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Under the Standard Industrial Classification (SIC, 2003), this class of industry covers a wide range of personal hair and beauty services including hair washing, trimming and cutting, setting, dyeing, tinting, waving, straightening, facial massage, manicure and pedicure, and make-up. It also includes shaving and beard trimming. This range of services is together allocated to the SIC classification 93.02: Hairdressing and Other Beauty Treatment.
Nationally, the hairdressing and beauty treatment industry has a workforce of about 110,000 people and is reckoned to involve nearly 24,000 separate enterprises (some of which have multiple outlets). Together, they had a combined turnover in 2005 of £2.9bn, generating £2.0bn in gross value added. It is a growth sector with turnover having risen by 145% in nominal terms between 1995 and 2005.
Over recent years, there has been a noticeable change in social habits with respect to personal appearance, it now being seen as more important. Therefore, there has been a corresponding increase in the proportion of income set aside for personal well-being. A significant factor in this is the ageing population profile, resulting in an increase in the demand for more anti-ageing beauty treatments. Hair care is no less important. Looking good and fashionable appeals to people of all ages and sexes, and it is also easier nowadays to find professional beauty services.
The Hairdressing and Other Beauty Treatment Industry is highly fragmented and no wholly satisfactory estimate of its local employment contribution is available. It has been estimated that up to 65-70% of hairdressing businesses (including freelancers and mobilers) are single outlet businesses with no employees.
In terms of the more "formal" economy, the industry employed an estimated 1,900 people in Lancashire in 2005, spread across more than 675 establishments. This represented 0.31% of the sub-region's employee workforce. Although the sector is very small in overall employment terms, it is an essential service that is growing significantly and which offers services considered extremely important by Lancashire residents.
Figure 1 Hairdressing and Other Beauty Treatment Employee Jobs, 2005Bar chart showing the number of employee jobs in hairdressing and other beauty treatments for Lancashire's local authorities in 2005 - see text for details Source ONS - Annual Business Inquiry
The distribution of these employee jobs by local district is illustrated in Figure 1, whilst the fragmented nature of the local industry is clearly emphasised in Table 1. Of the 675 separate hair and beauty establishments across Lancashire, over 98% employ 10 people or fewer, and these account for over 90% of the total employee workforce. The "average" or typical business is owner managed with one salon and just a few employees.
Map showing the percentage of all employee jobs that are in hairdressing and other beauty treatments for Lancashire's wards - see text for details Source ONS - Annual Business Inquiry
Figure 2 illustrates the wards in Lancashire that have a higher than average percentage of people employed in this sector. Given the small number of overall employees, the importance of the distribution should not be overstated, but the map does however reveal that a number of rural wards are in the highest percentage band. In some of the smaller towns and villages across the county, the employment share in the hair and other beauty treatments sector becomes a little more pronounced.
Map showing the approximate location of hairdressing and other beauty treatments establishments in Lancashire - see text for details Source ONS - Annual Business Inquiry
Figure 3 demonstrates the employment concentrations in the urban areas, but also highlights the distribution of establishments in the more rural parts of the county. A small concentration of perhaps just two or three of these businesses in a rural area is enough to highlight a local employment concentration. Figures 2 and 3 may together provide an indication of a movement of some salons to out-of-town sites where rentals are cheaper and car parking is more readily available.
The longer-term pattern of growth in the industry's employee growth is shown in Figure 4. These trends should be viewed pragmatically since, as already indicated, they do not include the self-employed who remain an important constituent of the industry. Accompanying the growth in multiple outlets and unisex salons, there has in all probability been a long-term reduction in the number of self-employed micro businesses like barbers in a pattern similar to that suffered by the independent retailer, but this cannot be quantified. Employment growth had been unusually strong over the past few years with job numbers growing by more than 40%. The new millennium has however seen a noticeable reduction from a peak of just over 2,500 to 1,900 in 2005.
Figure 4 Hairdressing and Other Beauty Treatment Employee Jobs, 1950-2005Graph showing how the number of employee jobs in hairdressing and other beauty treatments has changed from 1950 to 2005 - see text for details
Source
Ministry of Labour/ONS - ERII Employment Records
There are a number of important Lancashire firms that are involved in the manufacture or distribution of cosmetics, toiletries, soaps or detergents. These firms are not allocated to the Hair and Beauty Treatment classification, but their activities have an important impact on this sector both within Lancashire and beyond.
The (External) Statestrong Group in Lytham St Annes states that the company is a world class manufacturer of personal care and household products.
(External) REM based in Nelson has more than 70 years experience in manufacturing salon equipment. Besides dryers, it supplies salon furniture, seating, reception desks, wash units and beauty equipment.
(External) Sigma Soap to the south of Rawtenstall is a contract and private label manufacturer of soap-based products including conditioners, shampoos and liquid soaps.
The soap manufacturer (External) Droyt Products Ltd is worth a mention because of its long trading history that has involved two forced moves due to major international conflicts before finally settling in Chorley.
With the increasing interest in personal appearance, the hairdressing and beauty industry should remain an area of long-term growth as spending on personal services continues to increase. There has been a recent strong growth in the number of hairdressing and beauty salons, but there has also been some reduction in employee numbers between 2002 and 2005.
Today many people can afford to go regularly for hairdressing and/or beauty treatments. However, as a sector in which barriers to entry are fairly low and competitive pressures are intense, the industry is a dynamic one with a relatively high business turnover rate as new businesses start up each year and others cease trading.
The UK hairdressing and beauty therapies are recognised as being amongst the best in the world, according to (External) HABIA, the Hairdressing and Beauty Industry Authority . HABIA is the government approved standards setting body for hair, beauty, nails, spa therapy, barbering and African-Caribbean hair. The organisation is responsible for industry issues such as training and skills, and therefore creates the standards that form the basis of all qualifications including NVQs, SVQs and Apprenticeships, as well as codes of practice. It acts as a central point of contact for information and provides guidance on careers, business development, legislation, salon safety and equal opportunities.
It is becoming an increasingly demanding industry as more qualifications and more skills are required from the workers, by their employers as well as by their customers. Technical skills are required along with essential interpersonal skills, especially the ability to communicate well and put the customer at ease.
In spite of its glamorous image, the industry has a reputation for minimum wage rates, but the flexible nature of the hours can be attractive especially to working parents, and in some salons staff can do well on tips. In addition, successful stylists noted for their individualistic and creative abilities can earn very considerable sums.
The qualifications and experience required can be gained around the world and include different specialisations. This gives great flexibility to the profession, which could be one of the attractions for taking this career path. Also, it is an industry continuously changing and innovating, due to the ever-changing fashion demands and needs of consumers. Some of the available beauty products used are cruelty-free (not tested on animals), environmentally friendly (the majority being bio-degradable products), and kind to hair and skin.
It is a very competitive market with a high dependence on regular repeat business from satisfied clients so strenuous efforts are made in the battle to keep clients. For example, salons may provide customers with cups of tea and magazines, more flexible opening times and special offers for families etc. The industry is always searching for new products and treatments, even though there is already an extensive range of products to choose from. The cross-selling of beauty/hair products to customers who call in for a hair cut is also an important revenue source for certain salons.
This page was compiled by Bryan Moulding .
All enquiries from the media should be sent to Corporate.Communications@lancashire.gov.uk .
Any other questions about the content of this page may be sent to EconInfo@lancashire.gov.uk .
For all enquiries about the county council's services , contact the Customer Service Centre on 0845 0530000 (01772 530000) or at Enquiries@css.lancscc.gov.uk .
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