Transcription
State of the Salonand Spa IndustryReport 2021How the beauty industry has evolved—the latest datafor enterprise brands and the clients they serve.1
Evolving to serve clients isn’t exactly a new concept for thesalon and spa industry. Over the last 18 months, though, beautyand wellness businesses have adapted like never before.When circumstances call for change, the best among uscapitalize on the opportunity to rethink and rebuild. That’strue of industry leaders and their clients, and the data tell usa story about how that’s taking shape in 2021.2
Here’s tomoving forwardToday, people everywhere are more interestedthan ever in prioritizing beauty and wellness.They’re returning to their routines—if notadding more services and treatments to them—and rewarding brands that provide exceptional(and safe) experiences with their loyalty.Recently, Mindbody surveyed both consumersand wellness brands to understand how theindustry’s shifted over the past year and a halfand more importantly, where it’s headed in themonths ahead.For salon and spa business owners, knowledgeis innovation waiting to happen. We hope thesedata points help inform your business strategy,at a time that calls for you to adapt morerapidly than ever.3
TA B L E O F C O N T E N T SIntroduction02Getting back to beauty05Cost matters, but it’s not everything06Consumers are branching out post pandemic07Many consumers plan drastic changesto their appearance08What the industry is overcoming09What’s next12To wrap it up14About Mindbody164
Getting back to beautyWhen beauty andwellness routine startedPart of my routinepre-pandemicStarted this routineduring the pandemicBeauty and wellness routinepost reopeningNOT part ofmy routinePart of Routine22%26%38%62%Receiving a service/treatmentat a salon/barber or otherbeauty 2%50%Receiving a service/treatment at a wellness/spa establishmentWhat’s encouraging about these results is that they indicateconsumers never saw beauty and wellness as expendablethings—rather, they saw them as things that were requiredto be put on hold or adapted to the situation.24%23%Receiving a service/treatmentat a salon/barber or otherbeauty establishmentReceiving a service/treatment at a wellness/spa establishment24%of consumers have added wellness services or treatmentsat salons and spas since the pandemic started22%of those who consider beauty part of their routineare getting more services or treatments now that theeconomy has reopened
Cost matters, butit’s not everythingWhen it comes to choosing a salon or spa,consumers do still cite pricing as their topconcern—and when motivating people toreturn, lower costs are still the winning strategy.Unsurprisingly, cleanliness also emerged as akey factor. It’s likely that this jibes with healthconcerns, which are here to stay: A majority ofcustomers (53%) say they feel more comfortablegoing to a salon or spa that serves one customerat a time.Having top talent at your brand remains key.Coming in third, at 29%: having a skilled serviceprovider. Peace of mind is everything when itcomes to booking services, and there’s comfort(and loyalty) in knowing that a service providerdoes excellent, safe work.Top 3 most important factorswhen visiting a salon or spa:49%36%29%say pricesaycleanlinesssay skilledserviceprovider6
Consumers are branching out post pandemic5 - Strongly agree32%321 - Strongly 3%17%23%26%9%22%10%12%15%I feel more comfortablegoing to a salon/spathat takes one customerat a time than going toa salon/spa that takesmultiple customersI am more open totrying new typesof beauty services/treatments comparedto pre-pandemic times24%22%9%11%18%18%Over the next 6months I plan ontreating myself morewith indulgent salon/spa services andtreatmentsI have made or willbe making a moredrastic change to myappearance to signifycoming out of thepandemic9%29%I get more salon/spa treatments nowthan I did prior to thepandemicOver half (53%) of consumers say they’re more open to trying new beauty services or treatments than they were before thepandemic began, and 49% say they’ve made or will make a drastic change as a way to mark coming out of the pandemic.Of the latter, that’s most commonly taking the form of body hair removal, hair color/haircuts, or advanced skin care services.
Many consumers plan drasticchanges to their appearance32%26%with body hair removalwith hair color(waxing, laser hair removal, sugaring etc.)24%21%with haircutswith advanced skin care(Laser treatments, microneedling services)8
What the industryis overcoming9
Challenges facing salons and spasNon-franchise organizationFranchise organization34%Finding and trainingstaff/contractors32%Getting new/more customers44%51%Keeping and engaging ourexisting customers/retention41%32%43%43%Learning how to moreeffectively optimize our businessNavigating business regulations,licensing, real estate, etc.20%29%Optimizing our use oftechnology and softwareRetaining staff44%38%25%29%Securing capital/loans/investment to growSetting and measuringbusiness success metrics/KPIs32%39%31%28%10
Once-in-a-centurydisaster notwithstanding,salon and spa leadersare still reporting thesame challengesthey’ve always faced.At the top of the list? Bringing in newcustomers. Beyond that, nearly half of salonsand spas (43% for both franchise and nonfranchise organizations) also reported a needfor learning how to more effectively optimizethe business.COVID forced us all apart, which has put abigger spotlight on the power of software forbusiness operations. The ability to collaborateand conduct business online isn’t just a matterof efficiency and convenience anymore—after2020, it’s essential to survival and growth.11
What’s next?12
G R OW T H O N T H E H O R I Z O N1-3 year business goals50%We will be actively investingin growing and expandingthe business26%24%We will be focusing on gettingthe business operationallystable and profitableWe are operationally stable,and will be looking to maintainthe business and our currentcustomersThe long pause in services has given way to a new paradigm: It’s time to grow. Across both franchise and non-franchiseorganizations, half of salon and spa owners (50%) say they’re planning to actively invest in growing and expanding in thenext three years, which is encouraging news for the industry as a whole. The remaining respondents are split betweensaying they’ll maintain their current level of business (24%) or focus on getting back to profitability first (26%).13
To wrap it upConsumers are seeking beauty and wellness like never before—it’s up tobrands like yours to maximize the opportunity. Now’s the time to focus yourefforts on optimizing processes, hiring and retaining top talent, and creatingstandout experiences for customers. We can’t wait to see what you do next.14
Trusted by the biggest brandsLeading wellness business enterprises in over 150 countries count onMindbody to help them manage and expand their operations.15
About MindbodyMindbody is the leading wellness experiencesoftware platform for the fitness, wellness,and beauty industries. Tens of thousands offitness studios, salons, spas, and integratedhealth centers worldwide—from the newestentrepreneurs to the largest franchises—useMindbody’s integrated software and paymentsplatform to run, market, and grow theirbusinesses. Consumers use Mindbody to moreeasily find, engage, and transact with wellnessproviders in their local communities and aroundthe world.About the Mindbodyresearch teamMindbody Research & Insights is a diverseand experienced team of market and userresearchers, with deep expertise in advancedquantitative methods, qualitative, and mixedresearch methodologies. The team bringstogether MBAs, economists, behavioral andsocial scientists, and international specialists.With broad skills in both consumer and businessresearch and decades of collective industryexperience, the team delivers high-impactresearch in both domestic and internationalmarkets to help position Mindbody as anindustry leader.16
Visit www.mindbodyonline.com/enterprise to learn moreabout how Mindbody can power your enterprise brand.17
the business. COVID forced us all apart, which has put a bigger spotlight on the power of software for business operations. The ability to collaborate and conduct business online isn't just a matter of efficiency and convenience anymore—after 2020, it's essential to survival and growth. Once-in-a-century disaster notwithstanding,
