|SIC Codes:||7231 7241|
|NAICS Codes:||812111 812112 812113|
Companies in this industry operate hair salons and barber shops. 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).
Demand is driven by demographics, population growth, and personal income. The profitability of individual companies depends on effective marketing and maintaining repeat business. Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete successfully by offering superior service or securing favorable locations. Both segments of the industry are fragmented: the 50 largest beauty salon operators generate about 15% of US industry revenue, and the 50 largest barber shop operators account for about 30% of revenue.
Major sources of revenue are haircutting, hair coloring, nail care, skin care, and merchandise sales. Beauty salons account for about 95% of US industry revenue; barber shops account for the remainder. Sales of hair care products are an important revenue source for many salons, typically providing from 5% to 25% of revenue. Margins are higher for hair care products than for services.Buy Now