Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market grows, as haircuts remain an essential beauty service
- Hair services is the largest segment
- Many services are “special occasion”
- Busy lifestyles conflict with more demanding appearance standards
- Men and minorities key to long-term growth
- Hispanics also show strong growth potential
- A highly fragmented market
- A search for a niche
- The key: customer satisfaction
- The consumer: haircuts the number one reason for salon visits
- Young women versus older women
- Income correlates closely with usage
- Expenditure on beauty services
- Income is not a significant factor when purchasing salon products
- Purchase of salon products
- Future trends
- A wider range of price points
- Forecast
Market Drivers
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- Introduction
- Cultural, generational and demographic drivers
- The culture of youth and beauty
- Age and gender are major factors in use of beauty services and products
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- Figure 1: Female population projections, by age, 2005-15
- Baby Boomers focus on appearance and looking younger
- Boomers’ attitudes towards aging
- Echo Boomers poised for growth
- Men’s market positioned to grow
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- Figure 2: Male population projections, by age, 2000-15
- Men’s interest in grooming
- Men’s attitudes towards grooming, salons and salon services
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- Figure 3: Men’s attitudes towards grooming, by age, March 2003
- Tapping into the hair loss market
- Race and ethnicity factors
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- Figure 4: Any incidence of professional beauty services, by race/Hispanic origin, September 2005
- Black women spend more on professional beauty services
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- Figure 5: Black female population projections, by age, 2000-10
- Hispanic women show potential for growth
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- Figure 6: Hispanic female population projections, by age, 2000-10
- Economic and industry-related drivers
- Economic woes
- Consumers continue to be pressed for time
- Professional treatments and the at-home market
- Nail salons a headache for retailers
- Boomers' vanity, at-home convenience propel do-it-yourself skincare
- Diversion of product sales to retail hurts salons
Market Size and Trends
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- Professional beauty salon sales on the rise
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- Figure 7: Total U.S. retail sales of professional beauty services, at current and constant prices, 2000-05
Market Segmentation
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- Figure 8: Sales of professional beauty services, segmented by type, 2003 and 2005
- Haircuts, hair styling, and other hair-related services
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- Figure 9: Total U.S. retail sales of haircut-related services, at current and constant prices, 2000-05
- Products
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- Figure 10: Total U.S. retail sales of salon products, at current and constant prices, 2000-05
- Nail services
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- Figure 11: Total U.S. retail sales of haircut-related services, at current and constant prices, 2000-05
- Other beauty treatments
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- Figure 12: Total U.S. retail sales of other professional beauty treatments, at current and constant prices, 2000-05
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Supply Structure
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- Free-standing beauty treatment specialists
- Regis International
- Ratner Companies
- Sport Clips
- Ulta
- HCX Salons International
- Cheveaux Acquisition
- The Estée Lauder Companies
- Mario Tricoci
- Great Clips
- Beauty First
- Attached salons
- Independent contractors
- Spas
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- Figure 13: Top ten most commonly booked spa services, April 2005
Advertising and Promotion
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- Introduction
- Independent shops focus on word of mouth and referrals
- The key: customer satisfaction
- Multi-outlet chain efforts
- Ulta works to increase brand awareness
- Targeting the budget-conscious mainstream market
The Consumer
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- Introduction
- Incidence of professional beauty services
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- Figure 14: Any incidence of professional beauty services, September 2005
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- Figure 15: Any incidence of professional beauty services*, cross-tabulation with hair services, September 2005
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- Figure 16: Any incidence of professional beauty services*, cross-tabulation with nail services and other beauty services, September 2005
- Men’s visits to beauty salons
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- Figure 17: Men’s incidence, frequency and mean number of visits to a beauty salon in the past 12 months, September 2005
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- Figure 18: Men’s incidence, frequency and mean number of visits to a beauty salon in the past 12 months, by age, September 2005
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- Figure 19: Men’s incidence of and mean number of visits to a beauty salon in the past 12 months, by household income, September 2005
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- Figure 20: Men’s incidence, frequency and mean number of visits to a beauty salon in the past 12 months, by race/Hispanic origin, September 2005
- Frequency for professional beauty services
- Hair services
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- Figure 21: Frequency of hair styling or coloring services, September 2005
- Specialized hair services
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- Figure 22: Frequency of professional specialized hair services, September 2005
- Demographics play a significant role in frequency and types of services
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- Figure 23: Frequency of professional hair styling, coloring and perming, by age, September 2005
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- Figure 24: Frequency of professional specialized hair services, by age, September 2005
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- Figure 25: Frequency of professional styling, coloring, perming and braiding, by household income, September 2005
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- Figure 26: Frequency of professional haircuts and coloring, by race/Hispanic origin, September 2005
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- Figure 27: Frequency of specialized hair services, by race/Hispanic origin, September 2005
- Nail services
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- Figure 28: Frequency of professional nail services, September 2005
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- Figure 29: Frequency of professional nail services, by age, September 2005
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- Figure 30: Frequency of professional nail services, by household income, September 2005
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- Figure 31: Frequency of nail services, by race/ethnicity, September 2005
- Other beauty services
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- Figure 32: Frequency of having “other” professional beauty services, September 2005
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- Figure 33: Frequency of usage of other beauty services, by age, September 2005
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- Figure 34: Frequency of other beauty services, by household income, September 2005
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- Figure 35: Frequency of other beauty services, by race/Hispanic origin, September 2005
- Average monthly spending on professional beauty services
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- Figure 36: Average monthly spending on professional beauty services, September 2005
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- Figure 37: Average monthly spending on professional beauty services, by age, September 2005
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- Figure 38: Average monthly spending on professional beauty services, by household income, September 2005
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- Figure 39: Average monthly spending on professional beauty services, by race/Hispanic origin, September 2005
- Products purchased at salons
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- Figure 40: Purchase of products, September 2005
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- Figure 41: Purchase of products, by age, September 2005
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- Figure 42: Purchase of products, by household income, September 2005
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- Figure 43: Purchase of products, by race/Hispanic origin, September 2005
- Reasons for purchasing hair products at salons
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- Figure 44: Reason for purchase of hair products at a salon, September 2005
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- Figure 45: Reason for purchase of hair products at a salon, by age, September 2005
- Reasons for not purchasing products at salons
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- Figure 46: Reason for not making purchase at a salon, September 2005
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- Figure 47: Reason for not making purchase at a salon, by age, September 2005
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- Figure 48: Reason for not making purchase at a salon, by race/ethnicity, September 2005
- Summary
- Haircuts
- Upselling hair styling clients into other service offerings
- Pedicures and manicures
- Facials
- Young women versus older women
- Income correlates closely with usage
- Black women spend more money on a wide array of services
- Expenditure on beauty services
- Income is not a significant factor when purchasing salon products
- Gap exists between rate of products bought at salons and usage of beauty services
- With strong customer loyalty, salons could benefit more with competitive pricing
Future and Forecast
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- Future trends
- Salons for men on the rise
- Specialized treatments for niche customers
- A wider range of price points
- Consolidation within the industry likely
- Market Forecast
- Professional beauty services
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- Figure 49: Forecast of total U.S. retail sales of professional beauty services, at current and constant prices, 2005-10
- Forecast Factors
Appendix: Trade Associations
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