BEAUTIFUL BRITAIN. Outlooks and trends from the UK s hair and beauty industry. Industry remains positive despite customer challenges
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1 BEAUTIFUL BRITAIN 2015 Outlooks and trends from the UK s hair and beauty industry Industry remains positive despite customer challenges Opportunities for growth in 2015 Top regional trends
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3 welcome... Hello, and welcome to the BEAUTIFUL BRITAIN report Thank you to the 2,557 people who took part in this year s survey. Your help has been invaluable in the development of this report and we are very proud that Beautiful Britain continues to be an industry leading survey for the fourth year running. It s clear from our survey results that 2014 was a mixed year for the hair and beauty industry. On one hand, feeling across the industry is positive; 90% of respondents planned to maintain or increase headcount and two thirds of you saw an increase in customers, sales or both. On the other hand, thrifty consumer habits and technology have made loyalty much harder to come by, which in turn has caused a reduction in treatment prices and an increase in time between visits. In addition to customer retention, we also know that attracting new customers continues to keep salon owners and mobile workers awake at night. Our profession is one of the most flexible in the UK. As we adapt to this landscape, I know new opportunities will open up. In particular, there is still significant scope to entice the burgeoning male market and capitalise on emerging trends such as couples treatments. For many of you this will mean investing in new treatments, equipment and marketing strategies. As an industry, we re known for our role in the growth and nurturing of young talent. The creation of hair and beauty apprenticeships is testament to the dedication that professionals have to securing the future success of the sector. One aspect of our industry never changes: the dedication and commitment of all of you. Whatever the year ahead brings, I m proud to say that Salon Services is here to support you now and in the future. Richard Hull Managing Director Salon Services UK & Ireland A SNAPSHOT OF THE UK S HAIR AND BEAUTY INDUSTRY BEAUTIFUL BRITAIN 2015
4 A POSITIVE OUTLOOK HAMPERED BY LACK OF LOYALTY During the past year, high streets across the country have slowly begun to feel the effects of economic recovery. Like many, our industry has also shown some encouraging signs of growth. This is in line with wider business trends; Barclays Bank s annual small business survey showed that, on average, the income of small businesses grew by 7.4% in 2014 the highest level of growth in 14 years. Improved market conditions sustained positive feeling among hair and beauty professionals. Levels of optimism remained high versus 2013, with a slight decrease in the number of professionals feeling less positive than before. And there is reason for optimism: compared with last year, 8% more professionals are seeing a rise in customers. More than half of professionals (58%) believe that loyalty is scarce, with clients in Northern Ireland, the North West and the West Midlands being named the most fickle by respondents. Professionals in the South East bucked the trend by benefitting from the highest levels of customer loyalty. The vast majority (80%) of industry professionals attribute this reduction in loyalty to an increased appetite amongst clients to find the cheapest deal, fuelled by online discount sites and social media, which make it easier than ever to shop around for the lowest prices. Unsurprisingly, after a decade of difficult economic news the industry remains cautious in its approach to expansion. Plans for increasing staff, for example, have leveled off at 37% of salons surveyed. Although this is an encouraging figure in itself, it is considerably lower than for small businesses in other industries with research from the Federation of Small Businesses (FSB) in September revealing that 60% of SMBs expected to have grown by September Fragile customer loyalty looks to be partly responsible for this cautious sentiment. Customers that have adopted thrifty spending habits during the recession are using technology to seek out the cheapest prices, rather than returning to one salon or professional. This is driving down treatment prices and making visits less frequent.
