The state of the salon business is strong, and with many salons of all sizes growing in every community across the country, that bodes well for a strong economic recovery from the grassroots up.
Dallas, TX (PRWEB) March 21, 2012
Total revenues for all salon industry services (hair, skin, nails) plus salon product sales to consumers grew at a robust 4.2% in 2011 to $72.41 billion, according to the new 2011 Professional Salon Industry Haircare Study from Professional Consultants & Resources, the leading salon industry strategic consultants and data source.
“The state of the salon business is strong, and with many salons of all sizes growing in every community across the country, that bodes well for a strong economic recovery from the grassroots up,” says Cyrus Bulsara, president of Professional Consultants & Resources. “Economic recovery, looser credit and higher disposable incomes all combined to increase salon visits and frequencies for services, which resulted in better product sales to salons and clients.”
The study found that the total U.S. salon haircare market segment (services and retail) measured $61.32 billion and grew at about 3.5%. Overall, hair care services grew from $51.69 billion in 2010, to $53.50 billion in 2011, for a year-on-year increase of 3.5%. Consequently, the U.S. salon industry is growing at a very nice and healthy overall rate of 6%, post-recession. There are nearly 280,000 salons and barbershops in total in the United States.
“The strongest growth came from keratin/straightening/smoothing services, which grew at 4.2%, as a result of consumers’ desire for frizz-free, low maintenance hair. Closely following were hair color services, growing at 3.7%, fueled by a desire to cover gray and look more fashionable,” says Bulsara. “In 2011, U.S. salons increased cutting and styling revenues by 3.2%, for one of the best growths in recent years. Nail care rose a phenomenal 24.5%, the highest on record, thanks to the introduction of long-lasting gel-polish manicures.”
Major study highlights, current trends and robust growth sectors indicate strong future salon industry growth:
- Sally Beauty, the largest hair care distributor, grew overall by 12.1% in fiscal year 2011. Sales at the company’s open-line Sally stores increased by 9.7%, and at the full-service BSG division by 16.2 %. Sally Beauty same-store sales rose 6.3% and same-store professional-only BSG sales grew 5.5%.
- Sales grew at the second largest U.S. distributor, L’Oreal’s SalonCentric, by 3.7%.
- Booth-rental salons and consumers drove sales at open-line Sally stores. High-end independent salons and booth-rentals propelled full-service sales at BSG/Cosmoprof and SalonCentric stores.
- Consumers want personalized, private services and moved away from the big, older chain salons, like Regis.
- Regis has seen 14 quarters of declines at most of its salons and is currently under a major top-down reorganization.
- Great Clips, Sport Clips, the family-economy chains and new men’s barbershop chains, like Boardroom, Roosters and Floyd's, grew.
- Home hairstyling also continued to grow. New genres and types of styling tools saw nearly 8% growth.
- Manufacturer/brand sales of styling products grew at a robust 6%. Specialty products grew 5%. Shampoos and conditioners were in a low single-digit growth mode, primarily from back-bar use after haircolor/straightening/smoothing services, plus color protection products and oils for home use.
- Mega salon stores, like Ulta, Beauty Brands, etc., saw steady sales growth all year. Ulta’s 2011 holiday sales exploded.
- Direct sales began to plateau at Aveda and Bumble & bumble, and even declined at others, but Kerastase made significant gains.
- Redken and John Paul Mitchell Systems were the only major companies growing robustly. Matrix, Farouk Systems and TIGI saw mid-to-low single-digit growth, while some market leaders faded, due to distribution gaps and other issues. Sexy Hair boomed.
Updated 2011 study sections reveal shipment market share data for all top companies, with L’Oréal, P&G Prof. Care and Paul Mitchell respectively, ranked as the top three manufacturers. Zotos, including Joico, Estee Lauder, Colomer and KAO (Goldwell/KMS California) followed.
The study also features NEW sections, with an analysis of barbershops by state and % of the United States; upcoming Ingredient issues; leading manufacturers’ reps; plus other company sales, including AG Hair, Alterna, Brazilian Blowout, Cadiveau, Coppolla, Davines, Fekkai, Framesi, GK Hair, Kenra, Keratin Complex, Keune, Marcia Teixeira, Phyto, Pravana and more.
For more information on the professional salon industry at large and the 2011 Professional Salon Industry Haircare Study, contact Cyrus Bulsara, president, Professional Consultants & Resources, at cbulsara(at)augustmail(dot)com or visit http://www.ProConsultants.us