Hair Care Services - Market Research Reports

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Hair Care Services

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Executive Summary

Brief Excerpt from Industry Overview Chapter:

In the US, about 70,000 hair care salons (65,000 beauty salons; 5,000 barber shops) generate combined annual sales of about $19 billion. Major companies include Premier Salons, Ratner Companies, Regis Corporation, and Sport Clips. The industry is highly fragmented: the 50 largest companies generate about 15 percent of revenue.

COMPETITIVE LANDSCAPE

Demand is partly driven by demographics and partly by population growth. The profitability of individual companies depends on technical expertise and marketing skills. Big companies have few advantages over small ones, which is why the industry remains fragmented. Small companies can compete successfully through technical superiority or favorable location. The industry is highly labor-intensive: average annual revenue per employee is less than $45,000.

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 important revenue source for many salons, providing from 5 to 15 percent of revenue. Gross margins are higher for hair care products than for services.

A typical salon occupies about 1,000 to 1,500 square feet and is located in a mall or strip center. A typical salon employs hairstylists who do the actual haircutting, colorists who specialize...

Contents:

Industry Overview
Quarterly Industry Update
Business Challenges
Business Trends
Industry Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Web Links and Acronyms

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