350 What are the 10 Forces Shaping the Salon Industry Right Now?

[upbeat music] You know, like many people, I've been thinking a lot lately about the world that we live in, how it's changing, where it's going, and who will be the winners and losers, and what the future might look like. And obviously, I do that through the lens of the hairdressing industry. I'm Anthony Whittaker, and welcome to this week's episode of the Grow My Salon Business podcast. Now, recently, during one of my group coaching calls, Heather, one of the salon owners on the call, wanted to discuss what I thought the salon of the future would be like. Now, we didn't disappear off into fantasy land. In fact, we were very focused on a much more practical question, and that is, what should the modern salon look like in twenty twenty six and the coming years? And more importantly, understanding what it is that drives change. Because when you understand the forces that influence change, you start to anticipate where the opportunities will be, how businesses will evolve, and how to position yourself for the future instead of reacting to it after it's already here. So I've come up with a list of what I call 10 drivers of change that I believe are shaping the future of the salon industry. And personally, I think the last one on the list could be the most important of all. Now, they're not in any particular order, and many of them overlap and influence each other. So let's start with the first one, and that is changes and where the competition is coming from. Because as the competitive landscape changes, it inevitably impacts on how you choose to operate your business. Now, the most obvious example at the moment is the shift in business models within the hairdressing industry, where in many countries there are now more self-employed hairdressers than employee-based salons. Now, there's room for both models, and both models have their advantages and disadvantages. What's right for one salon owner or one stylist isn't necessarily right for another. And just because self-employment has grown doesn't mean it's the end of the employee-based salons. Far from it. But I do think that it highlights the fact that many salon owners simply lack the leadership skills, the management ability, and the business acumen required to build and operate a successful employee-based business today. Because even at the best of times, employing people and building a team isn't easy. It's not for the faint-hearted. And so that takes us directly to the second point, and that is changes in the economy. Now, over the last few years, the economies in most countries have felt the impact of war and political instability and the social unrest that comes with it. And the knock-on effect has been rising living costs and increasing pressure on businesses everywhere. Salon owners are dealing with rising costs, whether it's the products we use or utilities or wage increases and higher operating expenses across the board. But what makes it especially challenging in hairdressing is that salons often operate on relatively slim profit margins. At the same time, many clients are stretching out the time between appointments and being more selective about where they spend their money. So in