The Professional Salon Services Market in the U.S.: Beauty Salons and Barbershops

Table of Contents

Chapter 1 Executive Summary

• Scope of the Report
• Methodology
• Key Terminology
• Market Size and Growth
  • Personal Care Services Industry Nears $48 Billion
  • Figure 1-1 Total U.S. Personal Care Services Industry Revenue, 1999-2007 (in billions $)
  • Professional Salon Services Reaches $32 Billion, Growth Slows
  • Figure 1-2 U.S. Beauty Salon, Barber Shop and Total Hair Care Service Revenue, 1997-2007 (in billions $)
  • Beauty Salons and Barbershops Hit Growth Peak in 2004
  • Table 1-1 U.S. Professional Salon Service Revenue by Segment and Firm Type, 2002-2007 (in billions $)
  • Revenue by Source
  • Figure 1-3 Total Employer Firm Beauty Salon Revenue by Revenue Source, 1997-2007 (in millions $)
  • Figure 1-4 Total Employer Firm Barbershop Revenue by Revenue Source, 1997-2007 (in millions $)
  • Establishments and Share
  • Table 1-2 Number of U.S. Professional Salon Service Establishments by Segment and Firm Type, 1997-2007
  • Revenue per Establishment
  • Table 1-3 Average Revenue per Establishment for Beauty Salons and Barbershops, by Firm Type, 1997-2007 (in thousands $)
  • Market to Reach $35.1 Billion
  • Figure 1-5 Total U.S. Professional Salon Services Industry Forecast, 2007-2012 (in billions $)
• Macro Trends Affecting Industry
  • Population Growth Slightly Affects Industry
  • Table 1-4 Total U.S. Resident Population by Sex, 2000-2012 (in millions)
  • 2008 Real GDP Growth Forecasted at a Meager 0.9%
  • Real Personal Consumption Contracts
  • Figure 1-6 Personal Consumption Expenditures for Barbershops, Beauty Parlors and Health Clubs, Current-Dollar versus Real 1998-2007 (in billions $)
  • Employment Reflects Add-on & Alternative Service Growth
  • Table 1-5 Total U.S. Personal Care Services Industry Employment, 1999-2007 (in thousands)
• Service & Product Trends
  • Constant Reinvention
  • Holistic Hair
  • Green/Natural/Organic Influence Market
  • The Science of Hair Care
  • Male Pattern Salon Care
  • Little Girls Will Not Be Denied
  • Boomers, As Young As They Feel
  • Ethnic Population Growing Fast...
• Salon Business Development Trends
  • Salon Product in More Mass Channels
  • Crackdown on Diversion
  • Focus Offerings
  • Teach & Reap
  • Party Time
  • Business Time
  • Style on The Move
  • Salons and Sales Professionals Relationship Shift
  • Mall Hair It Isn' t
  • Regis in a Higher Marketing Realm
  • Word of Mouth
  • Targeted Internet Outreach
• Competitor Landscape
  • Fragmentation to the Nth Degree
  • Majority of Operations Independently Owned
  • Franchising Can Aid Expansion
• Consumer Expenditure Data
  • Table 1-6 U.S. Household Consumer Expenditures: Total and Personal Care Products and Services, 1996-2006 ($)
  • Table 1-7 Total Spend on Personal Care Products and Services by Household Size, 2001-2006 (In Million $)

Chapter 2 The Market

• Scope of the Report
• Methodology
• Key Terminology
• Market Size and Growth
  • Personal Care Services Industry Nears $48 Billion
  • Figure 2-1 Total U.S. Personal Care Services Industry Revenue, 1999-2007 (in billions $)
  • Salons Still Account for Largest Chunk of Revenue
  • Table 2-1 Total U.S. Personal Care Services Industry Revenue, 1999-2007 (in billions $)
  • Table 2-2 Share of Personal Care Services Industry by Category 2007 (percent)
  • Figure 2-3 Share of Personal Care Services Industry by Category, 1997-2007 (percent)
  • Professional Salon Services Reaches $32 Billion, Growth Slows
  • Figure 2-4 U.S. Beauty Salon, Barber Shop and Total Hair Care Service Revenue, 1997-2007 (in billions $)
  • Beauty Salons and Barbershops Hit Growth Peak in 2004
  • Table 2-2 U.S. Professional Salon Service Revenue by Segment and Firm Type, 1997-2002 (in billions $)
  • Table 2-3 U.S. Professional Salon Service Revenue by Segment and Firm Type, 2002-2007 (in billions $)
  • Beauty Salons Can' t Offset Barbershop Beastly Losses
  • Figure 2-5 Beauty Salon Revenue Growth and Percent of Total Hair Care Service Industry Revenue, 1997-2007 (percent)
  • Figure 2-6 Barber Shop Revenue Growth and Percent of Total Hair Care Service Industry Revenue, 1997-2007 (percent)
  • Revenue by Source: Beauty Salons
  • Figure 2-7 Total Employer Firm Beauty Salon Revenue by Revenue Source, 1997-2007 (in millions $)
  • Figure 2-8 Share of Employer Firm Beauty Salon Revenue by Revenue Source, 1997-2007 (percent)
  • Revenue by Source: Barbershops
  • Figure 2-9 Total Employer Firm Barbershop Revenue by Revenue Source, 1997-2007 (in millions $)
  • Figure 2-10 Share of Employer Firm Barbershop Revenue by Revenue Source, 1997-2007 (percent)
  • Employer Firm Growth Sees Highlights at End of Tunnel
  • Figure 2-11 Employer Firm Revenue Growth and Percent of Total Hair Care Service Industry Revenue, 1997-2007 (percent)
  • Non-Employer Numbers May Prelude Decline
  • Figure 2-12 Non-Employer Firm Revenue Growth and Percent of Total Hair Care Service Industry Revenue, 1997-2007 (percent)
  • Establishments and Share
  • Figure 2-13 Number of U.S. Beauty Salon, Barber Shop and Total Hair Care Service Establishments, 1997-2007
  • Table 2-4 Number of U.S. Professional Salon Service Establishments by Segment and Firm Type, 1997-2007
  • Revenue per Establishment
  • Table 2-5 Average Revenue per Establishment for Beauty Salons and Barbershops, by Firm Type, 1997-2007 (in thousands $)
• Market Forecast
  • Market to Reach $35.1 Billion
  • Factors to Consider
  • Figure 2-14 Total U.S. Professional Salon Services Industry Forecast, 2007-2012 (in billions $)

