New 2012 Professional Salon Industry Haircare Study Shows Solid Growth for Salon Services and Retail Sales

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Total revenues for all salon industry services (hair, skin, nails) plus salon retail grew at a robust 4.1% to $75.38 billion, according to the new 2012 Professional Salon Industry Haircare Study from Professional Consultants & Resources, the leading salon industry strategic consultants and data source. There are nearly 288,300 salons and barbershops in the United States.

Salon services analysis shows a huge move away from the old independent salon and mid-tier chains model, toward family-economy chains and chair/suite rentals. Manufacturers, chains and other industry sectors ignore this shift at their own peril.

Total revenues for all salon industry services (hair, skin, nails) plus salon retail grew at a robust 4.1% to $75.38 billion, according to the new 2012 Professional Salon Industry Haircare Study from Professional Consultants & Resources, the leading salon industry strategic consultants and data source. The total U.S. salon haircare market segment (services plus retail) registered $63.33 billion and grew at about 3.3%. There are nearly 288,300 salons and barbershops in the United States.

“The professional beauty industry is strongly evolving," says Cyrus Bulsara, president. Men’s salon/barber services and product sales showed nearly twice the growth of unisex salons. The nail category continued to grow strong at nearly four times salon market growth. Continuing the 2011 trends, haircolor, keratin/smoothing services and basic cutting and styling services were major growth-drivers. Clients and stylists continued to move from traditional independent salons and mid-tier chains to chair/suite rentals, family-economy chains and upscale men's barbershop chains. The continued growth of blow-dry bars added to total service growth.”

Major study highlights, current style trends and high-growth areas indicate robust salon industry growth in the future:

  •     New Study defines men’s salon services and analyzes the men’s product category, due to high growth in the men’s sector.
  •     Industry alert: Salon services analysis shows a huge move away from the old independent salon and mid-tier chains model, toward family-economy chains and chair/suite rentals. Manufacturers, chains and other industry sectors ignore this shift at their own peril.
  •     Two major U.S. distributors, Beauty Systems Group (BSG) and SalonCentric, dominated the market with combined 5.8% growth.
  •     Sally Beauty Supply store sales were up 9.2%, with BSG full-service distribution (via distributor salon consultants and stores) sales up 5.4%. SalonCentric sales also increased at about 2.1%.
  •     C and D class chair/suite rental salons and consumers drove sales at Sally open-line stores. High-end independent salons, and A and B class chair/suite rentals drove full-service sales at BSG/Cosmoprof, SalonCentric stores and other distributor stores.
  •     Clients want personalized, private services and are moving away from the big, older, mid-tier and mall-based chains like Regis.
  •     Regis has seen two years of declines at most of its salons and is currently under a major top-down reorganization and realignment.
  •     Great Clips, Sport Clips, the family-economy chains plus new men’s barbershop chains, like Boardroom, Roosters, Floyd's, grew.
  •     Home hairstyling continued to grow. New technology genres and premium styling tools contributed to a robust 7.2% growth.
  •     Sales of specialty products grew at a robust 9.7%. Styling products grew 5.3%. Shampoos and conditioners are in a low single-digit growth mode, from back-bar use after haircolor and keratin/smoothing treatments, and due to salon retail of color protection and new conditioner products.
  •     Specialty products, oils brands (Moroccan, Argan, Macadamia, Mythic, etc.) grew rapidly, due to sleek, straight hair style trends.
  •     Mega salon-store Ulta saw massive sales growth all year at 20%. Ulta’s 2012 holiday sales exploded with unique special offers.
  •     Direct sales channel, with Aveda, Bumble, Kerastase, Wella in low-growth, got a huge boost from TIGI’s move to direct selling.
  •     Redken and John Paul Mitchell Systems were the only major companies growing at low single digits. Wella, Farouk Systems and TIGI also saw low single-digit growth. Some market leaders had marketing issues, resulting in flat to declining growth. Sexy Hair grew +15%!

Updated 2012 study sections reveal shipment market share data for all top companies, with L’Oréal Professional, P&G Professional Care and John Paul Mitchell Systems, respectively, ranked as the top three manufacturers. Shiseido (Joico and Zotos), Estee Lauder (Aveda and Bumble + bumble), Colomer Beauty Brands (hair care brands only—American Crew, Abba, Roux, multicultural division and others) and KAO (Goldwell/KMS California) followed.

The study also features NEW sections, with an analysis of barbershops by state and percentage of the United States; upcoming ingredient issues; leading manufacturers’ reps; plus other company sales, including AG Hair, Alterna, Brazilian Blowout, Cadiveau, Coppolla, Davines, Framesi, GK Hair, Kenra Professional, Keratin Complex, Keune Haircosmetics USA, Marcia Teixeira, Phyto, Pravana and more.

For purchasing information/questions on the 2012 Professional Salon Industry Haircare Study, contact Cyrus Bulsara, president, Professional Consultants & Resources, at cbulsara(at)augustmail(dot)com or visit http://www.ProConsultants.us.

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