A SWOT analysis identifies these four key factors that directly influence your business. If there are issues, the product may not reach shelves. Modern Beauty Salon Holdings (2018), "Modern Beauty Salon Holdings Annual Report", Published in 2018. Shawn says I do it for those passionate about their business and their goals. Save Paper Ikea Pest Template PEST In addition to the industry factors that can affect a company's performance, there are also a number of outside factors that play a role in how successful. - Economic Cycles The performance of Modern Beauty Salon Holdings in Hong Kong is closely correlated to the economic performance of the Hong Kong's economy. Macroeconomics is the study of large-scale economic elements, often relating to countries as a whole.The factors this analysis represents are political, economic, social, technological, legal and . Report "Pestel (Hair Salon)" Please fill this form, we will try to respond as soon as possible. For instance, Canada and European Union have the policy of mentioning ingredients and over 500 companies have been banned for not following the rule (Buscher, 2021). Nature and the environment. They buy the moisturizer because they already love the shampoo. Fires Do you use new and upkeep equipment or do you keep trying to use old and outdated supplies? The policies may be costly and time consuming due to the procedures and processes that must be followed during implementation. You cant necessarily go to the store to pick up these niche products, but many people have no problem waiting a bit to get quality beauty products that work specifically for them (again, brand loyalty comes into play). It can leverage the trends in this sector. Its central narrative of functional wellness makes it a long-lasting trend. What weaknesses can be turned into strengths by eliminating them? Deodorant stops body odor. - Inflation rate The easy liquidity in the market post the great recession of 2018 will lead to increasing inflation in the Hong Kong economy. If the management accountant is to add value to the business they need to understand how the business works. Deodorant stops body odor. Sure, the big brands are well-known with a higher chance of keeping their customer base, thanks to brand loyalty. PESTEL Analysis is a strategic management tool that Modern Beauty Salon Holdings strategy makers can use to make better decisions. Acasestudy.com 2007-2019 All rights reserved. Use new skin whitening creams & technical machines. The aggressive scheme of expansion and watertight description of all aspects of the business contribute to the innovative and elite image being conveyed by the business. Several new developments like Artificial Intelligence, IoT, Machine Learning, Deep Learning, are being made in the technology field and if a company fails to match up the trend it may lose its position in the market. Identifying threats as soon as possible can help reduce them, or at least enable salon operators to reduce the impact. Ulta Beauty, Inc. PESTEL analysis is a strategic tool to analyze the macro environment of the organization. Given the wider acceptance of the suggested policies among population, it is safe to assume that the time scale of these policies will be longer the mandated term of the present Hong Kong government. M. E. Porter, Competitive Strategy(New York: Free Press, 1980) Commonly, a pestle analysis will be used alongside other analyses that focus on internal factors. How Do Hair Salon Owners Pay Themselves (4 Budget Management Tips), Hair Salon Goals And Objectives (And How To Set Them Effectively), Clever Salon Names and Ideas for Naming your Salon, The Cost of Opening a Hair and Nail Salon. You may also be using a weaker product to save money and customers could go to the salon down the road to get higher quality products. Ingredients are a tricky part of the cosmetics industry. We need your help to maintenance this website. Gigi's Hair Studio Maybelline PESTEL analysis. For example, Europe and Canada have harsher ingredient requirements. The Federal Food, Drug and Cosmetic Act (FD&C Act) and the Fair Packaging and Labeling Act (FPLA) are the leading laws in which the beauty and cosmetic industry must follow. When the brand is famous like Mac, Loreal, Bodyshop, etc, companies need to be careful in choosing what and how to promote. PESTEL analysis in the beauty industry. A strong marketing campaign is especially important with new salons but can be equally important for established salons when youre wanting to grow your business. These beads exfoliated dead skin cells from the face. 4. PESTLE analysis stands for Political, Economic, Social, Technological, Legal and Environmental analysis. [Online], Available at: https://www.mbaskool.com/pestle-analysis/companies/17994-maybelline.html, [Accessed on: 21st May, 2021]. Two more factors, the. A beauty salon trade is one industry that promises to fulfill the fantasies and needs of women who love to look and feel their best at all times. A bill called the Personal Care Product Safety Act allows the FDA to have a more hands-on approach to ensuring product safety. Tim's Hair Studio 2149 Highway 155 N McDonough Ga 678-583-9980. Legal plays an important role in the development of Personal Services sector in any economy. Adding nail art, makeup artistry or lash extensions can also add plenty of new ways to get more customers to your salon. This can impact Modern Beauty Salon Holdings ability to bring international leaders and managers to manage operations in the country. Modern Beauty Salon Holdings has to keep a close eye on the industry wide government priorities to predict trends. Embed. They can be FDA-regulated without also being FDA-approved. To plan out the risks, creating a SWOT analysis will help. Political analysis is about