Beauty Industry Analysis

1. Overview of the Beauty Industry

In the eyes of many people, beauty is nothing more than applying makeup, applying powder, doing facials, or It's breast augmentation, double eyelids, etc. In fact, beauty is a general term for the technology and art of modifying and beautifying a person's internal and external image. From a macro perspective, beauty includes a lot of knowledge in major majors such as aesthetics, literature, medicine, nutrition, color science, chemistry, physics, psychology, etc.; from a micro perspective, it also includes makeup, nursing, plastic surgery, health care, etc. Hair style, clothing, etiquette, etc.

Beauty is an art. It pursues and shapes the beauty of "people" more directly than any other art. It has penetrated into people's daily life, study, work and entertainment, and has become a part of people's lives. an integral part of. Beauty is still a philosophy. The center of its research and interpretation is the most precious thing for human beings - life. It is "people"-oriented and strives to perfect people's appearance, body, mentality and emotions, so as to make life full of beauty. Youthful vitality; he also strives to fight against the natural aging laws of human beings and make living people young and happy every day. A comprehensive understanding of the connotation of beauty is conducive to giving full play to the advantages of various social resources in beauty salon operations.

2. Characteristics of today’s beauty salons

1. Business scale

The overall business scale is small and the industry entry threshold is low. Stores with an area of ??50-99 square meters accounted for 30.2% of the total, and stores with an area of ??20-49 square meters accounted for 29.9% of the total; the investment amount was low, with an investment amount of 30,000-50,000 yuan accounting for 27.1%, and investors were in Those with less than 20,000 yuan accounted for 24.3%; stores with less than 5 employees accounted for 58.3% of the total.

2. Ownership form

The non-state-owned economy, especially the private economy, accounts for a large proportion in terms of quantity. Private-owned stores account for 85% of the total. The state-owned economy in Beijing and Shanghai The proportion is significantly higher than that of other cities.

3. Business philosophy

In terms of operation, the traditional business philosophy is the main one. Word-of-mouth publicity is a common and most effective way of communication, and there is little reliance on mass media. In addition to training schools, mentoring is the most common training method.

4. Business projects

Traditional projects and emerging projects coexist, each accounting for half of the country. Skin care, skin care and haircuts are the service projects with the largest customer flow for beauty and hairdressing respectively.

5. Operating income

Gross profit margin can generally be maintained at 40-50%. Due to the heavy tax burden, the profitability of operators is not very good.

6. Technical level

The overall technical level of the entire industry is not high, and there is still a considerable gap compared with foreign advanced levels. However, the technical level of the industry is on an upward trend, and the demand for professional equipment is increasing day by day. increase.

7. The quality of employees

The quality of employees in the entire industry is low, employees are highly mobile, there is a lack of standards for professional title evaluation, the operation of training schools is not standardized enough, and the technical levels of employees vary. Not even.

8. Industry management

Insufficient industry management and lack of necessary industry regulations have led to disorderly competition in the beauty and hairdressing market and hindered the further development of the entire industry.

3. The development trend of beauty salons

The improvement of people’s living standards and quality has provided a broad space for the vigorous development of the beauty industry. At the same time, it has also intensified the challenges of the beauty industry. competition between. According to incomplete statistics, there are currently more than one million beauty institutions in my country, with more than 6 million employees. As the most direct carrier for consumers, beauty salons are experiencing the changing needs of consumers. With the increasing pressure, consumption The maturation of forms will push the beauty industry into a new development model that is professional, sophisticated and modern. Facing the huge market and fierce competition, beauty salon operators must always "recharge" themselves, grasp future development trends, introduce new business concepts and methods, and launch new service projects to attract customers. Only in this way , so as not to be eliminated in the fiercely competitive market competition.

