Modern Beauty Salon Holdings has to keep a close eye on the industry wide government priorities to predict trends. I say these two, because theyve been in the beauty game for decades. Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. What new technology or processes can be tried? Even though brands are taking steps to improve the ill effects, theres still a long way to go to see results. Brand loyalty spreads horizontally too. Share them below in the comments. 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. - Other stakeholders such as non-government organizations, protest & pressure groups, activist movements play critical role in policy making in Hong Kong. IFSM 300 SECTION: Stage 1 UMUC Hair Salon: Business Environment Analysis Assignment DUE DATE Assignment turned in on I. In many cases products are designed based on environmental standards and expectations rather than catering to traditional value propositions. Beauty Salon Growth works under the guidelines and regulations directed by federal government and food authority. Anytime your business is starting to suffer, or you feel stagnant, there will be countless opportunities you may be missing. How successful the business is and what makes it so can be discussed in detail, highlighting the positives. Thats why new beauty companies are constantly fighting to get attention in such a saturated market. PESTEL stands for - Political, Social, Economic, Technological, Environmental and Legal factors that impact the macro environment of the firm that it operates in. The analysis utilized to determine the position of business in the market is done by using PESTLE analysis, given in Display A. - Inflation rate The easy liquidity in the market post the great recession of 2018 will lead to increasing inflation in the Hong Kong economy. Having a strong staff is important as well. 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. Someone finds their favorite shampoo from Company A and then sees a new moisturizer made from the same guys. This one is one of the more important aspects to look at. 2023 Zolmi & Belliata are registered trademarks owned by Umov Sp. We stock brands who pride themselves on using 100% vegan ingredients in . Customers will try an assortment of products until they find the one. A PEST (political, economic, social, technological) analysis, while similar to a SWOT, is focused solely on external factors, most commonly measuring a market, whereas a SWOT analysis focuses equally on internal and external factors and measures a business entity, proposition or idea. - Latest technology based innovations implemented by competitors of Modern Beauty Salon Holdings This can provide a good insight into what the competitors are thinking and where Personal Services business model future is. Participants can look at the salon from an external, customer perspective in order to gain the most from discussing what strengths lie within it. - Paris Climate Agreement has put real targets for the national government of Hong Kong to adhere to. The FD&C also monitors the ingredients based on their usage and ensures that there should not be any misinformation. Modern Beauty Salon Holdings has to prepare for this eventuality as it will lead to change in governance priorities of Services sector. When you determine these, look at what options are available that you are not using currently. Look at what is trending when it comes to hair, nails, and skin treatments. Moreover, many companies import ingredients or products and sell them in other countries. Sure, the big brands are well-known with a higher chance of keeping their customer base, thanks to brand loyalty. Trade License: One bad review is all it takes for a customer to look away in disgust. 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. Frue, K. 2018. - 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. Sept. 24, 2020. But in 2015, The United States beauty industry generated over $56 billion dollars, with hair care leading the way. PESTEL Analysis is a strategic management tool that Modern Beauty Salon Holdings management can use to make better decisions. - Developments and dissemination of mobile technology has transformed customer expectations in the Services sector. You may pride yourself on having more services or having the best staff. PESTLE Analysis in Beauty Industry PESTEL ANALYSIS Submitted By: Arcega, Kezziah The companies need to report their products ingredients and are required to be registered manufacturers. 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. The average person spends approximately "$1,800.00 a year in a salon" (Lyte, 2015). Our Mission: Building your character through your hair by establishing the strong foundation of your persona so that others may see the beauty of the real you. If you have a lot of five-star reviews, referrals, and repeat customers you can see that the employees are skilled enough to keep people happy and coming back. But these smaller brands are slowly creeping out to fill that need. 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 steps can help you get back, Copyright 2020 Weberience LLC. When you want to know your business on a deeper level, no matter how new or old your business is, conducting a SWOT analysis is a good way to start. Some weaknesses could be staff that isnt pulling their weight. And if you walk up into any of these aisles, youll find dozens of brands offering you nearly the same product. Whatever they end up being, strengths are what makes your salon stand out from the crowd and what makes you the best value for your price. Marketing plan for salon praba 1. z o.o. But theres still a growing issue with heavy plastic usage within the cosmetic and skin care segments. The companies must be FDA registered. Some states require salons to be insured and some places require each hairdresser or skin therapist to have insurance as well. Beauty brands supply the tools to improve your appearance and, by proxy, your feelings about yourself. We use cookies to give you the best experience possible. When you write out your strengths and weaknesses, you will be looking at the internal factors at playthings you can change to make your marketing and operations run smoother. What is an Internal analysis vs an External analysis? Modern Beauty Salon Holdings has to carefully consider average time of specific cases before entering an international market. A hair salon with an abundant clientele list is a sign of successful marketing, good operations and strong client management. Not only women but men are also involved in spending more on skincare and haircare. - Environmental norms are also altering the priorities of product innovation. Modern Beauty Salon Holdings (2018), "Modern Beauty Salon Holdings Annual Report", Published in 2018. A. D. Chandler, Strategy and Structure (Cambridge, Mass. R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986). But, theyre made of plastic and horrid for the environment. The internet really did revolutionize the beauty industry. Slips and falls This could result in legal action and cause financial loss for your salon. But even though the products in this industry are endless, they all focus on selling one specific idea: a better you. Out of 1328 cosmetic ingredients, theyve banned over 500. Look at how other salons are thriving and look at the opportunities you can adapt. Any new beauty brand can sell their products through Amazon or set up a shop on Etsy. SWOT Analysis Definition. The company is more concentrated on its product or services to make sure about the product quality and security. Strategic Management Essays, Term Papers & Presentations . Please note: This blog post is for educational purposes only and does not constitute legal advice. - 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. Free Summary Report This report contains the table contents only. If you have one hairdresser who comes in late, never cleans up, and is almost always crabby, this is a weakness that will influence all parts of your salon. One of the biggest strengths in any service business is the skills of the employees. 