Global Salon Software Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029
Salon software is a digital tool designed to help salon owners and operators manage and grow their businesses. This software can be applied to processes such as scheduling and confirming customers, payment processing, inventory management, staff scheduling, appointment booking, and marketing. It helps maintain accurate customer and business records and streamlines processes, as well as automates day-to-day operations, helping to maximize the efficiency and profitability of the business.
Market Overview:The latest research study on the global Salon Software market finds that the global Salon Software market reached a value of USD 726.82 million in 2022. It’s expected that the market will achieve USD 1621.48 million by 2028, exhibiting a CAGR of 14.31% during the forecast period.
Advantages of Salon Software
Salon is a customer experience-focused and detail-oriented industry, and businesses need some flexible and easy-to-use tools to help them automate processes and manage every aspect of their business. Most salon software includes appointment management, inventory tracking, customer data management, employee performance and schedule management, planning marketing, and more. The right salon software can significantly automate the business, giving businesses more time to focus on business expansion and increasing customer conversion rates. Salon software allows clients to make appointments 24 hours a day, which increases the convenience of scheduling for clients and businesses. Paying upfront when you book can improve a business's cash flow system. An automated phone call and text message reminders from salon software increase client attendance for appointments. Using Salon software for inventory management, employees can efficiently keep track of expired products and minimum product quantities. Consumers are now so knowledgeable and adept at finding the best deals, businesses can leverage customer data stored by salon software to automatically create and distribute discount coupons. The POS functionality of the software allows customers to simply pay for services by providing various payment gateways, and businesses can simplify accounting and payroll records with detailed financial records. The feedback system of the salon software allows customers to share their experience with others after the service, which is beneficial to improve the brand awareness and credibility of the enterprise. Since most people use the Internet to help them make purchase decisions, personalized marketing activities such as promotional packages and membership gift certificates launched by salon software from time to time can enable companies to establish lasting relationships with customers, thereby gaining a wider customer base and more profit. Managing employees is another big business for salon software. Salon software can reasonably arrange employees' work schedules and record employees' attendance and work progress. Salon software can generate reports on customer satisfaction and retention rates, the effectiveness of marketing campaigns by service category, and provide references for employee performance. Therefore, as the advantages of salon software are gradually popularized, more and more companies choose suitable salon software and benefit from it, which is conducive to the market expansion of salon software.
Increasing demand for healthy and standard lifestyle
With growing interest in wellness and standard of living, people are looking for services that can relieve the stress caused by their hectic lifestyle, resulting in increased demand for spas and salons, which subsequently drives the demand for salon software. Since the introduction of technology and automation in the workplace, work and lifestyles in modern society have become increasingly sedentary, and people are busier and value convenience. According to World Health Organization estimates, approximately 13% of the global adult population (11% of men and 15% of women) were obese in 2016. Obesity can lead to a range of non-communicable diseases such as diabetes, cardiovascular disease, high blood pressure, stroke, and mental health problems. Consumers are prioritizing their health and actively looking for ways to prevent diseases such as yoga classes, gym memberships, and healthy eating. Social media is one of the driving forces behind the development of health awareness. Fitness enthusiasts and athletes promote healthy eating and adequate exercise on social platforms. They use their social influence to secure sponsorship and advertising deals and influence the products and services their followers consume. As people increasingly seek information about health and wellness, media companies and content creators have increased the production of this information to educate the public about health, wellness, and nutrition. Rising tourism and rising consumer spending on beauty and wellness products have led to an increase in the number of resorts and hotel spas.
According to Statista, the value of the spa industry in the United States will grow from $12.8 billion in 2008 to $18.1 billion in 2021. While the pandemic has forced the temporary closure of medical facilities and spas across the U.S., the comfort of spas has prompted Americans to return to frequenting them after the pandemic. A spa offering a diverse menu of treatment types is beneficial in giving clients more opportunities to address self-care concerns. Moreover, the growing demand for complex skin care treatments among teenagers and senior citizens is driving the growth of facial care and skin care salons across the globe. Therefore, consumers' pursuit of a healthy and standard lifestyle drives the development of the salon industry and also drives the salon software industry forward.
Expensive to install and train
The initial setup cost of salon software includes high installation and training costs, limiting the use of the software by SMEs. First of all, buying salon software is a big expense. There are generally two main pricing models when purchasing software, perpetual pricing, and subscription pricing. Perpetual pricing is when a business pays a price upfront to own the software indefinitely, usually for on-premises software. With subscription pricing, businesses pay a monthly or annual subscription fee to use the software. If the business stops paying or doesn't renew the contract, that loses the ability to use the software, typically for software deployed through the cloud. Subscription pricing charges vary based on business consumption, business size, and number of users. Some free salon software also exists on the market, but they may not be user-friendly, and the complexity of use increases the number of issues that employees need to deal with. Free salon software is open source, and downloading and installing free software may make corporate data visible to cyberattacks, viruses, and malware. Some free software requires the purchase of add-ons or an upgrade to new software to experience full functionality. At the same time, hardware cost is also important. Not only do businesses need to buy servers to host the software, but they also need to buy new equipment that uses the correct operating system. It is necessary to have a reliable internet connection to check and manage bookings. The second is the high cost of training employees. Employees need computer equipment and videos to learn to use salon software. Training new employees will lead to a decrease in productivity. Some software also requires remote instruction by instructors. Improper training can lead to high employee turnover. Therefore, the high initial setup cost of salon software, including high training and installation costs, may hamper the market growth.
Region Overview:In 2022, the share of the Salon Software market in North America stood at 35.54%.
Company Overview:The major players operating in the Salon Software market include Zenoti, Mindbody, Vagaro, Fresha, Millennium, etc. Among which, Zenoti ranked top in terms of sales and revenue in 2023.
Segmentation Overview:By type, Cloud-based segment accounted for the largest share of market in 2022.
Application Overview:By application, the Small Businesses and Individual Professionals segment occupied the biggest share from 2018 to 2022.
Key Companies in the global Salon Software market covered in Chapter 3:Mindbody
Salon Iris
Shortcuts Software
Intelligent Salon Software
SimpleSpa
Insight Salon Software
Zenoti
Fresha
Vagaro
Squire
Millennium
Rosy
Phorest Salon Software
Acuity Scheduling
In Chapter 4 and Chapter 14.2, on the basis of types, the Salon Software market from 2018 to 2029 is primarily split into:Cloud-based
On-premises
In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Salon Software market from 2018 to 2029 covers:Small Businesses and Individual Professionals
Midsize Businesses
Large Enterprises
Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)