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 have also been weak as consumers cut back the frequency of their visits and put off more expensive treatments... purchase to read more
Industry Report - Starting a New Business Chapter
There are relatively low barriers to entry for the industry, as indicated by the high number of small businesses. Capital requirements are relatively low, and self-employed hairdressers and beauticians are able to rent space in existing salons, thus avoiding many of the costs of starting up a salon themselves. Independent operators may also operate from their own homes, or run a mobile business, each involving minimal capital costs.
The industry is not regulated beyond the usual requirements of employment and health and safety laws. Operators do experience a strong level of competition from other salons though, which may deter some from entering the industry... purchase to read more