Industry Analysis

Topics: United States, North America, Poverty in the United States Pages: 2 (389 words) Published: April 21, 2013
Industry Analysis
The beauty industry, which includes salons, barber shops, nail salons and spas is the second largest retail sector in the United States, second only to restaurants. Worldwide it is a 150 billion dollar a year industry, half of which is generated solely in the United States. In 2012, there were an estimated 300,000 salons in the United States as well as 37,000 barber shops, 51000 nail salons and 14,500 spas. The industry employs on average about 1.5 million workers and professionals in personal appearance occupations and is noted as a predominantly small business centered sector with corporate interest being only 15% of annual revenue. The average salon has 5 stations and employs 3-4 full time professionals and 1-2 part time assistants.

The salon industry caters to a wide target demographic, the majority of which is ages 19-49, 67%/23% female to male, educated with average incomes above $50,000. This is a boon for the industry when combined with two statistics; One being that the average salon patron averages two visits per month and that on average there are over 100 million visits to salons each month in the United States alone. To put that number into perspective that is twice the number of moviegoers in any given month on the entire North-American continent. The industry has noted steady if only marginal growth for the last decade and as a whole fared well even during the recent recession. Recent forecasts have shown the salon industry among the leaders of growth and growth potential.

The salon industry, while having its foundation solidly planted in consistency, is ever evolving. This requires progressive planning and aggressive execution. There is also a growing trend in the salon industry, not only of stepping away from the "Big Beauty" corporate product structure but yet replacing them with smaller, independent and what is becoming known as Organic companies, products and services. This has becoming a supportive and...
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