May 2008

The State of the Beauty Industry

Professional Consultants and Resources, a salon industry strategic consulting company and data source has just completed their 2007 Professional Salon Industry Hair Care Study. The study reveals overall salon industry growth last year was 4.2 percent and hair care soft goods growth was 3.8 percent. This is slightly better than 2006, when the industry experienced its lowest growth in decades. Low growth is hurting a once vibrant and high-growth salon industry.

Some the study’s key findings of the factors that affected the industry in 2007: Major struggle for industry domination and leadership continued after the failed Sally-Regis merger, between the apex manufacturer (L’Oreal), the apex distributor (Sally Beauty / BSG) and the apex salon-chain retailer (Regis). Resulting effects of major distribution realignments, vertical integration and direct sales impacted the industry.

For information, contact Cyrus Bulsara, at or visit