Since consumers will have more income, they will indulge in services beyond the simple haircut.
Los Angeles, CA (PRWEB) March 26, 2012
Trade and technical schools have experienced strong growth during the past five years despite the recession and substantial cuts in federal funding. However, IBISWorld industry analyst Caitlin Moldvay says that “much of this growth has been in technology-related courses, especially online courses where remote learning is possible. Courses that require hands-on training, such as that required by hairdressers and beauticians, has performed slightly less well than other trade and technical courses.” As such, the number of cosmetology and barber schools has remained fairly steady over the last five years. Cosmetology & Beauty Schools offer training for hairstyling and cosmetic arts, such as makeup or skin care. These include manicure and pedicure schools, beauty schools, cosmetology schools and barber colleges. Cosmetology & Beauty Schools provide job-specific certification because a state license is needed to practice these specialties commercially.
Moldvay adds that “demand for Cosmetology & Beauty Schools is expected to grow in line with the gradual rise in income levels. Demand for all technical and trade schools is largely influenced by tuition costs, government funding, downstream demand for trade skills, technological advances and trends towards formal training. Similarly, the price of other forms of education can affect industry demand. As the price of attending a four-year college increases, many people opt for cheaper education alternatives offered by trade schools. Changing labor market requirements have encouraged job seekers to choose vocational courses rather than apprenticeships and on-the-job training. While technical and trade schools still face competition from the Junior Colleges industry, future prospects are good.”
Meanwhile, the future employers of Cosmetology & Beauty Schools-leavers are improving. IBISWorld projects that revenue growth for the Hair and Nail Salons industry will increase at an average annual rate of around 3% in the next five years. The industry will experience strong growth on the back of increasing per capita disposable income and declining unemployment toward the end of the five-year period. Since consumers will have more income, they will indulge in services beyond the simple haircut. Some of these higher-value services include deluxe manicures and pedicures, facials, hair modification treatments like permanent hair straightening and massages.
Moreover, adds Moldvay, “the growth of premium service will resume, providing opportunities for trained professionals. Prior to the recession, one of the fastest-growing segments of the industry was anti-aging remedies and treatments. There has been a growing consciousness toward well-being among the industry's key market of women older than 35. As a result, salons have expanded their anti-aging services to include a greater variety of facials, microdermabrasion and facial peels.” With improved economic conditions, consumers will once again have sufficient disposable income to indulge in these higher-value services, and the segment is expected to continue its prior growth trend.
IBISWorld also projects that revenue from the Personal Waxing and Nail Salon Industry revenue will increase even faster than that of hair salons. 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, expand the industry's target market and increase employment of trained beauticians and cosmetologists.
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IBISWorld industry Report Key Topics
This industry includes companies which are primarily engaged in offering training in barbering, hair styling or cosmetic arts such as makeup or skin care. These schools provide job-specific certification.
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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