Dallas—July 18, 2014—By 2015, nearly 50% of all U.S. salons will offer some form of the booth rental/leasing model, and in the long run, there is little doubt that the better managed, private and corporate chains and booth rental salons combined will satisfy nearly 75% of all U.S. salon consumer market needs, according to the new “Professional Salon Industry—2013, Chair and Suite Rental Study” from Professional Consultants & Resources (PCR), the leading strategic consultancy and salon industry data source in the United States. The new study also features a special section on strategies for Marketing and Selling to Chair and Suite Rentals.
“The chair and suite rental tsunami has hit the U.S. salon market. While independent artistic salons catering to high-end clients will always play an important role in the professional salon industry marketplace, this business model will continue to lose market share to booth/chair rentals and chain salons,” says Cyrus Bulsara, president of PCR. “The most likely outcome will be the evolution of new hybrids that combine the best client- and stylist-centric practices from all business models.”
The study provides a groundbreaking, in-depth look into all aspects of the fastest growing segment of salons. It includes a detailed analysis, insights, trends, projections and opportunities needed by manufacturers, distributors and chain salons to capitalize on the trend. The study provides an accurate snapshot of the rental market and its impact on the entire U.S. salon landscape. Two salon industry veterans with more than 50-plus years of experience in marketing, sales and education and who teach and lecture thousands of beauty professionals each year have collaborated with PCR to produce this must-have, in-depth study.
Importantly, the study helps to demystify this exploding channel by clearly delineating all aspects of each model. The study identifies both challenges and opportunities for all types of salon organizations, as well as for marketing/sales organizations selling into the rental segment. The study contains a detailed topline analysis of pertinent salon industry data: market size, category size, segment size, channels, salon services data by type and all major trends impacting the salon industry in 2013.
The study also includes an historical look at the models, booth rental definitions and an incisive analysis of current models: 1. traditional multi-service rental salons, including shared chair rental and luxury salon chair rental, 2. salon suites (private rooms within a salon for each provider), including independents, chain and franchisees, and 3. the growing niche of blended rental/commission salons.
The study looks at the prognosis for future growth, pros and cons and a detailed review of chain salons entering rental—a growing model for chains to compete against. On the marketing/sales/education front, the study examines salon industry trade and consumer promotion trends, including distributor promotions, salon and stylist promotions, salon client/consumer promotions, and more with in-depth recommendations. The report details marketing strategies targeted to booth renters and rental salons, including technology related productivity tools, and the use of the Web and social media platforms to support this emerging niche.
Major study highlights include the following findings:
- Sola Salon Studios, with 240 suite rental salons in 36 states, offers luxurious suites, business management support and education to support independent stylists. Salon Suite franchise organizations are transforming the salon landscape with the fastest growth.
- Independent stylists strongly drive sales at open-line Sally stores and full-service sales at Beauty Systems Group/Cosmoprof, Salon Centric and other distributor stores. Purchasing habits/inventory needs are distinctly different from other models.
- Chair/Suite rentals continue rapid growth in most U.S. regions, as clients follow their stylists for personalized, private services, and move away from big, older, chain salons like Regis. Mid-tier chains, including jcp Salons, Toni & Guy, and Ratner brands such as Hair Cuttery, are under pressure.
- Consumers perceive little difference/value between salon types that provide consistent stylist skills, ambiance and service.
- Manufacturers and distributors need a sales/marketing strategy for each group of rental salons/stylists targeted. Strategies and tactics for rethinking packaging, promotional and pricing strategies are suggested. Tech tools/e-commerce needs are addressed.
- Affordable business management tools are easily accessible to independent stylists, who are using their mobile devices to manage their businesses with new technological productivity tools, management apps and referral platforms.
- Mobile friendly online booking, marketing and payment processing tools such as My Chair App, Salon Booker, Squared, Schedulicity, Style Seat, Vagaro are heavily utilized by independents to compete with both chain and independent salons.
This is a must-have study for all manufacturers, marketers, distributors, chain salons and booth rental entrepreneurs, if they are to survive and grow in the dynamic, growing chair and suite rental salon segment. Do not ignore this huge, dynamic trend!