Exploring The Consumer Trends Influencing the Hair and Beauty Industry

During the recent Australian Hair Council Leadership Summit in Sydney, WhatsWhatCo’s founder Jo Maitland explored with over 250 of the top hair and beauty salon owners the three key consumer trends that are shaping the future of marketing for the industry.

In the ever-evolving landscape of the hair and beauty industry, relating to your target consumer, leveraging digital tools and emerging technologies has become essential for businesses to thrive.

This article delves into the impact of three key consumer trends that are influencing salons and beauty businesses, highlighting how they can enhance customer experiences and transform marketing strategies for their clients.

The Consumer Needs Driving The Revolution

McKinsey & Company, 2022

What does the consumer want in terms of personalisation – don’t judge by your own wants and needs -

• Make it easy and meet me where i want

• Know me and my tastes

• Reward me with offers just for me and my history with you and check in with me – or others will!

McKinsey & Company, 2022

Businesses that adopted this consumer focus are now winning.

Winning in attracting new customers, retaining them and growing with them.

Let’s take a closer look at three  key consumer trends that are in demand. .

The Three Key Consumer Trends To Focus On

1. Sustainability

In today's conscious consumer landscape, prioritizing ethical sourcing and sustainability is not just a trend but a smart business move. Recent studies show that 61% of consumers are willing to pay extra for products that are ethically sourced and sustainable. Moreover, 9 out of 10 Australians are more inclined to support brands that actively promote their sustainability practices and products.

It's time for salon owners to take a step back and evaluate their marketing strategies.

Are they showcasing their sustainable practices or simply focusing on popular hair trends like long hair balayage?

Consumers have become adept at identifying "green washing" tactics, realizing that a mere sticker or logo is insufficient. They seek tangible results and progress. To thrive in this evolving market, salon owners must provide transparency and demonstrate the real impact of their commitment to sustainability.

2. Diversity and Inclusion

The hair and beauty industry has long embraced diversity and celebrated individuality as part of its essence. However, brands outside our industry have had to adapt and catch up. While some industries have recognized the potential of marketing products directly to diverse communities, others have taken a more comprehensive approach by investing in the development of inclusive products and services. Diversity and inclusion have emerged as prominent trends across various communities because they go beyond promoting equality and social progress. Embracing diverse perspectives and creating inclusive environments also fuels innovation, fosters empathy, and empowers marginalized groups to flourish. It's a movement that not only benefits society as a whole but also drives positive change and growth in all industries.

Consumers today actively seek out brands and businesses that prioritize diversity and inclusion initiatives, showing a growing preference for companies that align with their values and commitment to equality. This demand for authenticity in D&I efforts has led consumers to consciously choose to support businesses that demonstrate genuine inclusivity, while shunning those that merely pay lip service to the cause.

3. Personalisation

In today's business landscape, research has revealed that personalisation is a key driver of revenue, with the potential to boost sales by 10 to 15 percent. The success lies in the company's ability to leverage data effectively, deepening customer knowledge and fostering intimacy.

For digitally native companies, personalisation goes beyond marketing; it permeates their entire operation. The question for business owners is: How many rewards programs are you part of? The key to personalisation lies in hyper-focusing on the consumers, not the ego of the business. Customers are the ones driving the change, and businesses that actively listen to their needs not only gain new customers but also retain existing ones and inspire others who are curious about their strategies. To deliver effective personalisation, it is crucial for business owners to understand what consumers truly desire, rather than projecting their own preferences onto their audience

In summary, in today's ever-evolving business landscape, three prominent consumer trends have emerged: the New Normal, Sustainability, and Personalization. Research shows that embracing these trends can drive revenue growth and customer loyalty.

The New Normal encompasses the changing dynamics and preferences of consumers, necessitating businesses to adapt and cater to their evolving needs.

Sustainability has become a critical factor for consumers, with a significant percentage willing to pay more for ethically sourced and sustainable options. It is no longer enough for businesses to merely showcase a logo or sticker; consumers demand tangible results and progress in sustainability practices. Lastly,

Personalization has become a crucial strategy for businesses to connect with their customers on a deeper level. Digital-native companies understand that personalization is not just a marketing tactic but a fundamental aspect of their operations.

By hyper-focusing on consumer needs and leveraging data to grow customer knowledge, businesses can gain new customers, retain existing ones, and inspire others. To thrive in this new era, businesses must understand and embrace these consumer trends, providing authentic experiences that align with the New Normal, sustainability, and personalized expectations.

At What's What Co, we're passionate about digital transformation and supporting salon owners on their journey to success.