Industry analysis in the field of beauty salons

In the beauty industry that targets women, the beauty salon field is considered to be the closest beauty service to life, so what are the entry points in this field? How should the SaaS system enter the beauty salon segment?

1. Background

The beauty industry is an industry closely related to our lives, mainly targeting young women aged 25 to 45. China's beauty industry started late, but the growth rate is very impressive. Industry concentration is expected to increase further in the future.

From the perspective of the large beauty industry classification, the beauty industry is divided into life beauty and medical beauty. Life beauty includes beauty products and beauty services; medical beauty includes surgical and non-surgical.

Life beauty and medical beauty have a high degree of overlap among consumer groups. Life beauty meets the basic beauty needs, while medical beauty is more comprehensive and in-depth. Consumers who have undergone medical cosmetology will still need to continue to consume in life cosmetology.

Today we discuss the subdivision of beauty salons, which belongs to the beauty services in life beauty.

2. Industry Basic Information

1. Industry of beauty salon

Big industry: Beauty salons belong to the service industry

Small industry: Beauty salons belong to the beauty service industry in life beauty

2. Basic information of the beauty salon industry

(1) Products and services

Beauty salons mainly use cosmetics, health products and other non-invasive products to provide consumers with massage, skin therapy and other services.

(2) Industry market scale

According to the “Preliminary Accounting Results of Gross Domestic Product (GDP) for the Fourth Quarter and Full Year 2019” of the National Bureau of Statistics, the absolute value of China’s tertiary industry reached 534233 billion yuan, an increase of 6.9% over the same period of the previous year, accounting for The annual GDP of 53.9% is China's largest industry.

According to data released by China Industry Information Network, my country's beauty and personal care industry had a scale of about 300 billion in 2016, with a compound annual growth rate of about 7.7%.

3. External operating environment

The beauty industry has its own major trend, and there are also small trends in subdivided fields. PEST analysis is a method to help companies review their external macro environment. Next, we will conduct a comprehensive analysis of the beauty service industry.

1. PEST analysis of the beauty service industry

P "Policy"

Policies support good brands, good brands can lay a good market foundation, and can share customer resources with brand advantages;

With the introduction of the "Health China 2030 Planning Outline", the scale of the medical beauty industry is expected to be further improved, thereby driving the benefits of the life beauty industry.

E "Economy"

With the popularity of mobile O2O and the upsurge of capital markets, the rapid integration of the beauty industry has accelerated.

But for offline stores, the increase in rents and labor costs, the lack of consumer perception and supply chain control will accelerate beauty salons seeking new breakthroughs.

S "Society"

In terms of society, as the post-90s and post-00s become the new generation of consumer power, the needs of users are also undergoing earth-shaking changes. Young people pay more attention to personalized and convenient services and more diversified experiences.

T "Technology"

In terms of technology, the rapid development of sensor technology allows companies to collect privatized data from customers (of course, the premise is to build on the safety of user privacy), and through big data and artificial intelligence analysis, customize privatized services for customers.

2. Trends faced by beauty salons

(1) Economic environment

At present, the real economy is slowing, rents and labor costs are rising, and large chain companies are squeezing the business of small stores, forming a brand benefit.

In the future, independent beauty salons will be difficult to survive, replaced by well-known chain brands.

(2) User habits

With the economic development and the improvement of women's consumption power, China has entered an era of value.

The consumption growth of urban and rural residents, the increase of disposable income, and the rise of women's economic status, the middle class has become the main force of fashion and beauty consumption, and the willingness of the beautiful economy to continue to grow, bringing irreplaceable opportunities for the beauty industry.

The effects of basic skin care products can no longer meet the needs of modern women for beauty and anti-aging. New non-surgical cosmetic projects (such as "water light needle", "botulinum toxin", "fat dissolving needle") and other needs The improvement also reflects the increasing public demand for the beauty industry from the side.

4. Internal market environment

1. Industry Supply Chain

Beauty institutions purchase products and equipment through upstream suppliers to form package treatments and sell them to consumers.

