Sector overview

Trade developments

Various trade and industry estimates put the number of hairdressing salons in the UK at between 29,000 and 35,000. The Yellow Pages Business Database listed 35,281 hairdressers (all types) in May 2002.

The turnover of businesses within this sector is relatively rapid. A large number of new businesses start up each year to replace those which have ceased trading, moved location or undergone a change in focus. Although this is a dynamic sector, a number of businesses still fall into the second of the following broad categories;

• modern, stylish salons, which readily adapt to (and in some cases lead) constantly changing fashions and techniques within the industry
• traditional, old fashioned salons, which pay no attention to the latest fads and which have changed little over the last two decades or more

As consumers' interest in fashion and personal appearance has increased, the traditional type of outlet has suffered from a decline in demand. The number of traditional salons has consequently declined.

Other developments within the hairdressing sector include the following;

• the establishment in 1992 of an agreed set of guidelines for the legitimate operation of 'rent a chair' schemes in salons, following negotiations between the National Hairdressers' Federation and HM Customs and Excise
• the proliferation of sophisticated home styling products (such as DIY colours, perms and heated rollers); this has particularly threatened basic, traditional salons, which may be unable to compete either on price or creativity
• the creation in 1997 of the Hairdressing And Beauty Industry Authority (HABIA), the National Training Organisation (NTO) for the hairdressing and beauty industries
• the introduction in 1998 of a special ‘Kitemark’ scheme by the DTI for salons which comply with agreed industry standards
• an increase in the number of women who are financially independent
• changing attitudes towards the importance of personal appearance and grooming, which have in particular seen both men and pre-teen children ('tweenagers') take a greater interest in such matters
• the emergence of certain niche markets; some men's salons, for example, specifically target members of the gay community

In response to growing demand, an increasing number of salons are offering beauty products and treatments alongside more traditional services.