Beautiful Britain 2013

beautiful britain 2013 Outlooks and trends from the UK’s hair and beauty industry Industry remains resilient Beauty treatments for men and women are key to success Regional hot spots emerging professionals together

Methodology: beautifulbritain findings are based on an online survey of 2,224 Salon Services UK customers and 394 Beauty Express UK customers in Q1 2013.

According the most recent figures from Habia (2011), the UK hair and beauty industry has a total turnover of

ÂŁ6.2bn

welcome It’s great to be back with our second edition of the beautifulbritain report, sharing real insights from you – the professionals – at the heart of the UK’s hair and beauty industry.

Firstly I would like to extend a very big thank you to the 2,618 of you who responded to our survey. You have helped make this an even bigger and more representative report than last year, ensuring we have the fullest picture of sentiment within the hair and beauty sector.

The picture you paint is one of challenge.

Spend on hair and beauty – historically resilient in the face of challenging economic conditions – is showing the early signs of financial pressure.

We commissioned beautifulbritain 2013 to examine these trends and to better understand how creativity and business know-how is being combined to tap into new markets such as male grooming.

Ultimately, this report is designed to help you – the professional – make better informed decisions. I hope you find it useful and stimulating.

From all of us at Salon Services, we look forward to supporting you and your business throughout 2013.

Whilst this may be on the margin – some respondents report longer periods between certain treatments for example or prices being kept low due to competition whilst others remain confident – this is no time for anyone in our sector to be complacent.

If we are to continue to thrive it is critical that we all stay ahead of trends, continue to develop new treatments for customers and create vibrant environments that delight our clients and encourage repeat business.

245,795

Richard Hull Managing Director Salon Services UK & Ireland

people are employed in the UK hair and beauty industry, according to the most recent figures from Habia (2011).

beautifulbritain : a snapshot of the UK’s hair and beauty industry in 2013

Inspiring the business of beautifying continuing economic challenges. On average, 96% of respondents expect to maintain or increase employee numbers in the next 12 months and 87% feel the same levels or increased optimism for the year ahead.

Even as Britain’s high streets are changing and the economy remains in a constant state of flux, men and women across the UK still take pride in their appearance, but are reassessing the spend and frequency of hair and beauty treatments in the current economic climate.

The average number of people employed by UK salons in 2012 was 2.1 full-time employees and 1.5 part-time staff, up from 1.9 full-time and 1.5 part-time employees in 2011.

The survey findings are generally reflective of the broader economic situation across the UK, with areas which have been seen to be struggling more, such as the South West, East and Wales, seeing a slight decrease in staff numbers.

However, most hair and beauty professionals across the country remain positive despite the

Business seems to be booming in London, where salons have noticeably increased the number of full-time employees over the past 12 months. According to the 220 survey respondents from London, salons now employ on average double the number

of full-time staff (5.9), compared to just 2.5 at the end of 2011. The drop in part-time employees in the South East may be linked to the creation of more full-time opportunities in London as business is on the increase in the capital.

Elsewhere in the country, the number of employees in the hair and beauty industry has remained fairly constant compared to the previous year. When it comes to hiring, the North East is the biggest success story outside London; the average number of both full and part-time employees in the region has risen to the level of 2.2, from 1.6 (full-time) and 1.3 (part-time) in 2011.

