August 1, 2015
Rising a Cut Above the Competition: How Kid-Focused Companies Are Proving Their Value In An Evolving Industry
In recent years, the U.S. hair care segment has grown to a staggering $40 billion in annual revenue, proving its ability to untangle post-recessionary knots that continue to plague many industries.
With children getting their haircut more frequently than adults, specialized segments of the industry, such as child hair care, are rising a cut above the rest. In fact, families with school-aged children spend nearly 38 percent more on hair services than households with no children.
Furthermore, according to a 2014 Beauty Salon Market Research Report, revenue growth in the hair care industry is expected to improve over the next five years, rising at an average annual rate of 3.2 percent. With an increase in consumer’s disposable income, parents are now spending more on specialty hair care services for their kids. Therefore, the growing industry profits are encouraging new businesses to enter the field like never before.
It’s no surprise that this specialized segment of hair care is leading the industry pack as a traditional haircut can be a terribly traumatic experience for a child. Many children emerge from the salon cranky, crying or just plain upset about their haircuts. With the professional assistance of a child hair care specialist, haircuts are able to turn into a positive, fun-filled experience for both the parent and child, ultimately leaving with both a great haircut and a smile on their face.
It’s all about the kids
While thought leaders in the U.S. are focusing on the baby boomers becoming seniors and creating business opportunities to assist their growing demands, many are neglecting to recognize the flourishing population of children within our society.
There are 40 million kids under the age of 10, therefore, if this population gets their haircut six times a year on average, there are 320 million haircuts taking place, ultimately drawing in five billion dollars of revenue. With only four major companies serving this specific niche, the opportunities are endless due to the capabilities to thrive in recession-resistant industry.
The right person for the industry
When considering the different types of businesses related to children’s services, the first item to consider is the investment rate. For other kid-focused segments, like a fun house business, the initial buy in rate is vast due to the requirement of purchasing the products necessary to run the operation. However, child hair care franchises not only offer lower investment costs but also provide an easy and enjoyable business model with comprehensive new salon support. The beauty of a child hair care franchise is that it’s not a difficult concept to understand. As long as a franchisee has the ability to create brand awareness in new markets that already have very little competition, success will come naturally.
As part of the decision to purchase a child hair care franchise, it’s crucial to ensure that the revenue stream is not solely dependent on haircuts. Child hair care franchises have different revenue channels that include haircuts at the core but extend to parties, spa services, and retail. Therefore, franchisees have the ability to not only depend on one factor of the business, ultimately creating more flexibility and security.
The child hair care franchise concept is a perfect match for the business person who wants to remain semi-absent. In fact, child hair care franchises prefer its franchisees to be out of the salon implementing marketing, facilitating social media engagement and driving the top line while maximizing the bottom line. The child hair care industry serves a great way to earn a successful living in a feel-good business. Ultimately, franchisees gain a sense of community connection, pride of ownership and the ability to exit corporate American and spend their day working with laughing children in a welcoming environment.
Sharkey's Franchising Company
*company names and representatives have been removed from this article