5 % Customers looking for the cheapest deal Influences on customer loyalty 80% customers looking for the cheapest deal 48% online discount sites 42% internet and social media allowing more shopping around 12% people moving around the country more 7% less word of mouth recommendation Loyalty is only one half of the equation; professionals need to attract clients in the first place. Interestingly, two-thirds (66%) of salon owners told us they ve had to work harder to bring clients in over the past year and a lack of custom keeps almost half (45%) of professionals awake at night. The pursuit of the cheapest deal has had a negative impact on the pricing and frequency of treatments. Last year, the average basket of treatments for UK female customers was 702*, a sizable decrease of more than a third (32%), compared with Perhaps as a result of a difficult year in 2014, fewer mobile workers plan to reinvest in their business by, for example, adding new treatments or investing in equipment or training. In fact, more than a quarter (28%) of mobile workers did not invest in their business at all last year. *Compared to last year s total of 1,033, the basket of popular treatments for women this year is 702 [haircut ( 25 every 7.3 weeks), colour ( 35 every 7.7 weeks), tan ( 16 every 7. 2 weeks) and manicure ( 16 every 5.2 weeks)] Mobile workers in particular found last year challenging, with more than a third (36%) stating that 2014 was not a good year. Interestingly, this group of professionals reacts differently to tougher trading circumstances, being 16% more likely than salon owners to slash prices but almost a fifth (18%) less likely to use digital tools to increase sales or customers. A SNAPSHOT OF THE UK S HAIR AND BEAUTY INDUSTRY BEAUTIFUL BRITAIN 2015
6 THE PRICE IS RIGHT Overall, treatment prices remained stable in 2014 compared with the previous year, but this still represents a sharp drop from Since then, both female and male treatment prices have dropped significantly, probably due to efforts in attracting new customers and maintaining customer loyalty. We found that the average price of a female hair colour treatment in 2014 was 20% lower than in 2012, while the price of a women s hair removal procedure more than halved during the same period from 33 to 14. We also saw a dip in the prices of male treatments, with the average price of a male manicure/pedicure and hair colour treatment dropping by around a third. Despite this competitive pricing, many customers are leaving it longer between treatments and are less likely to be loyal to a single salon or professional. Time between treatments increased across the board, particularly with luxury treatments. This impacted tanning, facials and manicures with length of time between tanning sessions growing from 22 to 51 days. Worryingly for professionals, even time between standard women s treatments increased significantly; with the duration of time between haircuts growing from 40 days to 52 days. Although customers normally leave longer gaps between hair colourings than haircuts, the time has been extended from 43 to 54 days. Compared with the same basket of goods last year, based on average price and average time between treatments, the annual spend for women decreased from 1,033 to 702. Male customers average spend was also down with a decrease from 888 to 541, although salons could take some consolation in the increase in male customers overall. One of the things we focus on across our salons is giving the most personalised service possible to all our customers. We find this helps to secure loyalty and keep customers coming back, even when economic conditions are tougher. Charles Worthington MBE Charles Worthington Salon, London
7 Tipping Professionals in the West and East Midlands and South East are least likely to be tipped by customers Customers in North West England and Wales most generous when it comes to gratuity 35% of customers fail to tip after a treatment Treatment prices for both men and women overall have dropped significantly over the last three years particularly in women s hair removal treatments, hair colour for men and women and men s nail treatments haircut hair colour manicure hair removal pedicure tanning haircut hair colour massage hair removal manicure / pedicure Women are leaving significantly longer between treatments compared with the previous year. Duration between female treatments (in weeks) haircut 25% increase in time between treatments hair colour 24% increase in time between treatments facial 69.5% increase in time between treatments tanning 132% increase in time between treatments hair removal 46% increase in time between treatments manicure 67% increase in time between treatments pedicure 52% increase in time between treatments A SNAPSHOT OF THE UK S HAIR AND BEAUTY INDUSTRY BEAUTIFUL BRITAIN 2015
