Mexican Hair Care Market 09
US Salon Hair Styling Market
Ethnic Professional Haircare Market 2010
Professional Haircare Market US - Hair Coloring, Hair Design -2008
Key words: Hair, salon, spa, color, texture, curl, perm, style, shape, smooth, relax, weave, therapy, cosmetology, professional, beauty, nails,
October 2008
Date of publication: 25th October 2008
Title: Professional Haircare Market US 2008
Pages: 131
REPORT STRUCTURE 11
SECTION 1 - SUMMARY OF REPORT 13
TABLE 1 Professional hair care market in USA at a glance 13
Segment 13
Market size and directions 13
A market of contrasts 13
Market positives - appearance an essential 13
Market challenges and uncertainties 14
Data sources 14
Currency 14
Date of Publication 14
SECTION 2 - PROFESSIONAL HAIR CARE MARKET SIZE AND STRUCTURE 15
TABLE 2 Professional hair care market USA (size, growth) 15
Precise data - difficulties 15
Fact or anecdote? 15
TABLE 3 Professional hair care market products including diversion 16
Size of professional products market 16
Diversion products market 16
GRAPH/TABLE 4 Hair care salons/spas (%) by type - full service, haircut only 17
Businesses offering hair care, as a % all salons/spas 17
TABLE 5 Hair salon/spa employment (estimated numbers BLS and NACCAS) 18
GRAPH/TABLE 6 Hair salon/spa market (%) by segments and ticket prices 18
Segment 18
The A and B market segments 19
The C and D segments 19
Market structure - geographical segmentation 19
Ten states account for more than half of salons/spas 19
One country, many hair states? 20
Market structure – salon/spa ownership (independents and chains) 20
Market structure – corporate chains’ market share 20
TABLE 7 Profile of the “average” hair salon/spa 20
SECTION 3 - MARKET DIRECTIONS (VARIATIONS FORECAST AND DRIVERS) 22
Marked contrasts in USA 22
GRAPH/TABLE 8 Growth rates, historical and forecast (national market and quality niche) 23
Updating market actualities 23
The growth experience of a Top 200 company 24
Level of confidence in forecasts? 24
Market issues 24
The US economy and hair care 24
Different behavior by different consumer segments 25
Demographics - aging 25
Demographic change – the ethnic mix will complicate market 25
Ethnic market growth 25
A Texan perspective on market changes 26
Hair salon or spa? Must a choice be made? 26
Difference can be in name only (salon and spa) 27
ISPA calls for greater clarity 27
Salon or spa? Cosmetology or esthetics? 27
Hair salons and spas - incompatible environments and expectations? 27
Barriers to spas offering hair care 28
Barriers to hair salons offering spa care 28
Occupational licensure a barrier 28
Hair expertise is a consumer draw 29
“Hair people are hair people and spa people are spa people” 29
Spas not cutting edge for hair 29
Hair salons can add a “spa touch” 29
A break from the screen and keyboard 29
Scalp massages allow hair salons to substitute for spa? 30
The power of touch 30
Massage touch (dentists and others) 30
Quality appearance services in a “soft” economy 30
Competition or coexistence? One size does not fit all 31
Upscale perspectives on budget/chain segment 31
Are chains/budgets at saturation? 31
Challenges - the booth renters 31
Booth rental has spread and spread 32
Views of the impact of booth rental on hair salon service industry 32
Does booth rental reduce product retail? 32
Booth rental a factor in diversion? 32
Challenges - on-going labor shortage 33
Challenges - graduates lack client skills 33
“We are flooded with applications” 33
SECTION 4 - MARKET DRIVERS – CONSUMERS AND PROFESSIONAL HAIR CARE, CONSUMER ATTITUDES TO PERSONAL APPEARANCE 35
Will hair salon/spa spending mirrors retail spending? 35
Drivers of consumer spending on professional hair care (list) 35
Hair care a consumer discretionary or a consumer staple? 35
Importance of appearance cannot be underestimated 36
Spending peaks in hair salons/spas illustrate that appearance is fundamental 36
Seasonal peaks illustrate the above 36
DIY efforts no alternative to stylists’ skills, on going maintenance a must 36
Convenience and habit 37
Professional skills fewer technology competitors in hair, unlike in skin care? 37
Hair care the final cut back? 37
Hair care part of workplace dress code 37
High maintenance look on a budget 38
Hair is color is an anti-aging strategy 38
Salon visit a coping strategy 38
Visit is a mini vacation, the new get away 38
“Pampering within reality” 38
Professionals help women justify spending on self 39
