How often do you check for salon retail facts to make decisions for your salon business?
One of the most important facts you should know is that the salon industry is a $47 billion industry in the US alone. This statistic shows you just how massive the industry is and that there are still opportunities for you to grow and generate more revenue from this industry.
Helping people look their best is not the only contribution of the beauty salon industry. We cannot sidestep its contributions to the economy, and some of the figures recorded by the salon industry will freeze you in your tracks.
Can you guess how many salons are in the US alone? Over 80,000 salons are scattered around the US, offering various beauty services.
Their combined yearly revenue is as high as $20 billion and growing.
But where is a typical location to find salons? Salons are often in malls and strip centers occupying spaces of about 90 to 150 square meters.
Professional salons will usually have stylists, colorists, nail technicians, and some salon assistants.
The salon industry caters to varying clientele' demographics, but individuals between the ages of 45 to 54 years seem to spend more on beauty products than anybody else.
This spending might be a result of having more disposable income.
Population growth is another factor that has contributed to the growth of the salon industry.
A household with kids also seems to be the best audience to target as they spend more combined than the average individual on haircare.
But wait, there's more!
The salon industry's mainstay is service sales, including hairstyling, nail care, and skincare services. Most salons are also into retail sales of hair care and beauty products to increase their profit margins.
Some people ask why many salons are going into retail sales these days.
That's because retail sales of hair care products have a higher margin than haircare services and can boost your total revenue by 5% to 20%.
The highest-spending demographics (ages 35 to 54 years) spend more on higher-end retail beauty products ranging from haircare, skincare, and nail care.
Of the $20 billion revenue generated by the salon industry in 2019, retail sales accounted for 14.3% ($2.86 billion), a sizeable contribution.
The salon industry's projection is looking very good as records from the last decade show that the salon industry has been providing jobs even when there was a recession. The opportunity poised by the salon industry has been projected to be 15% for 10 years starting from 2010.
The number of hairstylists is projected to increase by 16%, along with other beauty professionals like cosmetologists and skincare specialists.
As the population increases, so will hair care needs and salon professionals. Therefore, the opportunity to have more employment in the salon industry will keep increasing.
Salons generally make money by offering hair care services like hair styling and haircut, and some add facials, skincare, and nail services.
A growing number of salons also add product retail to their services, another revenue generation source.
Three factors that determine the cost of opening a salon are the property's location and size, buying, building, or leasing a property, equipment, and initial supplies. In all, you can expect to pay anywhere from $87,000 to $557,000.
A home-based salon is another option, in which case you'll only need equipment and initial supplies with a total cost ranging from $47,000 to $50,000.
In a nutshell, these salon retail facts, along with other statistics shown here, reveal that the future holds great promise for the salon industry and salon professionals.
Also, the contributions of the salon industry to the economy will increase. Many salon professionals' will also have the ability to own their own salons.
And if you have more to add on salon business industry, why not share it with the Belliata community in the comment section below. We would be also delighted to answer your questions as well.
The effects of service quality, relational benefits, perceived value & customer satisfaction towards customer royalty in hair salon industry, HW Chow, HL Tan, BN Thiam, PJ Wong - 2012
Customer relationship management in the hairdressing industry: An application of data mining techniques, JT Wei, MC Lee, HK Chen, HH Wu - Expert Systems with Applications, 2013
Business success and businesses' beauty capital, GA Pfann, JE Biddle, DS Hamermesh, CM Bosman - Economics Letters, 2000