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Beauty Shops

Excerpt: “The beauty industry is evolving at a rapid pace. Today’s initiatives become tomorrow’s minimum standards with increasing rapidity. Never has design been more important in seducing and alluring a consumer to purchase a product or service. If we as consumers choose based on design, we choose a design based on emotion. Before we venture into designing a salon, we need insight on how customers think, act and buy.
“The purpose of good design is to affect a salon or spa’s bottom line, including productivity, employee/client relationship, retention, as well as retail and service sales. Color and interior design trends change approximately every three to five years. From a pure business perspective, owners should redesign or remodel within this time period because good design positively influences consumer psychology. A good design/renovation alerts customers that you realize image is important. It improves valued customers’ morale—making it easier for them to buy more retail items or get additional services.

Source: http://www.salontoday.com/ArticleLanding/tabid/130/Default.aspx?tid=1&ContentID=367185
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Excerpt: ConsolidationThe number of salons in the US decreased but the number of workers at each salon has increased. Economies of scale favor larger establishments that can support a receptionist and various assistants. A popular hairstylist can serve three or four customers at one time if (lower paid) assistants are available to wash and dry hair.

Favorable DemographicsThe large Baby Boom generation is now at the age when income is highest and hair is graying. Older women and men, who drive most of the demand for higher-end hair care services, are increasing their use of color to hide gray hair and also have the means to pay for it.

Source: http://industries.hoovers.com/consumer-services/hair-salons/industry_trends
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Excerpt: The U.S. salon industry registered steady growth in recent years. Although much of the growth in salon establishments was driven by substantial increases in the number of non-employer establishments, there were also steady gains in the number of employment-based salon locations.

Between 2001 and 2006, the number of employment-based salon establishments in the U.S. increased 10%, according to the Bureau of Labor Statistics. During the same five-year period, the number of employment-based businesses in all industries also grew 10%, which illustrates the consistent contribution to the economy of employment-based salons. The contribution of the salon industry to the overall economy has been even more impressive during the current economic downturn.

In the 12 months ending September 2008, the number of jobs at employment-based salons increased 1.5%. During the same 12-month period, the total number of jobs in the overall economy declined 0.2%.

Source: http://www.probeauty.org/progress/fall2008/nationalprofile/
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Excerpt: U.S. sales in the cosmetics and toiletries market grew only by 0.3% in 2008, the lowest since 1991, according to the latest study completed by Kline & Company. The new data, available in Cosmetics & Toiletries USA 2008, indicates that sales have reached a total of $35.6 billion at the manufacturers' level, but consumer concerns about the recession may ensure that these levels do not rise higher during 2009–10.

Consumers are showing a preference for competitively priced products from the mass and direct trade classes. Therefore, premium products sales are being impacted heavily by these negative market conditions. In fact, salon, specialty and luxury trade classes all demonstrated negative growth, whereas mass and direct trade classes turned out to be the fastest-growing segments. "The new frugal mindset imposed by the recession has altered spending and product consumption habits, some of which will probably continue into the foreseeable future," notes Nancy Mills, industry manager, consumer products practice, Kline & Company.

"Many people have traded down on certain products, and as they get accustomed to buying some lower-priced or private-label products and shop more in the lower-priced channels, they might well continue with those habits after the tough times have subsided. To be successful, companies will likely continue to infuse the mass segment with more sophisticated products to compete with luxury products."

Source: http://www.gcimagazine.com/marketstrends/regions/northamerica/46236027.html
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Excerpt: It’s the era of the DIY hairdo. From bang trimming and root retouching to mixing up a mash of egg, avocado and mayo as a deep conditioner, regular salon customers are cutting back on visits to the stylist in this sluggish economy. “Most salons are not losing clients, but clients are stretching time between appointments,” said Stacey Soble, editor in chief of the industry publication Salon Today.

“They are hurting because they are seeing those people less frequently, so it comes down to what can we do to get them in the door more often?” How about a stimulus package? One East Coast salon offered to perform any client service for $25 on slower days, while another offered “interview cuts” discounts for anyone unemployed who comes in for a haircut or color before a job interview.

Source: http://www.ajc.com/services/content/printedition/2009/06/10/salons0610.html

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