Chapter 3 Population, Economic and Employment Trends

• Population Growth Slight Affect on Industry
• Figure 3-1 Total U.S. Resident Population by Sex, 2000-2012 (in millions)
• Table 3-1 Total U.S. Resident Population by Sex, 2000-2012 (in millions)
• Figure 3-2 Share of Total U.S. Resident Population by Sex, 2000-2012 (percent)
• 2008 Real GDP Growth Forecasted at a Meager 0.9%
• Figure 3-3 U.S. Current-Dollar GDP vs. Real GDP, 2002-2008 (in trillion $)
• Figure 3-4 Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-2008 (%)
• Future Uncertain
• Real Personal Consumption Contracts
• Figure 3-5 Personal Consumption Expenditures for Barbershops, Beauty Parlors and Health Clubs, Current-Dollar versus Real 1998-2007 (in billions $)
• Figure 3-6 Percentage Changes in Personal Consumption Expenditures of Barbershops, Beauty Parlors and Health Clubs by Current-Dollar, Real and Respective Consumer Price Index, 2002-2008 (%)
• Employment Reflects Add-on & Alternative Service Growth
• Figure 3-7 Total U.S. Personal Care Services Industry Employment, 1999-2007 (in 000s)
• Table 3-2 Total U.S. Personal Care Services Industry Employment, 1999-2007 (in thousands)
• Table 3-3 Total U.S. Salon Hair Care Services Industry Employment by Occupation, 1999-2007 (in thousands)
• Figure 3-8 Total U.S. Hairdresser, Hairstylist and Cosmetologist Employment and Percent of Total Hair Care Service Industry Employment, 1999-2007 (in 000s)
• Figure 3-9 Total U.S. Shampooer Employment and Percent of Total Hair Care Service Industry Employment, 1999-2007 (in 000s)
• Figure 3-10 Total U.S. Barber Employment and Percent of Total Hair Care Service Industry Employment, 1999-2007 (in 000s)

Chapter 4 Service & Product Trends

• Constant Reinvention
• Clients Conflicted About Beauty
• Table 4-1 What Is Important To Women
• Table 4-2 Major Body And Beauty Concerns Of Women
• Holistic Hair
• Green/Natural/Organic Influence Market
• From Maine to Main Street: Green Salons
• The Science of Hair Care
• Male Pattern Salon Care
• Surprise! Teens, Tweens Beauty Conscious
• Little Girls Will Not Be Denied
• Boomers, As Young As They Feel
• Table 4-3 Projected U.S. Population, by Age Bracket, 2005-2020 (In Thousands)
• Ethnic Population Growing Fast...
• Table 4-4 Projection of U.S. African-American, Asian, and Hispanic Populations, 2006-2020 (In Thousands)
• Room for Extreme Niche Offerings
• Chasing Ephemeral Style

Chapter 5 Salon Business Development Trends

• Salon Product in More Mass Channels
• Salon and Prestige Changing Mass Retail Environment
• Crackdown on Diversion
• Salons Up Design
• Focus Offerings
• Teach & Reap
• Party Time
• Business Time
• Style on The Move
• Salons and Sales Professionals Relationship Shift
• Alternative Commission-based Systems
• Mall Hair It Isn' t
• Regis in a Higher Marketing Realm
• Word of Mouth
• Targeted Internet Outreach

