Expert Advice

Be Prepared: 2008 Professional Salon Industry Study

Victoria Wurdinger | July 10, 2011 | 7:09 PM

Yes, times are tough. As your salon hones its business strategy over the next 18 months, it helps to understand the status of the entire industry, including pockets of potential growth.

Analyst Cyrus Bulsara, of Professional Consultants and Resources (PCR), recently released its 2008 Professional Salon Industry Study—the closest thing we have to a crystal ball. Some of the reports highlights include:

  • Professional beauty is still growing—up 2.8 percent overall in 2008, with hair care soft goods at 2.1 percent, although Bulsara points out this is the slowest growth rate since PCR began tracking data 20 years ago. Shampoos and conditioners also experienced low growth due to realignments, mass-retail brands and diversion.
  • Sally Beauty/BSG globally grew 5.3 percent in 2008, with Sally stores up 6.6 percent and BSG/Cosmoprof stores up 3.2 percent.
  • Hair color experiences lowest growth in years, at just 3 percent.
  • As consumers spend more time and money on home styling, the hardgoods/electrics category grew 8.5 percent due to the brisk sales of flat and curling irons, dryers and other tools.
  • Economy chains surge in growth, with Great Clips increasing franchises by 37 percent, and Sports Clips performing well.
  • The home styling trend fuels sales of specialty products, such as thermal protection and hair-loss prevention products, which grew at 6.7 percent, and hair styling (wet line) products which increased 6 percent.
  • Trends that currently impact salons include booth rental, which grew to approximately 25 percent of all salons in 2008, consolidation and product diversion.

To find out information about obtaining a full copy of the report, contact Cyrus Bulsara at

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