Melbourne, Australia (PRWEB) May 24, 2014 -- The Personal Waxing and Nail Salons industry in Australia has achieved steady growth over the past five years, despite widespread economic uncertainty and turbulent conditions. Industry revenue has been supported by rising demand for new products and services offered by the industry, and growth in the female population. Over the five years through 2013-14, industry revenue is expected to increase by an annualised 1.2%, to reach $512.0 million. Despite this result, the industry was not entirely immune to the effects of the global financial crisis. The economic downturn and subsequent instability in financial markets caused consumer sentiment levels to plummet. According to IBISWorld industry analyst Lauren Magner, “Growing uncertainty about the future of the economy prompted many households to scale back expenditure on non-essential products and services, with consumers preferring to pay down debt and save.” Significant falls in consumer confidence contributed to weak sales in 2008-09 and 2011-12. Consumers chose to postpone or forgo beauty treatments, or perform inexpensive versions at home.
In order to lure customers back to salons, industry operators introduced new services that cannot be easily replicated through DIY treatments. The products used by nail salons when providing manicures and pedicures have changed significantly over the past five years. Gel nails, shellac nail polish and nail art represent examples of high-value, specialised services that are now offered at a typical nail salon. “These services are generally associated with wider profit margins, as consumers are increasingly willing to pay a premium for long-lasting, quick-drying manicures and pedicures,” says Magner. Demand for these services is expected to drive solid industry growth in 2013-14, with revenue increasing by 1.7%. The industry is highly fragmented, with low market share concentration and no dominant players.
Sales will continue to grow steadily over the next five years. Demand will be driven by an improvement in overall economic conditions and recovering consumer sentiment. Real household discretionary income growth over the period will provide consumers with greater purchasing power to spend on the industry's services. The relatively untapped male market will provide an opportunity for operators in the Personal Waxing and Nail Salons industry, particularly waxing salons, to further generate revenue, as image and appearance become more important to the male population.
For more information, visit IBISWorld’s Personal Waxing and Nail Salons report in Australia industry page.
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IBISWorld industry Report Key Topics
Operators in this industry offer nail-care services and non-surgical hair removal through body waxing. This industry does not include companies that primarily offer hairstyling or training in cosmetic arts, nor does it include electrolysis, make-up or tanning services.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
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About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, http://www.ibisworld.com.au, +61 396553833, [email protected]
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