Chapter 6 Competitor Profiles

• Overview
• Fragmentation to the Nth Degree
• Majority of Operations Independently Owned
• Franchising Can Aid Expansion
• Note on Featured Competitor Profiles
• Regis Corporation
  • Overview
  • Performance
  • Figure 6-1 Total Regis Corporation Revenue (Fiscal Year-End June) 2003-2007 (in billions $)
  • Regis North American Operations
  • Figure 6-2 Total Regis Corporation North American Salon Revenue (Fiscal Year-End June), 2003-2007 (in billions $)
  • Regis Salon Concepts
  • Table 6-1 Total Regis Corporation North American Salon Revenue (Fiscal Year-End June), by Division, 2003-2007 (in millions $)
  • Table 6-3 Share of Regis Corporation North American Salon Revenue (Fiscal Year-End June), by Division 2003-2007 (percent)
  • Regis Service Versus Product
  • Table 6-2 Total Regis Corporation North American Salon Revenue (Fiscal Year-End June), by Type of Revenue 2003-2007 (in millions $)
  • Table 6-4 Share of Regis Corporation North American Salon Revenue (Fiscal Year-End June), by Type of Revenue, 2003-2007 (percent)
  • Regis Portfolio Building
  • Figure 6-5 Total Regis Corporation North American Salon Locations (Calendar Year-End December) and Year-over-Year Increase, 2003-2007 (number)
  • Salon Store/Brand Portfolio
  • Table 6-3 Regis Corporation North American Salon Concept Divisions and Brands, 2008
  • Significant Events
• Cool Cuts 4 Kids
  • Overview
  • Performance
  • Figure 6-6 Estimated Total Revenue for All Cool Cuts 4 Kids Franchises 2003-2007 (in millions $)
  • Figure 6-7 Estimated Total Cool Cuts 4 Kids Salon Locations 2003-2007 (number)
  • Significant Events
• Great Clips
  • Overview
  • Performance
  • Figure 6-8 Estimated Total Revenue for All Great Clips Franchises 2003-2007 (in millions $)
  • Figure 6-9 Estimated Total Great Clips Salon Locations 2003-2007 (number)
  • Significant Events
• Ratner Companies
  • Overview
  • Performance
  • Figure 6-10 Estimated Total Ratner Companies Revenue 2003-2007 (in millions $)
  • Figure 6-11 Estimated Total Ratner Companies Salon Locations 2003-2007 (number)
  • Salon Brand Portfolio
  • Table 6-4 Ratner Companies' Salon Brands, 2008
  • Significant Events
• Sport Clips
  • Overview
  • Performance
  • Figure 6-12 Estimated Total Revenue for All Sport Clips Franchises 2003-2007 (in millions $)
  • Figure 6-13 Estimated Total Sport Clips Salon Locations, 2003-2007 (number)
  • Significant Events
• Ulta Salon, Cosmetics & Fragrance, Inc.
  • Overview
  • Performance
  • Figure 6-14 Total Ulta Salon, Cosmetics & Fragrance, Inc. Net Sales 2003-2007 (in billions $)
  • Figure 6-15 Total Ulta Salon, Cosmetics & Fragrance, Inc. Locations 2003-2007 (number)
  • Significant Events

Chapter 7 Consumer Expenditure Data

• Overview
• Table 7-1 U.S. Household Consumer Expenditures: Total and Personal Care Products and Services, 1996-2006 ($)
• Expenditure by Size of Consumer Unit
• Table 7-3 Personal Care Products and Services Consumer Expenditure by Size of Consumer Unit, 1996-2006 ($)
• Table 7-2 Total Number of Households by Household Size, 2002-2006 (In Millions)
• Table 7-4 Personal Care Products and Services Consumer Expenditure per Person by Size of Consumer Unit, 1996-2006 ($)
• Table 7-5 Total Spend on Personal Care Products and Services by Household Size, 1996-2006 (In Million $)
• Expenditure by Age
• Table 7-6 Personal Care Products and Services Consumer Expenditure by Age of Reference Person, 1996-2006 ($)
• Table 7-7 Total Number of Households by Age of Reference Person, 1996-2006 (in thousands)
• Table 7-8 Total Spend on Personal Care Products and Services by Age of Reference Person, 1996-2006 (In Millions $)
• Expenditure by Income Range
• Table 7-9a Personal Care Products and Services Consumer Expenditures by Before Tax Income, 1996-2006 ($)
• Table 7-9b Personal Care Products and Services Consumer Expenditures by Before Tax Income, 1996-2006 ($)
• Table 7-10 Total Number of Households by Before Tax Household Income, 1996-2006
• Table 7-11 Total spend on Personal Care Products and Services by Before Tax Household Income, 1996-2006 (in millions $)
• Expenditure by Race & Ethnicity
• Table 7-12 Personal Care Products And Services Consumer Expenditure By Race And Ethnicity, 1996-2006 ($)
• Table 7-13 Total Number of Households by Race or Ethnicity of Reference Person, 1996-2006 ($)
• Table 7-14 Total Spend on Personal Care Products and Services by Race of Reference Person (in millions $)
• Expenditure by Region
• Table 7-15 Personal Care Products And Services Consumer Expenditure By Region, 1996-2006 ($)
• Table 7-16 Total Number Of Households By Region, 1996-2006
• Table7-17 Total Spend On Personal Care Products And Services By Region, 1996-2006 (In Millions $)

Appendix