Study Shows Black, Black British, Caribbean and African Beauty Salons Have Lowest Survival Rates
The National Hair & Beauty Federation (NHBF) has released its latest report, analyzing the hair and beauty industry's ethnic trends across the UK. Titled "Analysis of the Trends Within the Hair & Beauty Industry by Ethnicity Across the UK", this study, helmed by the Local Data Company, marks an essential stride in NHBF's journey to fully grasp the sector's intricacies.
The Findings include:
On Growth & Saturation: Locations with a predominant presence of Black, Black British, Caribbean, or African communities have seen a notable rise in the hair & beauty sector. Contrastingly, the broader market across Great Britain has witnessed a slight dip in the past five years. Despite growth in Asian or Asian British postcodes, their overall market share has also diminished over this period. All ethnicities, however, faced growth stagnation in 2022, attributed to increased market saturation and a heightened race for local spending.
Regional Disparities: The data spotlighted stark regional contrasts. As an illustration, the East Midlands' Black, Black British, Caribbean, and African communities demonstrated remarkable resilience post-pandemic, whereas nine out of the ten fastest declining postcodes belong to Greater London.
Survival Rates - A Concern: A disturbing revelation from the report suggests that hair & beauty salons in predominantly white areas enjoy a higher survival rate beyond their third year of operation. Beauty Salons have the lowest survival rate figures, with Black, Black British, Caribbean and African outlets having the lowest survival rate across all subcategories at just 55%. This shows the support these small businesses may need in being able to reach this landmark.
Richard Lambert, NHBF's chief executive, echoed the sentiment, stating that the endeavour was long overdue and emphasized the report's instrumental role in reinforcing the NHBF's advocacy efforts. Lambert added, "This is just the beginning. Our vision is to delve deeper, to gain a thorough understanding of these industry sub-sectors and the unique challenges faced by various ethnic groups."
While this study offers a comprehensive snapshot of the hair & beauty industry's ethnic landscape, it's pivotal to understand that it doesn't claim to be an exhaustive survey of ethnic salon ventures across Britain. Instead, it lays the foundation, providing crucial insights into businesses primarily found in areas with a rich tapestry of ethnic communities.