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Researching a Franchise

Become A Diva And Join The Growing Industry Of Diva

The beauty industry remains one of the most recession-proof markets in today’s economy. Jennifer Glodik has built a powerful business that is now offering full business opportunities for aspiring beauty entrepreneurs.

Nadine Todd

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Vital Stats

Jennifer Glodik always planned to be an entrepreneur. She launched her first business after moving to South Africa from Russia in her early 20s. “There’s a lot of opportunity in South Africa,” she says. “It was just a case of choosing the industry I wanted to be in.”

For Glodik, there are three industries that people will always spend money in: Food, clothing and beauty. “I’ve never enjoyed cooking, and I didn’t think there was room for a new clothing brand in the South African retail space — it’s already a highly competitive market.”

Beauty was different. Coming from Eastern Europe, Glodik was used to a level of product and service that she didn’t believe was available in South Africa. This was an area where she saw both a need and an opportunity to bring something new to the market.

One of the areas she felt local salons were most lacking in was knowledge. “None of the beauty therapists I met could tell me how the various treatments they offered worked,” she says.

Related: Beauty And The Business: How The Diva Slimming And Aesthetics Centre Is Full Of Opportunities

“If you don’t understand how a treatment works, you probably don’t understand the client’s needs either. I wanted to be able to analyse the client and the problems they were experiencing, and then offer the right solution to them.”

Finding the right channel

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Glodik had already studied general medicine in Russia, and she returned to research the beauty industry. She quickly narrowed her focus to skin and body treatments, and concentrated on finding local experts.

“I found a cosmetologist who was running her own salon, but had started a training academy as well, Cosmetologists of Russia. Through her I did an advanced theoretical and practical cosmetology course and I was introduced to the equipment and products she used for her treatments.”

These included non-surgical ultrasound liposuction and 9 in 1 machines, and Spanish product companies Postquam Professional and Casmara. “The machines and the products are expensive, but they’re extremely good quality and they give great results.”

Returning to South Africa, Glodik used her new knowledge, skills, training and contacts to launch the Diva Slimming and Aesthetics Centre, her first salon located in Johannesburg. Before long she started gaining traction and a steady, solid client base, and opened a second salon in Menlyn.

“Cosmetology’s core focus is to eliminate, treat or hide a problem. The cosmetologist’s role is to determine which courses of action are possible, and to then discuss these with their client. Costs versus solution and what’s best for that particular client work together to choose the ultimate course of action.”

Related: Good Customer Service Is About Relating At The Same Level

Through this process, Glodik and her team have discovered deeper medical issues in the past, referring clients to their doctors or specialists before any treatments are undertaken. They won’t treat serious skin conditions that require a dermatologist.

It’s then up to the equipment and products used to get results, which is why Glodik is fanatical about the brands she works with. “The success of the Diva brand lies in how well our treatments work, and the experience our clients receive. Knowledge, training and product understanding are key elements to the overall brand experience.”

With clients who travel from as far afield as Limpopo, Mafikeng and Witbank to Joburg for treatments, it’s clear that Glodik and her team see results — and that there’s a market for their beauty solutions.

Creating business opportunities

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As the business grew and attracted more clients, Glodik started receiving enquiries: ‘Can you teach me how to do this? Your salons are incredibly busy – could I do this too?’

“I took stock of how we’d gotten to where we were, and I realised a few things: I was a professionally trained cosmetologist, which meant I had knowledge. I’d developed a business model through trial and error that worked, and I had joined the Branson Centre of Entrepreneurship, which was also honing my business skills. And I had the sole distribution rights to top-class equipment and beauty products.

“I had learnt my trade from a practising cosmetologist with her own salon and the same equipment and products. What was stopping me from doing the same in South Africa, with the added business training I could bring to the offering?”

With enquiries piling up, Glodik formalised the training she had already been giving to her beauty therapists, and developed business coursework.

To date, Diva has trained 54 salons. Each salon operates under its own brand; these are not Diva Beauty franchises. Instead, they receive a business in a box, complete with training and equipment. They can choose to purchase the products that Glodik offers at cost, or other products compatible with the machines.

