StudioTracker
Well-Known Member
The Real Impact of the Recession
Health and beauty treatments are a luxury rather than a necessary purchase and the market is influenced by how strong the economy is at any one time. Due to exceptional economic circumstances, market research experts Mintel have re-forecasted their predictions of the trends in the hair and beauty sector (Mintel, Health and Beauty Re-forecast March 2009). This information gives salon owners vital insights into the areas which are expected to grow in 2009, and the areas which are predicted to slow, highlighting the areas where you will need to proactively try to counteract a decline.
The Good News
The market for beauty and hair treatments is dominated by younger females. Generally, younger people are less affected in the early stages of a recession and are likely to continue to spend on products which they believe will improve their appearance or their confidence in their appearance.
Similarly, there has been a trend towards more employed females within the population. These ladies have greater financial freedom, and a higher disposable income to spend on beauty treatments coupled with a greater concern about looking good. The pamper factor means that women will continue to spend during the recession, in the quest to look and feel good. Overall, the market for beauty is predicted to experience growth until 2011, albeit at a slower rate than previously forecast.
Growth areas
Increasingly there is an emphasis on eating right to look good. Consistent with this trend, beauty supplements represent an emerging market. With an increasing young, female ethnic minority population in the UK, ethnic cosmetics and toiletries are also expected to be big success stories. Finally in the quest for eternal youthful looking skin amongst Britains ageing population, Cosmeceuticals are expected to perform well. Higher levels of uptake will help to raise awareness of the existence of treatments that claim to improve appearance, making them more likely to be regarded as a necessity.You need tomake sure you have a range of these products in stock to maximise your chances of making sales.
The Bad News
In order to save money, people are spending less at the salon by reducing frequency of visits and trying to spend less when they are there. In addition, consumers are looking to down-trade, therefore the beauty industry will see a trend towards at-home salon alternatives.
Affordability will take precedence over lifestyle, this means that consumers will cut back on treatments and products which they perceive to be luxuries, as opposed to necessities, for example, sales of organic toiletries are expected to slump in 2009. Therefore, customers need to be convinced that investing in hair and beauty is essential for the maintenance
of their appearance.
Areas of Decline
Consumers will be less inclined to buy a range of products with single benefits, and instead will favour multi-functional beauty products for all their needs.
The pamper factor and cutting back on salon costs is likely to buoy the market for premium skincare products that claim to offer salon results at home. As a result, the skincare market will become dichotomised with middle-ground brands losing out.
As people look to drop unnecessary products from their repertoire, toners and salon haircare products are predicted to suffer. Therefore, you need to make sure you concentrate on selling the basics such as moisturisers and exfoliators, which are less likely to be perceived as luxuries. Products which carry out more than one core function will also be easier to sell.
Finally, remind clients that in order to reap the maximum benefits from their skincare regime they need to supplement the homecare with visits to the salon. Similarly, clients need to be informed that they are unlikely to see the maximum benefits of skincare products unless they continue with the regime for a sustained period of time.
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Health and beauty treatments are a luxury rather than a necessary purchase and the market is influenced by how strong the economy is at any one time. Due to exceptional economic circumstances, market research experts Mintel have re-forecasted their predictions of the trends in the hair and beauty sector (Mintel, Health and Beauty Re-forecast March 2009). This information gives salon owners vital insights into the areas which are expected to grow in 2009, and the areas which are predicted to slow, highlighting the areas where you will need to proactively try to counteract a decline.
The Good News
The market for beauty and hair treatments is dominated by younger females. Generally, younger people are less affected in the early stages of a recession and are likely to continue to spend on products which they believe will improve their appearance or their confidence in their appearance.
Similarly, there has been a trend towards more employed females within the population. These ladies have greater financial freedom, and a higher disposable income to spend on beauty treatments coupled with a greater concern about looking good. The pamper factor means that women will continue to spend during the recession, in the quest to look and feel good. Overall, the market for beauty is predicted to experience growth until 2011, albeit at a slower rate than previously forecast.
Growth areas
Increasingly there is an emphasis on eating right to look good. Consistent with this trend, beauty supplements represent an emerging market. With an increasing young, female ethnic minority population in the UK, ethnic cosmetics and toiletries are also expected to be big success stories. Finally in the quest for eternal youthful looking skin amongst Britains ageing population, Cosmeceuticals are expected to perform well. Higher levels of uptake will help to raise awareness of the existence of treatments that claim to improve appearance, making them more likely to be regarded as a necessity.You need tomake sure you have a range of these products in stock to maximise your chances of making sales.
The Bad News
In order to save money, people are spending less at the salon by reducing frequency of visits and trying to spend less when they are there. In addition, consumers are looking to down-trade, therefore the beauty industry will see a trend towards at-home salon alternatives.
Affordability will take precedence over lifestyle, this means that consumers will cut back on treatments and products which they perceive to be luxuries, as opposed to necessities, for example, sales of organic toiletries are expected to slump in 2009. Therefore, customers need to be convinced that investing in hair and beauty is essential for the maintenance
of their appearance.
Areas of Decline
Consumers will be less inclined to buy a range of products with single benefits, and instead will favour multi-functional beauty products for all their needs.
The pamper factor and cutting back on salon costs is likely to buoy the market for premium skincare products that claim to offer salon results at home. As a result, the skincare market will become dichotomised with middle-ground brands losing out.
As people look to drop unnecessary products from their repertoire, toners and salon haircare products are predicted to suffer. Therefore, you need to make sure you concentrate on selling the basics such as moisturisers and exfoliators, which are less likely to be perceived as luxuries. Products which carry out more than one core function will also be easier to sell.
Finally, remind clients that in order to reap the maximum benefits from their skincare regime they need to supplement the homecare with visits to the salon. Similarly, clients need to be informed that they are unlikely to see the maximum benefits of skincare products unless they continue with the regime for a sustained period of time.
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