There are two main business models for beauty salons. The brand model regards beauty salons as a low-cost distribution channel for cosmetics. Based on the expansion of franchised stores, brand owners can obtain high investment returns with extremely low R&D and marketing costs. This model has lower bargaining power over the upstream, and profits are concentrated in the upstream. This model will also face great challenges in the future.

The terminal operation model focuses on providing services, and relies on the increase in the number of members and the internal growth of consumer product categories to achieve expansion. The essence of this business lies in the operation of members. The stores are mainly direct-operated and relatively cautious in expansion. This model has a strong perception of consumers, can provide better services based on customers, and will also be the main battlefield in the future.

2. Industry competition

Analyze the industry competition through typical players of beauty salon brands.

V. Analysis of benchmarking enterprises

Here we take Kritina as an example to make a specific analysis. Kritina is a well-known enterprise integrating R&D, production and sales, mainly with the joining of beauty skin care products and beauty salons.

1. To whom and what products/services does the benchmarking enterprise provide?

(1) Target group

Kritina's stores are located in 33 provinces and cities across the country, and are mainly aimed at women who are 25 to 45 years old.

(2) Products and services provided

Kritina provides consumers with beauty skin care products and beauty treatment services.

At the same time, for franchisees, provide marketing training, domain knowledge training and other empowerment services.

It is an integrated enterprise integrating consumer services and merchant services.

2. The sales channels and supply chain of benchmarking enterprises

(1) Sales channels

Kritina's offline layout is mainly based on chain stores, including Kritina in beauty salons, RnD for manicures and eyelashes, and Yapride in medicine.

The online layout is O2O's new beautiful channel, which creates a one-to-one communication platform between consumers and consultants, allowing consumers to enjoy a convenient experience and interaction

(2) Supply chain

Kritina has its own strong R&D team, production team and sales team, which realizes the direct supply from production line to sales line.

In the industry chain, there is no need to be restricted by the upstream and downstream, and it has strong core competitiveness of the enterprise.

As far as the beauty salon industry is concerned, if the upstream supply can be controlled, the cost can be reduced to a certain level. And to build its own services to the extreme to master the terminal consumer market is the long-term development of the beauty salon.

6. SaaS Competitive Product Analysis

After analyzing the basic information of the beauty salon industry, the analysis of the external operating environment and the internal market environment, and the analysis of benchmarking companies, let's take a look at the competitive products of SaaS products that already exist on the market. Who is the target group and what their core business is.

As far as the core scene of the beauty salon is concerned, the business requirements are:

Customer appointments, manage appointments

Registration of new customers and registration

Sales of treatment courses, management of sales, etc.

The management requirements are:

Staff management

Inventory management

Management of performance appraisal, etc.

The data requirements are:

Visualization of business data

Comparison of monthly and quarterly data

Employee performance contribution value

Customer contribution value, etc.

Analyzed from the core needs of beauty salons, the information management system required by beauty salons is a multi-functional collection based on the entire business support. In this regard, special attention should be paid to the overall design of the product.

7. Summary

This article provides a brief analysis of the beauty salon segment in the beauty industry from five perspectives including industry basic information, external business environment, internal market environment, benchmarking enterprise analysis, and SaaS competitive product analysis.

Its purpose is to overlook the feasibility and future development trend of the SaaS product of the beauty salon information management system from the perspective of the industry.

Based on the analysis of this article and the current market analysis, most of the beauty salons in the market still manage their stores by manual bookkeeping, and large chain enterprises mainly use traditional software customization implementation methods. Small beauty salon companies purchase SaaS system management stores by rent.

Since the development of the beauty salon industry, the industry's integration has also increased year by year. Small and medium-sized beauty salon enterprises must survive and grow in the increasingly fierce competition, and they must use the current Internet technology to improve service quality and improve Employee quality and efficiency, exert force on the brand. With customer service as the core and diversified experience, the breakthrough is achieved.