us an intimate glimpse into your business and your thoughts, and I ... year the actual number of you citing it as your ..... I order over the phone from my dealer's.
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2007 INDUSTRY STATISTICS
SPONSORED BY
Industry Outlook
NAILS readers are a terrific and helpful group of professionals and I thank all of you who responded to this year’s survey. You gave us an intimate glimpse into your business and your thoughts, and I appreciate your openness and trust. The market is down for the third year in a row. More of you told us that building your clientele was the number-one challenge you had in business (although that was the number-one challenge last year as well, this year the actual number of you citing it as your key challenge was much higher). A lot of you are in areas hard-hit economically and your business is suffering as some clients lose jobs and have to cut back on their nail services. Read through this special section for more comparisons and contrasts. Use the information and let me know how we can continue to make it even more useful for you. Special thanks go to OPI Products, with special recognition to George Schaeffer and Suzi Weiss-Fischmann. I know that OPI uses the data around the world in presentations about the state of the nail industry. The sponsorship of this statistics section by OPI Products makes it possible for us to provide truly unique, detailed data on the nail industry, and I thank them heartily. — Cyndy Drummey
Nail Salon Services Market Size NAILS’ market size projection figures are estimates derived from our own research. They are calculated (in a proprietary way) based on the number of salons in the U.S., the number of nail technicians per salon in each state, the average service prices of four key salon services, and an estimate of the number of practicing nail technicians. The final figure represents, to the best of our ability, the total amount of money spent in the U.S. in nail salons for services. Figure represents total dollar volume, in billions, spent by salon customers on nail salon services.
7
$6.84 6.8
6.6
$6.43
$6.45
$6.44
$6.53
6.4
$6.43
$6.53
$6.34
$6.24
6.2
$6.16 6
(figures in billions) 5.8 1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
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Nail Tech Demographics Ethnicity One of the most fascinating aspects of the professional nail industry is its ethnic diversity, or rather the dominance of one particular ethnic group: the Vietnamese, who now represent the largest group of nail professionals (see page 36 for more details about specific demographics).
Home Life Married with kids
54.6%
Unmarried with kids
13.8%
Married with no kids
12.8%
Unmarried with no kids
18.8%
How long have you been doing nails? One year or less
21.4%
2-3 years
18.2%
4-5 years
10.1%
6-7 years
6.9%
8-9 years
6.6%
10+ years
36.8%
43%
Caucasian
36%
African-American
10%
Hispanic
8%
Korean
2%
Other
1%
What is the highest level of school you have completed?* Some high school
How old are you?*
3.9%
Finished high school
30.8%
Some college
40.7%
Finished college
18.1%
Graduate school
6.5%
25 or younger
9.1%
26-30
14.8%
31-35
20.6%
36-40
18.9%
41-45
14.5%
46-50
10.9%
Over 50
11.2%
Gender:
Which title best describes your position? Salon owner (doing nails)
36.1%
Nail technician/booth renter
23.3%
Nail technician/employee
22.2%
Student/apprentice
STATISTICS
Vietnamese
9.5%
Salon manager/nail dept. manager (doing nails)
3.5%
Salon manager/nail dept. manager (not doing nails)
1.3%
Salon owner (not doing nails)
3.8%
Cosmetologist
7.4%
Note: Figures don’t add up to 100% as respondents identify themselves in multiple ways.
34 NAILS 2007-2008 THE BIG BOOK
96% female
4% male
Where do you live? New England/Mid-Atlantic
19.1%
North Central
19.4%
South Atlantic
20.0%
South Central
14.2%
Mountain
7.0%
Pacific Coast
15.7%
International
4.6%
*Source: 2006 NAILS Big Book
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Vietnamese Demographics
There are many assumptions made about the Vietnamese salon community and finally we have data to disprove some and confirm others. NAILS Magazine and VietSALON Magazine cooperated on a survey to Vietnamese nail technicians and salon owners in September 2006. The surveys were in Vietnamese and mailed to 5,000 nail technicians in the U.S. We offered a $5 incentive for every completed survey and received 988 responses. We believe this is a positive first step in our ability to benchmark this significant faction of the industry. The area of most controversy is service pricing. Vietnamese salons have a reputation — mostly earned — for providing very low-cost services. This survey bears that out. They have a reputation for having low-end services and offering minimal amenities. This survey proves that false. Vietnamese salons offer a host of services, including wraps, paraffin dips, gels, pink-andwhites, and even such non-nail services as facials, tanning, and waxing.
Salon Services & Pricing*
STATISTICS
What services are offered in your salon?
