Head into a shopping mall, and you’ll find at least one beauty salon on the premises. They offer men and women a range of cosmetic treatments to enhance their appearance. What’s more, salons help people to feel good about themselves. As you can imagine, beauty salons are an attractive niche industry.
Each year, thousands of us decide to start new beauty salon businesses. We will no doubt have had plenty of prior experience and training, so we know what we’re doing. The thing is, few budding entrepreneurs know a great deal about the industry as a whole. Plus, they may not understand the competition they could be up against when launching.
If you’re thinking of opening a new beauty salon in your area, today’s blog post is for you! In it, I’m going to share with you six fascinating facts about beauty salons to give you more insight. Here is what you need to know:
- Beauty salons don’t just make your face look beautiful
Believe it or not, many people assume that beauty salons only improve the looks of one’s face. They actually offer a variety of treatments that anyone can benefit from! For instance, most beauty salons offer foot care, manicures, and even mud baths!
As you can imagine, niche services offered give startups an advantage over existing salons. You’d be surprised by the services today’s modern beauty salons offer!
- It’s cheaper to buy an existing salon than start from scratch
We all know that starting a business means you have to invest some cash to make it happen. What you might not realize is just how much money you need to start a new salon from scratch!
Some modest new salons have been known to spend around $100k before making any money! With that in mind, it’s often cheaper to take over an existing salon and rebrand it.
And it need not be expensive to update the tools and equipment of an existing salon. For example, dull lights in tanning booths can get replaced with LEDs. Did you know it’s easy to find a LED manufacturer that offers products for almost any light fittings?
Your marketing costs also won’t be as high as you might have thought. That’s because you’ve already got a customer database to build from. Whereas if you started from scratch, you’d have no repeat customers.
- The beauty salon niche is a multi-billion dollar industry
Just how big is the beauty salon industry? According to figures from IBISWorld, it will be worth around $58.7 billion by 2019. They say that corresponds to an average annual growth of 3.2%.
Is the beauty industry recession-proof, I hear you ask? Well, like all niches it can get affected by recessions in some way. But, there has never been a significant drop in growth in the market.
- Big beauty brands aren’t always good for business
Ask any professional in the beauty industry about their thoughts on big cosmetics brands. The one thing most industry pros will tell you is they aren’t always good for business!
Why is that, I hear you ask? Well, consumers are more informed about the beauty products on the market. And thanks to the Internet, it’s easier than ever to learn more about a product before buying it.
With that in mind, more beauty salons are only stocking brands that are upfront about any claims. That means less of the “this product will make you look years younger” products on the shelves!
- More money = more customers
The truth about our economy today is that we are spending more money than before the economic crisis. Most of us have learned to be savvier with our spending. And, most important of all, we tend not to spend above our means like in the last decade.
That’s good news for beauty salons everywhere as that means there will be more customers. What does that translate to? Bigger profits, of course!
- Salons that use ethical and natural product will see the most growth
These days, beauty salon customers are asking more questions about the products they use. Consumers only want to take advantage of ethical and natural products. In other words, ones that don’t have all kinds of weird chemicals in them. Or products that were tested on animals.
Salons that care more about the products they use will experience faster growth. The transition to ethical salon products won’t cost much more than the ones they use already. So, if you’re worried about rising costs, put that thought out of your mind!
Hi, I’m Anna the Editor of Beauty and Lace. This website was my first baby and since its launch, I’ve gained three kids, a husband, and a puppy! We want to keep this space positive, we are all about sharing the things we love – and avoiding the things we don’t. Happy reading x