|Last Quarterly Update:||2/13/2017|
|SIC Codes:||7231, 7241|
|NAICS Codes:||812111, 812112|
|Industry Overview||Trends & Challenges||Industry Forecast|
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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 CavinKare (India), Frisör Klier (Germany), Premier Salons (Canada), and Stefan Hair Fashions (Australia).
The global hair care industry, including hair restoration as well as hair care services, generates annual revenue of about $160 billion, according to Regis. Key sources of growth include the rising middle classes in Brazil, Russia, India, and China (the BRIC nations). Shifting cultural norms also drive demand.
The US hair care services industry includes about 80,000 establishments (76,000 beauty salons; 4,000 barber shops) with combined annual revenue of about $20 billion.
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 ...
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