The report also includes the prognosis for future growth, pros and cons and a detailed review of chain salons and booth rental—a new model for chains to compete against. On the marketing/sales/education front, the study looks at salon industry trade and consumer promotion trends, including distributor promotions, salon and stylist promotions, salon client/consumer promotions, and more with in-depth recommendations. The report details marketing strategies targeted to booth renters and renter salons, including exciting, new Web 2.0 and social media for renters and renter technology tools.
Here’s a preview of findings included in the report:
- Booth rental salons strongly drive sales at open-line Sally stores. Booth rentals also propel full-service sales at Beauty Systems Group (BSG)/Cosmoprof, Salon Centric and all other distributor stores. Purchasing habits and inventory needs are distinctly different from independents.
- Booth rentals continue strong growth in certain regions of the United States. Clients want personalized, private services and move away from the big, older, chain salons. Mid-tier chains are also under pressure.
- Ratner Co. has made a major move into this arena, with its 17 Salon Plazas, a rental model with more than 550 renters.
- Booth rentals and high-end independent salons emerged with bold new cut n’ color, bob, pixie and mop looks in 2011, making booth rentals who are more artistic and adventurous strong players in advancing these hair fashion trends for their clients.
- Consumers have little-to-no understanding of the inner workings and management of various types of salons and perceive little difference and/or value between the various salon types. They get a consistency of stylist, ambiance and service at booth rentals.
- Manufacturers and distributors need a sales/marketing strategy for each group of rental salons/stylists targeted. Strategies and tactics for rethinking packaging, promotional and pricing strategies are suggested. Web 2.0 education needs are also addressed.
- Booth rental salon stylists now constitute a large chunk of the market and are computer savvy with Web 2.0 and social media.
- Technology tools such as My Chair App, Salon Booker, Square, Schedulicity, StyleSeat, Vagaro are heavily utilized and can be co-opted.