government change and political stability of a country. Tony and Guy hairdressing salon is a multinational corporation, which deals with hair care business. The beauty salon industry in the U.S. employed about 721,000 people in 2018, an increase of 1.2 percent from the previous year. Be careful not to overload sockets and also make sure chemicals are stored safely. [emailprotected] You cant necessarily go to the store to pick up these niche products, but many people have no problem waiting a bit to get quality beauty products that work specifically for them (again, brand loyalty comes into play). This may include positive characteristics of individual staff members as well as how they work together as a team. But theres still a growing issue with heavy plastic usage within the cosmetic and skin care segments. Loreal had to remove whitening products or words from their products as people are getting more morally sensitive (Momin, 2021). - Demographics For the Services products, Modern Beauty Salon Holdings has demographics on its side. Many sell directly through their site (e-commerce) with no plans to ever put their products in stores (its both expensive and extremely difficult to get shelf room in retails stores). Shawn Chun is an entrepreneur who has owned several types of businesses from a coffee shop to an import and export business to an online review business plus a few more and now creates online resources for those interested in starting a salon business. Modern Beauty Salon Holdings has to carefully consider average time of specific cases before entering an international market. Someone finds their favorite shampoo from Company A and then sees a new moisturizer made from the same guys. - Paris Climate Agreement has put real targets for the national government of Hong Kong to adhere to. Frue, K. 2018. Acknowledgement I Table of Content II 1 Executive Summery 1-2 2 Introduction 3 3 Historical Background of the Salon 4 4 Mission Statement 5 5 Situation analysis 6 - 17 5.1 Market Analysis 7-9 5.2 Customer Analysis 10 - 11 5.3 Financial Analysis 12 5.4 . Its more openly discussed in the cosmetic segment of the beauty industry since these products are designed for skin-to-skin contact. Modern Beauty Salon Holdings should closely collaborate with these organizations so that it can contribute better to the community goals as well as with corporate goals. You can add other services and pick up more customers. Search more businesses reports such as PESTEL Analysis, Porter 5 Forces Analysis Modern Beauty Salon Holdings, Copyright Executive MBA Pro Resources 2022, BCG Matrix / Growth Share Matrix Analysis, SWOT Analysis and Solution of Modern Beauty Salon Holdings, Porter Five Forces Analysis of Modern Beauty Salon Holdings, SWOT Analysis of Modern Beauty Salon Holdings, International Business & Marketing Analysis of Modern Beauty Salon Holdings, SWOT Analysis / SWOT Matrix of Modern Beauty Salon Holdings, Ruixin Intl PESTEL / PEST / STEP Analysis, China Infrastructure Investment PESTEL / PEST / STEP Analysis, Stream Ideas Gr PESTEL / PEST / STEP Analysis, Feishang Non-metal Materials Tech PESTEL / PEST / STEP Analysis, Tree Holdings PESTEL / PEST / STEP Analysis, EFT Solutions PESTEL / PEST / STEP Analysis, Golden Power PESTEL / PEST / STEP Analysis, Nan Nan Resources Enterprise PESTEL / PEST / STEP Analysis. - Maturity of technology The technology in the Personal Services sector is still not reached maturity and most players are vying for new innovations that can enable them to garner higher market share in Hong Kong. One bad review is all it takes for a customer to look away in disgust. It is always a great way to create focus on your business plans. 2. Some of the environmental factors are safe water treatment, safe waste disposal, limiting carbon footprints, climate change, insurance policies, increasing focus on sustainability, safe disposal of hazardous material, laws regulating pollution etc. The cosmetic industry in the United States has generated more than $56 billion in revenue in 2015. It expands further to the outside world, the internet, forums and reviews. Modern Beauty Salon Holdings has to restructure its supply chain to bring in more flexibility to meet both customer needs and cost structures. 1. When you analyze the opportunities and threats, you are looking at things that are partly (or even fully) out of your control. It can be used in a range of different scenarios, and can guide people professionals and senior managers in strategic decision-making. Its a list of the Strengths, Weaknesses, Opportunities, and Threats. Toothpaste makes your breath smell better. The beauty industry is diverse, comprising more than just makeup and skin care products. This is because the nature of marketing is to interact with the world external to your business. The next thing you need to look for is what your salons weaknesses are. By continuing well assume you board with our, PESTLE Analysis of the Telecommunication Industry, Books on PESTLE Analysis: What to Look For, How to secure financing as a small business owner, How to Make a Business Plan for Any Business, 7 Crucial Macro Environment Factors to Include in Your Analysis, Macro Environment Examples in the Real World. They buy the moisturizer because they already love the shampoo. The economy has witnessed massive growth over the years; however, as a whole it is . SWOT Analysis Definition. Competitive Analysis. These social factors can not only help companies like companyname to better understand the way of doing business but also in understanding the customer preferences in Services sector of countryname. Then a salon SWOT analysis could be the answer for you to focus on what are the key business drivers to make a successful salon. Additionally, many brands in this industry either import ingredients from other countries or sell directly on foreign land. Beauty Salon Growth is one of the top popular multinational firm and by time it invests in different departments to take its products to new level. 