|SIC Codes:||7231 7241|
|NAICS Codes:||812111 812112 812113|
Companies in this industry operate hair salons and barbershops. Major companies include Regis, Ratner Companies, and Sport Clips (all based in the US), as well as CavinKare (India), Frisör Klier (Germany), Premier Salons (Canada), and Stefan Hair Fashions (Australia). Regis also has salons in Canada and the UK.
Demand is driven by demographics and population growth. The profitability of individual companies depends on technical expertise and marketing skills. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete successfully by offering superior service or securing favorable locations. The US industry is highly fragmented: the 50 largest companies generate about 15 percent of revenue.
Major products are hair cutting, hair coloring, nail care, skin care, and merchandise sales. A typical salon offers haircutting and styling, coloring, shampooing, and permanents. Some salons also offer nail care, facial treatments, makeup, bikini waxing, massage, tanning, and other types of spa treatments, but the lower volume of demand for such specialty services often makes them uneconomical. Sales of hair care products are an important revenue source for many salons, providing from 5 to 15 percent of revenue. Gross margins are higher for hair care products than for services.Buy Now