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State of the Spa and Salon Industry Report 2021 reveals challenges and opportunities

12 Nov 2021
Mindbody has published the 2021 edition of its annual State of the Spa and Salon Industry Report, highlighting how spa and salon businesses have evolved since the start of the pandemic and giving predictions of consumer trends that will impact the future of the sector.

The report was produced following surveys of 1,230 US consumers and 1,200 US wellness businesses (franchise and non-franchise organisations) during June 2021.

It found US consumers showed a renewed interest in the sector as soon as lockdowns ended and are investing more of their time and money into treatments.

More consumers are also adding wellness services or treatments to their routines since the start of the pandemic, with 24 per cent of consumers being first-timers, while 22 per cent of those who already consume wellness services increased the frequency with which they visit spas and salons since the economy reopened.

Variety is emerging as the spice of life, with more than half of respondents (53 per cent) saying they're more open to trying new services or treatments than they were before the pandemic began and 49 per cent of consumers revealing that they plan to treat themselves to more 'indulgent' services over the next six months.

This growth in interest in the sector and willingness to try new services represents an opportunity for industry businesses to grow their customer base and boost revenue.

The report also found that spas and salon businesses are responding differently to the current market depending on the pressures they're facing with trading.

Around 50 per cent of both franchise and non-franchise salon and spa owners surveyed plan to actively invest in growing and expanding in the next three years to reverse the negative effects of the pandemic, while 24 per cent are operationally stable and looking to maintain the business and its current customers and 26 per cent are focused on getting the business operationally stable and profitable.

Expectations and challenges
Mindbody asked consumers what their top concern would be when visiting a spa or salon. Nearly half (49 per cent) agreed that price would be the most important factor.

Cleanliness (39 per cent) and having a skilled service provider (29 per cent) were identified as the next most pressing concerns.

The report also highlighted that more than half of the consumers feel more comfortable in a spa or salon that serves one customer at a time, rather than one that's busy.

Mindbody CEO, Josh McCarter, urged spas and salons to take the findings of the research into account and adapt their businesses accordingly. “For consumers, peace of mind is everything when it comes to booking services, and there’s a comfort (and loyalty) in knowing that a service provider does safe, excellent work,” he said.

Overall, the study showed the biggest challenges facing spas and salons – both franchise and non-franchise operations – are attracting new customers and knowing how to effectively optimise bookings and business.

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