Hair insurance can maintain spending 39
Is hair care a greater priority than spa care? 39
You can’t put your head in your pocket, like your nails 40
Trip consolidation reduces more than gas consumption 40
Hair care is pay as you go – no upfront spend, no credit 40
Prescient professionals? Historical perspective from 2003 (lipstick theory) 41
High spending clients most open to added value 41
Quality basis of price premium 41
Personal attention and time to talk 41
“Craftsman edge” doubles prices 42
Customized style versus off the shelf? 42
Client retention rates in quality segment 42
Personal attention starts with the consultation (“the chat”) 43
Consultation is highly structured (three steps) 44
Drivers in quality beauty segment (historical) 44
SECTION 5 - BUSINESS ACTUALITIES IN THE QUALITY SEGMENT (SERVICES, REVENUES) 45
TABLE 9 Hair and non-hair services (% sample offering, revenues generated) 45
TABLE 10 Hair care services, ranked by category 46
Coloring/relaxing for different consumer segments 46
TABLE 11 Benchmark data (%) revenues by service category in different market segments 46
Benchmarks - national market hair care services by category 46
SECTION 6 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR COLORING 48
Hair coloring services 48
TABLE 12 Hair color business - summary data 48
Profile of color clients 49
Color growth versus overall growth 49
Color in quality segment versus in total market 49
TABLE 13 Hair color, ranked by techniques 50
Technique 50
Regional variations 50
Color correction business 50
“Mini coloring” services 50
Technology developments noted 50
Rise of coloring story of the decade 51
TABLE 14 Hair coloring - illustration of scale of growth (example) 51
TABLE 15 Professional hair coloring, value of services, industry data 51
Color sales in biggest chain (benchmark) 51
Drivers of professional coloring 52
No DIY alternative to professional 52
The shift of hair color from a luxury to a necessity 53
Coloring demands age specific 53
Will spend until gray hair and wrinkles become iconic 53
Older consumers more dependent on professionals? 53
Can Botox practitioners learn from hair colorists? 54
Hair color compulsory and addictive? Inbuilt high rate of client return 54
Highlights the top professional service 54
Highlights differentiates the budget and quality segment 55
DIY coloring highly unlikely (in practical and esthetic terms) 55
Color is a high value service, generates spending add ons 55
A few clouds on the bright horizon 56
Hispanic women present unique challenges for coloring 56
Professional color product requirements 56
Color pricing – cost ratio of product to service 57
The best of the bunch - winners 2008 NAHA hair color category 57
SECTION 7 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR SHAPING / STYLING / HAIR DESIGN 58
Hair design / hairstyling 58
TABLE 16 Hairstyling / design business - % of salon business (comparisons) 58
Hair design trends are mixed and volatile, not monolithic 59
Styling fragmented ethnically 59
Straightening on top, but not totally dominant 59
TABLE 17 Styling/shaping techniques, best performing (2008) 59
Change in popularity of different straightening techniques 60
Blowout straightening at a 30 year high? 60
Blowouts good for professionals, recover sales lost to retail irons 60
Back to the good old days and ways (quotes) 60
Flat iron straightening, positives and negatives 61
Smoothing “the new straightening?” 61
Smoothing “natural” regrowth – different views 61
Smoothing erodes sales of other straightening methods 62
Hairstyling with temporary attachments 62
Many different reasons for temporary hair design 62
Hair extension business, positive and negatives 62
Hair extensions can be expensive 62
Hair extensions boring for stylists 63
Hair extensions difficult to schedule 63
Why some professionals refuse to extend 63
Liability waivers / disclaimers 64
Disclaimers not worth the trouble? 64
Special occasion hairstyling and design 64
Special occasion updos and curls 64
The (very) complicated curl 65
The traditional perm(anent) 65
Hair styling/shaping US industry data 66
The best of the bunch - winners 2008 NAHA Texture category 66
SECTION 8 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR TREATMENTS - PROBLEM AND DAMAGED HAIR 67
Hair treatments / repair services 67
Hair therapy business can be hard to quantify 67
Hair damage is rising and more severe 67
TABLE 18 Consumers’ top hair concerns/problems 67
