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          1. Hair Care Services Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 8/31/2020
            SIC Codes: 7231, 7241
            NAICS Codes: 812111, 812112
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Hair Care Services Industry Profile

            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 Frisör Klier (Germany), Premier Salons (Canada), and Stefan Hair Fashions (Australia).

            Key sources of growth for the global hair care industry include expanding middle classes in developing nations. Shifting cultural norms also drive demand.

            The US hair care services industry includes more than 80,000 establishments (77,000 beauty salons; 4,500 barber shops) with combined annual revenue of about $20 billion.

            COMPETITIVE LANDSCAPE

            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 for many salons, typically providing from 5% to 25% of revenue. Margins are higher for hair care products than for services.

            A typical salon occupies about 1,000 ...

             
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