Table of Contents
Executive Summary
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- Overview
- The issues
- Bad experiences can result in lost sales and customers
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- Figure 1: Attitudes for receiving services, July 2018
- Alternative destinations pose a threat to traditional salon formats
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- Figure 2: Destinations, July 2018
- The opportunities
- Desire for professionals drives loyalty among most consumers
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- Figure 3: preferences for receiving salon services, July 2018
- Don’t overlook the men
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- Figure 4: Frequency of services, by gender, July 2018
- What it means
The Market – What You Need to Know
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- A positive sales trend is expected to continue
- Destinations are on the rise
- Consumers have more needs and more money to spend
Market Size and Forecast
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- Double digit growth expected over the next five years
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- Figure 5: Total US sales and fan chart forecast of salon services, at current prices, 2013-23
- Figure 6: Total US revenues and forecast for salon services, at current prices, 2013-23
Market Breakdown
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- In-home versus out-of-home
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- Figure 7: Destinations – out-of-home versus in-home, July 2018
- Destinations are on the rise
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- Figure 8: Total number of salon service establishments 2013-18
Market Factors
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- Population of women supports category growth, creates various needs
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- Figure 9: Female population by age, 2013-23
- Young men could drive additional category interest/opportunities
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- Figure 10: Male population by age, 2013-23
- Multicultural population growth creates diversified beauty needs
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- Figure 11: Population by race and Hispanic origin, 2013-23
- More income could enable more spending and frequency
- Place of residence could influence where and how consumers receive salon services
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- Figure 12: Number of households, by area of residence, 2007 and 2017
Key Players – What You Need to Know
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- Many consumers are loyal to their preferred professional
- Other, more convenient formats could challenge traditional salons
- Rethinking branding, pricing, and at-home products
What’s Working?
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- Men care about their appearance
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- Figure 13: Frequencies of services, by gender and age, July 2018
- Most consumers are loyal to location, stylists
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- Figure 14: Repertoire of destinations, July 2018
- Salon goers describe which services they leave to the professionals
What’s Struggling?
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- Beauty bars are a potential threat to traditional salons
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- Figure 15: Destinations by Types of Services, July 2018
- Salon customers describe their preferred booking methods
What’s Next?
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- Evolving beyond a destination and into a brand
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- Figure 16: Preferences for and attitudes toward receiving salon services, July 2018
- Will at-home become the new “it” destination?
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- Figure 17: Attitudes toward receiving salon services, by select demographics, July 2018
- Rethinking pricing
- Trends on the horizon
- A continued focus on hair care
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- Figure 18: Sephora email campaign, August 2018
- Figure 19: Sephora email campaign, October 2017
The Consumer – What You Need to Know
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- Salons are top destinations, but at-home services on the rise
- Hair care is a top priority, but some seek other treatments more frequently
- Professional preference fuels loyalty
- A bad experience could be detrimental
Destinations
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- More consumers seek expert service
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- Figure 20: Destinations, July 2018
- Older women head to the salon, while young men seek services at chains and barbershops
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- Figure 21: Destinations, by gender and age, July 2018
- Moms and younger generations have a DIY attitude
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- Figure 22: Destinations, by select demographics, July 2018
- Hispanic consumers prefer chain salons, while Black consumers opt for in-home services and barbershops
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- Figure 23: Destinations, by race and Hispanic origin, July 2018
Types and Frequencies of Services
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- Hair care is a top priority
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- Figure 24: Types of services, July 2018
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- Figure 25: Frequency of services, July 2018
- Dads and young men experiment with tanning, anti-aging services
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- Figure 26: Types of services, by select demographics, July 2018
- Older women routinely seek hair and nail maintenance, while younger women pamper themselves in other ways
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- Figure 27: Types and frequency of services, by gender and age, July 2018
- Hispanic consumers seek a variety of services
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- Figure 28: Types of services, by Hispanic origin, July 2018
Reasons for Receiving Services
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- Routine maintenance and pampering drive salon services
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- Figure 29: Reasons for receiving services, July 2018
- Younger generations prioritize pampering, regardless of income
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- Figure 30: Reasons for receiving services, by age and household income, July 2018
- Style and self-care are important to moms
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- Figure 31: Reasons for receiving services, by parental Status, July 2018
- Multicultural adults cite social activity, pampering as reasons for choosing salon services
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- Figure 32: Reasons for receiving services, by race and Hispanic origin, July 2018
Preferences for Receiving Services
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- A preference for professionals
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- Figure 33: Preferences for receiving services, July 2018
- Women display a loyalty to their stylist
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- Figure 34: Preferences for receiving services, by gender and age, July 2018
- Outside sources influence younger generations
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- Figure 35: Preferences for receiving services, by gender and age, July 2018
- Multicultural consumers prefer using products from trusted sources
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- Figure 36: Preferences for receiving services, by race and Hispanic origin, July 2018
Attitudes toward Receiving Salon Services
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- Negative experiences and stylist recommendations strongly influence consumers’ decisions
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- Figure 37: Attitudes toward receiving salon services, July 2018
- Young men are more forgiving
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- Figure 38: Attitudes toward receiving salon services, by gender and age, July 2018
- Multicultural consumers don’t stick to the salon
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- Figure 39: Attitudes toward receiving salon services, by race and Hispanic origin, July 2018
- In their own words
Cluster Analysis
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- Consumer attitudes split between adventurous, cost-conscious, enthusiastic, and professional preference
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- Figure 40: Cluster analysis – Attitudes toward receiving salon services, July 2018
- Figure 41: Attitudes toward receiving salon services, by attitudes toward receiving salon services clusters, July 2018
- Cost-Conscious Customers
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- Figure 42: Profile of cost-conscious customers, July 2018
- Engaged Enthusiasts
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- Figure 43: Profile of engaged enthusiasts, July 2018
- Preference for Professionals
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- Figure 44: Profile of preference for professionals, July 2018
- Salon Adventurers
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- Figure 45: Profile of salon adventurers, July 2018
Price Sensitivity
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- Price influences the types of services and destinations consumers seek
- $40 is the sweet spot for hair color services
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- Figure 46: Price sensitivity analysis- threshold price chart, July 2018
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- Figure 47: Price sensitivity analysis- Optimal price point (opp), July 2018
- Women are willing to spend more
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- Figure 48: price sensitivity analysis, by select demographics, July 2018
- Hispanic consumers are more price sensitive
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- Figure 49: Price sensitivity analysis, by race and Hispanic origin, July 2018
- How much, and for what, consumers are willing to pay
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 50: Total US sales and forecast of salon services, at inflation-adjusted prices, 2013-23
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