TABLE 19 Hair damage – the list of suspects 68
Common theme to explain hair damage 68
Regular, prolonged use of heated tools 68
Extensions, bonding 69
Chemical abuse (color and relax) 69
Teenagers can have risky hair regimes 69
Environment impact 69
Environment – water, hair washing, swimming 69
Hair loss changing consumer profiles 69
Products for thinning hair a winner 70
Sensitivity required 70
Hair restoration industry 70
SECTION 9 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR MARKET - AFRICAN AMERICAN, HISPANIC 71
Expertise of sample 71
Why salons/spas specialize in consumer segments 71
African American - longest salon/spa visits 71
Unique hair types – a widely shared view 72
Different concepts of “looking good” 72
Generational changes 72
Demographic/ethnic change a new challenge for beauty market 72
Challenge - training 73
Challenge - unobserved market 73
TABLE 20 Hair services, ranked (women of color) 73
Services 73
TABLE 21 Hair relaxing and coloring trends 73
Trend (% variation) 73
Significant shift 74
TABLE 22 Best performing hair color categories 74
Hair relaxing and related business 74
TABLE 23 Hair straightening/ relaxing service categories and trends 75
Relaxing trends and drivers 75
Hair relaxing motivations – USA 75
Professionals’ assessments of at home relaxing 75
Better alternatives to relaxing (anti-curl, extensions) 76
Professionals who refuse extensions 76
SECTION 10 - BUSINESS ACTUALITIES - BEAUTY / NON-HAIR CARE SERVICES 77
Beauty services (summary) 77
Salon/spa menus, hair and non-hair - (%) offering and (%) revenues generated 77
Criteria that determine the offer of beauty in hair salons/spas 77
Local/regional variations in business menus and demand 77
TABLE 24 Beauty - (%) of sample offering, by service category 78
TABLE 25 Beauty services, ranked - (%) revenues 78
Nails and related 78
Nail staff not always a business fit 79
Anti-aging the engine of skin care 79
Other non hair services 79
SECTION 11 - BUSINESS ACTUALITIES - PRODUCT RETAIL 81
Product retail 81
TABLE 26 Consumers and salon/spa product retail 81
Level of retail in US hair salon/spa channel 81
TABLE 27 Retail product categories, ranked 82
Rank 82
Product retail best strategies 82
Do not “hard sell” 82
The 3-step strategy 83
Professional and premium channels outperform stagnant mass market 83
SECTION 12 – BUSINESS ACTUALITIES - PROFESSIONALS AND BRANDS 84
Types of brands defined “professional,” “retail,” and “own label” 84
Brands awareness limited to quality market segment 84
Too many launches and brand extensions to keep up 84
Purchasing criteria different market segments 85
TABLE 28 Hair salons/spas market segments/tiers, and brand categories handled 85
Segment 85
Why a few brands dominate the professional channel 85
Criteria that determine brand selection in the top level 85
Examples of top professional brands (names) 86
Market segments and brands from perspective of leading product maker 86
Professional-only system 86
Why reluctance to change brands? 87
Own label brands 87
Diversion avoidance 87
Diversion - ongoing resentment 88
Diversion increasing? 88
TABLE 29 Brands - hair color - identified/ranked 88
TABLE 30 Brands - hair straightening - identified/ranked 89
TABLE 31 Brands – women of color / Hispanic & African America - identified 89
Comments of experts 90
One brand in hair loss 90
TABLE 32 Top 10 companies/brands in professional channel - historical 90
TABLE 33 Companies/brands identified in professional channel 2008, with www (20 names) 91
Brand 91
SECTION 13 - BUSINESS ACTUALITIES - CONSUMER PROFILES - CONSUMPTION PATTERNS 92
TABLE 34 Top consumer segment profiled 92
The male consumer segment 92
A historical note 93
Age of clients falling? 93
The rise of “Little Lous” 93
Long term trends - frequency of visits 93
TABLE 35 Frequency of visits and changes (current 2008) 94
Products improvements and frequency 94
Men drive up frequency 94
Length of visit - one hour minimum slot increases loyalty and spending 94
Factors that determine consumer behavior (frequency of visits and spending) 95
Length of salon/spa visit 95
SECTION 14 - BUSINESS ACTUALITIES - PRICING SYSTEMS AND PRICES (EXAMPLES) 97
Prices national trends 97
Will you increase prices? 97
Benchmark ratios - product costs / service prices 97
Criteria used to determine pricing 97
Reputation can double prices 98
Price - gender and age 98
Commission based salons 98
Price banding - staff expertise 98
Price banding - attract younger fashion conscious clients 98
