Hair Salons Recession-Proof

A full-service salon with room for at least 40 customers sits above the Aveda beauty products store in Washington D.C.'s Chinatown. On a recent Tuesday morning, a steady stream of customers waits patiently for half-price treatments while hair dryers and electric clippers provide noisy accompaniment to a scene of controlled chaos.

[img_assist|nid=60|title=At hair salons, business is still strong (photo by Cate Cetta)|desc=|link=none|align=left|width=300|height=225]Outside, reports of an economic slowdown are broadcast on Verizon Center’s large-screen TV. Inside salons, things look anything but slow.

As unemployment numbers rise and consumer spending in the United States continues to fall, certain industries are proving themselves to be resistant, if not immune, to the bleak economic forecast.

Demand for trained cosmetologists has continued to grow over the past 10 years, according to the National Accrediting Commission of Cosmetology Arts and Services. The steady demand for services in the beauty industry suggests that the students receiving licenses in these fields may face fewer challenges than those in other industries.

“You can always make money doing this,” says Melvin Wells, the admissions director and a former student of Bennett Beauty Institute in northeast Washington, D.C.

Two years ago, he says he received an average of three to four calls a day from salons looking for trained employees, and in 2008 the number has increased. He smiles and adds that he receives far more employment offers for his students than he can fill.

Back in Chinatown, the number of students at the Aveda Institute in Washington, D.C., has grown to near capacity from seven students at their opening in 2005 to a current number of almost 100, says Cameron Russell, the admission representative for Aveda. Even with the increase of customers at the Institute’s salon for student training, she says that students still outnumber customers at times.

Customers have remained steady at small independent salons despite economic problems, says Tia Blake, an independent salon owner and licensed cosmetologist in Hyattsville, Md. She is applying to Aveda’s esthetics, or skin-care, licensing program in an effort to expand her salon.

Although she thinks customers will visit less often this year because of gas prices, she says she doesn’t think she’s lost any revenue. Asked if she believes her field can survive the current economic situation, she pauses, and then emphatically nods, “Yes, it’s recession-proof.”

Olivia French, a practicing esthetician for almost 30 years, noted the “lipstick effect,” the economic theory that the Wall Street Journal first reported on in 2001. Credited to Leonard Lauder, CEO of Estee Lauder, the theory states that in economically trying times, high lipstick sales reflect an increase in the demand for cheaper cosmetic products as consumers look for cheaper ways to treat themselves.

French believes that affordable salons and beauty services also serve this need for small indulgences during times of economic recession.

The statistics seem to support French’s assertions that demand for these services does not fall during recessions. Although 2008 employment numbers for the cosmetology industry are not yet available, the American Association of Cosmetology Schools reported in that in 2007, “three-quarters of the salons that tried to fill positions were unable to find qualified applicants.”

The study goes on to note that the industry has continually shown a “chronic shortage” of qualified workers, reflecting the constant demand from the population.

In the related industry of massage therapy, Web traffic and online applications at Potomac Massage Therapy Institute have increased in the past year, and general inquiries about the institute remain strong, says Bruce Hunt, a massage therapist and teacher with 22 years of experience in the Washington, D.C., area.

Hunt says that his income has remained stable over his career, and the institute’s classes are full this year. He adds that many massage clinics are busier, and often not able to offer as many appointments as are requested.

As an industry that serves the fortunate, unfortunate, and those in between, cosmetology demonstrates an ability to rise beyond economic fluctuations and more closely mirror the population than the economy. The American Association of Cosmetology Schools concluded in 2007 that the demand for these services will grow by at least the rate of population growth in the future.

French agrees that her services are always in demand.

“I’ve had people come here who’ve lost their jobs and want to look better, to treat themselves; I’ve also had people come here before job interviews," she said. "They always have it in the budget.”