The four main issues facing salons in 2023

As the new year has commenced, salon owners are reflecting on 2022 to see what changes need to be made and what can be improved for a successful 2023. Although I look forward to a new year with excitement, I cannot ignore the issues that salons face come 2023 so I have put together my top four issues affecting salons and how to manage them successfully.  

Market competition

In the UAE, the salon business is flourishing, with more than 5000 salons. So much so, that the UAE cosmetics market is one of the largest in the region, with Dubai leading the way. With more and more salons continuously opening, this is an incredibly competitive market, making it challenging for salon owners to keep their doors open for business. The solution here is to make your salon stand out from the rest, which will create loyalty and encourage new faces. With the level of competition and the sheer number of beauty salons that consumers have access to, knowing what makes you different and sets you apart from the rest is key.

This can include having the most well-trained staff and providing the best treatments and level of service. This could also include creating a beautiful salon, that is Instagrammable as well as sanitary and comfortable for your clients, and lastly, providing competitive pricing that makes it affordable for clients, yet still fruitful for the salon.

KSA salon industry growth

With the KSA salon industry rapidly growing, we are predicting a significant drop in the number of KSA residents traveling to the UAE for their hair, nail, and beauty services. KSA consumers will now be able to choose from the increasingly competitive local salons available to them right on their doorstep. The only way for this to not impact salons in the UAE too drastically is to get more UAE residents through the salon doors and spending money to compensate for any client loss. One of the best tools that you have access to is social media. A strategic approach to your social channels will ensure consistent messaging, create interest and generate footfall through the door.  

The global economic crisis

With the global economic crisis in our midst, an increase in product costs and potentially a reduction in client spending, there are a few things that can be done to save money and cut costs which makes for better, wiser decisions during this time.

Once again, sufficient training of your team is something that will benefit you here massively. Focusing attention on training will result in the optimization of the operations and efficiencies of the salon. Staff should focus on areas such as reducing product waste and upselling where possible.

In an environment where clients are reducing their spending costs, it will be very difficult to increase their spend per visit every time; however, offering bundles or packages to clients is a great strategic method to get clients to pay more than they initially intended to. Things like a manicure and pedicure bundle or a balayage and blow-dry package are a couple of the favourites.

Labour law changes in the UAE

With the labour law change made in the UAE last year, it is now easier for staff to leave for a job at another salon. The aim here is to build a salon culture whereby your staff are loyal and want to continue working for you. Losing staff regularly has a major impact on businesses when you consider the investment required to recruit and train staff. My advice is to always do all you can as a salon owner to retain the staff you have. For any business to be successful, you need to invest in your people. And nowhere is this more important than in salons because your members of staff are the key to happy clients. Become an employer of choice by investing in the ongoing professional and personal development of your team members. Know that the younger generation of salon employees is looking for inclusion, empathy, and empowerment.

The above are very real and present issues that salon owners could be facing in the UAE during 2023 and could have some negative effects on the growth and success of salons; but with enough preparation and forward-thinking, there are solutions to these problems and your salon can have a very successful year ahead.