5.9 Year-on-year comparison of full-time employees 2.1 2.1

1.9 1.9

1.3

1.5

1.8 1.8

1.8

5.9

2.5 2.5

1.8

2.2 2.2

1.6 1.6

1.7 1.7

2 1.4 2

1.7

1.7

0.9 1.7

1.7

2.3

2.3

2.7

2.3

2.3

2.7

3.5 3.5

1.3

2.1

2

2.1

2

1.4

1.3

1.2

UK average

1.3 1.5 East

East Midlands

London

North East

North West

0.9 Northern Ireland

Scotland

South East

South West

1.3 1.4 Wales

West Midlands

1.3 1.2 Yorkshire & Humber

UK average

East

East Midlands

London

North East

North West

Northern Ireland

Scotland

South East

South West

Wales

West Midlands

Yorkshire & Humber

1.4

Year-on-year comparison of part-time employees 1.5

1.5

1.1

1.7 1.7

1.9 1.1

1.1 1.9

1.5

2.2 2.2

1.3 1.3

2.4 1.7

1.2

1.7

1.8 1.8

1.7 1.7

1.2

1.7

1.6

2.4

1.4

1.6

1.5

1.6 1.6

1.3

1.6

1.4

1.6

1.4

1.1 East

1.1 1.1 East Midlands

North East

Northern Ireland

1.7 1.2 Scotland

1.4

London

1.2 North West

1.6

UK average

South East

South West

1.5 0.9 Wales

1.3 West Midlands

Yorkshire & Humber

UK average

East

East Midlands

London

North East

North West

Northern Ireland

Scotland

South East

South West

Wales

West Midlands

Yorkshire & Humber

1.5

1.5

■ 2012 ■ 2011

1.5

1.6

0.9

“We’ve seen a rise in recent months of clients enjoying multitreatment combinations, often a hair and a beauty treatment.

Perhaps it’s those people who are less able to afford big ticket items but still want to enjoy life’s little luxuries who are increasing their spend on hair and beauty; it’s great that our salon is relied on to help our customers look and feel good.”

Shobie Lee, Owner of Shobiz Hair in London

National hiring intentions in 2013 4% 26% 70%

I’ve added a few extra treatments when visiting my salon in recent months – I can’t afford a holiday abroad this year but I can justify a manicure or a massage every now and then. It’s a little boost that doesn’t cost the earth!”

Simon Pritchard, customer of The Opposition Hair and Beauty Salon, Birmingham

n Plan to maintain headcount n Plan to increase headcount n Plan to reduce headcount

70%

of salons plan to maintain the same level of staff in 2013.

50%

looking to hire staff in the North East, the highest in the UK.

58%

of salon managers are more optimistic than they were a year ago.

beautifulbritain : a snapshot of the UK’s hair and beauty industry in 2013

Customer visits are up as p treatments come down Nationally, prices for the majority of both male and female treatments have gone down or remained the same, despite inflation.

London generally remains the most expensive region in the UK for all treatments. On the other end of the scale, treatments in Wales and the North East are generally the least expensive.

Based on the survey results, if a man purchased the most common treatments at the average prices* and visited the salon/spa in line with the typical frequency reported**, he’d spend £918/year.

If you took the same calculations above and applied it to a female customer, she would spend £960/year.*** Male grooming is becoming more mainstream. As more men take to salons for all manner of treatments, from haircuts to hair removal and ‘MANicures’, industry competition is heating up.

We’ve seen a dip in pricing of some male treatments (e.g. haircuts, massage and nail treatments) since this time last year, even though female treatments have generally not seen the same amounts in reduction.

However, women appear undeterred by this seeming inequality, in fact spending more frequently on treatments, in particular facials, hair removal treatments and manicures compared to 2011.

Cost of female treatments Price 2011

Price 2012

Haircut ▼

£25

£24

Hair colour

£42

£42

Facial s

£35

£36

Tanning ▼

£19

£18

Hair removal ▼

£33

£32

Manicure

£19

£19

Pedicure

£21

£21

s Price Increase ▼ Price Decrease

* Common male treatments at the average costs (£16 for haircut; £20 for hair removal; £20 for tanning and £29 for a massage) ** Every 4.1 weeks for haircut; 5 weeks for hair removal; 4.6 weeks for tanning and 5.1 weeks for massage (note - this is the frequency reported for those men who currently visit a salon) *** Common female treatments at the average costs (£24 for haircut; £42 for colour; £18 for tanning; £19 for manicure and every 5.8 weeks for haircut; 6.3 weeks for colour; 5.1 weeks for tanning and 4.4 weeks for manicure)

rices for male “We’ve noticed that our female customers are redefining their hair and beauty routines; some are trying new treatments and preferences are also changing.”