TABLE 36 Price banding (haircut) in celebrity salon/spa 99
Price - “starting prices,” “by quotation” 99
Price transparency 99
Prices and taxes 99
TABLE 37 Prices (sample) hair services from $35 to $600 100
Straighten 100
Weaves and extensions 100
TABLE 38 Hair straightening - example annual budgets (time and US $) 100
SECTION 15 – HAIR SALONS/SPAS IDENTIFIED AS HAVING A QUALITY REPUTATION 102
Independents list is shrinking 102
Criteria that distinguishes quality from the others? 102
Peer and professional recognition – high status organizations 103
Peer and professional recognition – awards 103
A significant investment in training 103
TABLE 39 Quality salons/spas identified (14 names, not ranked) 104
WWW 104
TABLE 40 The top 12 chains in USA (2008) 105
Regis 105
TABLE 41 Benchmarks for “large” and “small” chains 106
SECTION 16 – EXPERT SAMPLE AND PROFILES 107
Expert sample 107
Interviews 107
Confidentiality 107
Criteria for choosing interviewees/sample 107
Expert sample – size - represents 107
TABLE 42 Expert sample (%) distribution by client numbers per month 108
TABLE 43 Expert sample (%) distribution by geography in the USA 108
Breadth of expertise 108
Expert sample represents the high quality professional market. 109
Expertise - different consumer segments (USA and abroad) 109
Expertise - wider industry experience 109
Expertise - professional status and recognition 110
TABLE 44 Expert sample - expertise media features 110
Expertise brands 110
SECTION 17 - INDUSTRY DATA - PROFESSIONAL HAIR CARE MARKET 112
Data sources – salon/spa market authorities 112
NAICS and SOC Codes (USA Personal Care Services) 112
Professional organizations 112
On line professional groups 112
NACCAS 2007 study 113
Modern Salon Magazine 2007 study 113
TABLE 45 Professional beauty channel units (years from 1996 - 2007) 113
1996 113
TABLE 46 Market structure - (%) by type - full service, barbers (2003, 2007) 113
GRAPH / TABLE 47 Market structure - (%) employment status – industry data 114
Booth renters – what % of professionals? 114
TABLE 48 Hair salons/spas - distribution by state (NACCAS 2007) 115
TABLE 49 Hair salons/spas distribution by region, and percent change (NACCAS) 116
North East 116
Benchmark data hair salon/spa % revenues by service category 116
TABLE 50 Benchmark national data US hair salons (% revenues by service category) 116
TABLE 51 Benchmark largest chain, Regis (% revenues by service category) 117
Size of professional products market in US hair salon/spa channel 117
Different estimates of diversion products market 117
IRS proposes audit of tax compliance 117
IRS proposes audit employment status 118
The unobserved market and unreported revenues 118 SECTION 18 - PROFESSIONAL HAIR CARE - EMPLOYMENT AND RELATED DATA 119
Employment in the salon/spa industry – categories and numbers 119
TABLE 52 Salon/spa employment (BLS and NACCAS data) 119
TABLE 53 Employment by occupational title and projections (20082016) 120
Labor/skills among top 10 issues 120
Inexperienced as % industry hires 120
Labor shortage becomes a crisis? 120
Schools close but a 12% growth in jobs 121
Filling the gap 121
Professional training a cause of concern 121
Labor shortage worst in most lucrative services 121
SECTION 19 - PROFESSIONAL HAIR CARE - REGULATIONS AND OCCUPATIONAL LICENSURE 123
Regulations vary by state 123
Licensure (State Board of Cosmetology) 123
Licenses not an accurate guide to numbers practicing 123
NACCAS National Licensing Database Project 124
Occupational licensure 124
License reciprocity a mess 124
SECTION 20 - COUNTRY DATA USA 125
TABLE 54 Country data summary 125
Data sources on USA 125
TABLE 55 USA population projections 2010-2020 125
TABLE 56 USA population - current and projections of racial and ethnic demographics (2008 and 2050) 126
SECTION 21 - GLOSSARY AND TERMS USED 127
Symbols used in tables 127
Market variations forecast and historical (period) 127
Booth renters 127
Budget/big box 127
Diversion 127
Hair coloring and related terms 128
Hair extensions, bonding, weaves 128
Own label 128
Professional products 128
Relaxing and related (perming, straightening, smoothing) 128
Salon and cosmetology 129
SECTION 23 - INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 130
DIAGONAL REPORTS STATEMENT 131
Previous US Hair and Beauty Salon Reports
US Salon Market 04
US Salon Market 05
US Day Spa Market 06
Dental Spa Market 07
Report
Summary
Table of Contents
Beauty Report Series
