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SEARCHThe salon industry shows historically low growth in 2009.
The salon industry shows historically low growth in 2009.
Cyrus Bulsara
For more than two decades, Cyrus Bulsara, president of Professional Consultants and Resources (PCR) has analyzed and commented on the professional salon industry. He conducts and packages original research, forecasting trends and providing analysis for corporate clients each year. Highlights of his report have been featured regularly in SALON TODAY and MODERN SALON.
As he releases his 2009 Professional Salon Industry Haircare Study, he shares a few of its highlights and warnings:
The Bottom Line
"The study revealed that overall salon industry growth was at a historical low of 1.5 percent, and hair care product growth was even lower at 1 percent," says Bulsara. "In spite of the deep macro-economic recession and resulting low growth, some highlights, trends and bright spots are emerging that are good for the future growth of the salon industry."
In 2009, lower disposable incomes and tight credit impacted client's frequency of salon visits and resulted in low product sales. "Merger and acquisitions, major distribution realignments, direct sales and the economy all adversely affected the industry, especially leading marketers and leading salon chains."
Report Highlights
To support his overview, Bulsara highlighted the statistics from the report:
Sally Beauty and BSG same store sales were up around 1.8 percent in 2009-booth rental salons fuel sales at open-line Sally stores, and exclusive lines fuel sales at BSG stores.
At 3 percent, the hair color category experiences its lowest growth in years, due to the recession and increased use of home hair color. Home hair styling grows robustly in the recession and new genres of electrics and styling tools also grow. Specialty products grow at 3.3 percent and hair styling products grow at 3.1 percent.
Hardgoods and electrics see 4.6 percent growth from the sale of new Chi, BioIonic, ceramic and tourmaline products fueled by the trend toward home hair styling.
Booth-rentals continue to grow in certain regions of the United States, as clients demand personalized, private services and shun the bigger cookie-cutter chain salons, as their premises show wear and tear.
Economy chains Great Clips and Sport Clips both see revenues and franchise increases.
Mega salon stores, such as Ulta and Beauty Brands, see low sales growth throughout the year in spite of the recession and experience sales booms during the 2009 holiday season.
Natural products like Brazilian keratin and Moroccanoil still show vitality.
For purchasing information or questions regarding the study, contact Cyrus Bulsara at cbulsara@augustmail.com or visit proconsultants.us.
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