Beauty Salon Industry Overview
Overview
Approximately 82,000 beauty salons and 4,000 barber shops brought
in an estimated $20 billion in annual sales in 2012, according to SBDCNet.
Small salons contribute heavily to the industry, with the 50 largest companies
drawing just 15 percent of overall revenue. The target price and clientele of
such businesses run the gamut from high end, luxury services to budget hair
cuts salons, so what segment of the industry you target depends on what you
want to offer and if there’s a market in your area for those types of salon
services and products.
Target Market
People 35 to 64 years of age spend 10 to 14 percent above the
average on beauty products and services, says SBDCNet. The best target market
consists of households with children, since they spend 34 to 38 percent more
than average. Selling hair and skin care products along with salon services to
men is a growing market, too, according to Franchise Help. If you want to sell
haircare products in addition to salon services, focus on households with
female children as they spend up to 83 percent more than households with no
kids.
Growth
Trends
The growth potential of beauty salons depends on a variety of
factors, including the characteristics of your target market and the growth of
the nearby population. You also need to keep up to date on the latest beauty
techniques, such as offering new coloring services or skin care treatments, to
take advantage of any growth opportunities. Revenue growth in the industry is
expected to increase by 3.3 percent annually through 2017, partly due to people
having more disposable income to spend on higher end services, such as facials,
massages and special skin care products. According to the Professional Beauty
Association, the number of positions available in the beauty industry is
expected to grow by 16 percent between 2010 and 2020
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