What’s Kindling Growth in the Salon Industry?
When the concept of salons was new in the market, people had the notion that they were expensive and were meant for only rich people. Basic services like haircuts, shaving etc were approached by people and they were not too keen on experiencing other services. With the changing times, this equation between the salons and the customers has gradually changed a lot. Consumers now are more inclined towards experimenting with their looks and utilise each and every service available at their disposal. The growth of the industry is a result of the interest of the consumers maintained in the market due to the latest trends and happenings.
Salons – The Saviours of Beauty
Salons have been always open to people looking for that special treatment and extra care of their skin, hair and body. From starting by providing basic services to giving exclusive ones, the salon industry has covered a long way. Consumers are more aware of the latest trends in the market and also follow all the latest things from the international markets. According to SBDC Net, approximately 82,000 beauty salons and 4000 barber shops accumulated $20 Billion in sales for the year 2012. The growth that is being experienced in the industry is not only because of large, popular salons but also because of small salons. They have been contributing a big amount as it was noticed that the best 50 firms could just put in 15% of overall revenue.
International media is also influencing the market a lot these days and inspirations are being taken from there. Celebrities are followed and their latest fashion and beauty trends are getting all the attention. Though the men segment has just started growing, the women are all influenced and motivated. Looking good has become the new wave and the spa and salon industry is growing because of this and will continue to grow, says Nitin Kalwani, Managing Director, Juice Salon.
Growth Contributing Factors
Sometimes it’s just not only about name in the salon industry. Many other factors are also required to make a salon business work. The growth in the market is appreciable and has a strong base. Target market and price range matter a lot to the clients and they need to be given priority. It depends on the part of the industry you are working in and the people you are approaching. From luxury services to basic haircuts, everything needs to be analysed in order to achieve growth in the salon industry. The target market of 35 to 64 years spends around 10-14% on beauty services and products. The men’s grooming market is also a market which is evolving really fast. Men have become more of their needs and salons are providing them with the much required services and products. This is also a big factor which is helping the industry to grow. The other growth factors are keeping updated with latest techniques in the industry and also the growth of the target market and population. Introducing new schemes and using international trends and methods also help in attracting the consumers. The availability of products targeting a particular section of people has also led to a great change and flow in the market.
Competition Fuelling Growth
Amongst all the factors, the tough competition faced by the salons and brands is something which distinguishes the best from the rest and also keeps the fire to grow and expand ignited in the market. New salons are being open every day and the profits are expected to touch $49.3 Billion by 2017. The competition is meant to increase in the years to come and it will only get tougher with 1.3 million barber shops and salons contributing to the industry, as reported by a report of SBDC Net. Though the cost of opening a salon is minimal, the efforts to keep up the brand name, quality and quantity are what test the salon. This leads the existing businesses to give their 100% which eventually leads to the growth and development of the salon industry.
The salon industry is a massive industry, growing at a very fast rate. The competition is tough and so the services provided are the best. Brands do not want to lose by any chance. The availability of new idea and dimensions to grow has also added to the growth rate of the market and this is meant to continue as the industry has been successful in keeping intact the curiosity and interest of the consumers.