Cut short: Market saturation and rising competition have reduced industry revenue

The performance of the Hairdressing and Barber Franchises industry has been negatively affected by variable economic conditions over the past five years. Consumer sentiment was negative for most of the past five-year period and discretionary income growth was sluggish. In periods of economic downturn, some consumers postpone the use of hairdressing services by increasing the time between haircuts. Additional industry services such as colouring, treatments and styling are typically discretionary and are therefore more sensitive to movements in household income and consumer sentiment. For example, weak consumer sentiment typically reduces the frequency at which consumers visit salons for colouring and treatment services...read more.

Industry Statistics & Market Size
Revenue
$473m
Annual Growth 14-19
-0.8%
Forecast Growth 19-24
Profit
Employment
3,211
Businesses
34

Industry Threats & Opportunities

  • Weak household discretionary income growth has limited consumer spending on industry services
  • Operators face competition from DIY haircare products and non-franchise salons and barbershops
  • Industry employment is forecast to grow at a similar rate to salon openings over the period
  • Industry Report - Industry Analysis Chapter

    The Hairdressing and Barber Franchises industry has declined over the past five years, as largely negative consumer sentiment and weak household discretionary income growth resulted in consumers being more cautious with their non-essential expenditure over the period. While basic haircuts are considered to be an essential expense, additional services such as colouring, treatments and styling are typically considered discretionary and are therefore more sensitive to movements in consumer sentiment and household incomes. Overall, industry revenue is expected to decline at an annualised 0.8% over the five years through 2018-19, to $473.3 million. Industry revenue is expected to fall by 1.0% in 2018-19 due to rising competition from non-franchise hairdressers and barber shops...purchase to read more.

    Additional Insights for the Hairdressing and Barber Franchises Industry

    IBISWorld has determined the most important Key Success Factors for the Hairdressing and Barber Franchises are:

  • Use of specialist equipment or facilities
  • Proximity to key markets
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Hairdressing and Barber Franchises industry impact industry performance..

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    What's in this report

    What is the Hairdressing and Barber Franchises Industry?

    The industry encompasses franchised establishments that primarily offer hair-care services. This includes salons and barber shops that provide haircutting, hair colouring, hair styling and other hair treatments. Revenue generated from haircare product retailing is also included in the industry. However, the industry does not include companies that primarily offer training in barbering or hairstyling.

    Industry Products
  • Hair colouring and tinting services
  • Haircuts
  • Other hair-care services
  • Hair products
  • Industry Activities
  • Haircutting services
  • Hair colouring services
  • Hair styling services
  • Hair treatment services
  • Hair extension services
  • Haircare product retailing
  • Hair styling tool retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Female population aged 18 and older
  • Average weekly hours worked

  • Current Performance
  • Competition
  • Industry structure
  • Brand loyalty
  • Employment and wages
  • Growing client base
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition
  • Industry structure
  • Profit
  • Industry changes
  • Table: Hairdressing and Barber Franchises Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hairdressing and Barber Franchises Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Cosmetics and Toiletry Wholesaling
  • Cosmetics, Perfume and Toiletries Manufacturing
  • Furniture and Floor Covering Wholesaling
  • Household Appliance Wholesaling

  • Products & Services
  • Hair products
  • Hair colouring and tinting services
  • Haircuts
  • Other hair-care services
  • Chart: Hairdressing and Barber Franchises Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Women aged 45 to 64
  • Women aged 25 to 44
  • Men of all ages
  • Women aged 24 and under
  • Women aged 65 and over
  • Chart: Major Market Segmentation for the Hairdressing and Barber Franchises Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Hairdressing and Barber Franchises

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hairdressing and Barber Franchises Industry

  • Industry Globalization
    Hairhouse Warehouse Pty Ltd, Just Cuts Franchising Pty Limited, Brabus PA Franchising Pty Ltd,
  • Table: Hairhouse Warehouse Pty Ltd - financial performance
  • Table: Just Cuts Franchising Pty Limited - financial performance
  • Table: Brabus PA Franchising Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hairdressing and Barber Franchises Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hairdressing and Barber Franchises Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Balayage
  • A technique in which dye is painted on hair in such a way as to create a graduated, natural-looking effect.
  • Diy Hair Treatment
  • The activity of purchasing hair products from a store and conducting salon-style treatments at home, such as colouring and styling.
  • Updo
  • A hairstyle in which hair is styled and secured to the back of one's head.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hairdressing and Barber Franchises market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
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    This report on Hairdressing and Barber Franchises:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hairdressing and Barber Franchises market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hairdressing and Barber Franchises, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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