US Beauty Market Reports
Buy This Report
US Salon Hair Styling Market
Ethnic Professional Haircare Market 2010
Professional Haircare Market US - Hair Coloring, Hair Design -2008
Key words: Hair, salon, spa, color, texture, curl, perm, style, shape, smooth, relax, weave, therapy, cosmetology, professional, beauty, nails,
October 2008
Date of publication: 25th October 2008
Title: Professional Haircare Market US 2008
Pages: 131
REPORT STRUCTURE 11
SECTION 1 - SUMMARY OF REPORT 13
TABLE 1 Professional hair care market in USA at a glance 13
Segment 13
Market size and directions 13
A market of contrasts 13
Market positives - appearance an essential 13
Market challenges and uncertainties 14
Data sources 14
Currency 14
Date of Publication 14
SECTION 2 - PROFESSIONAL HAIR CARE MARKET SIZE AND STRUCTURE 15
TABLE 2 Professional hair care market USA (size, growth) 15
Precise data - difficulties 15
Fact or anecdote? 15
TABLE 3 Professional hair care market products including diversion 16
Size of professional products market 16
Diversion products market 16
GRAPH/TABLE 4 Hair care salons/spas (%) by type - full service, haircut only 17
Businesses offering hair care, as a % all salons/spas 17
TABLE 5 Hair salon/spa employment (estimated numbers BLS and NACCAS) 18
GRAPH/TABLE 6 Hair salon/spa market (%) by segments and ticket prices 18
Segment 18
The A and B market segments 19
The C and D segments 19
Market structure - geographical segmentation 19
Ten states account for more than half of salons/spas 19
One country, many hair states? 20
Market structure – salon/spa ownership (independents and chains) 20
Market structure – corporate chains’ market share 20
TABLE 7 Profile of the “average” hair salon/spa 20
SECTION 3 - MARKET DIRECTIONS (VARIATIONS FORECAST AND DRIVERS) 22
Marked contrasts in USA 22
GRAPH/TABLE 8 Growth rates, historical and forecast (national market and quality niche) 23
Updating market actualities 23
The growth experience of a Top 200 company 24
Level of confidence in forecasts? 24
Market issues 24
The US economy and hair care 24
Different behavior by different consumer segments 25
Demographics - aging 25
Demographic change – the ethnic mix will complicate market 25
Ethnic market growth 25
A Texan perspective on market changes 26
Hair salon or spa? Must a choice be made? 26
Difference can be in name only (salon and spa) 27
ISPA calls for greater clarity 27
Salon or spa? Cosmetology or esthetics? 27
Hair salons and spas - incompatible environments and expectations? 27
Barriers to spas offering hair care 28
Barriers to hair salons offering spa care 28
Occupational licensure a barrier 28
Hair expertise is a consumer draw 29
“Hair people are hair people and spa people are spa people” 29
Spas not cutting edge for hair 29
Hair salons can add a “spa touch” 29
A break from the screen and keyboard 29
Scalp massages allow hair salons to substitute for spa? 30
The power of touch 30
Massage touch (dentists and others) 30
Quality appearance services in a “soft” economy 30
Competition or coexistence? One size does not fit all 31
Upscale perspectives on budget/chain segment 31
Are chains/budgets at saturation? 31
Challenges - the booth renters 31
Booth rental has spread and spread 32
Views of the impact of booth rental on hair salon service industry 32
Does booth rental reduce product retail? 32
Booth rental a factor in diversion? 32
Challenges - on-going labor shortage 33
Challenges - graduates lack client skills 33
“We are flooded with applications” 33
SECTION 4 - MARKET DRIVERS – CONSUMERS AND PROFESSIONAL HAIR CARE, CONSUMER ATTITUDES TO PERSONAL APPEARANCE 35
Will hair salon/spa spending mirrors retail spending? 35
Drivers of consumer spending on professional hair care (list) 35
Hair care a consumer discretionary or a consumer staple? 35
Importance of appearance cannot be underestimated 36
Spending peaks in hair salons/spas illustrate that appearance is fundamental 36
Seasonal peaks illustrate the above 36
DIY efforts no alternative to stylists’ skills, on going maintenance a must 36
Convenience and habit 37
Professional skills fewer technology competitors in hair, unlike in skin care? 37
Hair care the final cut back? 37
Hair care part of workplace dress code 37
High maintenance look on a budget 38
Hair is color is an anti-aging strategy 38
Salon visit a coping strategy 38
Visit is a mini vacation, the new get away 38
“Pampering within reality” 38
Professionals help women justify spending on self 39
