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Retailing and revenue
Interested in how clients spend their beauty dollars? Curious about revenue across the industry? Get some of the latest spa industry stats here! And check out renew's state of the industry story, "The Two Sides of Spa," in the upcoming November/December issue. Where do clients spend money? -
by Staff
September 28, 20122 min to read
Interested in how clients spend their beauty dollars? Curious about revenue across the industry? Get some of the latest spa industry stats here! And check out renew's state of the industry story, "The Two Sides of Spa," in the upcoming November/December issue.
Where do clients spend money?
- 81% on hair care
- 61% on skincare regimes
- 47% on facial treatments
- 29% on eyebrow/lash tinting and shaping
- 23% on tanning
- 21% on hair removal
“If money were no object,” survey respondents say they would spend most on body massages, teeth whitening, hair care, facial treatments, manicures and pedicures.
Sixty-four percent invest in grooming because it makes them feel better about themselves. In the Latin American market, this jumps to 84%. Only 34% invest in beauty products to attract a partner; 62% want to look good for their current partner.
Why do clients choose products?
- price 63%
- brand 47%
- product’s promise 31%
- friend’s recommendation 30%
Where do they buy products?
- supermarkets 53%
- department stores 47%
- drugstores 40%
- salon/spa 20%
- Internet 18%
Source: Nielsen 2007 Global Beauty Study of Purchasing Habits.
What’s up?
The number of spas and the total square footage. About 800 spas were added between mid-2006 and mid-2007, with the total figure growing from 13,800 to 14,600. Space allocation grew 12 percent, increasing square footage from 49 million in 2006 to 56 million in 2007.
What’s down?
Revenues, visits and staff numbers. Total revenue dipped from $9.7 billion in 2005 to $9.4 billion in 2006; the 131 million visits in 2005 slowed to 110 million in 2006; and total staffing sagged by 12 percent.
What does it mean?
“As with any industry that is expanding at a healthy, steady pace, we are starting to see shifts within the spa industry as it becomes more sophisticated,” says International SPA Association President Lynne McNees. “The shifts appear to be toward growth in the niche segments, including resort/hotel and medical spas. Consumers are smart, and they know what to expect from a spa. Therefore, the operations that have not kept up with the quality are suffering from the intense competition. Spa-goers will benefit from this healthy growth as they can feel more secure that the spa they go to is a quality establishment. With some 100 million spa-goers around the world, the spa experience is a mainstream part of society and a leading leisure industry.”
Source: 2007 ISPA Spa Industry Survey (figures apply to U.S. market).
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