Service prices
Vietnamese Average
Industry Average
Vietnamese Average
Industry Average
manicures (basic)
89.3%
97.0%
$11.71
$18.23
pedicures (basic)
89.6%
92.0%
$21.48
$32.72
full set acrylics (sculpts)
86.0%
71.0%
$25.79
$45.77
polish change
83.2%
92.0%
$6.43
$8.33
full set acrylics (tips)
80.9%
78.0%
$24.77
$41.65
full set (pink-and-whites)
80.8%
72.0%
$37.68
$48.03
gels
72.3%
59.0%
$35.28
$47.91
eyebrow waxing
63.1%
55.0%
N/A
N/A
*Prices are developed from a survey done in 9/2006.
36 NAILS 2007-2008 THE BIG BOOK
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What is your title? salon owner
59.6%
salon manager
17.2%
nail technician
23.2%
Gender?
female 30% male 70%
How many clients do you personally service each week? less than 10
1.7%
10-20
4.9%
21-30
7.3%
31-40
15.1%
41-50
14.5%
51-60
14.8%
more than 60
37.3%
no response
4.4%
How long have you been doing nails? Vietnamese Industry Average Average one year or less
3.4%
18.3%
2-3 years
10.6%
17.4%
4-5 years
16.5%
11.2%
6-7 years
16.5%
7.7%
8-9 years
16.8%
6.2%
10 years or more
36.2%
39.2%
Are you responsible for purchasing your own supplies? Yes, I provide all my own supplies, including tools and equipment.
46.5%
I provide some supplies, the salon provides some supplies.
9.4%
The salon provides all my supplies, except my tools.
35.3%
The salon provides all supplies, including tools and equipment.
8.8%
➤ NAILS 2007-2008 THE BIG BOOK 37
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Salon Environment
How would you describe your salon? Full-service salon
51.2%
Nails-only salon
28.6%
Day spa
9.0%
Home-based salon
4.0%
Mobile salon/spa
1.3%
Resort/hotel/destination spa/salon
0.2%
Other
5.7%
How much is your monthly booth rental?
STATISTICS
$380 (average) $150 or less
13.5%
$151-$200
9.7%
$201-$250
5.0%
$251-$300
19.3%
$301-$350
6.7%
$351-$400
18.1%
$401-$450
2.1%
$451-$500
10.9%
Do you carry professional liability insurance for yourself or your salon?
More than $500
14.7%
54%YES 46%NO
Does your salon have a dress code or require a uniform?
38%YES 62%NO
How many nail technicians work in this salon? G E F D C
A
B
44 NAILS 2007-2008 THE BIG BOOK
A
Just me
49.6%
B
2 nail techs
20.3%
C
3 techs
12.7%
D
4 techs
6.1%
E
5 techs
3.7%
F
6 techs
2.9%
G
7+ techs
4.7%
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Salon Services
Page 46
There were fewer shakeups in service offerings this year. 30% of salons say they added a new service, where 11% discontinued a service. Ironically, some of the main services added were also the top services discontinued.
Top Nail Salon SERVICE TRENDS
1
Upgrade and upsell.
Nail technicians cut back on basic manicure and pedicure services in favor of more deluxe and custom services. You told us about Fire & Ice Pedicures, Stone Pedicures, Peppermint Christmas Manicures, Apple Cinnamon Mani/Pedis, Pomegranate Manicures and Pedicures, Coffee/Tea Pedicures, and Pumpkin Peel Pedicures. On the other hand, a few salons said they discontinued the deluxe services for nearly the same reason. Said one owner, “I have to do more basic services with special prices to compete with other salons.”
2
Foot care diversity.
There were lots of new treats for the feet, where the skills once reserved for fingernails were being used to enhance the pedicure service. The most popular new foot service was gel toenails. We heard about the fast-growing popularity of acrylic and gel toenails, especially colored products for an always-pristine pedicure. A good percentage of you tried one of the new “water detoxing” foot treatments, and many have launched medical pedicures.
STATISTICS
3
All about color.
You’re playing around with colored gels and acrylics and dabbling in 3-D art constructed with liquid-and-powder systems. One of you started adding crushed sea shells to white acrylic, which lets you add $10 for those sets. Another tech imprints pink acrylic with lace for a very pretty, feminine look. You’re custom blending colors to either match your client’s skin tone or her evening dress. One nail technician sums it up: “I’ve added custom acrylic to all my extension services. I base my ideas on the creativity and personality of each of my clients.”
46 NAILS 2007-2008 THE BIG BOOK
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Sanitation forces discontinued services.
