Blow Dry Bars See Growth in Service Revenues and Locations in 2017

April 16, 2018 | 8:27 AM
Blow-Dry Bars emerge as a hot new salon business model trend, with 25% growth in revenues and locations.
Photo By Professional Consultants & Resources

Blow dry bars and salons are the new, emerging trend in salon business models, with 25% growth in both service revenues and locations across the United States in 2017, according to a new dossier on Blow-Dry Bars and Salons from Professional Consultants & Resources, the salon industry’s leading strategic consultants and data source. Blow-Dry Bars and Salons produced nearly $7 billion in service sales and $2 billion in retail sales in 2017, according to this research. This new report features a detailed, user-friendly Executive Summary and an analysis of the new sales opportunities for manufacturers, marketers, distributors, large salon chains, regional chains, indie salons and private-label/contract manufacturer suppliers, created by this hot, new emerging salon industry sector.

In comparison, overall revenues for all salon industry hair-care services grew only 2% in 2017. In addition, there were nearly 213,000 salons in the United States, with the total salon count declining by 5%, as traditional commission-based salons closed in large numbers and large rental suites continued to open. The paradigm shift toward large family-economy chains and independent salon suites continues. The Blow dry sector grew at 12 times the market.

 “Our Salon Industry is again in a low-growth mode, due to disruptions caused by mega mergers (Coty), acquisitions (Henkel) and huge moves by hairdressers to suite rentals, causing distribution realignments,” says Cyrus Bulsara, president of Professional Consultants & Resources. “However, with the economy booming again, we have some bright spots emerging, with both service revenues and number of locations of Blow-Dry Bars/Salons growing, at 25% year-over-year! In addition, Blow-Dry Bars and Salons have a huge retail business in both hard goods and soft goods. In some cases, 30% of revenues come from highly profitable retailing, after an average service ticket of $45.00. Some indie salons have now created special Blow-Out Only stations to take advantage of this new service and product sales opportunity.

 “This burgeoning new market sector provides a huge opportunity for professional product brands,” adds Bulsara. “Only the two category leaders—Drybar and Blo Blow Dry Bar—have the scale, muscle and ability to drive their own product brands. The rest depend on exclusive, full-service professional hard goods and soft goods lines. This is a great opportunity to increase both services and sales to clients for professional companies in a flat-to-low-growth market.”

 Major highlights of this study:

  • Total market quantification and environment for this nearly $7 billion services and $2 billion retail opportunity.
  • Analysis of the burgeoning 25% year-over-year growth of Blow-Dry Bars and Salons.
  • The study explores all services provided. Some locations offer only shampoos, blowouts/styling and updos, while others offer a range of mini services from fringe trims and manicures to makeovers, makeup applications, bridal services, wig services, brow shaping/waxing, eyelash extensions and more.
  • High-traffic location strategies in upscale neighborhoods with specificity.
  • Target Audience – Demographics and Psychographics.
  • Number of locations for leaders Drybar, Blo Blow Dry Bar, regional chains and emerging new brands.
  • A unique new business opportunity that’s appealing to all types of salons, chains and even rental suites.
  • Market valuation, hard goods and soft goods products utilized and sourcing.
  • Global Trends for the United Kingdom, Germany, South America and the Glamsquad-type mobile hairdressers in the United Kingdom.
  • History and future trends with continued 25% year-over-year growth expected for the foreseeable future.

 For purchasing information and questions, contact Bulsara at [email protected]

Originally posted on Modern Salon.

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