Year-on-year comparison of female frequency for treatments (average number of weeks between treatments) 5.8 5.8

n 2012 n 2011

5.8 5.8

Haircut Haircut

6.3 6.3

6.5 6.5

5.2 5.2

3.8 3.8

Hair colour Hair colour

5.1 5.1

Facial Facial

4.6 4.6

3.8 3.8

3.7 3.7

Tanning Tanning

5.2 5.2

Manicure Manicure

Hair removal Hair removal

5.3 5.3

3.9 3.9

Pedicure Pedicure

Male frequency for treatments in 2012 (NB no 2011 data available for comparison) (average number of weeks between treatments) 4.1 4.1

6 6

5.4 5.4

4.6 4.6

5 5

5.1 5.1

Haircut Haircut

Skin treatment Skin treatment

Hair colour Hair colour

Tanning Tanning

Hair removal Hair removal

5.4 5.4

2.9 2.9

n 2012

Diane Casey, Owner of Heatwave Hair Salon, Manchester

Shave treatment Shave treatment

Massage Massage

Nail treatment Nail treatment

Top ranking treatments for women in 2012

Cost of male treatments Price 2011

Price 2012

Haircut ▼

£19

£16

Hair colour ▼

£38

£31

Skin treatment ▼

£34

£29

Tanning

£20

£20

Hair removal ▼

£21

£20

Shave treatment

£14

£14

Massage ▼

£33

£29

Nail treatment ▼

£24

£20

Haircut

Hair colour

Manicure Hair removal Hair styling

Eyebrow treatment

Pedicure

Tanning

Facial

Make-up

Top ranking treatments for men in 2012

Haircut

39%

4.4 4.4

Hair removal

Massage

Hair colour

Nail treatment

3.8

Skin treatment

Tanning

Shaving

Every

of female salon treatments are for hair colour, almost as popular as haircuts.

weeks women are indulging in more facials, used to be every 5.2 weeks a year ago.

beautifulbritain : a snapshot of the UK’s hair and beauty industry in 2013

Hair and beauty hot spots by region Scotland

East

Northern Ireland

Second most popular region for male skin treatments after the East.

Tanning is top treatment for Scottish women.

Male skin treatments more popular in this region than most as cited by 27% of professionals.

Few women in this region are opting for hair extensions.

Male hair removal is the second most popular treatment (37%).

Women in Northern Ireland are the most frequent in returning for hair colour in the UK (every 5.9 weeks).

London

South East

ity men splurge on hair removal and C massage treatments in addition to regular haircuts.

London ladies leave the longest time between haircuts in the UK (over 6 weeks).

Like in the East Midlands, massage treatments for men are the second most popular treatment after haircuts.

Hair styling is a popular treatment for women in the region (32%)

North East ale hair removal almost as popular as a M haircut; tanning is also top here.

35% of respondents said that eyebrow treatments are most popular amongst female customers.

East Midlands Massage and haircuts are the most popular male treatments in the region.

Female pedicures are most popular in this region compared to the rest of the UK.

Female/male comparison average number of weeks between haircuts...

North West Second most popular region for male tanning treatments.

Shortest time between manicures in the UK, every 4.1 weeks.

5.8/4.1

average price for a haircut in the UK...

South West Nail treatments for men are more popular than skin treatments in this region.

Out of all the regions, women in the South West rank haircuts as their top treatment.

ÂŁ24/ÂŁ16

Scotland Cut: £14.90 Tanning: £19.10 Cut: £23.40 Tanning: £17.60

North East Cut: £12.30 Tanning: £19.00

Northern Ireland

Cut: £19.10 Tanning: £17.30

Cut: £12.70 Tanning: £17.50

Wales Male nail treatments are up (24%) while tanning treatments are down (13%).

Only 13% of Welsh women list haircuts as their number one treatment.

North West

Cut: £21.40 Tanning: £16.30

Cut: £13.70 Tanning: £16.90 Cut: £21.00 Tanning: £16.20

Yorks. & Humber Cut: £15.10 Tanning: £19.20 Cut: £24.70 Tanning: £15.90 East Midlands

West Midlands

Cut: £15.40 Tanning: £18.90

‘MANicures’ are more popular here than anywhere else in the UK. Hair colour is most popular with women of this region (48%).

