Hair Care Services

Brief Excerpt from Industry Overview Chapter:Companies in this industry operate hair salons and barber shops. Major companies include Regis Corporation and Sport Clips (both based in the US), as well as Klier (Germany) and Stefan Hair Fashions (Australia).COMPETITIVE LANDSCAPEDemand 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. The barber shop segment of the industry is fragmented: the 50 largest operators generate less than 30% of US industry revenue; while the beauty salon segment is highly fragmented: the 50 largest beauty salon operators generate about 15% of revenue.PRODUCTS, OPERATIONS & TECHNOLOGYMajor sources of revenue come from haircut and styling services, accounting for about 95%. Hair coloring and tinting account for about 2%, and retail sales of personal hygiene supplies.