1.1 Definition and presentation

A beauty institute is legally defined as an establishment offering its clients beauty treatments other than medical and paramedical, as well as beauty modelling without medical purposes, according to article 16-1 of the law of July 5, 1996.

Beauty salons are therefore establishments that provide beauty treatments including body care, facials, beauty treatments, hair removal and other more specific treatments (UV tanning, pulsed light). They can be generalists, such as Yves Rocher, Body' Minute or Citron Vert, or specialized in a particular treatment, such as Nail' Minute, L'Atelier du Sourcil or Depil Tech, etc.

They face competition from selective perfumeries (Nocibé, Marionnaud, etc.) that have opened their own institutes within their stores, as well as from department stores (Printemps, Galeries Lafayette, etc.), fitness and thalassotherapy institutes, SPAs and massage salons.

In France, the majority of companies in the beauty salon sector are small independent structures and more than 80% of companies in the sector do not employ any employees. On the other hand, although the branded beauty salons, which belong to networks such as Yves Rocher or Body' Minute, are in the minority in terms of quantity, they capture a major part of the turnover and are developing more and more. Thus, the already fragmented beauty salon market is becoming increasingly fragmented.

2020 marked a logical decline in the market due to the Covid-19 epidemic. The latter not only led to the closure of beauty salons due to confinements, but also caused an economic upheaval and therefore a trade-off of households against spending on beauty care. As a result, the sector saw its turnover fall by 26% in 2020.

While the recovery has been relatively slow in 2021, notably due to the confinement at the beginning of the year, the sector benefits from significant growth levers, in particular digitalization, innovation and specialization, although it has not returned to its pre-crisis level.

1.2 The global market

The global beauty salons and spas market was estimated to be worth $***.** billion in ****. Due to the Covid-** outbreak and restrictive travel measures, industry revenue declined by *% in **** to $***.* billion.

However, recovery occurred as early as ****, at a slower pace than forecast before the Covid-** crisis. In fact, globally, the beauty ...

1.3 The French beauty salon market: between post-crisis rebound and growth ambitions for 2022

The activity of beauty salons refers to two NAF codes.

The first one, **.**B - Beauty care includes :

Beauty advice and facial and skin care: make-up, anti-wrinkle treatment, facial massages for aesthetic purposes, etc. Manicure and foot care for aesthetic purposes Hair removal

The second, **.**Z - Body care includes :

Body ...

1.4 The effect of Covid-19 on the beauty salon market

In ****, beauty salons were forced to close from March ** to May **, then from October ** to November **, **** and finally from April * to May **, ****. Thus, over a little more than a year, beauty salons had to give up about * months of turnover. The graphs below are revealing of the drop in turnover of ...

2.1 Consumer profile and consumption habits

The majority of beauty salon clients are women. According to a **** survey, **% of women had already visited a beauty salon, compared to **% of men. In total, half of the French population is a fan of beauty salons. [***]

If men are still a minority in the clientele of beauty salons, they are ...

2.2 Consumer choice criteria and expectations

What are the disincentives to beauty salon services?(***)

Lack of time is mentioned by **% of respondents. Also mentioned are the incompatibility of work schedules and institute schedules (***).

Barriers to using the services of beauticians or beauty salons France, ****, in % Source : Opinion Way Certain elements are a deterrent for clients, notably poor ...

2.3 Demand trends:

The growing success of natural care and organic products

According to Patrick O'Quin, President of the Federation of Beauty Companies. there isa strong trend towards organic and natural products. Indeed, according to the study "The Global Natural & Organic Cosmetics Market' ****" by the British research firm Ecovia Intelligence, London, global sales of ...

2.4 Seasonality of demand

The graphs below give us two lessons:On the one hand, it seems that the volume of research seems to increase slightly over the long term, which could mean that the demand increases gradually from year to year. On the other hand, there is some seasonality in demand in the summer ...

3.1 Macroeconomic structure of the sector

The map below shows the geographical distribution of legal units registered under codes **.**B and **.**Z . The legal unit is a legal entity under public or private law. This definition of the legal unit should not be confused with that of the enterprise, which is considered a statistical unit. [***] The departments ...

3.2 The main actors

By definition, a beauty salon is an establishment offering aesthetic care, not medical care. The types of establishments intervening on the market are therefore multiple and do not all have the same core business. The illustration below shows this diversity of actors and provides an overview of the types of actors ...

3.3 Focus on nail bars

To make an estimate of the market for nail bars, we relied on the **** report of the National Confederation of Beauty Salons and SPAs (***) which suggests a turnover for the profession of ****.* million euros for the year ****. Knowing that this same report estimates at *% of companies with the activity of"manicure ...

4.1 Typology of the offer and prices of the services proposed in beauty salons

Beauty salons offer different ranges of treatments according to their specialization. Here is a non-exhaustive list.

*The price ranges are based on a benchmark of the institutes' offers but vary according to the geographical location of the institute, the legal status of the institute (***).

Typology of the offer

Source: ****

4.2 The evolution of prices in beauty salons

Consumer prices for beauty care have been rising steadily for many years. This increase explains the success of home-made treatments to the detriment of salon treatments, discussed in section *.*.

However, the increase in prices is tending to slow down due to the downward pressure exerted by the networks of branded beauty ...

4.3 Supply trends and development areas

Innovation

In order to differentiate oneself, innovation remains a significant growth lever and can be achieved through new concepts, new products used, new treatments or new means of communication.

One example is the Les Beautés Vagabondes brand, which is based on the Beauty-Trucks concept. On March **, **** opened the first beauty-truck ...

5.1 Current regulations

Beauty salons are defined in the law as professionals offering to their customers aesthetic care other than medical and paramedical, and comfort aesthetic modelling without medical purpose. (***).

Opening of an institute

The opening of a beauty institute requires a a diploma of CAP Esthétique or to employ a person who ...

5.2 Future regulations

Several changes in the legislation are potentially to be expected.

Tightening of the legislation concerning the devices

In March ****, the French National Agency for Food, Environmental and Occupational Health Safety (***) and therefore asked the public authorities to act

The legislator will have to decide on the new issues concerning the delimitation ...

6.1 Company segmentation

Name Characteristics Turnover Marionnaud generalist players **.*** billion (***) Nocibé general players ***.*** million € (***) Yves Rocher specialized players ***.*** million € (***) BODY'MINUTE (***) generalist players *** million € (***) L'Onglerie brand specialized actors ** million € (***) L'Atelier du Sourcil networks of institutes *.** million € (***)