Star-rating for beauty parlors

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Last updated at: (Beijing Time) Friday, March 26, 2004

Star-rating for beauty parlors

From the second half of this year, China's 1.54 million beauty parlors may adopt a star-rating system similar to that used by the hotel industry.

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From the second half of this year, China's 1.54 million beauty parlors may adopt a star-rating system similar to that used by the hotel industry.

The system, to be enforced by the end of this year, is intended to regulate the market and help the industry develop, as envisioned by the Ministry of Commerce.

China Beauty and Cosmetic Chamber will draft a star-rating standard for the ministry.

The new regulation will rate a shop based on its size, interior decoration, cosmetic products and services.

"Beauty salons rated with more stars will be able to charge higher than those with fewer stars," said Zhang Hongyu, a spokesman with the chamber. He didn't elaborate on the possible price difference.

"The regulation will phase out a number of uncompetitive players. But the government will help those small-sized parlors to survive through merger and acquisition," he added.

A spokeswoman with Wenfeng Group, a local operator of 40 beauty parlors, said, "The new rating system will help our business since we have established a good reputation in the industry."

The firm stopped its franchising this year, saying the franchises were far more difficult to manage than those directly owned.

"If there are more regulations and standards, we may consider resuming the franchising business," she said.

Taiwan-based Natural Beauty International Group, which owns around 3,000 spa parlors worldwide said it was not worried about the new regulation.

"It may take huge effort and time to map out a standard as there are too many service items and cosmetics products involved," said Zhu Guoliang, a manager of business planning division of the group's Shanghai subsidiary.

The company now has around 2,000 chain beauty salons in Shanghai. It declined to reveal its latest sales figure.

China's beauty salon industry has grown fast in the past few years, a senior official said.

The industry's sales turnover reached 160 billion yuan (US$19.2 billion) last year, according to Luo Xielong, chairman of the chamber.

"It is rare in China that an industry has developed into such a huge scale without borrowing any bank loans," he said. "The 12 million workforce involved in the industry can be a way to relieve employment pressure."

Source:Xinhua

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