Related: Finding The Perfect Franchise Fit

“This is a really great way to grow the business for me, but it’s also very rewarding. We’ve assisted women to build their businesses or start from scratch by giving them a solid foundation in both cosmetology and business as well as excellent equipment.

“90% of our clients come from corporate backgrounds. They want to do something new, but they don’t know anything about running their own businesses. The decision to offer a cosmetology course alongside a business course is what has really made this opportunity a success.”

Current market trends show that people are investing more heavily in their appearance and slimming products. Starting a salon that addresses this innate need of the target market to fulfil the desire to be the best looking version of themselves will undoubtedly endure the test of time, even in this economic climate.

business-opportunities

Nadine Todd is the Managing Editor of Entrepreneur Magazine, the How-To guide for growing businesses. Find her on Google+.

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Researching a Franchise

How Your Fast Food Franchise Can Attract Quality-Conscious Consumers

In a world where customers are becoming increasingly picky about where they dine and what they pick from a menu, it can be challenging to meet demands.

Diana Albertyn

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“Major foodborne illness incidents and outbreaks seem to be increasing. Even innocent or careless mistakes can sicken guests and ruin a restaurant’s reputation,” says Francine Shaw, President of Food Safety Training Solutions Inc. “Foodborne illnesses are 100% preventable and could be avoided if food service organisations adopted a food safety culture.”

Following a listeriosis scare in South Africa early in 2018, consumers have become more conscious about the foods they eat. Today’s customer is more concerned about the cleanliness of the food they buy over its taste.

“How food is sourced, prepared and served is uppermost with many diners demanding transparency when it comes to where they spend their hard-earned money.” – Franchise Association of South Africa (FASA)

The addition of more nutritious choices to your menu may be attracting health-conscious consumers, but it’s the quality of the regular – and perhaps popular – menu items that may win over consumers concerned with quality and not just calorie content.

Related: 3 Ways To Make Your Franchise ‘Instagrammable’

Here’s how you can ensure your customers are at ease with having their next meal at any of your franchises nationwide:

1. Ensure everyone knows why and how it’s done

Even with buy-in from the top-tier, your food safety efforts will be futile if not incorporated into every training touch point and may appear to be optional, when they should be a priority, says Chris Boyles, vice president for The Steritech Institute. When you have well-trained workers who understand the ‘why’ behind food-quality policies, momentum is built and a culture of food safety is created.

“Through encouraging genuine, comprehensive behavioural shifts, your franchise will protect the brand, safeguard employees and sustain a reduction in risk,” Boyles adds.

2. Build food-quality impetus across the network

As a company that serves food to the public you’re in a position of great responsibility. It’s important to pass this message down to your franchisees too. “Co-operation between the franchisee and their employees in this regard cannot be stressed enough,” says Marcel Strauss, Managing Executive of The Fish & Chip Co. – which was voted the top fish brand in 2012.

To get your franchisees on board with tightened food safety regulations, ensure they’re aware of the looming food-quality changes you’re planning on implementing and the ROI for your brand. This enables them to make budgetary allowance for certain credentials and technology you may require to meet certain standards of food safety.

Related: Why Your Franchise Brand Should Be Culturally Relevant

3. Tell your customers every chance you get

Give consumers a glimpse into your production process by including your quality mission statement on customer-facing materials such as your website, social media pages, profiles on external review sites and menus. “Use stories, images and videos to show your practices in action,” Katy Jones, Chief Marketing Officer at FoodLogiQ explains. “Take customers behind the scenes into internal discussions. Practice is the way you demonstrate your commitment.”

To incorporate quality and safety messaging into customer relations, you need collaboration between your food safety managers and marketing managers.

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Researching a Franchise

The Future Of Franchising Looks Smaller (And Fancier)

Franchises are adding smaller locations and reduced menu options, as niche markets emerge, to attract the customer of the future.

Diana Albertyn

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As the owner of a thriving franchise, you’re well aware of the fact that fluctuations in the world economy has both negative and positive effects on business. When it comes to your successful franchise, tough times could mean adopting new trends or seizing gaps, potentially resulting in a new franchise concept you wouldn’t have otherwise thought of.

“The buzz word in global franchising is ‘flexibility and adaptability’,” according to the Franchise Association of South Africa (FASA). “Whether a result of a need to inject some life into stagnant franchise brands or as a result of the new world order brought about by the recession, franchising is embracing alternative and options in a big way.”