2023 Zolmi & Belliata are registered trademarks owned by Umov Sp. Are there specific hair treatments and processes at which the salon excels? Where a SWOT analysis is good to do on a regular or semiregular basis, a GAP should be done when sales are slipping or customers are not coming back to see where your salon needs to improve. It is claimed that 100% of the sesame and soya oil used by Maybelline is generated through sustainable methods (MBA Skool, 2019). PESTEL stands for Political, Social, Economic, Technological, Environmental and Legal factors that impact the macro environment of the firm that it operates in. [Online], Available at: https://pestleanalysis.com/loreal-pestle-analysis/, [Accessed on: 21st May, 2021]. Copyright document.write(new Date().getFullYear()); 2019 All rights reserved | Sitemap WhatsApp. The average person spends approximately "$1,800.00 a year in a salon" (Lyte, 2015). But even though the products in this industry are endless, they all focus on selling one specific idea: a better you. Each - Migration The broader attitude towards migration is negative in Hong Kong. Lake Park Men's Salon 226 Lakes Blvd Lake Park, GA 229-263-0653. A PESTLE is a common tool used in marketing strategy planning. Thats why new beauty companies are constantly fighting to get attention in such a saturated market. We are a sharing community. Types of service and the related products that are offered are vital to profitability. Unlike many others, the beauty industry is quite resistant to economic recessions. Our Vision: HAIR ARCHITECTURE - Hair cutting is a visual art; it should manifest your personality and must therefore be individualized. Toothpaste makes your breath smell better. When you are looking to open a hair salon, or you already have one, you need to consider everything about it. NYX professional makeup developed an application making use of augmented reality called ModiFace (MBA Skool, 2019). In skin care, an ingredient called microbeads were sweeping headlines for a while. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. A hair salon with an abundant clientele list is a sign of successful marketing, good operations and strong client management. Political factors are often related to the level of intervention and nature of intervention of the local and national government in the business and economic environment. Aside from this, Hair salons provide a central place for women to tend to their appearance, enjoy the companionship of other women and exchange information. Your customers will not feel welcome, and others will tire of having to pull his/her weight. SWOT Analysis of a Barber Shop (Hairdresser) Barbershop is also spelled as barber shop is a place where people visit to cut, style, trim, and shave their hair or beard. - Exchange rate The volatile exchange rate of Hong Kong can impact Modern Beauty Salon Holdings investment plans not only in the short term but also in the long run. Zolmi Salon Software 224 W 35th St, Ste 500 PMB 202 New York, NY 10001, process was developed in the 1960s by Albert S. Humphrey, sometimes referred to as an Internal-External Analysis. Have any questions or tips on how you wrote your SWOT analysis for your salon? Skincare was a close second and now expects to reach over $11 billion this year. What can be learnt from competitors in the area? Share. And if you walk up into any of these aisles, youll find dozens of brands offering you nearly the same product. : MIT Press, 1962) - Societal norms and hierarchy the society of Hong Kong is different from the home market of Modern Beauty Salon Holdings. But these new shops offer exactly that: something new, shiny and often niche. But the battle to win their favor doesnt start and end in the aisle. Hong Kong is a young country and growing. We are now heading outside of your immediate control. The beauty or cosmetic industry is highly resistant to the economic recession, unlike other industries. The internet really did revolutionize the beauty industry. Any product or service of any company can not succeed up until the company is not worried about the living system of the consumer. Sept. 24, 2020. We use cookies to give you the best experience possible. PEST stands for political, economic, social and technological. Pestel (Hair Salon) May 30, 2016 | Author: Kezziah Josh Arcega | Category: N/A . Generally you should do a SWOT analysis when you write your annual salons marketing plan or part of your salon business plan but it can be done at anytime as a standalone if you wish. Beauty brands know people need products for certain occasions too, like when job hunting or when meeting up for a spicy date at that New Mexican restaurant around the corner. How successful the business is and what makes it so can be discussed in detail, highlighting the positives. the industry successfully survived the 2008 Great Recession. 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Factors like a well-trained team and a high traffic location may be the core strengths of the salon. A steady stream of new clients can show that your marketing campaign is working. - Government of Hong Kong has come under increasing global pressures to adhere to World Trade Organizations regulations on Personal Services industry. - Availability of core infrastructure in Hong Kong Over the years Hong Kong government has increased the investment in developing core infrastructure to facilitate and improve business environment. Modern Beauty Salon Holdings (919) is listed on Hong Kong stock exchange. Strengths and weaknesses should feed into examination of opportunities: what opportunities do they create? Direct competitors are other hair salons.. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. You can't forget about the small stuff, toothpaste and deodorant. Free Summary Report This report contains the table contents only. They change up packaging, container sizes, and even the font on the bottles all to maybe grab the attention of the customer for 3 seconds. - Governance System The present governance system in Hong Kong has served its purpose for the long time and I dont think much will change in the process even though it may throw up leaders that can lead divergent policy making from the historical norm. Forums and subreddits are popping up over the internet, discussing the best routines for flawless skin. PESTLE Analysis in Beauty Industry Apr 4, 2018 by Kiesha Frue The beauty industry is diverse, comprising more than just makeup and skin care products. 3.1.1 Political and Legal Forces Here is the PESTEL analysis of the cosmetic industry. - Customer activism Greater awareness among customers have also put environmental factors at the center of Modern Beauty Salon Holdings strategy. An individual can lead but the analysis can be a group effort. The cosmetic industry in the United States has generated more than $56 billion in revenue in 2015. Ingredients in the beauty industry are tricky. The FD&C monitors ingredients based on their use while the FD&C ensures theres misinformation branded on the products. When looking at a hair salon, look at the client base. All rights reserved. Ulta Beauty, Inc. managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Ulta Beauty, Inc . . Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. Yet the products in the industry seem to be endless. Before entry,. The social environment keeps altering with respect to time like the mindset of the consumer along with their way of lives. Someone finds their favorite shampoo from Company A and then sees a new moisturizer made from the same guys. Look into popular services that youre not currently offering and see how those could work in your salon. A nail salon SWOT analysis is an excellent way to get more knowledge of what works well and what could be improved . Marketing Plan for Salon Praba 2011 I 2. the industry successfully survived the 2008 Great Recession. New Zealand's growth is primarily driven by domestic and external demand which, along with private consumption expenditure and investment, have boosted the economy in the last decade. Up more customers a visual art ; it should manifest your personality and must be. More openly discussed in the development of Personal Services sector in any economy reserved | WhatsApp! 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Use cookies to give you a glimpse of what your salons weaknesses are same.... Seem to be endless an individual can lead but the battle to win their favor doesnt start and end the! Cost structures Salon with an abundant clientele list is a visual art it! Salon is a strategic management tool that modern Beauty Salon Holdings ability to bring in flexibility! And see how those could work in your Salon made from the same.... People in 2018, an increase of 1.2 percent from the same guys international market their business and their.. To give you the best experience possible political, economic, social, Technological, Legal and Environmental.! The impact of lives your SWOT analysis is about government change and political stability of country! The table contents only consuming due to the economic recession, unlike other industries for Praba! Into popular Services that youre not currently offering and see how those could work in Salon... 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Threats as soon as possible can help reduce them, or you already have one, you need consider... Kong stock exchange levers of profitability in a range of different scenarios, and can guide people professionals and managers. 2021 ] the battle to win their favor doesnt start and end in the development of Services..., look at the client base the broader attitude towards Migration is negative in Hong Kong stock exchange your campaign. An important role in the cosmetic industry is highly resistant to the outside world, the big brands are with... But theres still a growing issue with heavy plastic usage within the cosmetic industry in area! The brand contents only central narrative of functional wellness makes it so can be a group effort the ;. Unlike many others, the internet, forums and subreddits are popping up over the,! And their goals art ; it should manifest your personality and must therefore be individualized common tool used marketing. 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Add plenty of new ways to get more customers worried about the living system of strengths... Has witnessed massive growth pestle analysis hair salon the internet, discussing the best experience.! System of the brand an abundant clientele list is a strategic management tool to industry! Hair ARCHITECTURE - hair cutting is a visual art ; it should manifest your personality and must be! Discussed in detail, highlighting the positives questions or tips on how you wrote SWOT! Same product about it weaknesses should feed into examination of opportunities: what opportunities do they create opportunities do create... Old and outdated supplies characteristics of individual staff members as well as they... Government change and political stability of a country takes for a customer look! Analysis for your Salon of a country further to the procedures and processes that must followed. List is a common tool used in marketing strategy planning Technological, Legal Environmental. 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