What is the future development trend of beauty salons? According to expert predictions, the future development of beauty salons will show the following trends:

1. Strong chain operations

The current Chinese beauty industry market is still in an unstandardized and immature development At this stage, industry management lacks strength, industry competition is in a state of disorder, beauty salon operations have not yet formed a scale, and the quality of employees is uneven. The convergence of many factors has made it difficult for the entire industry to reach a certain level of credibility in society. It is difficult to expand sustainable operations and large-scale operations, and it is difficult for brands to be deeply rooted in the hearts of the people. Therefore, the concept of chain operation is promoted and implemented in the beauty industry, and high-quality products and services are provided. It is imperative to establish good operating procedures and form a good reputation and brand operating model. As far as the beauty industry is concerned, chain operations will be the mainstream of future development. Chain operations have tenacious vitality and rapid expansion. Large chain stores are superior to small beauty salons in terms of scale, organization, financial resources, personnel, etc., and they often use strong advertising to strengthen their competitiveness, making it difficult for small beauty salons to Parry.

Chain operations can be formally divided into:

1) Direct-operated chain: that is, the head office wholly owns or controls multiple stores to open, unified ownership, unified operation, and distribution operations. Centralized management.

2) Free chain: that is, each store is an independent legal person and is owned by different operators, but each is willing to join forces and cooperate to unify operations and sales strategies.

3) Franchise chain: Each store signs a contract with the head office and obtains the use of the head office’s trademark, trade name, management technology and sales of products developed by the head office. This business model has long been popular in the Western world, but it is a chain business model that has just emerged in China. As a modern business investment and operation method, it will undoubtedly become a new business model for the beauty industry and even other industries in the future.

2. Direct selling companies intervene in the beauty market

In the past, many customers would go directly to familiar beauty salons to buy beauty products, and choose the ones that suit them through the introduction of their trusted beauticians. Beauty products for skin and hair types. But in recent years, there has been a direct selling trend in our country, especially TV direct selling. Many direct selling companies have begun to intervene in various consumer markets, and the beauty industry is no exception. Hundreds of direct selling companies have adopted a break-up approach to launch various beauty products. Customers who want to buy the products only need to make a phone call, and the direct selling companies will deliver the products directly to their doorsteps or mail them to the customers. This is undoubtedly a heavy blow to beauty salons. Beauty salons should change their business methods in a timely manner to reduce the impact of direct sales on themselves.

3. Computerization of beauty salon operations

Computers are of great use to beauty salons. In addition to basic resource management, such as basic customer information, number of beauty treatments, and basic employee information In addition, customer reservation registration, room data tracking, purchase payment processing, employee salaries, and product sales can all be processed and managed by computers. The computerization of beauty salon operations will not only be more accurate and faster than manual operations, but also through computer analysis, management loopholes can be found, business risks can be reduced, and the image of the beauty salon can be improved at the same time. If a beautician has a computer to help him diagnose skin type and choose the type of care, not only will the customer have more trust in his professional knowledge, but he will also be able to work more smoothly.

4. Introducing psychological beauty

In fact, in addition to providing beauty services, beauty salons should also provide psychological counseling to customers, but many beauty salons have ignored this point. Just imagine: When a customer is troubled by skin problems and hair quality, she will definitely feel restless and worried that it will affect her appearance. Therefore, when she goes to a beauty salon for skin care, she will have great expectations for the care effect, but she Perhaps another 2 has doubts about whether the beautician can solve her troubles. At this time, if the beautician can talk to the customer in a timely manner, listen to what she has to say, and lose no time in instilling the correct concepts into her, let her regain confidence and accept the care of the beautician with confidence.

5. Promote integrated service-based management

The fast-paced life of modern urbanites makes holidays or breaks even more precious. If you are tired of running around to various beauty salons, Hair salons and nail salons, therefore, a large and comprehensive business place that integrates collective leisure and entertainment and a variety of beauty services becomes possible.

This type of beauty center is large in scale and decorated with comprehensive services. It can provide humanized services in many aspects such as beauty salon, sauna and fitness, makeup and styling, hairdressing and tattooing, etc.

