Wig & Hairpiece Stores in the US Industry Market Research Report Now Available from IBISWorld
Over the past five years, declines in consumer income and discretionary spending hurt demand for wigs and hairpieces used for aesthetic purposes. While steady demand from medical-use products mitigated some of the declines, industry revenue only increased marginally. Over the next five years, however, product development and higher income will spur demand, especially for higher-margin products, boosting industry revenue. For these reasons, industry research firm IBISWorld has updated a report on the Wig & Hairpiece Stores industry in its growing industry report collection.
Los Angeles, CA (PRWEB) November 07, 2012
The Wig and Hairpiece Stores industry represents a niche spot in the hair-care sector. In 2012, sales of wigs and hairpieces at brick-and-mortar stores are expected to total $275.5 million in revenue, representing average annual growth of 0.4% since 2007. The industry caters to two distinct consumer groups: individuals that purchase wigs and hairpieces for aesthetic purposes and those that purchase them because of a medical condition or treatment that leads to hair loss; wigs for the latter group are known as cranial prosthesis. According to IBISWorld industry analyst Caitlin Moldvay, “during the recession, demand for aesthetic wigs and hairpieces contracted as consumers cut unnecessary items from their budgets or substituted for more inexpensive wigs and hairpieces. Consequently, industry revenue fell 6.8% and 4.7% in 2008 and 2009, respectively. Meanwhile, demand for medical-use hairpieces remained stable, largely because insurance providers typically cover 80.0% to 100.0% of the cost for cranial prosthesis. In 2012, rising disposable income is expected to boost demand for aesthetic wigs and hairpieces, leading to an estimated 3.9% revenue gain during the year.
Even the industry's two largest players, Sally Beauty and Ulta, only account for a small share the Wig and Hairpiece Stores industry's revenue; high levels of the competition keep industry concentration low. “The majority of industry operators are small, single-location stores that serve niche geographic markets or specialize in particular industry products,” says Moldvay. While these products retail in localized markets, the majority of human-hair and synthetic wigs and hairpieces are sourced from China and Indonesia, with India representing the fastest-growing source of imported industry products, according to the US International Trade Commission. The industry's fastest-growing product segment over the past five years has been human-hair wigs and hairpieces, although these products command premium pricing, generally retailing between $300 and $1,500, on average. By contrast, synthetic hair wigs generally cost between $50 and $200, on average.
Over the next five years, revenue for the Wig and Hairpiece Stores industry is projected to rise at a healthy rate. The industry will primarily benefit from improving per capita disposable income, which will boost demand for discretionary purchases of wigs and hairpieces. Demand for medical-use hairpieces is also expected to strengthen in line with the rising average age of Americans; older-age individuals are more prone to health conditions that may result in hair loss, so they are more likely to purchase wigs or hairpieces. At the same time, demand for men's wigs and hairpieces is expected to continue declining over the next five years due to changing fashion trends and competition from alternative hair regrowth products and treatments. For more information, visit IBISWorld's Wig & Hairpiece Stores in the US industry report page.
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IBISWorld industry Report Key Topics
This industry includes stores that primarily specialize in selling wigs, hairpieces and hair extensions for aesthetic and medical purposes. This industry does not include retailers that primarily provide wigs and hairpieces via electronic mediums.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation's most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/11/prweb10103995.htm