Hair insurance can maintain spending 39
Is hair care a greater priority than spa care? 39
You can’t put your head in your pocket, like your nails 40
Trip consolidation reduces more than gas consumption 40
Hair care is pay as you go – no upfront spend, no credit 40
Prescient professionals? Historical perspective from 2003 (lipstick theory) 41
High spending clients most open to added value 41
Quality basis of price premium 41
Personal attention and time to talk 41
“Craftsman edge” doubles prices 42
Customized style versus off the shelf? 42
Client retention rates in quality segment 42
Personal attention starts with the consultation (“the chat”) 43
Consultation is highly structured (three steps) 44
Drivers in quality beauty segment (historical) 44
SECTION 5 - BUSINESS ACTUALITIES IN THE QUALITY SEGMENT (SERVICES, REVENUES) 45
TABLE 9 Hair and non-hair services (% sample offering, revenues generated) 45
TABLE 10 Hair care services, ranked by category 46
Coloring/relaxing for different consumer segments 46
TABLE 11 Benchmark data (%) revenues by service category in different market segments 46
Benchmarks - national market hair care services by category 46
SECTION 6 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR COLORING 48
Hair coloring services 48
TABLE 12 Hair color business - summary data 48
Profile of color clients 49
Color growth versus overall growth 49
Color in quality segment versus in total market 49
TABLE 13 Hair color, ranked by techniques 50
Technique 50
Regional variations 50
Color correction business 50
“Mini coloring” services 50
Technology developments noted 50
Rise of coloring story of the decade 51
TABLE 14 Hair coloring - illustration of scale of growth (example) 51
TABLE 15 Professional hair coloring, value of services, industry data 51
Color sales in biggest chain (benchmark) 51
Drivers of professional coloring 52
No DIY alternative to professional 52
The shift of hair color from a luxury to a necessity 53
Coloring demands age specific 53
Will spend until gray hair and wrinkles become iconic 53
Older consumers more dependent on professionals? 53
Can Botox practitioners learn from hair colorists? 54
Hair color compulsory and addictive? Inbuilt high rate of client return 54
Highlights the top professional service 54
Highlights differentiates the budget and quality segment 55
DIY coloring highly unlikely (in practical and esthetic terms) 55
Color is a high value service, generates spending add ons 55
A few clouds on the bright horizon 56
Hispanic women present unique challenges for coloring 56
Professional color product requirements 56
Color pricing – cost ratio of product to service 57
The best of the bunch - winners 2008 NAHA hair color category 57
SECTION 7 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR SHAPING / STYLING / HAIR DESIGN 58
Hair design / hairstyling 58
TABLE 16 Hairstyling / design business - % of salon business (comparisons) 58
Hair design trends are mixed and volatile, not monolithic 59
Styling fragmented ethnically 59
Straightening on top, but not totally dominant 59
TABLE 17 Styling/shaping techniques, best performing (2008) 59
Change in popularity of different straightening techniques 60
Blowout straightening at a 30 year high? 60
Blowouts good for professionals, recover sales lost to retail irons 60
Back to the good old days and ways (quotes) 60
Flat iron straightening, positives and negatives 61
Smoothing “the new straightening?” 61
Smoothing “natural” regrowth – different views 61
Smoothing erodes sales of other straightening methods 62
Hairstyling with temporary attachments 62
Many different reasons for temporary hair design 62
Hair extension business, positive and negatives 62
Hair extensions can be expensive 62
Hair extensions boring for stylists 63
Hair extensions difficult to schedule 63
Why some professionals refuse to extend 63
Liability waivers / disclaimers 64
Disclaimers not worth the trouble? 64
Special occasion hairstyling and design 64
Special occasion updos and curls 64
The (very) complicated curl 65
The traditional perm(anent) 65
Hair styling/shaping US industry data 66
The best of the bunch - winners 2008 NAHA Texture category 66
SECTION 8 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR TREATMENTS - PROBLEM AND DAMAGED HAIR 67
Hair treatments / repair services 67
Hair therapy business can be hard to quantify 67
Hair damage is rising and more severe 67
TABLE 18 Consumers’ top hair concerns/problems 67
