InterCHARM.kiev.ua - about perfumery and cosmetics market from professionals

Overall economic and political situation in the country in 2009 in any event exerted influence upon the condition of any separate beauty salon.  Financial crisis, considerable fluctuation in hryvna exchange, inflation and solvency decrease led to decline of clients number and as a result to reduction of salons profitability. Consequently the owners of beauty salons had nothing to do but to cut costs if they wanted to keep afloat. 

In the terms of rather high inflationary processes and considerable exchange fluctuation the owners of beauty salons started to raise their services prices, as practically all products beauty salons work with were imported. But high prices had frightened clients who by-turn either cut the number of services or moved to beauty salons of cheaper class. There was also noticed fall in sale of products for home use at beauty salons.  According to the field specialists’ assessment, sale proceeds of premium-class beauty salons decreased 15%, and economy segment beauty salons - 10%.

Services of beauty salons as well as medical services are considered to be necessary ones, that was why there could not be considerable decrease in demand for image services. Though expensive services, especially those not applying to the number of essential ones, in 2009 were not so called-for.

At the end of 2009 in the capital of Ukraine – Kyiv there were about 950 beauty and hairdressing salons and more than 3,5 thousand masters.  The cost of hair stylist’s services became twice up during the last year and it still continues to grow.
Only tenth of the capital beauty salons are of premium class and offer services of high cost category. The cost of haircut at premium salon – there are not many of them and often they are author’s salons of famous masters - from 50 to 500 euro. Haircut at the salon of high cost category is 15-20 euro.

About 300 hairdressing salons located as a rule in remote districts could be referred to the lowest category. The cost of haircut at such kind of a salon is 3-4 euro. Many salons of this cost category use non-professional shampoos and balms, which could be bought at any supermarket or cosmetics shop. They are rather qualitative products that could be used at home as well as at a salon.

The rest of salons represent the average segment, they are located downtown close to business and shopping centers. Haircut and styling at such salon will cost you 7-8 euro. Salons of such a class work only with professional cosmetics, but not very expensive.

Nowadays, while preparation to Euro 2012, which will be held in Ukraine, beauty salons, cosmetological centers and massage rooms are essential social objects of infrastructure.  It is obligatory for every hotel, shopping or entertaining center to offer their clients beauty business services. It is naturally to suppose that within the next few years beauty industry market of Ukraine will be intensively developing, at least in the cities receiving the guests of Euro 2012.

The favorable factor of beauty salons market development and emergence of new beauty salons is real estate market decline. In connection with crisis many leaseholders from adjacent fields vacate premises and lease them at the reduced price.
Analyzing the above the experts conclude that investors will look for variants allowing to avoid direct competition, which apparently is going to grow from year to year. It will be possible to cope with direct competition by means of narrow professional specialization, which, for example, could be based on activity in this or that field (cosmetology, body remodeling, aesthetic treatments, use of specific methods, spa-treatments).

The other variant investors started to take notice of – thematic beauty salons: child salons, salons for young people, men’s salon or women’s club, style-bar or Internet-salon.