8 A MIXED BAG FOR HIRING IN 2015 Businesses across a number of regions saw a dip in staff numbers as salons remained cautious in The average number of people employed by UK salons in 2014 was 2.2 full-time employees and 1.9 part-time employees, down very slightly from 2.5 full-time and 2.3 part-time in Despite this, almost three quarters (73%) of salons maintained full-time headcount, and over two thirds (68%) maintained part-time numbers. We see room for growth after a cautious 2014, with signs that industry optimism could be returning following the economic down turn of Over a third (37%) of salons surveyed said that they plan to increase headcount this year. In Scotland, this trend has already begun, with the biggest increase in headcount in Full-time employees were up from 2 to 2.8 and part-time staff increased from 1.4 to 2.4 over the last 12 months. Looking to the year ahead, we find optimism greatest in the South East where over half (53%) of salons plan to increase staff levels this year, closely followed by Scotland (48%) and London (45%). On the flip side, almost a third (29%) of businesses in Wales (29%) plan to decrease team sizes in the coming year. Growing your own... UK salons are also among the UK s biggest supporters of the Government s apprenticeships scheme. As many as one in five UK salons currently employ one or more apprentices, and incredibly half (52%) of all salons are set to hire one this year - which could potentially create over 28,000 apprenticeship positions across the UK. This trend really could grow following the recent decision to remove national insurance for apprentices under 25. Whatever their route into the profession, most of the professionals that we surveyed told us that they are happy with their chosen role with an amazing three quarters (76%) claiming that hair and beauty is their career for life. We can proudly say that qualifications and training remain a key priority for many professionals, both in salons and as mobile workers, in the UK hair and beauty industry. 93% of salon owners/managers believe that qualifications are essential for their staff. Most of you (89%) are qualified and have completed training courses (95%). 90% of mobile professionals have a hair and beauty qualification with an additional 2% currently enrolled. Over the last 12 months we ve taken on over eight apprentices across our network of three UK salons as we continue to see the benefit of investing in young talent in the hair and beauty industry. We ll continue to encourage applications from apprentice candidates this year to help bring more young people into the industry. Charles Worthington MBE Charles Worthington Salon, London
9 Full-time 91% of salons have either maintained or increased headcount Part-time 92% of salons have either maintained or increased headcount Hiring intentions 4% 64% 32% 4% 70% 26% 1% 38% 61% 3% 61% 37% more staff same staff less staff 37% UK é salons plan to hire more staff Number of full-time employees by region - Year-on-year comparison UK Average East East Midlands London North East North West Northern Ireland Scotland South East South West Wales West Midlands Yorkshire & Humber Number of part-time employees by region - Year-on-year comparison UK Average East East Midlands London North East North West Northern Ireland Scotland South East South West Wales West Midlands Yorkshire & Humber A SNAPSHOT OF THE UK S HAIR AND BEAUTY INDUSTRY BEAUTIFUL BRITAIN 2015
10 THE UK s HAIR & BEAUTY HOTSPOTS SCOTLAND NORTH IRELAND NORTH EAST YORKSHIRE NORTH WEST EAST MIDLANDS WEST MIDLANDS EAST WALES SOUTH WEST SOUTH EAST LONDON average cost of female haircut average cost of male haircut
11 SCOTLAND Undone up-dos are to be the biggest trends for Scottish women for 2015 Men in Scotland list facials as one of their top three treatments NORTH EAST Female customers spend an average of 9 on products following treatments Cheapest regions for a men s hair colour at 19 YORKSHIRE Cheapest region for women s hair removal at 10 23% of professionals plan to add male grooming to their menus in 2015 EAST MIDLANDS Cheapest region for a pedicure at Cheapest region for male hair removal at 11 EAST Facials are most popular with women in the East of England 89% of professionals have seen an increase in the number of male customers LONDON Most expensive region for a women s haircut at 40 70% of professionals find clean-shaven the most highly requested facial hairstyle SOUTH EAST Female manicures are most popular in this region The full beard facial hair trend is more popular here than any other region SOUTH WEST Women in this region leave the longest time between hair removal treatments at every 8 weeks David Beckham is