Industry Analysis & Industry Trends
The Hairdressing and Beauty Treatment industry has recorded weak to moderate growth over the past five years. Hair salons, which generate 77% of industry revenue, have remained relatively resilient through the downturn due to the essential nature of the industry's core services. People typically have frequent haircuts regardless of economic conditions. Demand for higher value services, however, has been much weaker as consumers hit by rising unemployment and falling disposable income growth cut back on more discretionary services such as beauty treatments, colouring and hair extensions. Demand for beauty salons has also been weak as consumers cut back the frequency of their visits and delayed more expensive treatments... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry is highly fragmented and characterised by a large number of small independent salons. No operator dominates the market and the largest hairdressing company holds a market share of just 2.5%, despite having split its brands across the market. The top three players are estimated to hold only 5.3% of the market.
Market concentration is low because there are few barriers to entry and many hairdressers and beauty therapists are self-employed. Self-employed hair stylists may work from home, operate a mobile service or even hire space in a salon. Consequently, a significant proportion of hair and beauty professionals are not employed by salons.
There are also a number of salon chains and franchise networks... purchase to read more