Beauty Franchise Industry Report - Industry Trends (2)

Industry Trends

The Modern Man

Long dominated by women, the beauty industry is making a shift towards more equal targeting between women and men. Nowadays men in general are more outwardly concerned about the way they look, leading it to become common and increasingly more socially acceptable for men to visit beauty establishments. In response, recent times have seen many franchise concepts developed to capitalize on the growing needs of the “modern man.”

One of the first franchise concepts to target the male demographic is Sport Clips. According to Logan, “There are approximately 200,000 hair care establishments in the U.S., and the vast majority is targeted towards a primarily female clientele. We are in a greatly underserved market for men and boys.” There is “tremendous potential for growth in our segment, which is virtually untapped. We are looking at many more years of adding 100+ stores in all areas of the country.”

A Little Off the Top, is another hair salon geared towards men, but one that offers well beyond a simple haircut. According to the franchisor, a neck and shoulder massage is included with every cut at the salon within an upscale setting that has a “sexy, fun atmosphere.”

But it’s not just hair care that has seen an increase. In their May 2011 report, consumer market strategy research firm Euromonitor International says, “While the metrosexual craze has come and gone, the grooming-conscious male is here to stay. As such, men’s grooming is expected to grow steadily.” The research firm projects average annual growth rates of over 1% that will add around US $400 million to the category in the upcoming years.¹   Products that fall in this category include niche items, sometimes referred to as “men's enhancement products,” such as lash-styling glaze, eye pen, nail pen and lip balm/lip agent. These products are in addition to the more mainstream items like shaving items, body washes, shower gels, hair gels, colognes, deodorants, etc.

Eco-Friendly

Consumers have never been more aware of the link between the products they use and the effect those products are potentially having not only on themselves, but the environment as well. As a result, beauty product and service providers have sought more sustainable ingredients for their products and manufacturing processes. A challenge for franchisors and service providers within the industry going forward will be to continue replacing synthetic ingredients with equally effective natural or organic materials while keeping costs as low as possible – both to themselves and the end consumer.

Here are just a few ways beauty franchisors are adding sustainability into their methods:

• Using less or recycled material for packaging.
• Establishing relationships with eco-friendly product companies.
• Using all natural & organic products that contain no waxes, heavy or synthetic oils, alcohols, artificial coloring or fragrances, or un-natural preservatives.
• Producing products through eco-friendly methods such as using 100% wind-powered energy and Green-E Certification procedures.
• Recycling waste from the business, like donating hair clippings to companies that manufacture oil absorbing mats for cleaning up oil spills.
• Responsible use and disclosure of nanotechnology.
• Abstaining from animal testing.

 ¹http://www.euromonitor.com/mens-grooming-in-the-us/report

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