the biggest celebrity style inspiration for customers in this region WALES Women have hair removal treatment most frequently in this region at every 5 weeks Male nail treatments are more popular here than any other region WEST MIDLANDS The wavy style is set to be the biggest female hair trend over the next year Men are more lax about hair removal, leaving 9 weeks between treatments NORTH IRELAND Cheapest region for a women s manicure at % of professionals have seen an increase in male custom over the last year Scottish men put a lot of pride in their appearance. In addition to getting frequent haircuts, they also like to indulge in facials to make sure they are looking their best. We are definitely seeing a growing trend for messy chic hairstyles for our female clients. They want something that is easy to style but still looks edgy and modern. Philip Politi Owner of the Philip Politi hair and beauty salon in Edinburgh Treatment bundles are always a favourite with our female customers. Styling/blow dry plus make-up is the perfect hair and beauty prep package for a night out at the weekend. Melanie Hill Owner of Chic Hair & Nail Lounge, Liverpool A SNAPSHOT OF THE UK S HAIR AND BEAUTY INDUSTRY BEAUTIFUL BRITAIN 2015
12 TOP TRENDS FOR 2015 Celebrities will always be the ultimate hair and beauty inspiration for clients but as trends come and go, so do the style icons. Battle of the royals Cheryl Fernandez-Versini steals back her crown from the Duchess of Cambridge to be the most popular style inspiration for UK women in UK women are inspired by Cheryl s stylish return to The X Factor last year and looked to professionals to replicate her edgy high ponytails, glamorous waves and 60s-inspired bouffants. However, the Duchess of Cambridge, who came out on top overall last year, is still a firm favourite with Londoners with the majority claiming to love her elegant and refined style. Geordie Cheryl comes second for Londoners with 12% saying she s a top style inspiration. As the UK s pop princess and the Duchess of Cambridge continue to fight for title of top hair and beauty icon, reality TV stars also remain an inspiration. The ladies of TOWIE still lead the reality TV fashion pack, claiming 10% of the professional vote with their bigger is better approach to hair and beauty, and Kim Kardashian s dramatic and high-maintenance look has grown in popularity, accounting for 9% of votes. Most popular female treatments Haircut Haircut Haircut Haircut Hair colour Hair colour Hair colour Hair colour Hair styling Manicure Hair styling Hair styling Manicure Hair removal Manicure Manicure Hair removal Hair styling Hair removal Eyebrow treatment Most UK women are tired of playing it safe and are moving on from Kate Middleton s pretty, but tame, style and gravitating towards Cheryl s more urban and modern looks. Cheryl s new hair colour, which is a luxurious mix of blonde and brown shades known as bronde, is making waves with customers wanting something more exciting than just single tone colour. Errol Douglas MBE, award-winning hair stylist and owner of Errol Douglas Salon, London For UK women, it s still all about the hair and that is unlikely to change. Haircuts, hair colour and styling remain the most popular treatments for UK women with wavy hair and undone up-dos continuing to be the biggest female trends for After hair treatments, manicures are the next most popular treatment as the nail art trend carries on - 20% of survey respondents list it as a top treatment. Eyebrow treatments this year are on the rise thanks to celebrities like Cara Delevingne. over 30% say Cheryl has made a comeback as top style icon for UK women 48% 41% say waves will be this say messy chic up-dos year s most popular style will be the style of 2015
13 Haircuts, hair colour and facials are still the top three male treatments in the UK. Fuzz-free trend amongst UK men takes off again as hair removal treatments are more popular than massages since Male nail treatments are not proving to be a lasting trend as there is more of a focus on lux treatments such as facials and massages plus the essentials (hair and hair removal). Is bronzed no longer beautiful? Tanning is falling out of favour, with only 3% of UK hair and beauty professionals saying it s a top-requested female treatment, compared with 12% in 2013 and 16% in UK male customers are also giving tanning the cold (and pale) shoulder. According to respondents it s become their male clients least popular treatment. King Becks continues to reign David Beckham clings to top spot for the fourth consecutive year, with over half (51%) of survey respondents saying he is still the top inspiration for their male clients. Mark Wright comes in second and Ryan Gosling third proving that the dapper look remains