Just like that, the 2023 year has come to a close. While no one person can see the future, salon and spa owners planning for the year ahead should consider how client needs and emerging business demands might impact their operations and make plans to remain competitive. Consideration should include exploring and understanding upcoming trends and reflecting on whether their business can provide the right level of service to keep pace with changing tastes and client requests.
Challenging the traditional salon and spa structure
Today, many salon and spa professionals are challenging the status quo of business operations in exploring more flexible, team-based structures that have become the new norm. Profit-sharing, or employee-owned share offerings have grown in popularity as a way to incentivize staff and combat talent challenges and inflation. Some businesses have also explored the possibility of hybrid work structures for salons and spas. While these structures may not be feasible for all businesses, owners should explore how they can impactfully incentivize their talent either monetarily or through new opportunities.
Health and wellness continues its reign
Clients continued to focus on health and well-being, with the wellness market expected to surpass pre-pandemic levels at the close of 2023. The Global Wellness Institute (GWI) noted in their 2023 Global Wellness Economy Monitor that the $ 5 billion dollar wellness economy, which includes industries that enable consumers to incorporate daily health and well-being habits, is expected to grow at an annual rate of 8.6% through 2027.
Investing in health and wellness will continue to be a key opportunity for salon and spa owners through 2024 and beyond. In addition to service and product offerings, employees should be equipped with information and tools to support their clients’ health and wellness journey. This might include recommending stretches to do after a massage, breathing exercises to help reduce anxiety or products that aid in better hair health between salon appointments. Salon and spa owners should encourage continued education for employees to ensure they can support clients both during appointments and beyond. Doing so will likely contribute to strengthening employee and client relationships.
Get personal
Artificial intelligence (AI) made its mainstream debut in 2023 with the increased popularity of tools like chatbots and image and video generative platforms being employed across most industries. In addition to resources such as management systems that assist with scheduling and appointment reminders, AI applications that allow professionals to personalize their clients’ experience have gained significant traction. Some examples include:
- Try-on tools allow clients to see how a hair style or make-up will look on them before taking the plunge. While these are not necessarily new tools, they have become more sophisticated in recent years, giving clients a peek at their potential future selves.
- Skin analysis platforms look at a client’s skin through a photo or video camera to provide skincare recommendations.
While some salon or spa owners may not be ready to make an investment into these types of AI tools, it is important to understand them now. Staying up to date on research now will make it easier to sift through the rush of tools likely to hit the market and be incorporated in the salon and spa industry more consistently, in the next few years.
The future of the salon and spa industry is promising, with countless new tools and services on the horizon. Staying informed of these trends and considering how they might benefit the bottom line of one’s salon or spa will be increasingly important for those looking to both retain and attract clients, as well as keep pace with the competition. Consider how your salon and spa can start 2024 off strong and bring your business into the future this year.
Kathy Lopez, Account Manager for SASSI, the Salon and Spa Specialty Insurance program at Brownyard Group. She can be reached at klopez@brownyard.com.
