Product and Service
Companies included in beauty salon sector in personal care industry primarily are owners, franchisers, and operators of beauty salons providing hair-cutting and styling, hair coloring and other services.
Demand for Product and Service
As indicated by the typical company data, the demand for salon service has been declining largely in the past several years accompanied by the raising service price.
Sector’s Current, Trend, Causes behind trend, and Future
Current and Trend
Generally, demand for salon service seems to be declining in the past several years as indicated by the declining customers’ visits according to typical company data.
Increasing closure of stores have been seen in this sector as a way for companies to save expense and increase cash flow.
The trend of increased average spending per visit, probably as a result of rising service price, seems to be continuing.
Causes behind the trend
Slowing growth of income in currently untraditional economy recovery may be behind the declining visits to salons.
The slowing down traffic across retail industry is also probably responsible declining visits to salons.
Labor costs increased as minimum wage goes up.
Supported by favourable factors from macro-economy and demography, demand in this sector may bounce back up. However, it may be dragged by increasing salon operating costs and price.