Yorkshire & Humber 25% said that male hair colour was one of the most popular treatments.

Manicures still remain the top treatment with Yorkshire ladies for the second year in a row.

West Midlands Wales Cut: £15.60 Tanning: £16.90 Cut: £23.10 Tanning: £15.80

Cut: £22.80 Tanning: £19.30

Cut: £14.80 Tanning: £22.40

East Cut: £14.00 Tanning: £21.20

Cut: £25.40 Tanning: £20.20

Cut: £23.50 Tanning: £19.30 London Cut: £24.00 Tanning: £23.30

South West

Male treatments

Cut: £14.00 Tanning: £20.40

Female treatments

Cut: £24.80 Tanning: £19.50

Cut: £31.50 Tanning: £19.70 Cut: £16.70 Tanning: £21.20 Cut: £23.80 Tanning: £20.20 South East

average number of weeks between hair removal treatments...

3.8/5.0 £32/£20 average price of hair removal treatments...

beautifulbritain : a snapshot of the UK’s hair and beauty industry in 2013

Looking beautiful – why UK men and women invest in hair & beauty treatments Looking good to others is important, but the majority of men and women splash out on hair and beauty treatments purely for themselves (65% and 84% for males and females respectively). This is a helpful insight for all hair and beauty professionals in understanding their customers’ drivers when planning marketing activity and how it’s important to tailor services to meet customers’ individual styles and preferences.

“Hair and beauty professionals need to take advantage of the fact that UK men of today are interested in treating themselves while at the same time making an effort to look more polished.

A day of pampering at the salon or spa is no longer limited to women so it’s important for hair and beauty professionals to provide something beyond just haircuts for men.”

Alan Revitt Commercial & Marketing Director Salon Services UK & Ireland

65% 84% of men who have treatments do it purely for themselves.

“Yes, dear.”

19% say partner influence is also a popular driver behind the male grooming boom.

David Beckham

expertview

is still the most popular inspiration for men (according to 53% of respondents) but 20% favour TOWIE’s Mark Wright.

of women invest in hair and beauty treatments for themselves.

“Get the celeb look.”

UK women also cite the media as an important influencer.

Cheryl Kate Cole Middleton (according to 26%) are the most popular inspirations for UK women.

(according to 29% of respondents) and

Committed professionals A year on from our inaugural beautifulbritain report, it’s fantastic to see that the hair and beauty industry remains highly committed to qualifications and training.

An impressive 88% of respondents possess a professional qualification, which is something that, as an industry, we are rightly proud of.

And once again, beauty courses remain the most popular, with 45% of respondents having completed a beauty course in the past year, compared to 30% who have completed a hair course and 18% that have done both.

Beauty courses have proven to be very popular, with uptake rising from 39% in 2011 to 45% at the end of 2012, which shows the increasing desire for professional skill sets.

expertview “As this year’s survey shows, both men and women are spending more on beauty treatments. There are now even more opportunities in both the male and female markets to cross-sell and increase revenue by expanding into more beauty treatments, and invest in the necessary training to complement existing services.”

Clair Seymour Category Manager for Training Salon Services UK & Ireland

A final word If one thing is certain for our industry’s future, we must maintain our robust nature and determination. From this year’s survey, it’s clear that the UK hair and beauty industry has continued to attract customers even in an unstable economy by adapting its price structures, tapping into new markets and continuing to invest in training.

It’s impressive to see that even in a few short years, male grooming opportunities have flourished and professionals are now meeting the growing demand for more hair and beauty services for both men and women.

Just as trends and styles continue to evolve, we as professionals must evolve as well, in order to retain our place, ahead of the curve, creatively and practically satisfying our customers.

We hope that this report provides a useful snapshot of current industry trends and inspires you to proactively take opportunities to improve and grow your business.

96%

of hair and beauty professionals in Wales have a professional qualification, making it the most qualified region in the UK for the second year running.

45%

of respondents have completed a beauty training course in the last year.

beautifulbritain : a snapshot of the UK’s hair and beauty industry in 2013

Share your views on beautifulbritain Salon Services salonservicesuk www.salon-services.com professionals together