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SHUBINVESTS I SEBI RA

25th May 2025 Β· SEBI-Registered Analyst

πŸ’‡β€β™‚οΈ Haircuts & Bull Runs: Can a Salon Tell You Where the Market Is Headed? πŸ“‰πŸ“ˆ

Last month, my barber asked me an unusual question: "Sir, market mein kya ho raha hai? Bahut log aa rahe hai salon mein." That one casual line triggered an idea: πŸ’‘ Can hair salon footfall reflect the stock market mood? Here’s how: 🧠 In behavioral finance, indicators like lipstick sales, barbershop visits, or spa appointments often reflect consumer sentiment. When people feel wealthy or optimistic, they spend more on self-care β€” even small luxuries. πŸ“Š A research report by IBISWorld (US) once noted: β€œHair salons are semi-cyclical. During good times, premium services rise. During recessions, basic cuts rule.” So I ran a test. Compared footfall in salons (informal feedback from 5 salons in Mumbai) with market moves. πŸ“ˆ During bullish trends (like in late 2023), there was a visible rise in salon visits, male grooming product sales, and premium services like keratin, spa, etc. And then I looked at stocks: πŸ’„ Stocks That Benefit from the β€˜Salon Effect’: βœ… Godrej Consumer

GODREJCP
– Sells hair color, salon chains use Bblunt πŸ’‡β€β™€οΈ βœ… Hindustan Unilever – Has TRESemmΓ©, Dove, and operates Lakme Salons βœ… Emami
EMAMILTD
– Sells hair oils, creams, and men’s grooming products βœ… Nykaa (FSN E-Commerce)
NYKAA
– Profits from beauty/grooming trends βœ… V-Guard & Havells
VGUARD
– Salon appliances: hairdryers, trimmers, heaters πŸ’¬ Why it matters: Consumer behavior often leads earnings. If people are confident to spend on salons, weddings, or vacations, that’s a sign of economic momentum. πŸ” Learning Takeaway: Unusual indicators like hair salon traffic can reveal trends in consumer confidence β€” useful for market sentiment analysis.

#FundamentalViews#HiddenGems#EquityResearch#PersonalFinance#Miscellaneous
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