succeed hair beauty business

How to succeed in a hair and beauty business

Sarah Stowe

While growth in the hair and beauty sector is slower than in the overall economy, according to IBISWorld’s report, Hairdressing and Beauty Services in Australia, January 2023, there are plenty of ways to make your mark as a business owner.

The report’s author, Ekatarina Ezhova, points out that though the market is saturated there are opportunities for unique and innovative services.

So what does it take to be a winning hair and beauty salon franchisee?

5 winning techniques for salon owners

Ekatarina has identified the steps that contribute to salon success.

  • Creating a strong customer base through referrals and recommendations and nurturing loyal clients
  • Investing in specialist equipment to offer premium services
  • Easy access location that attracts walk-in customers in a high income neighbourhood
  • Attracting and retaining skilled hairdressers and therapists
  • Offering high-quality, valued-added services

When choosing a franchise to invest in, savvy would-be business owners are looking for brands that deliver these success drivers, as well as a strong and robust infrastructure.

This is a diverse industry, ranging from budget, no-appointment haircuts through to high performance skincare treatments. It is also a highly localised sector with myriad individual businesses.

So it might surprise you to learn there are no major companies dominating this industry. But the three brands that have a similar market share are all franchises, IBISWorld reveals.

Brands with biggest market share

Laser Clinics Australia

Estimated market share is 3 per cent.

Private equity firm KKR owns the business.

Number of clinics: 140 Australia, 40 UK, 20 NZ, 1 Singapore

Hairhouse  

This privately owned Australian business has an estimated market share of 2 per cent.

Number of stores: 120+ salon and retail outlets

[retail sales account for the majority of revenue and IBISWorld report’s industry revenue excludes these]

Just Cuts

Also with an estimated 2 per cent market share, the no-appointment hairdressing chain.

Number of salons: 192 Australia, 28 NZ, 8 UK, 1 Taiwan.

Read more about the sector and it’s potential in the current Inside Franchise Business magazine – download it for free here.

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