Rising a Cut Above the Competition: How Kid-Focused Companies Are Proving Their Value In An Evolving Industry
In recent years, the U.S. hair care segment has grown to a staggering $40 billion in annual revenue, proving its ability to untangle postrecessionary knots that continue to plague many industries.
With children getting their haircut more frequently than adults, specialized segments of the industry, such as child hair care, are rising a cut above the rest. In fact, families with school-aged children spend nearly 38 percent more on hair services than households with no children.
Furthermore, according to a 2014 Beauty Salon Market Research Report, revenue growth in the hair care industry is expected to improve over the next five years, rising at an average annual rate of 3.2 percent. With an increase in consumer’s disposable income, parents are now spending more on specialty hair care services for their kids. Therefore, the growing industry profits are encouraging new businesses to enter the field like never before.
It’s no surprise that this specialized segment of hair care is leading the industry pack as a traditional haircut can be a terribly traumatic experience for a child. Many children emerge from the salon cranky, crying or just plain upset about their haircuts. With the professional assistance of a child hair care specialist, haircuts are able to turn into a positive, fun-filled experience for both the parent and child, ultimately leaving with both a great haircut and a smile on their face.
It’s all about the kids
While thought leaders in the U.S. are focusing on the baby boomers becoming seniors and creating business opportunities to assist their growing demands, many are neglecting to recognize the flourishing population of children within our society.
There are 40 million kids under the age of 10, therefore, if this population gets their haircut six times a year on average, there are 320 million haircuts taking place, ultimately drawing in five billion dollars of revenue. With only four major companies serving this specific niche, the opportunities are endless due to the capabilities to thrive in recession-resistant industry.
The first and largest child hair care brand capitalizing on this flourishing segment that caters to young consumers is Snip-its, an innovative child-focused salon and entertainment concept that is turning a traditionally mundane and often unpleasant experience into a fun-filled, animated adventure. With the corporate staff possessing over 160 years of combined industry experience, Snip-its has revolutionized the children’s hair care industry.
By providing a friendly and knowledgeable staff, animated gadgets, computer games and a character filled entertaining environment, child hair care franchises are able to create an enjoyable hair-cutting experience for children. Furthermore, franchises like Snip-its serve as a solution for parents who are looking for a way to untangle the challenges of trying to find a convenient haircutting experience for their kids.
The right person for the industry
When considering the different types of businesses related to children’s services, the first item to consider is the investment rate. For other kid-focused segments, like a fun house business, the initial buy in rate is vast due to the requirement of purchasing the products necessary to run the operation. However, child hair care franchises like Snip its not only offer lower investment costs but also provide an easy and enjoyable business model with comprehensive new salon support. The beauty of a child hair care franchise is that it’s not a difficult concept to understand. As long as a franchisee has the ability to create brand awareness in new markets that already have very little competition, success will come naturally.
As part of the decision to purchase a child hair care franchise, it’s crucial to ensure that the revenue stream is not solely dependent on haircuts. At Snip-its, there are five different revenue channels that include haircuts at the core but extend to parties, specialty workshops, spa services, and retail. Therefore, franchisees have the ability to not only depend on one factor of the business, ultimately creating more flexibility and security.
The child hair care franchise concept is a perfect match for the business person who wants to remain semi-absent. In fact, Snipits prefers its franchisees to be out of the salon implementing marketing, facilitating social media engagement and driving the top line while maximizing the bottom line. The child hair care industry serves a great way to earn a successful living in a feel-good business. Ultimately, franchisees gain a sense of community connection, pride of ownership and the ability to exit corporate American and spend their day working with laughing children in a welcoming environment.
Kimberly Ellis is Vice President of Franchise Development for Snipits. Most recently, Ellis was a senior consultant with MSA Worldwide and provided existing and emerging franchisors expansion and system assessment, sales program development and management, and recruitment marketing strategy. With over 20 years of experience in franchising, Ellis also held executive positions in sales, marketing, and operations for both franchised and non franchised hair care companies.
For more information about franchise opportunities, please visit www.snipitsfranchise.com.