Despite being among the worst hit by the pandemic, the beauty services market has begun to rebound. Sales in the United States have reached nearly 70% of their pre-pandemic levels in 2021 and market value has eclipsed $57 billion. Nevertheless, emerging shifts are creating new challenges and opportunities for the industry.
Technological innovations are playing a powerful role and are beginning to blur the line between service and product offerings. Retailers are experimenting with in-store offerings using augmented and virtual reality. Salons and spas are finding new revenue streams through software that allows them to expand services into digital product offerings and eCommerce.
The “B2B and Digital Payments Tracker®” examines how the beauty and wellness service industry is rebounding from the pandemic with the help of digital initiatives.
Pittsburgh-based Avere Beauty has launched a “treat now, pay later” option to make its services more affordable. With this service, eligible customers use a state ID and mobile phone number and choose from a variety of monthly payment plans. Customers can use the option to cover med-spa services, laser treatment and other services from Avere Beauty.
Retailer Sally Beauty is utilizing technology to create “memorable and personalized” interactions at Studio by Sally. The do-it-yourself-centric concept store opened in March. The focus will be digital-first, from virtual check-in and digital education to streaming demos and take-home videos. Sales associates will be trained cosmetologists who will work with customers in a “salon-style consultation” to help them achieve at-home professional results using the stores’ products.
For more on these and other stories, visit the Tracker’s News and Trends section.
As salons and spas recover from pandemic closures, digital systems can improve customer experience and help attract and retain customers.
The closures of in-person businesses forced a hard digital pivot on beauty services providers, allowing many to survive. With increasing consumer demand for convenient and contactless payment options, the industry is finding value in digital transformation.
Online booking is now a must, for example, with 70% of salon customers preferring online booking over calling in. With technology blurring the line between products and services, partnerships with product brands can offer lucrative revenue streams through eCommerce.
To learn more about digital innovation in beauty and wellness services, read the Tracker’s PYMNTS Intelligence.
The “B2B and Digital Payments Tracker®,” a collaboration with American Express, examines how the beauty and wellness service industry is rebounding from the pandemic with the help of digital innovation, from booking and payments innovations to “treat now, pay later” programs.