July 2009

How the Industry is Responding to the Recession

As a part of most cities in America, hair salons play an integral role of the economic fabric of our nation.

Salons provide both employment and tax revenues and contribute substantially to the economic vitality and social well-being of a community. As the recession continues to cut deeper into everyday necessities, the salon industry, while often resilient in times of economic uncertainty, is now feeling the downward pressures of changes in the economy.

“Member salons are reporting various trends developing as their clients make changes in their spending habits, however many consumers continue to view their professional hairstylist and the services they provide as a necessity that they do not want to forgo,” said Marissa Porcaro, marketing and communications manager for the Professional Beauty Association (PBA).

Emerging trends salons are reporting are:

•  Longer periods between hair cuts and coloring appointments.
• Non-core luxuries like facials and massages are seeing the greatest drop in demand.
• Consumers are more open to trying a beauty school to have their hair cut.
• Consumers coloring their own hair, but returning to their regular professional stylist for hair cuts.
• More consumers opting to do their own nails or alternating at-home and professional manicures/pedicures.
• With the trust and loyalty factor, stylists with a strong client base are fortunately NOT losing their clients.

 To adapt, salons are adjusting to meet the needs of their clients. Trends salons are implementing to combat the recession include:

•  Providing classes to teach women how to style their own hair for special events.
• Greater price promotions on products and a renewed interest in retail offerings.
• Working with manufacturers and distributors to create new incentives on products.
• Remaining supportive if clients have tried another stylist or are visiting less frequently.
• Providing directly or seeking out additional training and education.
• Re-examining marketing programs and incentives offered to clients.

Businesses such as the local restaurant, market or salon that provide products and services are essential to the day-to-day lives of Americans. At approximately $56 billion in sales for 2008, the overall beauty industry in North America is a significant part of our economy.  

For more consumer trends and how the salon industry and the Professional Beauty Association are responding, go to www.probeauty.org.