TABLE 19 Hair damage – the list of suspects 68
Common theme to explain hair damage 68
Regular, prolonged use of heated tools 68
Extensions, bonding 69
Chemical abuse (color and relax) 69
Teenagers can have risky hair regimes 69
Environment impact 69
Environment – water, hair washing, swimming 69
Hair loss changing consumer profiles 69
Products for thinning hair a winner 70
Sensitivity required 70
Hair restoration industry 70
SECTION 9 - BUSINESS ACTUALITIES - PROFESSIONAL HAIR MARKET - AFRICAN AMERICAN, HISPANIC 71
Expertise of sample 71
Why salons/spas specialize in consumer segments 71
African American - longest salon/spa visits 71
Unique hair types – a widely shared view 72
Different concepts of “looking good” 72
Generational changes 72
Demographic/ethnic change a new challenge for beauty market 72
Challenge - training 73
Challenge - unobserved market 73
TABLE 20 Hair services, ranked (women of color) 73
Services 73
TABLE 21 Hair relaxing and coloring trends 73
Trend (% variation) 73
Significant shift 74
TABLE 22 Best performing hair color categories 74
Hair relaxing and related business 74
TABLE 23 Hair straightening/ relaxing service categories and trends 75
Relaxing trends and drivers 75
Hair relaxing motivations – USA 75
Professionals’ assessments of at home relaxing 75
Better alternatives to relaxing (anti-curl, extensions) 76
Professionals who refuse extensions 76
SECTION 10 - BUSINESS ACTUALITIES - BEAUTY / NON-HAIR CARE SERVICES 77
Beauty services (summary) 77
Salon/spa menus, hair and non-hair - (%) offering and (%) revenues generated 77
Criteria that determine the offer of beauty in hair salons/spas 77
Local/regional variations in business menus and demand 77
TABLE 24 Beauty - (%) of sample offering, by service category 78
TABLE 25 Beauty services, ranked - (%) revenues 78
Nails and related 78
Nail staff not always a business fit 79
Anti-aging the engine of skin care 79
Other non hair services 79
SECTION 11 - BUSINESS ACTUALITIES - PRODUCT RETAIL 81
Product retail 81
TABLE 26 Consumers and salon/spa product retail 81
Level of retail in US hair salon/spa channel 81
TABLE 27 Retail product categories, ranked 82
Rank 82
Product retail best strategies 82
Do not “hard sell” 82
The 3-step strategy 83
Professional and premium channels outperform stagnant mass market 83
SECTION 12 – BUSINESS ACTUALITIES - PROFESSIONALS AND BRANDS 84
Types of brands defined “professional,” “retail,” and “own label” 84
Brands awareness limited to quality market segment 84
Too many launches and brand extensions to keep up 84
Purchasing criteria different market segments 85
TABLE 28 Hair salons/spas market segments/tiers, and brand categories handled 85
Segment 85
Why a few brands dominate the professional channel 85
Criteria that determine brand selection in the top level 85
Examples of top professional brands (names) 86
Market segments and brands from perspective of leading product maker 86
Professional-only system 86
Why reluctance to change brands? 87
Own label brands 87
Diversion avoidance 87
Diversion - ongoing resentment 88
Diversion increasing? 88
TABLE 29 Brands - hair color - identified/ranked 88
TABLE 30 Brands - hair straightening - identified/ranked 89
TABLE 31 Brands – women of color / Hispanic & African America - identified 89
Comments of experts 90
One brand in hair loss 90
TABLE 32 Top 10 companies/brands in professional channel - historical 90
TABLE 33 Companies/brands identified in professional channel 2008, with www (20 names) 91
Brand 91
SECTION 13 - BUSINESS ACTUALITIES - CONSUMER PROFILES - CONSUMPTION PATTERNS 92
TABLE 34 Top consumer segment profiled 92
The male consumer segment 92
A historical note 93
Age of clients falling? 93
The rise of “Little Lous” 93
Long term trends - frequency of visits 93
TABLE 35 Frequency of visits and changes (current 2008) 94
Products improvements and frequency 94
Men drive up frequency 94
Length of visit - one hour minimum slot increases loyalty and spending 94
Factors that determine consumer behavior (frequency of visits and spending) 95
Length of salon/spa visit 95
SECTION 14 - BUSINESS ACTUALITIES - PRICING SYSTEMS AND PRICES (EXAMPLES) 97
Prices national trends 97
Will you increase prices? 97
Benchmark ratios - product costs / service prices 97
Criteria used to determine pricing 97
Reputation can double prices 98
Price - gender and age 98
Commission based salons 98
Price banding - staff expertise 98
Price banding - attract younger fashion conscious clients 98
