Role Of Online Marketplace in Beauty and Salon Industry

​The salon industry is transforming, with online marketplaces emerging as pivotal platforms for growth and customer engagement. As digital solutions become integral to various sectors, salons increasingly leverage online stores and marketplaces to enhance visibility, streamline operations, and cater to evolving consumer preferences.​

Current Landscape of the Salon Industry

The global salon services market has demonstrated robust growth in recent years. According to Fortune Business Insights, in 2024, the market was valued at approximately USD 247.02 billion and is projected to reach USD 447.76 billion by 2032, reflecting a compound annual growth rate (CAGR) of 7.79% during the forecast period. This expansion is fueled by increasing consumer focus on personal grooming and wellness.

The Rise of Online Marketplaces in Salon Services

Online marketplaces have revolutionized the way consumers discover and book salon services. Platforms like Fresha and StyleSeat connect clients with a diverse range of salon professionals, offering user-friendly interfaces for appointment scheduling, service comparisons, and customer reviews. This digital approach enhances convenience and accessibility for clients while providing salons with tools to manage bookings and customer relationships effectively.​

Impact on Client Acquisition and Retention

Integrating with online marketplaces significantly influences client acquisition and retention. A Boulevard report analyzing over 11 million appointments found that the average client retention rate from the first to the second appointment is 45%, dropping to 39% by the third appointment. However, securing a second appointment increases the likelihood of a third to 70%, and nearly 80% of clients who book a third appointment will book another shortly after. Top-performing salons have boosted third appointment retention rates up to 85%. Online marketplaces facilitate this process by offering seamless rebooking options and personalized reminders, thereby enhancing client loyalty.​

Market Reach and Business Growth

For independent salons, online marketplaces serve as vital channels to expand market reach. In the United States, there are nearly 1.5 million hair and nail salons as of 2023, marking an almost 4% increase from the previous year. By listing services on your marketplaces, salons can tap into a broader audience, attracting new clients beyond their immediate geographic locations.​

Technological Integration and Operational Efficiency

Adopting online marketplaces introduces advanced technological tools that streamline salon operations. Features such as automated appointment scheduling, digital payment processing, and customer feedback collection reduce administrative burdens, allowing salon professionals to focus more on service delivery. This integration not only enhances operational efficiency but also elevates the overall client experience.​

Economic Implications and Revenue Growth

The financial impact of integrating online marketplaces is substantial. The global beauty salon market, encompassing various personal care services, was valued at USD 155.60 billion in 2022 and is expected to grow at a CAGR of 8.0% from 2023 to 2030. By indulging in this kind of marketplace, salons can increase their visibility and accessibility, potentially boosting appointment bookings and revenue streams.

Challenges and Considerations

Despite the advantages, integrating online marketplaces presents challenges. The beauty and hair salon industry has a success rate of approximately 50% within the first three years of operation, influenced by factors such as industry experience, marketing strategies, and business acumen. Salons must navigate platform fees, maintain service quality, and manage client relationships effectively to ensure a positive return on investment. Additionally, the competitive nature of online stores necessitates strategic marketing efforts to stand out among numerous service providers.​

Case Study: “Braiding Nairobi”

A notable example of successful integration is “Braiding Nairobi,” an app launched in May 2024 that connects clients with hair braiders in Kenya. By providing a platform for braiders to reach a wider clientele without requiring proficiency in social media, the app has onboarded approximately 100 braiders and 180 customers within a few months. This case illustrates how online marketplaces can bridge the digital divide and empower salon professionals.

Future Outlook

The trajectory of salon services is increasingly intertwined with digital innovation. As consumer behavior continues to favor online interactions, salons that embrace online marketplaces are better positioned to thrive. Integrating artificial intelligence, virtual consultations, and personalized marketing within these platforms is expected to enhance client engagement and satisfaction further.​

Set Up an Online Marketplace and Move With the Times

Integrating online marketplaces represents a pivotal evolution in the salon industry, offering avenues for growth, efficiency, and enhanced client relationships. By strategically adopting these digital platforms, salons can navigate the dynamic beauty landscape, meet the demands of modern consumers, and secure a competitive edge in an increasingly digital world. 

Don’t have the time or the expertise to set up and manage your online marketplace? Worry not; contact Premier Salon Marketing, and we will take care of everything. We are a digital marketing agency catering to businesses from the beauty and salon industry. Boasting a team with years of experience, we ensure that your business can thrive in a cutthroat industry like the beauty and salon industry. Just call us, and our team will be right with you.