![]() ![]() ![]() This group tends to demand a larger number of high-value services, including hair coloring and haircuts, as they typically have higher disposable income levels. Industry revenue was $46.5 billion in 2019 of which consumers age 45 to 54 contribute the most at 21.4% of the total market.The following information is from the Hair Salons market research report summary from IBISWorld which also sells a full version of this report. Hair Salon & Nail Salon Customer Demographics Despite awareness of the chemical effect of hair-dye treatments, young consumers seek expression through vivid, pastel, and metallic hair colors. However, an uptick in demand for vivid color treatments also permeates the market. Some products and treatments include promises of heat protection, enhancing hair’s natural texture, treating damaged hair, conditioning cleansers, leave-in treatments, and hair masks. The healthy living movement in the US has customers looking to embrace their natural hair, and the performance of the hair care market is strengthened by conditioners and treatments which promote healthy growth and emphasis on natural products free of harsh chemicals.The following Hair Salons market research report summary is from Euromonitor which also sells a full version of this report. Stylists, who often develop their own clientele of loyal customers, frequently work on commission, taking up to 50% of service revenue.” Tips are an important source of income for workers. Receptionists sometimes get a commission for hair care product sales. The average hourly pay for workers is low. In most independently owned salons, the owner or owners are part of the work force. Operating expenses, mainly rent and labor, may be as much as 80% of revenue. Salons commonly employ hairstylists who do the actual haircutting, colorists who specialize in hair coloring, and various assistants who wash and dry hair. A typical salon occupies about 1,000 to 1,500 square feet and is located in a strip center or mall.Margins are higher for hair care products than for services. Sales of hair care products are an important revenue source for many salons, typically providing from 5% to 25% of revenue. Beauty salons account for about 95% of US industry revenue barber shops account for the remainder. Products, Operations & Technology: Major sources of revenue are haircutting, hair coloring, nail care, skin care, and merchandise sales.Both segments of the industry are fragmented: the 50 largest beauty salon operators generate about 15% of US industry revenue, and the 50 largest barber shop operators account for about 30% of revenue. Small companies can compete successfully by offering superior service or securing favorable locations. Large companies enjoy economies of scale in purchasing and marketing. The profitability of individual companies depends on effective marketing and maintaining repeat business. Competitive Landscape: Demand is driven by demographics, population growth, and personal income. ![]() Major companies include Regis, Ratner Companies, Premier Salons, and Sport Clips. “The US hair care services industry includes more than 80,000 establishments (77,000 beauty salons 4,500 barber shops) with combined annual revenue of about $20 billion.This Beauty Salon industry summary is from First Research which also sells a full version of this hair care services industry report. How Hair Salons Will be Transformed by the COVID-19 Pandemicīeauty Salon Industry Overview & Trends NAICS Code: 812111, 812112 SIC Code: 7231, 7241.Franchise Reopening Blueprint, including Salons/Personal Care – International Franchise Association.SBDCNet’s COVID-19 Small Business Resources.Here are additional COVID-19 business resources specific to this industry: As states begin reopening, salons continue to be under close monitoring and increased regulations on their operations are to be expected as the re-openings continue. Salons were among the first of the businesses shuttered by government restrictions due to the close personal contact between patrons and employees and the discretionary nature of many of their services. In response to the global COVID-19 pandemic, shelter-in-place orders and physical distancing measures have affected many businesses here is a look at the impact to the Beauty Salon industry (which includes beauty salons, hair salons, nail salons and related personal care service businesses). Get a free Beauty Salon, Hair Salon, Nail Salon business plans template on our Business Plans page. Don’t forget you can receive free or low-cost training and free professional business advice from your local Small Business Development Center! Learn about the Beauty Salon, Hair Salon, Nail Salon and hair care services industries and find information on how to start a Beauty Salon business. ![]()
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