Product and Service
Companies included in beauty supply retailer sector in personal care industry primarily are retailers and distributors of beauty supplies including hair color, hair care, styling, skin, and nail care products for consumers and professional salon.
Demand for Product and Service
As indicated by typical sales data, the demand for discount merchandise has been very strong and growing quickly in the past several years. It seems that sales performance of companies have been increasingly related to the performance of their lower pricing items. Developing new areas/stores also plays more important role in companies’ performance in in-store sales.
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
Generally, demand, from both personal consumers and professional solon, for products/service of companies in sector has been solid in the past several years.
The performance of retailers in this sector has been negatively impacted by the slowing down mall/store traffic in the past two years as indicated by the fact that same store sales has gone down as a result of less traffic.
There is a sign indicating that the downturn trend in traffic and same store sales is getting worse after 2017 because it seems that promotion and lowering price cannot help offset the decreased sales resulted from decreased traffic.
Fast growth in sales of e-commerce, as indicated by some companies’ data, also proves that there is a solid demand for products and service of companies in this sector and that the downturn in retailers is only because the traffic has not gone to physical stores.
Causes behind the trend
Economy and demographic factors have helped drive growth in demand for beauty products and service.
The slowing down traffic in mall/stores across retail industry is probably only a result of shifting of transaction to online stores.
Supported by favourable factors from macro-economy and demography, demand in this sector may continuingly go up but the performance of companies may depend on their business flexibility to adapt changes in shopping habit of consumers.