Shifts in consumer spending drive demand for the industry's discretionary services
Los Angeles, CA (PRWEB) May 28, 2012
The Day Spa and Nail Salons Franchises industry has enjoyed solid growth during the five years to 2012, despite harsh economic conditions. Benefiting from consumers' desire to get pampered without spending hundreds of dollars at a destination spa, the industry has grown at an average annual rate of 1.2% to an estimated $1.5 billion by the end of 2012. While declining per capita disposable income resulted in a 2.6% revenue drop in 2009, a rebound in this driver has bolstered industry growth since. “In 2012,” says IBISWorld industry analyst Nikoleta Panteva, “the industry is expected to grow an additional 3.4% as consumer spending continues to grow and as industry operators expand their presence and service offerings.”
Expansion has been a major trend for the Day Spa and Nail Salon Franchises industry. “While most operators have infiltrated metropolitan areas,” says Panteva, “many of the industry's players have also started tapping into underserved geographical locations like suburban towns.” As such, the number of day spa and nail salon franchise locations has increased at an average annual rate of 1.6% to 5,406. Likewise, service and product enhancements have worked to draw in customers. Day spas have introduced personalized massages, while nail salons have added higher-value gel polishes to their menus. These moves have helped profit margins rebound strongly since their dip during the recession.
The outlook is promising for the industry and its participants. As consumer spending picks up over the five years to 2017 and as geographical expansion continues, industry revenue is forecast to grow. Profitability is also anticipated to climb as specialized products pull in relatively untapped markets like the male consumer. The substitution of store-bought products for industry services is likely to wane as Americans flock to spas and nail salons for full treatments. For more information, visit IBISWorld’s Day Spa and Nail Salon Franchises report in the US industry page.
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IBISWorld industry Report Key Topics
The Day Spa and Nail Salon Franchises industry, like most of the economy, experienced difficult conditions during the recession. However, industry operators recovered quickly, and revenue has grown consistently since 2009. The expansion of firms' service offerings, combined with growing acceptance of convenience options like online reservations and walk-ins, has allowed the industry to expand rapidly.
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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