Our mission, as the Two Blondes, has been to assist in the development of good business practices within the salon/spa industry. We have both worked in the industry for a long time; Catherine as a stylist, owner/employer, marketer, and consultant and I have been immersed in the world of distribution, training, and consulting. We bring an eclectic mix of knowledge and experience to the table.
In developing the research and study that brings this weekly blog to you, we have had the opportunity to observe the changes and development going on in the beauty industry as a whole. It is not the same business as it was even fifteen years ago! With modern-day innovation, we have seen tremendous differences in the way we do business. We continually nag for professionals to adapt and re-create businesses because of those changes. Here are a few of the observations we have made:
Professional beauty products are being absorbed by large retailers.
Smart move on their part. The professional beauty industry was growing faster than the over-the-counter market and they wanted a piece of the pie! The downside to the acquisition of our professional product lines has been the increasing involvement of mainstream channels of distribution. We’re seeing our professional products on more major retailing centers shelves.
Average ratio of professional product retailing to service dollars on decline.
The industry average ratio is an abysmal nine percent! A horrifying statistic when you consider that so much of the salon business’ profit is sitting on the retail shelf.
Eight out of ten clients purchase a product within 24 hours of a salon visit.
With the deplorable ratio of 9% we know that those clients are buying their products in locations other than the salon they frequent for services.
E-commerce sites popping up on a regular basis.
A client goes to a salon for a service, likes what the stylist has done for their look, checks out the recommendation and then takes that recommendation elsewhere to shop.
There is a disconnect in carrying retail products on our shelves and getting them into the clients’ hands at salon/spa level.
As a generalization, the businesses that appear to be the most successful are the salon/spas that have a focused program or have created a niche for themselves in their trading area.
What does all this mean to you? They are trends that assist us in deciding our future planning and goals. We are encouraging our clients to find a niche that sets them apart from their competitors. To find retail products that aren’t available in every salon, pharmacy, or grocery store. And to invest in products and services that support businesses and people who work within it.