Project Beauty

Market Overview and Key Statistics: Project Beauty

 

Market Overview:

The current UK salon market comprises 12,370 outlets offering beauty treatments and is estimated to reach 14,425 by December 2005.

Market turnover of salon-based outlets is expected to reach £1.15 billion by 2005 across 8,855 units, driven by strong consumer demand and increasingly busy lifestyles, greater affluence, and a growing focus on personal well-being and appearance. Greater media coverage of beauty and an ever-widening variety of beauty services available have also driven popularity and increased visits to beauty salons and spas over the past 2-3 years. These trends will continue to drive the market forward.

UK consumers are also spending more on beauty products than in the past, while pharmacies and department stores remain the most popular places to purchase beauty product brands.

The majority of consumers change beauty product brands 'often' or 'sometimes'. 'Value-for-money', 'tailored to skin type' and 'brand name' are key factors for selecting a given brand, while therapists and friends/family are the main purchase influencers.

While customer loyalty to salons is high, 'convenience of location', 'therapist relationship' and salon environment are the main reasons for choosing a specific salon.

Key Market Statistics:

Overview

• The UK beauty salon market is estimated at 12,370 units in 2003 and is forecast to grow at a compound annual rate of 8% to 14,425 outlets in December 2005
• Total revenue for salon-based outlets is forecasted to grow at a rate of 11% per year to reach £1.15 billion by 2005 across 8,855 units.

Salon and Spa Visitors

• 66% of salon customers surveyed state they visit beauty salons more now than in the past, with 61.6% of customers visiting salons and spas for beauty and relaxation treatments at least once a month 
• The main reasons for selecting a salon are convenience of location and the therapist, with 80% of customers indicating loyalty to their salon 
• Salon customers' key health and beauty goals are 'feel better,' 'pamper myself' and 'healthier skin'
• More than two-thirds of salon and spa customers believe themselves to be well-informed about the types of beauty products and services on the market 
• 'Value-for-money', 'tailored to skin type' and 'brand name' are key factors for selecting a given beauty product brand, while therapists and friends/family are the main purchase influencers 
• The majority of customers change beauty product brands 'often' or 'sometimes' because they like to try new products, they noticed decreased effectiveness of their current products, or due to recommendations of their therapist, friends or family. 
• While 58% of salon customers change brands often/sometimes to trial new products and gain more effective results, 42% remain highly loyal to their brands

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