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Hair Care Services Industry
Insights from D&B Hoovers

Industry Analysis

Description

Companies in this industry operate hair salons and barber shops. Major companies include Regis, Ratner Companies, and Sport Clips (all based in the US), as well as Frisör Klier (Germany), Premier Salons (Canada), and Stefan Hair Fashions (Australia).

Competitive Landscape

Demand is driven by demographics, population growth, and personal income. The profitability of individual companies depends on effective marketing and maintaining repeat business. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete successfully by offering superior service or securing favorable locations. Both segments of the industry are fragmented: the 50 largest beauty salon operators generate about 15% of US industry revenue, and the 50 largest barber shop operators account for about 30% of revenue.

Products, Operations & Technology

Major sources of revenue are haircutting, hair coloring, nail care, skin care, and merchandise sales. Beauty salons account for about 95% of US industry revenue; barber shops account for the remainder. Sales of hair care products are an important revenue source for many salons, typically providing from 5% to 25% of revenue. Margins are higher for hair care products than for services.

Geographic Segmentation

See where the Hair Care Services industry is concentrated geographically and research companies by financials and key corporate data.
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