2022 was a year of recovery for businesses as well as the global economy. The beauty industry certainly felt the impact of COVID-19 in 2020 and 2021, while 2022 was a more productive year that brought with it the evolving needs of beauty consumers. A pandemic-led shift in consumer habits forced the beauty industry to navigate a tumultuous economic environment that has impacted costs, client appointment frequency and overall revenue. As we head into 2023, spa and salon owners would do well to remember the lessons learned during the pandemic and remain resilient by focusing on new approaches to business and talent development.
Looking to Bounce Back
In 2022, salons and spas were challenged with finding new ways to recruit talent and retain clients. The tactics beauty pros found and deployed to push through are key assets to strengthening the industry in 2023.
Faced with a mass exodus of employees who joined new industries, started their own businesses or went the freelance route, the beauty industry saw a once-in-a-generation labor shortage in 2022. In 2023, many salons and spas will need to have a proactive recruitment strategy. SalonToday Magazine suggests many organizations need to look internally to become more appealing to new hires by employing tactics such as:
- Create a brand that will catch the eye of and attract new employees with innovative and different ad designs. Websites like Indeed and Careerbuilder can be seen as boring. Try using a design platform like Canva to create your own eye-catching ads.
- Show off your strengths as a workplace with regular posts on social media and engage with clients online to highlight your client count.
Once you have caught the eye of a potential candidate, salons and spas need to find a way to set themselves apart. SalonToday recommends tactics such as:
- Offering employees different and better opportunities, whether this be a more inclusive culture, higher pay or professional development opportunities.
- Clearly defined onboarding plans for new hires also help attract new talent. Having a transparent and easy to follow road map for new hires will make them more likely to choose your organization over others.
Salon and spa sales were certainly hit hard by the pandemic, and McKinsey and Company predicts that the industry won’t return to pre-pandemic levels until 2027. However, there are trends in the market that salons and spas can leverage to find success over the next several years such as:
- Grow product offerings: Consumers are increasingly looking for the expertise that stylists can offer. By offering products paired with that expertise, salons and spas can increase sales.
- Personalized experiences: As consumers look for more recommendations from their stylists, they are also searching for a more personalized experience. This can include treatments curated just for their skin or services tailored to help with their challenges.
- More advanced procedures: The stigma around use of injectables such as Botox has changed, with Millennials and Gen Z putting a positive spin on their use. With this change comes an increase in demand for advanced procedures like skin and hair treatments that help boost sales.
Salons and spas laid the groundwork for future success in 2022. As the industry gears up for the new year, it is important to stay excited, diligent and be informed. By taking advantage of the trends mentioned above, salons and spas can better serve their client’s needs and overcome the obstacles that will inevitably follow.
Kathy Lopez, Account Manager for SASSI, the Salon and Spa Specialty Insurance program at Brownyard Group. She can be reached at klopez@brownyard.com.