Many nail techs discontinued their paraffin dips because clients were concerned about dipping into “used” wax. A few others said they discontinued the paraffin dip since it was being offered free anyway or they were eliminating the higher-end manicures and pedicures.
5
Stretching from nail care doesn’t work out…
Many salons have decided to do away with non-nail services like ear piercing, body wraps, permanent makeup, facials, and microdermabrasion. “I’m going back to the basics,” one nail technician told us. A few people who had gotten bitten by the tanning bug (including spray tanning) from a few years back threw in the towel.
6
… or it does.
Just as many salons that were taking out non-nail services were adding them in. Salons added facials, skin care, eyelash/brow treatments, tanning, permanent makeup, makeup application, waxing, ear candling, massage, and body treatments.
7
Health concerns cause career concerns.
For personal reasons, mostly health-related, we saw nail techs dropping gels and acrylics, although most who dropped acrylics say they are focusing on higher-profit natural nail care services instead.
8
Gels are big this year.
23% mentioned adding gel services either as a regular extension service, a gel top coat service, or gel toenails this year.
9
Knowing your clientele opens opportunities.
Salons have opened up business opportunities by developing services around a particular client demographic. We heard from salons starting party programs, kids services, temporary nails for teens, and other special-occasion services. A couple of you even added a mobile salon unit.
10 Mini services are big. Whether it’s because clients want things fast or because you want a competitive service, you told us that you’ve added “minis” to the menu like a Mini Mani and Petite Pedi (and a host of other cute service names). ➤ NAILS 2007-2008 THE BIG BOOK 47
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Salon Services
[Here’s how a few of these services compare to five years ago.] paraffin dips
What services are offered in your salon? 97%
Pedicures
93%
V
Polish changes
90%
down 22.7%
Nail art
78%
Full set acrylics (tip-with-overlay)
77%
Pink-and-white acrylics
71%
Full set acrylics (sculpts)
71%
Paraffin dips
70%
Waxing (for hair removal)
59%
Gels/UV light systems
56%
Eyebrow shaping
55%
Acrylic toenails
51%
UV top coat service
50%
Hair care
46%
Colored acrylics
45%
Skin care
45%
Nail jewelry
41%
Facials
40%
Fiberglass wraps
34%
Gel toenails
34%
Wraps (silks or linen)
34%
Makeup application
33%
Massage
33%
Colored gels
32%
Eyebrow tinting
28%
Reflexology
24%
Eyelash tinting
22% 19%
Powder/glue extensions
19%
Eyelash extensions
19%
Airbrushing
18%
Microdermabrasion treatments (face or body)
16%
Ear piercing
13%
Tanning
13%
Ear coning/candling
12%
Microdermabrasion treatments (for hands and feet)
11%
Airbrush tanning
10%
acrylic toenails
up 28.6%
fiberglass wraps
colored acrylics
airbrushing
V down 40.4%
Wellness treatments or mind-body therapies
6%
Permanent makeup
6%
V
Non-waxing hair removal
5%
down 42.0%
Non-nail airbrush treatments (e.g. makeup)
4%
Nutritional analysis or weight control
3%
Water therapies
3%
Glamour photography
1%
Body piercing
1%
48 NAILS 2007-2008 THE BIG BOOK
V
Body wraps
up 2000%
V
STATISTICS
2007 Manicures
➤
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Service Prices
2007 2006
Most salons now have a variety of manicure and pedicure services, so that a single “average price” is almost misleading. This year, for the first time, we asked salons for two prices: one for their basic service, one for a “deluxe.” Therefore, the change in service prices over 2006 in this category does not necessarily reflect a drop.
Basic manicure
$17.53
$18.23
Deluxe manicure
$18.70
N/A
Basic pedicure
$20.80
$32.72
Deluxe pedicure
$43.93
N/A
Full set acrylics (sculpt)
$46.28
$45.77
Full set acrylics (tip-with-overlay)
$41.21
$41.65
Gels (full set)
$49.09
$47.91
Wraps (full set)
$42.66
$42.76
Colored acrylics (full set)
$50.72
$48.86
Pink-and-white acrylics (full set)
$48.68
$48.03
Acrylic fill
$27.63
$24.36 *
What products are retailed in your salon?** Nail polish
88%
Skin care products
44%
Hand lotions
85%
Toe rings
38%
Nail strengtheners/treatments
83%
Boutique items (clothing, jewelry)
33%
Top/base coats
81%
Makeup/cosmetics
31%
Cuticle treatments
77%
Adhesives/glue
30%
Nail files or buffers
61%
Tanning products
21%
Hair care
51%
Personal implement kits
20%
Polish-drying products
45%
Vitamins/nutritional supplements
9%
70.1% of nail
STATISTICS
techs retail products for clients’ at-home use.
