Along with hair often comes makeup, after all, they go hand in hand! Being apart of the beauty industry can be a daunting experience. The industry itself has been on an upward swing since 2010 and isn't slowing down any time soon. It may feel as though you have new competition popping up every week, but here are 10 surprising beauty statistics to give you an edge over the competition. (So you can increase revenue and be the talk of the town!)
1. The beauty industry is expected to be valued at $445 billion by the end of 2017.
We can't say we didn't see it coming, with salons and barbershops opening up left and right and new hair care lines launching all the time no wonder this industry is fast moving and growing! A new trend in the industry is men's openness to purchasing new hair care more often than before. This could be due to social media where people are more than ever sharing not only what they are buying and loving, but what they aren't liking as well. Speaking of...
2. 63% of beauty buyers have greater trust in brands they can find on Instagram, and 52% of beauty shoppers say they are more likely to be interested in a beauty product if they see ads for it on Facebook.
If you blew off your Marketing Manager when they told you to start running Facebook ads, it's definitely time to apologize. With social media taking over the beauty industry, buyers are looking for the brands they are interested in to be at arm's length 24/7/365. Even in ad format, with everyone being used to seeing ads on Instagram and Facebook, clicks are higher than ever before and exposure online is sure to bring you business.
Atelier Salon working with local Orlando Fashion Blogger @jenlumiere
3. Influencers are important and they aren't going anywhere.
It is the age of influencers and we're just living in it but the next influencer trend? Micro influencers. (See the 4 major types of influencers here.) Micro Influencers have shown MAJOR ROI in recent months and salons that are leading the herd to work with them are seeing major success already. Their reach is somewhere in the 500-10k range in followers but their engagement numbers are through the roof with whopping 25-50% engagement rates on a single photo. Also, since they are much smaller, you can often work out partnerships that cost next to nothing or can be compensated with free treatments and makeovers. One of our clients Atelier Salon in Orlando, Florida is doing an incredible job with this working with the top fashion/ beauty bloggers in their local market. And the numbers on their Instagram posts speak for themselves.
Here is the same photo reposted by the blogger herself tagging the salon and stylist she worked with, already with much higher reach and engagement rates.
4. Eyebrow products have seen the fastest rate of sales increases overall, with a growth of 41.5% from 2012-13. Celebrity endorsements of the beautiful brow are fuelling the popularity.
Considering adding additional services to your salon? Look no further than eyebrows with huge growth rates and a variety of services including waxing, threading, microdermabrasion, and tinting the possibilities are endless, and so are the profits. Bold, beautiful brows are a staple in beauty with more and more products coming out every day to enhance, define and shape them. Consider providing the means for some of your employees to get their cosmetology license so you don't have to hire additional personnel to your salon but make sure you have the room first since these treatments usually need to be done laying down in a private room to increase the customer experience.
5. There was a 32% increase in nail polish and nail care sales over 2011, indicating that $768 million dollars was spent on at-home care.
Another revenue stream idea? Nail services, especially those that don't add any time to a service. If a client is sitting in your chair waiting for their color process, the perfect way to pass the time could be with a quick manicure. They can check another errand of their list and you pocket that additional profit! With almost no cost at that. We'll go deeper into the "Spalon" trend in next week's blog post so stay tuned for that!
6. Millennial beauty buyers are 40% more likely to use Instagram for inspiration than those aged 35 to 64.
Wondering where to focus your social media efforts in order to stop wasting time on sites that don't work? Look no further than Facebook-owned Instagram. With the total number of monthly users reaching 800 million, and daily at 500 million, this young app is taking social media by storm. And if you're wanting to target Millennials definitely focus your marketing efforts on Instagram, by making proper use of hashtags and partnerships with influencers and bloggers, with a link to online booking on your profile, this channel is sure to not only bring you exposure but additional business in the form of new clients. Just make sure you are posting consistently and targeting appropriately, in the beginning, we suggest posting upwards on 2-3 times a day to really build your feed and make sure your pictures are branded and photographed consistently for a beautiful clean look that has your customers dying to book!
7. 50% of consumers around the world rely on beauty products that will save them time.
If you're still pushing for your stylists and front desk to sell more products, this statistic might change your mindset. While we know we're all dying for our clients to purchase those 3 step hair solutions or those fabulous gift sets during the holidays keep in mind everyone is in a rush. Consider ordering more of those 2 or 3 in 1 products that are sure to make your client's life easier even though the price tag will be higher. Everyone is in a rush these days and they will love you for saving them time in the morning!
8. 82% of the top global brands are over 60 years old.
Practice makes perfect and so does reputation. If you're looking into specific product lines to stock at your salon, those prestigious brands work for a reason. With a reputation that proceeds them don't even blink when it comes to stocking those brands, your mom raved about growing up. Even little minis from Estee Lauder, Lancome or Biore are sure to be additional product sales when placed directly at the till when checking a client out of their service. And if you're looking to start your own brand, consider this knowledge and see if maybe after some large growth it can be purchased by one of the top players in the industry.
9. Just 12% of Hair Color Dualists (people who color their hair at home and at the salon) started a hair color routine based on the recommendation of their hair stylist.
We all wish our clients were consistently rocking salon-only colored hair (especially hair touched only by one stylist), but this isn't always the case when they sit down for an appointment and you notice some coloring that wasn't there last time they left. Instead of feeling frustrated with your client and thinking you have more work to do, appeal to them in a way that stresses convenience in their life. If you have a client who consistently colors at home and doesn't follow the recommendations you may have specified, ask and remind them about the hair goals you both agreed on when they started coming to you, and make sure the salon experience is incredible. If they come to the salon to be pampered, then provide exactly that so they remember why they continue to come to you! If they consider salon color to be too expensive to maintain on a regular basis, recommend a color and style that is low maintenance and easy for them to maintain. Trust us, the last thing you want is them walking around with an overly grown out color and attaching your name to it.
10. The global fragrances and perfumes market is expected to experience positive growth through 2019, with a compound annual growth rate of 2%.
Fragrances are on the rise too! Even ones that have been out for years. The Cosmetic Executive Women (CEW) group recently held a panel where they had the Marketers behind prestigious beauty brands that are killing their competition offer their insights on what growth trends they see happening. In attendance at this event was the team behind Yves Saint Laurent's signature "Black Opium" fragrance that is STILL experiencing growth in the TRIPLE DIGITS years after launch! This brand is doing incredible with millennials and is projected to continue being a powerhouse in the world of beauty for years to come.
We hope this has sparked some ideas on additional business for your salon or spa, or at the least gave you better insight into the world of beauty at this time. This is an exciting time to be apart of this exploding market so make the most of your resources! There is plenty of profit to go around! For questions or comments, please don't hesitate to connect with us on social media or email us social@ennoview.com See you here next week on Envision Pulse!
