Skincare has a larger market share in the beauty industry than hair care (22%) and makeup (18%) combined. The Asia-Pacific region is currently the world leader, with more than 40% of the market. The beauty services industry was one of the sectors most affected by the pandemic, but it is now firmly on the path to recovery. Beauty salons provide products and services that improve their customers' physical appearance and mental relaxation.
Those who want to enter, maintain a stake or grow in the beauty services industry must understand the factors driving this fragmentation in order to compete with the ever-expanding network of small and medium-sized companies. Examples of services with minimal investments in store infrastructure include makeup services, hairdressing services without water, such as blowouts and hairstyles, and 15-minute injectables. Enhancing the customer experience is becoming essential for success in the beauty services sector, just as it is in the entire retail sector. As a makeup artist, you will provide customer service to make them look their best for weddings or other special events, and you will give beauty changes to people who want to update their everyday images.
Beauty service providers, such as salon owners, have an opportunity to diversify their revenue streams, but they must expand product sales, develop partnerships with brands and retailers to help expand their presence and improve the skills of their employees. While cosmetics counters in department stores have offered makeup services in exchange for product purchases for decades, recent next-generation beauty havens have fueled customer expectations for a new testing and testing park. Five macro trends will affect the growth of various segments of beauty services in the coming years (Figure 2). The beauty services industry has long been fragmented, driven in part by historically low barriers to entry.
Beauty service providers seeking to thrive in this evolving market should expand product sales, develop partnerships with brands and retailers, and train their employees. Beauty brands and retailers that want to take advantage of complementary service offerings should develop a clear strategic objective, focus on the customer experience, and carefully consider their capital spending requirements. The beauty industry, especially beauty services, was significantly affected by the COVID-19 pandemic, but it is recovering. The five trends outlined in the previous section will fundamentally reshape the beauty services industry.
Fortunately, the continuous blurring of the line between beauty products and services opens up a number of different opportunities. Service providers are developing and marketing increasingly specialized services with the goal of making customers feel that the menu of offers is designed “for me”.