42.6% of salons have added at least one new retail item for sale. *Source: 2005 NAILS Big Book **Source: 2006 NAILS Big Book
➤
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Client Demographics Who are your clients?* Girls under 20
5.6%
Women 21-25
9.7%
Women 26-35
19.4%
Women 36-45
28.5%
Women 46+
28.6%
Men
8.2%
On average, how many clients do you see each week?
What would you say is the PERCENTAGE of standing appointments and walk-ins in your business?
Standing appointments
68.4%
Walk-in appointments
23.2%
Other (filling in for another tech, for example) 8.4%
10 or fewer
29.5%
11-20
22.0%
21-30
22.7%
31-40
12.2%
41-50
7.6%
More than 50
6.0%
89%
What is your busiest day of the week?
STATISTICS
Saturday
of men in Europe and the U.S. consider good grooming and general presentation essential to their professional success. — Changing Male Grooming Behaviors & Occasions (2004), Global Information Inc.
31% of the spa-going population is Day that salons are most frequently closed?
Sunday
male. — International Spa Association (ISPA) 2006 Spa-goer Study
34.8%
of nail techs who have male clients have male-specific services on their menu. — NAILS Magazine (April 2007)
*Source: 2006 NAILS Big Book
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Industry Challenges Building clientele “I’m trying to build a clientele from scratch. It can be hard work to get people of the street into your salon.”
What is the biggest challenge that you faced as a nail professional in the last 12 months? Although one nail tech put it succinctly: “I have many challenges and I face each one head on,” most of you had something specific that was vexing you.
#1 Competitive market, especially discount salons
Customer service (difficult clients, late and no-shows, client retention) “My challenge has been clients that do not show, do not call to cancel...frustrating! I made a nice, polite sign with my rules. It has been great ever since and I find I am getting more respect.”
“It’s hard trying to explain to new customers why our prices are more expensive than the budget salons.”
#3 #2 Specific product challenges [most often cited: gels, pinkand-whites, lifting] “I’m learning colored acrylics after years of getting used to one type or color of powder.”
Finding and retaining personnel
Keeping up with trends, new products, industry issues
“Staffing is a major challenge. With so many high volume shops, it is hard to compete in the peak seasons.”
“Keeping up with the latest products and having them available is a big challenge for me.
#4 #6
#5 A slumping economy, including seasonal slowdowns
Opening a new salon
STATISTICS
“The economy hasn’t really been good for me since March 2007. Most of my customers are complaining about high electric bills and gas prices.”
“I’m opening my own salon and frantic getting it finished in time for opening and dealing with the landlord and upstairs tenants.”
#8
#7
Personal time management
Finding classes “It’s hard finding continuing education classes in my area.”
54 NAILS 2007-2008 THE BIG BOOK
#9
“I always get very busy in the spring with people wanting pedicures, and I can’t get everyone in since I can’t physically do that many a day.
#10
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Have you advertised your business in the last 12 months?
Business Building
yes 66.4% no 31.4% Where have you advertised your business in the last 12 months?* Local newspaper
51.5%
Client referral system
49.4%
Yellow Pages (printed)
37.5%
The salon has its own website
34.4%
Direct mail to local area residents
26.8%
Sponsor charity events
24.9%
High school or other school papers
23.0%
Other online directories (including salon finder sites)
20.2%
Online Yellow Pages
18.8%
Door hangers or windshield flyers
18.7%
I have a MySpace page
18.0%
Local or city magazines
17.6%
Cooperative advertising with other local businesses
11.1%
Radio
9.7%
Sponsor local sports teams
8.3%
Local TV
5.7%
Billboards or bus benches
4.3%
I have a Facebook page
3.8%
Other
14.0%
How tech-savvy are nail salons?* I go online to chat with other nail technicians.
29.1%
I go online to order products.
78.1%
I look at nail-related videos online.
53.9%
I spend less than five hours a week online.
29.1%
I spend 5-10 hours per week on online.
42.4%
I spend 11-20 hours a week online.
22.7%
I spend more than 20 hours a week online.
18.3%
I subscribe to various nail-related e-mail newsletters.
74.9%
I’m interested in receiving information about nail products via e-mail.
86.6%
E-mail is a good way to reach me.
93.4%
*Note: Figures don’t add up to 100% as respondents were asked to check all that apply.