TABLE 36 Price banding (haircut) in celebrity salon/spa 99
Price - “starting prices,” “by quotation” 99
Price transparency 99
Prices and taxes 99
TABLE 37 Prices (sample) hair services from $35 to $600 100
Straighten 100
Weaves and extensions 100
TABLE 38 Hair straightening - example annual budgets (time and US $) 100
SECTION 15 – HAIR SALONS/SPAS IDENTIFIED AS HAVING A QUALITY REPUTATION 102
Independents list is shrinking 102
Criteria that distinguishes quality from the others? 102
Peer and professional recognition – high status organizations 103
Peer and professional recognition – awards 103
A significant investment in training 103
TABLE 39 Quality salons/spas identified (14 names, not ranked) 104
WWW 104
TABLE 40 The top 12 chains in USA (2008) 105
Regis 105
TABLE 41 Benchmarks for “large” and “small” chains 106
SECTION 16 – EXPERT SAMPLE AND PROFILES 107
Expert sample 107
Interviews 107
Confidentiality 107
Criteria for choosing interviewees/sample 107
Expert sample – size - represents 107
TABLE 42 Expert sample (%) distribution by client numbers per month 108
TABLE 43 Expert sample (%) distribution by geography in the USA 108
Breadth of expertise 108
Expert sample represents the high quality professional market. 109
Expertise - different consumer segments (USA and abroad) 109
Expertise - wider industry experience 109
Expertise - professional status and recognition 110
TABLE 44 Expert sample - expertise media features 110
Expertise brands 110
SECTION 17 - INDUSTRY DATA - PROFESSIONAL HAIR CARE MARKET 112
Data sources – salon/spa market authorities 112
NAICS and SOC Codes (USA Personal Care Services) 112
Professional organizations 112
On line professional groups 112
NACCAS 2007 study 113
Modern Salon Magazine 2007 study 113
TABLE 45 Professional beauty channel units (years from 1996 - 2007) 113
1996 113
TABLE 46 Market structure - (%) by type - full service, barbers (2003, 2007) 113
GRAPH / TABLE 47 Market structure - (%) employment status – industry data 114
Booth renters – what % of professionals? 114
TABLE 48 Hair salons/spas - distribution by state (NACCAS 2007) 115
TABLE 49 Hair salons/spas distribution by region, and percent change (NACCAS) 116
North East 116
Benchmark data hair salon/spa % revenues by service category 116
TABLE 50 Benchmark national data US hair salons (% revenues by service category) 116
TABLE 51 Benchmark largest chain, Regis (% revenues by service category) 117
Size of professional products market in US hair salon/spa channel 117
Different estimates of diversion products market 117
IRS proposes audit of tax compliance 117
IRS proposes audit employment status 118
The unobserved market and unreported revenues 118 SECTION 18 - PROFESSIONAL HAIR CARE - EMPLOYMENT AND RELATED DATA 119
Employment in the salon/spa industry – categories and numbers 119
TABLE 52 Salon/spa employment (BLS and NACCAS data) 119
TABLE 53 Employment by occupational title and projections (20082016) 120
Labor/skills among top 10 issues 120
Inexperienced as % industry hires 120
Labor shortage becomes a crisis? 120
Schools close but a 12% growth in jobs 121
Filling the gap 121
Professional training a cause of concern 121
Labor shortage worst in most lucrative services 121
SECTION 19 - PROFESSIONAL HAIR CARE - REGULATIONS AND OCCUPATIONAL LICENSURE 123
Regulations vary by state 123
Licensure (State Board of Cosmetology) 123
Licenses not an accurate guide to numbers practicing 123
NACCAS National Licensing Database Project 124
Occupational licensure 124
License reciprocity a mess 124
SECTION 20 - COUNTRY DATA USA 125
TABLE 54 Country data summary 125
Data sources on USA 125
TABLE 55 USA population projections 2010-2020 125
TABLE 56 USA population - current and projections of racial and ethnic demographics (2008 and 2050) 126
SECTION 21 - GLOSSARY AND TERMS USED 127
Symbols used in tables 127
Market variations forecast and historical (period) 127
Booth renters 127
Budget/big box 127
Diversion 127
Hair coloring and related terms 128
Hair extensions, bonding, weaves 128
Own label 128
Professional products 128
Relaxing and related (perming, straightening, smoothing) 128
Salon and cosmetology 129
SECTION 23 - INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 130
DIAGONAL REPORTS STATEMENT 131
Previous US Hair and Beauty Salon Reports
US Salon Market 04
US Salon Market 05
US Day Spa Market 06
Dental Spa Market 07
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