The professional hair and nail salons industry is generally quite resilient in times of economic crisis. However, the quarantine imposed during the Covid-19 pandemic has affected the industry greatly in Greece. In addition, the insecurity and uncertainty created in the market, has created a large gap in turnover compared to last year. The main reasons that led to this result were the following:
– Hair and nail salons missed the Easter period which is one of the highest turnover seasons in the year.
– Illegal work and home service increased.
– The reluctance of the salon’s clients to make appointments due to fear for their health.
– The reduced need for hairstyling services due to the reduction of events and outings.
– Limited visits of customers belonging to vulnerable groups.
The combination of the above reasons finds the hair and nail salon industry at a loss of -27% in turnover for the first 7 months of the year compared to 2019.
The strategic plan we propose until mid-2021 entails the following steps:
– Analyzing clientele figures and indicators. The clientele consists of individual names and makes up the people who have visited the salon since the beginning of the year. This year especially and due to the pandemic, it is extremely important to monitor it. If we monitor visitation rates only every month, we will find that they are much less than last year each month after the quarantine. This can lead us to wrong conclusions. Most likely, a large part of this reduction is the visits for hairstyles, which do not take place with the same intensity as last year. Reduced visits do not necessarily mean that we are losing customers. We recommend that the clientele be monitored at the level of female clients, male clientele, color clientele, female cut clientele and hairstyle clientele.
– Monitoring the deviation of each team member compared to last year. This analysis will tell us which members of the team are more adaptable to the services they provide. For example, if the salon is -27% in turnover in the 7 months period and a member of the team is -14% that means that that member is responding very productively to the needs of the market. Adjustment is key!
– Emphasis on coloration services. Hair salons that had more than 60% of their clientele ask for coloration services in 2019 have an average deviation from last year of -18% in the 7 months period. This is proof that a hair salon with a strong coloration department is fully shielded against the threat. Our recommendation is that all members of the salon be trained to be able to suggest and discuss color proposals with the clients they serve.
– The main goal until the end of 2021 is to maintain the volume of the team. This goal is particularly challenging, but also extremely important. The salon team and especially the salon leader must be organized in such a way as to ensure the retention of its members during this market crisis.
- Digital transformation in terms of salon organization and online communication. Creating a website and organizing and intensifying social media promotion campaigns. Emphasis on hygiene and safety.
Key ingredients for success are:
– To take advantage of the opportunities created by the crisis, which mainly concern digital transformation and the introduction of new rules.
– To create a long-term study of forecasting and cost management to maintain team coherence.
– Intensive training program in coloration techniques and consumer communication.
– Creating a marketing plan and business extroversion.
Imagine that the whole team is currently on the amusement park train and has gone downhill. When the uphill comes again it is important that all members of the team are inside the train! The responsibility lies not only with the team members but also with the business leader.