Hair Industry Analysis Paper

The hair salon industry has managed to set itself apart from the beauty supply and cosmetic industry trades. Within the US the Mid-Atlantic, Southeast, West and Great Lakes regions have the largest concentration of hair salon establishments with a consumer following matched to the US population for these services within the individual regions. As the economy continues to recover from the past recession, consumer’s discretionary income is also increasing and over the next 5 years, this rising consumer demand for hair salon products and services will grow the industry’s annual revenue beyond its 2015 $42 billion dollars.

With the expansion and development of hair product medleys and more skilled staff the increasing young professionals and youth market segments along with more male specific products are adding profit opportunities to an existing market in the hair product industry. As a result going into 2020 the industry expects to increase its average annual rate by 2.3% generating $47.4 billion during this time period. Even as competition increases, consumers are looking to establish relationships with salons and purchase hair product brands, which have more focus on customer service, quality products

Her interest in formulating her own haircare products has led to creating Bustani’s business concept, which came about as a result of buying products that didn't meet the needs of her clients. One trend is African American natural hair women attempting to make their own hair products at home. These creations are typically made using fresh ingredients and fail to provide the desired style because they lack the time or knowledge of blending the ingredients to get the desired results. Bustani’s line of hair products will meet the needs for this eco-friendly industry and market segment helping stylists working with ethnic hair and consumers looking for effective hair