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. The government usually introduces new policies and guidelines in the industry which sometimes affects the business operations negatively. Well teach you online marketing strategies, smart branding moves, and more that will make your salon business memorable and worth talking about. Euromonitor (2018), "Services Sector Analysis ", Published in 2018. Sure, the big brands are well-known with a higher chance of keeping their customer base, thanks to brand loyalty. You may have a reputation as having the most relaxing spa or the trendiest salon. 4. To keep our site running, we need your help to cover our server cost (about $400/m), a small donation will help us a lot. You can't forget about the small stuff, toothpaste and deodorant. Over the last decade sustainability and environmental factors are becoming critical for businesses. This can completely transform the customer user experience in the Personal Services industry. . Health consciousness and trends. The total daytime business population in a five-mile radius is 109,867 with the residential population at 161,848. Take a look at some of the advantages you can benefit from when you join through our Trade Registration. Our Vision: HAIR ARCHITECTURE - Hair cutting is a visual art; it should manifest your personality and must therefore be individualized. It's a list of the Strengths, Weaknesses, Opportunities, and Threats. - Increasing liberalization of trade policy of Hong Kong can help Modern Beauty Salon Holdings to invest further into the regions which are so far offlimits to the firm. PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. How to handle competition or how to deal with accidents or fires. Don't forget to ask your team for their feedback on your salon SWOT analysis. Its nominal GDP in 2018 was $375.90 billion (Trading Economics, 2019). The beauty industry is known to be resistant to economic downturns - even faring well during the Great Recession of 2008. Rather than remaining a one off activity a salon swot analysis can be used as a regular tool for evaluating performance and highlighting ways to improvement. You can buy almost any product and get it delivered to your home in a day or two. The first article, "The Price of Nice Nails," describes in painful and accurate . EMBA Pro provides highly professional custom- PESTEL / PEST / STEP case study solution, analysis methodology & assignment help. Are there specific hair treatments and processes at which the salon excels? Currently, Jean-Paul Agon serves as the CEO and chairman with Franoise Bettencourt Meyers and Paul . They become brand loyalists. Our mission is to empower you as a strong leader of your client base. Forums and subreddits are popping up over the internet, discussing the best routines for flawless skin. - Government resource allocation and time scale The Hong Kong new government policies can improve the investment sentiment in the Services sector. The next element to address in the PESTEL analysis of Ireland is the economic environment. Men and women are both spending time and money on services to look and feel good. But even though the products in this industry are endless, they all focus on selling one specific idea: a better you. Momin, A. Beauty brands supply the tools to improve your appearance and, by proxy, your feelings about yourself. The more often a SWOT analysis is undertaken, the more familiar and comfortable staff will become with using it. Thank you for interesting in our services. The 4 Elements of PEST Analysis The acronym PEST stands for "political, economic, social, and technological"the four primary types of external factors that can impact a business. Examples of social-demographic factors include: Population growth. Forums and subreddits are popping up over the internet, discussing the best routines for flawless skin. 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). Undertaking a salon swot analysis should become part of the process of regular evaluation of how successfully your salon is running and remember this process can be used for beauty salons and nails salon as well. This is because the Strengths and Weaknesses elements largely apply to the internal factors of a team or business, whilst the Opportunities and Threats elements are more related to external factors. Your name. Yet the products in the industry seem to be endless. The purpose of the exercise, is to enable a more detailed understanding of what is working well, what can be improved, what opportunities are available and what threats there may be to a salon. Shawn says I do it for those passionate about their business and their goals. They have developed, designed and also implemented multiple measures for reducing greenhouse gas emissions at manufacturing facilities like plants, distribution centres etc. It can help you to identify target markets, most successful marketing channels, best timing of messages, and conversion goals. 2021. Not only women, but men are also investing more in skincare products. In skin care, an ingredient called microbeads were sweeping headlines for a while. Look into popular services that youre not currently offering and see how those could work in your salon. This can result in greater scrutiny of environmental standards for Modern Beauty Salon Holdings in Hong Kong. if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'salonbusinessboss_com-leader-1','ezslot_0',176,'0','0'])};__ez_fad_position('div-gpt-ad-salonbusinessboss_com-leader-1-0'); Check out our tips for creating a business plan HERE. To plan out the risks, creating a SWOT analysis will help. the industry successfully survived the 2008 Great Recession. (Parera, 2017). Cosmetic companies are facilitating their goals for creating sustainable and environmentally friendly businesses in terms of business innovation. [Online], Available at: https://www.mbaskool.com/pestle-analysis/companies/17994-maybelline.html, [Accessed on: 21st May, 2021]. Use galvanic tools for facial treatments. Advanced technology reigns supreme and helps businesses in widening the spectrum of the public eye. Its not just women; men are spending more of their paychecks on products to clear their acne and get rid of scars. 2. Look into social media- can you advertise on any social networks youre overlooking? However, Gilbert (2019) acknowledged that the implications of the changes identified by PESTLE vary among industries, thus Porter's five forces will be used to understand the specific implications on the beauty manufacturing industry. If you continue to use this site we will assume that you are happy with it. The SWOT analysis is typically made for marketing and works best when you're newly opened or have been open for a short time. There are many companies like Loreal, Bodyshop, etc who perform their CSR activities very carefully over the years. If an employee isnt working out, you may fear losing money but firing and hiring/training a new professional may save you money in the long run. Description wqdsaed. 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