in her personality in relation to professionalism and work ethics will also be cultivated throughout the duration of the research. All in all, this endeavor will make the researcher a better person and an able professional in her chosen profession in the future.
Current Beauty Industry Situation in Hong Kong: the case of Modern Beauty Salon Holdings Ltd
In a recent online newspaper article published in The and written by (2008), the trend in beauty industry today is medical beauty. It is a term that was coined to characterize any beauty services that are rendered using specialized medical principles. This includes cosmetic surgery and other treatments that use lasers, light-based technologies, radio frequency devices, Botox, placenta injections as well as non invasive treatments. , Chairman of the Federation of Beauty Industry, Hong Kong, and editor-in-chief of , a beauty magazine in Hong Kong sees a growing market in this area, as there are more and more people looking for a quick fix. Medical beauty offers solutions much faster than traditional beauty treatments. He added that the service will attract a niche group of clientele, especially those willing to pay a premium for instant results. However, the challenge of this promising field of medical beauty industry lies on the proposition of legal policies and regulations that will serve as general guide for all practitioners and related individuals.
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