Applying the Lessons of 2012

2012 was an exciting year for the beauty industry. What have we learned?

The Hair and Beauty Industry (HABI) turned over $4 billion last year, clearing $446.8 million in profit. This represents a 0.19% share of the total Australian economic output, down on past years.

23,910 businesses paid $2.2 billion in wages to 74,050 employees. The average wage in the industry was $29,115.46, up from $28,842.98 in 2011, and higher than the predicted average of $28,507.21 for 2013.

The 2012-13 financial year is expected to see a higher percentage increase in revenue, from a five year annual average of 1.5% to 2.0%. In comparison to the industry as a whole, the 2011-12 financial year saw Brazilian Beauty’s revenue grow by 21.0%.

Continuing a long term trend, discretionary services made up around 30% of industry revenue. This includes spray tanning and some other beauty services. Fortunately for Brazilian Beauty, waxing remains a necessity for most clients.

2012 saw continued growth of the organic salon market, with the number of organic salons growing by around 20% per annum over the past five years. This is a good sign for The Australian Skin Institute, which uses natural products and avoids the use of preservatives and other artificial additives.

2012 saw Brazilian Beauty launch a new website, with a platform prepared for 2013’s expansion into the male market. The website has been a resounding success, and while it continues to undergo development, it has already begun paying for itself through online appointment booking and product and gift voucher sales.

Digital media will be a driving force behind sales in the years to come, and will without doubt continue to grow as the consumer’s number one choice for information and remote purchasing.

Following the success of our facebook page in 2012, 2013 will see the continuation and development of brand awareness on other social networking platforms.

Brazilian Beauty began the development and improvement of brand presence on review websites during the last quarter of 2012. This will continue throughout 2013, as we seek to capitalise on the consumer’s growing reliance on online reviews and customer recommendations. These websites, employed correctly, essentially provide us with free advertising.

Overall, the year was a success for the industry, and a particularly stunning success for Brazilian Beauty. No doubt there will be many changes to come this year, as we continue to grow the brand and expand our market share.