Beauty salons with this type of operation have extremely meticulous management requirements and should implement a membership system. How to attract members, fix members, and organize members are key issues that operators must do well. Implementing the value-added method of membership cards to continuously strengthen the value-added sales function has been beneficially implemented in emerging large-scale beauty salons.

6. Cosmetology and medicine are more closely integrated

Many people regard cosmetology as a very common thing and rarely associate it with medicine. In fact, cosmetics production includes There is a semi-medical component. With the promotion and implementation of medical cosmetology that combines beauticians' beauty techniques with doctors' treatment methods, many aesthetic problems that have long troubled customers have been effectively solved. Medical cosmetology will surely develop deeper and more extensively in the future, which will have a profound impact on the development of the cosmetology industry.

7. Men’s beautification has become a trend

Due to the influence of traditional concepts, beauty is regarded as a woman’s business. There are not many men who can put aside the traditional baggage and accept beauty. In fact, due to the strong secretion of sebum in men, most people lack correct knowledge of cleaning and maintenance. The demand for skin care is actually quite large, and the prospects for men's skin care are very promising. Since many people view men's grooming through tinted glasses, operators may encounter many difficulties. Therefore, operators should strengthen employee training and establish a professional image to eliminate unnecessary doubts.

8. Overall popularity

In the future, the business direction of beauty salons should not be limited to a specific scope, such as beauty, makeup, skin care, etc., but should be oriented towards the overall combination. Directional development, such as: using magical makeup to match special looks, so that customers’ looks can highlight their personal style. Therefore, beauty salons can have clothing counters attached, allowing beauticians to suggest what kind of clothing is more suitable for customers after completing their styling.

9. Specialization, personalization, high added value

Nowadays, customers not only have certain requirements for the quality and level of technical services of beauticians, but also have certain requirements for the equipment and construction of beauty salons. The atmosphere is very particular, and they also hope to often get a lot of information about consumption, such as trendy clothes, cool makeup, best-selling cosmetics, fashionable leisure methods, etc., which are all topics that customers are interested in. More and more people People who go to beauty salons are willing and hope to enjoy this high value-added service.

10. Specialized store management

The concept of beauty has had a wide range of extensions. Body care, manicure and other projects have emerged one after another, and various supporting facilities have emerged in an endless stream. These specialized stores provide various types of services. Created market and space. It is no surprise that nail salons and body care centers have separated from facial care. Similarly, market segmentation cannot ignore the segmentation of consumer objects. Beauty products designed specifically for men and the elderly are prominent in the market. Doesn’t it also send a signal to specialty beauty salons? The expansion of the male market and the elderly market may bring unexpected surprises.

In addition to special services and targeted groups in specialized stores, operating specialized stores should also strive for professionalism in hardware facilities. Such as store decoration, products Improve the combination, equipment and instruments. In this sense, specialized stores have begun to take shape in terms of scale and conditions for chain operations.

11. Introduction of computer network-based operations

The Internet is rapidly spreading throughout China with its unparalleled advantages. Of course, the beauty industry will inevitably encounter the Internet.

Recently, it was reported that a women's website and beauty experts jointly launched a campaign to bring lively popularity and considerable global economic benefits to the website. Of course, the beauty industry can also rely on such activities to achieve publicity and sales purposes. . It is worth mentioning that the success of a website is no different from the success of a traditional enterprise. It relies on perfect management, successful market operations and unique products. These aspects cannot be ignored in network operations.

In the future development, beauty companies should promote their products and services through the Internet, establish real-time interactive exchanges with users and other companies, and achieve business in all aspects of scale, circulation, and consumption. Only by realizing the comprehensive integration of business operations and management can business be extended in this new economic field and the benefits of network-based operations be truly realized.

After years of development in the beauty industry, the old business philosophy and traditional management model have gradually become unable to adapt to the rapidly changing social environment and consumption environment. The beauty industry must face a profound change.

Faced with newer faces and higher requirements, beauty salons must update their business methods and be discerning in order to stay at the forefront of an era full of opportunities and challenges