The Beauty Business is Big
Built on cutting edge products and ever-improving services, the beauty and personal care industry is in high demand and continues to thrive. Within this massive market segment, one of the fastest-growing sectors is hair removal — most notably laser hair removal and body waxing.
The global laser hair removal market is expected to reach over $3.9 billion by 2026 and is predicted to grow at a compound annual rate of 15.4 percent during the forecast period between 2019 and 2026.
Although the global hair wax removal industry is anticipated to grow at a CAGR of just 9.4 percent, the already quick-growing segment is predicted to reach a whopping $18.8 billion by 2026, according to a global industry analysis.
When considering a laser hair removal or waxing franchise, which is a better investment?
Laser hair removal began its rise in popularity in the late 90s when the Food and Drug Administration first approved the technology for commercial use. At first, the procedure was only offered in high-end plastic surgery centers, but the service has since become more accessible — attributing for the heavy growth prediction. Laser hair removal is now available in many places, including stand-alone chains and franchises, med spas, hair and nail salons, even tattoo parlors.
Profit margins for laser hair removal were initially healthy, but the increased competition among service providers led many players in the space to offer deals and discounts — a practice which continues within the industry. While the pricing structure remains relatively high compared to other forms of hair removal, market saturation has significantly reduced the revenue potential for laser hair removal.
The inventory investment for a laser hair removal business is quite expensive. A laser is considered a high fixed cost which requires a business to maintain a high level of revenue in order to avoid generating losses. The average laser can cost anywhere from $50,000–$250,000, which makes it a very significant asset to a business. Equipment repairs on cosmetic laser equipment can also be costly. Just one breakdown can cost up to $3,000 in parts and labor, and then there is potential disruption in revenue due to repair time.
According to the most recent survey from the National Laser Institute, there were 1.1 million laser hair removal procedures performed in the United States. Compare that to the 6.97 million Americans who used professional waxing services four times or more within six months.
In addition to the affordability factor, laser hair removal typically has a smaller customer base because lasers generally work on dark hair follicles. This means the treatment is unreliable for people with blonde, red, and gray hair.
Laser hair removal franchises also have a higher cost of client acquisition because the nature of the treatment doesn’t lend itself to making customers for life. There is a constant need to search for new clients.
411 on Body Waxing
Body waxing may have originated in ancient Egypt, but it just now emerging as a major player in the personal care industry. The popularity of body waxing has taken it from an add-on service in the stockroom of hair and nail salons to a spa-like experience. The number of body-waxing-only salons opening across the country is rising but the surging demand for these services means the growth potential of the industry is also high.
Body waxing is one of the most profitable personal services and ranks third in popularity behind manicures and haircuts. Consider: On average, women who get waxing treatments once or twice a month will spend over $23,000 on waxing services throughout her lifetime, compared to around $3,000 for laser treatment. Body waxing franchises have high margins and low overhead expenses. The waxing supplies needed at a body waxing franchise are relatively inexpensive compared to lasers. The initial inventory cost of these supplies ranges from $8,000 to $11,000.
Unlike laser hair removal, body waxing treatments are not permanent and need to be maintained every four to six weeks. At Uni K Wax Studio, more than 50 percent of the clientele are repeat customers. While the need to search for new customers remains, the urgency isn’t as high as with a laser hair removal business. Surveys consistently estimate that 93 to 99 percent remove their body hair regularly.
There are also no limitations on what type of hair can be waxed, and the variety of services covers everything from brows to toes. Uni K Wax Studios, the nation’s leading natural body wax franchise, offers over 160 waxing services for women, men and teens, and is a great way to get into the beauty business as the demand for hair removal services continues to rise.
About Uni K Wax Studios
In 1993, founder Noemi Grupenmager, a passionate visionary, opened the first Uni K Wax Studio with the goal of providing a better, more complete, waxing experience to a massive untapped market. By the sixth month, the small Miami-based studio was providing hair-removal services to over 200 clients a day.
The brand’s proprietary wax, known as ElastiK Wax, is natural, gluten-free, and is applied at body temperature. Created to provide a more comfortable waxing experience, the unique formula easily handles even the slightest growth and can be used on larger areas than traditional wax, allowing waxers to provide more services in less time. With unparalleled attention to hygiene, each Uni K Wax Studio has an on-site wax lab where pre-measured wax is warmed in individual containers and applied by expertly trained waxers.
In 2007, Uni K Wax began franchising, after nearly 15 years of defining and refining their techniques and best practices. Over the next decade, they continued to focus on fine-tuning their business model, optimizing the design and layout of their studios, and building an unrivaled support team. Today, with the systems and infrastructure in place, Uni K Wax is poised for growth in a wide-open sector of the stable and growing beauty industry. The brand currently has locations in Florida, New York, New Jersey, and Iowa with additional studios coming soon to Georgia.
Click here to learn more about waxing franchise opportunities with Uni K Wax Studios.