Beauty Industry in 2013 at a Glance
Comprised of a diverse yet interrelated set of business lines, the beauty industry helps us look and smell our best. But our concern with our appearance is hardly anything new; indeed the beauty industry has been expanding and growing for all of recorded history. For the interested entrepreneur this continuing growth and evolution offers a diverse menu of opportunity.
The beauty industry today encompasses far more than cosmetics and skin care products. A wide range of services and products are available to help us put our best face forward, and the beauty industry now also encompasses hair styling and hair removal, nail and tanning salons, massage parlors, shower and shaving products, perfumes, colognes and more. It has become more of a retreat from the busy life to
Lotions, Treatments and Baths.
Beauty industry opportunities can be broadly separated between products and services, though many providers offer both. Within both products and services, however, exist a wide range of business models based on target market, production processes and location. Today, we see rows of Skin Moisturisers which is no longer a choice only of brand but between what makes each product unique.
While the diversity among service providers is not quite as extensive, there is considerable differentiation between offerings based on price, location and target markets.
Different Beauty Franchise Opportunities
| Hair Care | Stylists, salons, shampoos/conditioners, coloring product, styling product (gels, sprays, etc) |
| Cosmetics & Skin care | Make-up, moisturizing lotions, tanning salons, sun care products |
| Fragrance | Perfumes, body sprays, cologne, deodorants |
| Miscellaneous | Nail polish, shaving products, massage parlors, hair removal services |
Beauty Industry Trends
Such diversity and innovation exists because we demand it. The beauty industry continues to expand globally, with some projections claiming 8.5% growth by 2014; revenue growth in 2010 is estimated at 3.3%. Several trends support this expansion and promise continued profitability into the future.
Globally, rising per capita incomes and greater access to international markets are increasing spending on discretionary items such as perfumes and cosmetics. Though the recent economic turmoil had decreased spending on some discretionary products in the United States, purchasing of beauty products has remained strong. Consumers did tend to be more price-conscious however, with over 70% of survey respondents claiming to give mass market products more consideration over high-end products during the downturn.
Perhaps not as surprising as it once was, one of the fastest growing segments of the beauty industry is products and services aimed at men. Traditionally focused on female consumers, men today are gaining increasing attention from the beauty industry.
Understanding Consumers
1. Usually brand loyal
2. 58% of those surveyed claimed that personal recommendations weigh more heavily than celebrity marketing.
3. Only 44% bought a particular product for its claim of specific product attributes.
4. Highly responsive to free samples, discounts for referrals and loyalty programs.
Beauty Industry Franchise Opportunities
From product innovation, organic industry growth and continued growth into the male half of the population, the beauty industry continues to offer a diverse set of profitable franchising opportunities. Beauty franchises exist across the space with dozens of strategies reaching all types of consumer based on cost, location and gender.
As we can see, the beauty industry encompasses a wide range of products and services, and franchising plays a major part in bringing them to the consumer. As the industry continues to grow and evolve, profitable opportunities will abound…the hard part is choosing which one!
Partner with Socialwalk to assist you in engaging the right suppliers and buyers to be the next commercial franchisee! Just drop us an email or leave a comment below for a 1-hour consultation.
Source of article: http://www.franchisehelp.com/industry-reports/beauty-industry-report
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