Despite its discretionary nature, the industry grew strongly in the face of the recession
Los Angeles, CA (PRWEB) February 16, 2012
The Personal Waxing and Nail Salons industry is looking sharp. Between 2007 and 2012, industry revenue rose at an average annual rate of 1.9% reaching $7.1 billion. Revenue gains have been led by a variety of product introductions, including matte nails, colored gel nails and threading, which have generated high growth for the industry. “Given the industry's discretionary nature, though, decreased disposable income during the recession resulted in a greater number of consumers substituting industry services with in-home products,” says IBISWorld industry analyst Caitlin Moldvay. The result was a 1.7% revenue dip during 2009. Following this temporary decline, industry revenue has improved as consumers continued to demand affordable luxuries. During 2012, revenue is projected to grow as declining unemployment leads to greater disposable income among the industry's target market.
Declining unemployment and increased disposable income will be the primary drivers of the industry's growth because a greater number of consumers will be able to afford nail care and waxing services. According to Moldvay, "Nails-only salons will likely continue to diversify their service offerings to include services such as massages, facials and tanning." This trend will mitigate revenue volatility as it expands the industry's target market. Even in the midst of the recession, the number of nail and waxing salons continued to steadily rise. Between 2007 and 2012, the number of industry establishments increased at an average annual rate of 4.6% reaching 223,442 nail and waxing salons. The Personal Waxing and Nail Salons industry remains highly fragmented and characterized by a high share of non-employers. The largest companies in the industry are typically franchises, such as Regal Nails and European Wax Center.
Market share concentration within the industry is very low. The Personal Waxing and Nail Salons industry is highly fragmented; operators are spread across many locations to be close to key consumer markets in high-traffic locations. This trend makes it difficult for one company to service a large portion of the entire market. Industry concentration has remained steady over the past five years. Although the industry's largest players have expanded and added locations, new salons continued to enter the industry throughout the five-year-period. From 2007 to 2012, IBISWorld estimates the number of enterprises in the industry will increase an average 4.6% per year to reach 222,894 companies. For more information, visit IBISWorld’s Personal Waxing and Nail Salons report in the US industry page.
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IBISWorld industry Report Key Topics
This industry comprises salons that primarily offer non-surgical hair removal through body waxing and nail care services. This industry does not include companies that primarily offer hairstyling or training in cosmetic arts, nor does it include electrolysis, permanent makeup or tanning services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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