Early Insights from 10+ Countries Researched
The salon hair care market has taken a hard hit throughout the COVID-19 pandemic. Impacted by temporary closures in many countries, salons needed to find new ways to survive the crisis. Which countries were most affected by the pandemic, and what has shifted?
The salon hair care market has been greatly impacted by salon closures as well as various restrictions put in place across the world due to COVID-19, but some important trends are continuing and even picking up strength.Continue reading
Among the major shifts occurring in the salon industry are stylists moving from salons to independent businesses. The recently published Independent Stylist Study covering the United States, the United Kingdom, France, Russia, and Brazil reveals the key reasons independent hair stylists could become the turning point for the professional hair care industry. Here’s a rundown: Continue reading
“Omnichannel” has been a buzz word used by salon hair care marketers in recent years. Initially, only the brave ones were sticking their nose outside their well-known salon environment to seek new channels of distribution for their products, carefully expanding their sales into retailing due to the fear of losing their professional status. But in recent years, this has shifted. Diversion has been hurting sales, and products unwanted by marketers on physical or virtual shelves of various retailers were a reality that needed to be taken back under control, especially with the fast development of e-commerce.Continue reading
Our recently published Salon Hair Care Global Series shows another year of robust growth for the industry that already accounts for over $14 billion globally. This is driven in part by products focused on care and treatment.
Shampoos and conditioners lead the way with over 4% growth in 2018, with treatments at the forefront of this increase. A large part of treatments is dedicated to restoring hair health from the damage caused by chemical procedures, especially hair coloring, as well as the extensive use of hot tools.Continue reading
The multichannel movement among professional brands has grown in recent years, but how different companies react to it varies. Some brands are turning into hybrid brands and selling mostly or a large part of their products through retail stores as opposed to salons. Many examples of such brands can be found among newer players on the market, such as Oribe (now owned by Kao), Alterna (among Henkel’s brands portfolio), or Living Proof (a Unilever brand). Among well-established marketers that have had a multichannel approach for many years is Estée Lauder with brands like Aveda and Bumble and bumble. In the United States, Aveda even has its own vertically integrated stores.Continue reading
Among the most important shifts that are occurring in the salon hair care industry is stylists’ migration from salons to independent businesses. The recently published edition of our Salon Hair Care Global Series revealed that an increasing number of stylists are becoming independent. Not being affiliated with a salon, these hairdressers decide to rent out space, provide services in their own homes, or become mobile and drive to their clients. How does this impact the salon hair care industry?
The global salon hair care market registers a compound annual growth of 3% since 2012. While the market continues to see healthy gains, the business of hair salons isn’t flourishing. With clients cutting down on the frequency of their salon visits in many key salon hair care markets, such as the United States, Russia, Germany, and France, sales of these products have shifted out of the professional arena into the general marketContinue reading
The salon industry in both the United States and the United Kingdom witnessed healthy increases in 2015 and 2016; nevertheless, it seems like 2017 is nothing like previous years with decreases in salon revenues, as well as in salon retail.
The struggle is real for brands that stick to salons as their only clients. Kline PRO data shows a steep over 9% decrease in sell through sales for the period Q1-Q3 2017 compared to same period in 2016. We also see a similar pattern in terms of revenues from services—while growing healthily in 2016, sales for all types of services but treatments are down in Q3 2017. This is also confirmed by our preliminary results for the 2017 edition of Salon Hair Care: United States—the market is less dynamic than in previous years, and the little growth we see does not come from the salon environment, but from professional brand sales outside salons. The U.K. market, although showing a 3% increase in 2016, is also not as robust as previous years.Continue reading
Asia, which is important in size, but extremely fragmented with hundreds of local players having some important advantages over international brands, has nevertheless continued to attract foreign companies in terms of both professional hair care and nail care products. The region is the second largest after Europe when it comes to the salon hair care market, accounting for almost 30% of the global sales of professional hair care products. The three giants of Japan, China, and South Korea have experienced sluggish growth recently, and there are many smaller markets where sales show much higher dynamics. Among them, India leads the way with continuous double-digit growth. In fact, India has shown a compound annual growth rate in terms of salon hair care sales of 17% between 2011 and 2016, whereas Asia’s overall growth during that period has averaged to only 2.5%. Because the Asian market’s growth is driven by these smaller markets, such as India, our 2017 edition of Salon Hair Care Global Series will take a deeper look at 12 markets in Asia!Continue reading