- Language: English
- 16 Pages
- Published: May 2015
Hair Care Services
- ID: 1052414
- May 2015
- Region: United States
- 10 pages
- First Research
Brief Excerpt from Industry Overview Chapter:
Companies in this industry operate hair salons and barbershops. Major companies include Regis, Ratner Companies, and Sport Clips (all based in the US), as well as CavinKare (India), Frisör Klier (Germany), Premier Salons (Canada), and Stefan Hair Fashions (Australia).
The global hair care industry, including hair restoration as well as hair care services, generates annual revenue of about $160 billion, according to Regis. Key sources of growth include the rising middle classes in Brazil, Russia, India, and China (the BRIC nations). Shifting cultural norms also drive demand.
The US hair care services industry includes about 80,000 establishments (76,000 beauty salons; 4,000 barber shops) with combined annual revenue of about $20 billion.
Demand is driven by demographics and population growth. The profitability of individual companies depends on technical expertise and marketing skills. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete successfully by offering superior service or securing favorable locations. The US industry is highly fragmented: the 50 largest companies generate about 15 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are hair cutting, hair coloring, nail care, skin care, and merchandise sales. A typical salon offers haircutting and styling, coloring, shampooing, and permanents. Some salons also offer nail care, facial treatments, makeup, bikini waxing, massage, tanning, and other types of spa treatments, but the lower volume of demand for such specialty services often makes them uneconomical. Sales of hair care products are an...
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