on trend in the UK. According to nearly three quarters (72%) of professionals, the top UK male look of 2015 is short sides and long on top with a clean-shaven look, but it will be interesting to see if the man bun (17%) and long hair (15%) becomes a lasting trend this year. Full beards are also here to stay, according to 62% of UK hair and beauty professionals, disproving the theory that we ve reached peak beard. We do know that shaved head designs will remain at the bottom of 2015 s trend list as UK men shun the look in favour of a full head of hair this year. Most popular male treatments Haircut Haircut Haircut Haircut Massage Hair removal Hair colour Hair colour Hair removal Massage Facial Facial Hair colour Hair colour Massage Hair removal Facial Nail treatments Hair removal Massage UK men are becoming bolder with their appearance as styles such as the man bun and long hair are slated to be the next big trends. Celebrities like 1D s Zayn Malik, Will.i.Am and Jared Leto are paving the way for edgier male style. Styled facial hair remains a big trend for UK men. Full beards and moustaches are gaining popularity which could explain shave treatments increasing in popularity as opposed to tanning which is at an all-time low. Errol Douglas MBE, award-winning hair stylist and owner of Errol Douglas Salon, London A SNAPSHOT OF THE UK S HAIR AND BEAUTY INDUSTRY BEAUTIFUL BRITAIN 2015
14 OPPORTUNITIES FOR 2015 ADVICE FOR GROWTH In many respects, 2014 was a challenging year for the industry. However, 2015 holds many opportunities for professionals that are ready to adapt. Make the most of male grooming The number of men looking for male grooming services is no doubt on the rise. Almost all salons (91%) and three quarters of mobile professionals we surveyed said they ve experienced an increase in male custom in the last year. But are you making the most of this growing customer base? There s definitely still an untapped opportunity for more UK hair and beauty professionals to offer male grooming services and to get more male customers through the door. Using social media and having a solid online presence can be key in drawing in more male customers. Recent research from Halifax shows that 68% of UK men look online for the best deals. 38% of professionals do not offer male grooming services and have no plans to in future. Less than half currently offer any male treatments. UK men, on average, can spend around 63 1 on a package of the three most popular male grooming treatments: haircut, hair colour and a facial. Not only that, they visit every five weeks for a haircut and every nine weeks for hair colour and facials. If your salon s male customer base grew to 20 men, you could potentially add an additional 8,600 2 a year to your business turnover.
15 Indulge in couples therapy Going for hair and beauty treatments as a couple is a growing trend (according to 40% of respondents). There could be opportunities to capitalise on special occasions such as Valentine s Day, anniversaries and birthdays by offering special couples discounts and bespoke treatment packages. Offering couples deals could be another way to boost your male customer base and encourage them to return for essential grooming treatments, such as haircuts. The importance of upselling Complementary product purchasing can be an important revenue stream for salons and mobile workers, particularly when pricing and frequency of treatments fluctuate. In 2014, average customer spending on products reached a high of 10. You could aim to increase this further by, for example, offering combined deals for treatments and products, and encouraging clients to sample products that are on sale. 1 Based on the 2015 average price of a men s haircut ( 13), men s hair colour ( 24) and men s facial ( 25.70) in the UK 2 Based on the 2015 average UK prices of men s haircut ( 13) every 5 weeks, men s hair colour ( 24) and men s facial ( 25.70) every 9 weeks A SNAPSHOT OF THE UK S HAIR AND BEAUTY INDUSTRY BEAUTIFUL BRITAIN 2015
16 This year s Beautiful Britain report shows that, although there is plenty of optimism among professionals for the year ahead, 2015 is not without its challenges. Declining customer loyalty, new trends and increased competition may seem daunting, but they are also opportunities to embrace investing in new services, training and marketing activities. The business of hair and beauty relies on creativity, innovation and evolution, so we need to make sure we continue to meet the changing demands of our customers and our industry. We hope that this report provides you with useful insight into current trends and helps to inspire you to build your business. Salon Services #beautifulbritain salon-services.com
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