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Buying Habits
How much do you spend per month on nail supplies? Less than $100 per month
28.4%
$101-$150 per month
29.3%
$151-$200 per month
15.0%
$201-$250 per month
4.3%
$251-$300 per month
8.7%
$301-$350 per month
1.6%
Where do you shop for nail supplies?*
More than $350 per month 12.7%
Do you purchase your own nail products? Yes, I provide all my own supplies, including tools and equipment.
70.2%
I shop in a professional beauty supply store.
90.9%
I order over the phone from my dealer’s catalog or deal sheets.
40.1%
I buy products at tradeshows.
39.4%
I order online from my dealer’s catalog.
36.7%
I buy direct from the manufacturer.
31.6%
I order from an online-only distributor.
30.5%
I shop in an open-to-the-public beauty store.
24.6%
A distributor’s sales consultant comes to the salon and takes my order.
22.9%
For some items, I buy from non-traditional places that don’t carry traditional professional nail supplies.
12.9%
I shop at the drugstore or other general store.
6.6%
I shop from a mobile or van dealer who comes to my salon.
2.1%
Other
2.8%
*Note: Figures do not add up to 100% as respondents were asked to check all that apply.
STATISTICS
I provide some supplies, the salon provides some supplies. The salon provides all my supplies, except my tools.
8.8% How often do you purchase supplies?
12.5%
E
The salon provides all supplies, including tools and equipment.
D
A
8.5% C B
60 NAILS 2007-2008 THE BIG BOOK
A
Less than once a month
B
15.7%
Once a month
40.5%
C
Twice a month
30.0%
D
Once a week
12.6%
E
More than once a week
1.2%
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Nail Tech Income Which best describes your compensation system?
A H
I am a booth renter, I pay rent to the salon and I keep all my service fees. I am a booth renter, I pay rent to the salon and I keep a percentage of my service fees. I am an employee and I receive a salary. I am an employee and I receive a salary plus a percentage of my service fees. I am an employee and I receive just a percentage of my service fees. I am an employee and my compensation is based on the number of clients I serve. (I receive a higher commission if I bring in more clients.)
38.0% 3.5%
of nail techs receive a commission or other incentive for selling retail products.
D
F
20.0%
E
7.2%
Average weekly income*
24.5%
6.8%
55.7% (average)*
49.5%
C
G
What commission percentage do you receive on services?
Supplemental income:
B
A
$150 or less
10.8%
B
$151-$250
11.1%
C
$251-$350
11.6%
D
$351-$450
10.9%
E
$451-$550
12.6%
F
$551-$650
10.0%
G
$651-$750
6.8%
H
More than $750
26.2%
On average, how many HOURS do you work each week? 10 or fewer
15.4%
11-20
14.3%
21-30
21.6%
31-40
26.6%
41-50
15.7%
More than 50
6.4%
*Source: 2006 NAILS Big Book
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Regional Analysis nail techs
STATISTICS
2007 Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Dist. of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming U.S. Totals
62 NAILS 2007-2008 THE BIG BOOK
1,933 356 8,332 1,438 83,343 6,901 2,700 415 186 45,599 5,208 1,500 1,354 8,380 3,069 899 925 2,098 3,029 761 6,400 11,194 12,214 2,732 1,814 4,910 475 809 5,400 911 8,155 1,182 16,500 6,774 112 11,893 4,531 15,024 9,176 1,467 1,961 36 3,854 24,157 1,930 201 5,833 7,100 618 1,734 375 347,898
2006 1,587 366 8,531 1,485 79,582 6,301 2,800 450 750 38,452 5,299 1,800 1,174 8,577 3,168 700 900 2,134 1,260 786 6,170 10,499 12,355 2,816 1,871 4,310 483 831 5,100 939 7,995 1,215 16,000 6,922 113 12,096 4,645 15,266 9,308 1,192 2,017 30 5,915 24,578 1,922 208 6,002 7,000 500 1,696 395 361,427
nail salons
2007 802 120 1,122 450 8,240 901 931 182 89 4,204 2,000 213 241 2,223 874 336 447 566 895 187 995 1,421 1,658 661 434 944 174 295 490 210 2,603 356 4,103 1,736 66 1,684 649 631 2,654 214 737 59 1,025 5,103 340 63 1,464 1,286 173 970 109 58,330
2006 764 123 1,023 430 8,112 899 913 178 83 4,107 1,939 206 222 2,250 860 320 445 534 836 185 980 1,470 1,670 645 433 928 168 297 449 217 2,597 348 3,790 1,714 64 1,725 602 628 2,696 201 687 57 972 5,102 336 59 1,411 1,179 173 975 107 59,843