Related: As Consumers’ Tastes Change Can Your Franchise Keep Up?

You can do this by either devising innovative areas to franchise or allowing more flexible ways for franchisees to operate to help with their bottom line. FASA has earmarked these as some of the biggest franchising trends in 2018 and beyond:

Smaller, more cost-effective franchise models

When franchisees don’t have high franchise fees and start-up costs to worry about, they can focus more on what customers want, and deliver. The added benefit of smaller spaces include having fewer employees and reasonable rental.

Among the new frontiers in franchising are the food court losing its legacy as the preferred setting for food franchises, as service stations increase in popularity in the industry. A number of brands – like Steers, Debonairs and Mugg & Bean On-the-Go outlets – are co-locating with major fuel retailers to create fully-integrated accessible centres.

Niche markets are offering one-of-a-kind franchises

“The opportunity to get in on the ground floor of a new franchise trend is also on the rise,” notes FASA. This could be offering a unique gourmet food experience in your outlets or a ‘green’ space of energy saving technology in your operations.

“Consumers have gained control of what they want,” says Morné Cronjé, head of franchising at FNB Business. “It is no longer about what you have on the menu, but how your product or service can be tailor-made to what a customer really wants.”

Founded just five years ago (2013), RocoMamas boasts over 60 franchise outlets, clearly responding to the essence of this trend –allowing consumers to build their own burgers without having to pay for items they’d rather leave out.

Related: Key Franchising Trends To Consider For 2018

Stay ahead of the game

For long-term success, franchisors who want to expand their business should start exploring beyond present circumstances and current predictions.

“2018 will no doubt bring its challenges, however for every challenge there is a window of opportunity to explore. We are advising franchisors to scrutinise these trends carefully, it can definitely give them a boost for 2018,” says Cronjé.

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Researching a Franchise

As Consumers’ Tastes Change Can Your Franchise Keep Up?

More of your customers are eating in, and if you’re not packaging, portioning and pricing your food accordingly, they’re heading to a retailer that does.

Diana Albertyn

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It’s generally believed that it’s cheaper to cook your own breakfast, lunch or supper than to go out and pay a much higher price for the same food in your fridge at home. But today’s consumer’s live fast-paced lifestyles – so food is becoming more about convenience.

31% of 6 022 middle-to-high income South African earners surveyed by BusinessTech, put eating out and entertainment at the top of their list of things they’re most willing to cut their spending on in 2018 to save money. Research by supermarket giant Pick n Pay correlates, reporting an increase in customers buying quality convenience food, not just to entertain at home, but for dining at home.

Related: Driving Your Business Growth Towards More Customers

Consumers are empowered by variety

You’ve heard about the ‘fast casual generation’, aka Millennials? They are demanding healthy, affordable eating experiences. But do you know how this affects the future of the food industry, and your business in particular – because they’re not the only ones adapting their lifestyles.

An increasing number of food brands and chefs are compelled to create complete ranges of new, convenient meal options that are not only packaged, portioned and precooked attractively, but affordable too.

The fastest growing sector of retail foodservice for the past four years has been the convenience store sector. Non-traditional avenues of distribution are growing, gobbling market share while establishing new patterns of consumption, price points, and customer loyalty.

Shoppers are becoming value-focused

A savvy franchise would acknowledge that although pre-packaged and pre-cooked convenience food isn’t a new trend among consumers and supermarkets, it is gaining popularity. “Some of the most notable trends in 2017 were an increasing shift to convenience foods as customers looked for both value and convenience,” says Pick ‘n Pay’s Head of Marketing, John Bradshaw.

Related: 5 Techniques To Leave Customers Grinning And Vowing To Return

Value for money and healthier food choices will continue to be top of the convenience food list for consumer in 2018, as more shoppers cut down on luxuries.

“We’ve seen significant growth in the number of customers looking for an easy way to enjoy a good meal without the cost of eating out,” says Bradshaw.

But he cautions that South African shoppers have always been value-focused, and while the most significant shift Pick ‘n Pay has seen is how all its shoppers, no matter what their income levels, are watching their budgets.

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