NEW BEAUTY SALON THAT WANTS TO COMPETE IN THE PERUVIAN MARKET

ANALYSIS OF THE 5 PORTER FORCES:

NEW COMPETITORS:

- There is a high threat for the entry of new competitors in the beauty and spa center
market due to the constant growth of the sector, which annually grows by 15%,
which makes it an attractive market to enter this sector. In addition, according to
sources from Diario Gestión, Peruvians spend between 10% and 15% of their
salary in the area of beauty aesthetics, mainly in segments A, B C +, we can
comment that there are new trends in people who increasingly invest more in their
health care and look good aesthetically.         
 
- Regarding entry barriers in the sector, we can indicate that they are medium or
moderate, mainly due to product / service differentiation, as we can see that some
brands are already well positioned in the market, such as Montalv or, Soho and
Marco Aldany, which It already has a large market share, but our company will also
set this barrier since we will differentiate ourselves from other Spas for offering
organic products and treatments.         
 

SUPPLIERS:

- The bargaining power is low, the suppliers do not have much power because we are
in a globalized market where aesthetic products exist both in the national market
and in the international market with great facilities to export these products, with
great diversity and excellent quality, plus there are distributors and wholesalers in
our local market.         
 
- With regard to organic products, we have found that there are small and medium-
sized companies that have been offering makeup and cosmetic products for
personal care, so we could easily negotiate their products at a good price, since
they are SMEs and not large-scale companies.         
 
- We can indicate that its power, which is a low level, will be maintained since it
will increase the trend of personal care and even more with organic products,
which will further expand the number of suppliers.         

CUSTOMERS:

- The power of the clients is high because there is a great offer of beauty, beauty
and Spa centers with a great diversity of services and products. The client, having a
varied offer, will be able to choose according to their tastes, preferences and / or
recommendations and the degree of valuation they give to the service offered, such
 as the infrastructure of the premises, the location, price, highly trained personnel
and attention personalized.         
- We believe that their power will be maintained since they will increasingly have a
greater offer in the market.         

SUBSTITUTES

- There is a low threat for the entry of substitute products, within substitute products /
services we can find homemade personal care methods such as creating your own
oatmeal, cornstarch, and other facial care creams, including oils for application.
quick and easy for hair or avocado, among other homemade products. We also find
machines and technology for personal care such as dryers, professional irons,
curling irons, curlers, etc. These products are applied in an unprofessional way,
which is why they will always lead people to look for a spa with professional
personnel in the field.         
- We believe that it will remain at a low level , but with the technological advances that
are constantly taking place, it is likely that in the long term they will see significant
changes.         
 

COMPETENCE IN THE SECTOR

- The degree of competition rivalry is high since there are currently competitors such as
Montalvo SPA, Marco Aldany, Soho Color, among the most recognized and 10
other lesser-known Spas , but they are all competition in
the Jesús María district where our aesthetic Spa will be located , the degree of
aggressiveness of the competition is high since of the recognized brands they have
chains nationwide and with aggressive advertising in the local market, that is why
we seek to differentiate ourselves by offering organic products and personalized
attention with professional personnel in the field.