March 2009

I read the news of Helion Funds investing in YLG (You Look Great? See http://ylgindia.com/ ). I was surprised that the fund has invested in this venture. OK, let me give my thoughts. There are two kinds of players in the market. One is the mom and pop shop and other is the organised player. Here is the dramatized account of the experience in these two places: Mom and Pop shop : When you walk in the shop after 10 years, you see the same set of people working you had seen earlier The furniture is also not replaced for the last 10 years (One option is to find a new Mom and Pop shop every year) If you start talking in friendly terms, they will soon lead you to the difficulties they are facing and if we can help with money If you keep a distance, they will soon start chatting among themselves with the juiciest gossip If they are not gossipping, they are watching TV. You may ask what is the problem in that. Sometimes, I am taking a shave and they are watching Shakira. With knife near my throat and the barber watching Shakira, what do you expect me to do? It is another story that no one has ever got killed before, but I do not want to hit the Head(less)line Organised Player You enter a organised salon, there is a guard to help you park the vehicle (Salon is going to charge 10% more for this service) There is a person to open the door (Add 10% service charge) There is a smiling lady in the reception (Add 30% more service charge) I have already paid 50% more for the above facilities. And then when I tell her I just need a “summer cut”, you know she is not pleased to see me. But, she will smilingly tell the cost is thrice the Mom and Shop Since I have outgrown the Mom and Shop, I sheepingly head inside for a Summer Cut Here, the staff gives 100% of concentration on the customer First they show an album with all the styles that will suit me. I say “Summer Cut” Then they ask, if I need a shampoo. I say “Just Summer Cut” They suddenly notice my scalp is dry and If I need a XYZ treatment. I say “Just Summer Cut” They ask, if I need a facial. I say “Just Summer Cut” They keeping going down by body and mentioning various service, for which the cost will surely be increasing. I keep saying “Just Summer Cut” When I walk out, I am sure they will be gossipping about me at their back, even after I have paid 5 times what I pay at the Mom and Pop shop When I walk a month later to the same shop, I will try to spot the same hair expert, so that I do not have to repeat “Just Summer Cut” 100 times. But, it is the same story, a new salon has come in the neighbourhood and our pal has left this place What we really need is a Walmart among Salons? I walk into a clean, professional salon. They ask me “Short/Medium/Long”. I answer “Short”. They cut my hair in 10 minutes and move onto the next customer. There are too many exotic shops, go after the volume business. BTW, did somebody not tell them we are in recession… If you are the entrepreneur who is going to build on this idea, and create one of the quick professional hair cutting salon, call it YLH (You Look Happy). If Helion changes their mind after reading this, I will set it up for them