#Japan #Osaka #Beauty Industry #ReView #Salon Trends

Declining Trend in Japan's Beauty Industry: Insights from a Recent Report

In recent times, the beauty industry in Japan has shown a noticeable decline in new salon openings. According to the latest report by Review, a data provider based in Osaka, only 1,518 new beauty and barber shops opened between July and September 2024. This figure marks a significant decrease compared to the previous quarter, which recorded 1,746 new openings.

Review's comprehensive report, titled "National Beauty Salon Opening Ranking Report ver2," highlights the overarching trend that has been gradually shaping the industry. The falling numbers can be attributed to various factors, including changing consumer preferences and a shift in the traditional business model towards freelancing and shared salons. This evolving landscape points towards a more individualized approach to beauty services that reflects the diverse lifestyles of today's consumers.

Top 5 Prefectures for New Salon Openings

The top five prefectures for new salon openings in the country during the July to September timeframe are noteworthy as they shed light on regional differences in beauty service demands. Although the total number of openings has declined, there are areas where growth has been observed, especially in rural prefectures.

Key Findings:

1. Total Openings: The total beauty salon openings nationwide reached 1,518, showcasing a drop of 228 salon start-ups compared to the previous quarter.
2. Shift in Models: The report implies that this decrease isn't solely due to economic factors but also highlights a transition from conventional independent models to more flexible options such as freelancing and sharing spaces.

Regions with Increased Salon Openings

Interestingly, the report also identifies three prefectures where the number of new salon openings has risen over the past six months. Notably, Ishikawa and Hokkaido stand out as active areas for new establishments, demonstrating the vibrant entrepreneurial spirit of these regions.

Factors Contributing to Growth in Certain Areas:

• - Urban to Rural Migration: An observable trend is the movement from urban centers to more rural locales, where lower startup costs and supportive local policies create a favorable environment for new businesses.
• - Utilization of Vacant Properties: Incentives and grants for transforming vacant properties into salons make rural areas appealing for new entrants.
• - Focus on Community Relationships: A stronger emphasis on localized service and lifestyle-oriented approaches further enhances the attractiveness of opening salons in these areas.

The Role of Barbershops in Rural Areas

Despite a national trend toward decreased barber shop openings, rural regions are witnessing a unique growth pattern. In certain prefectures such as Yamanashi, Aomori, Tokushima, and Oita, the proportion of barbershops compared to beauty salons has risen by over 20% in a six-month comparison. This reflects a distinct regional preference where traditional barbershops continue to serve critical community roles.

Future Directions for the Beauty Industry

While the numbers indicate a corresponding decline in new salon openings, this does not necessarily equate to a loss of opportunities for beauty professionals. Instead, the industry is witnessing an expansion in options, encouraging individuals to carve out personalized paths within the profession. Freelancing, one-person salons, and shared spaces are now more viable options, blending personal style with professional aspirations.

As consumers increasingly view salons as places for self-expression and mental wellness, the demand for unique and individualized experiences continues to rise. This shift toward creating personal and trusted spaces allows beauty and barber shops to develop into vibrant community hubs.

Conclusion

Review is dedicated to continuously tracking data-driven insights to support professionals in the beauty industry, emphasizing the importance of understanding evolving trends. As new opportunities emerge, the focus on tailored services that resonate with local communities will play a crucial role in revitalizing the future of beauty services in Japan.

For more detailed insights, please refer to the comprehensive report available at: National Beauty Salon Opening Ranking Report ver2.

Review, with its commitment to innovation in data services and a strong belief in "making possibilities possible," looks forward to supporting more local economies and businesses in navigating this evolving landscape.