Future forecast

Looking forward to a new year has probably never meant more than in 2020. We asked some hair, beauty and spa industry bodies about the last eight months, and their hopes for 2021

“In 2020, the hair and beauty industry learned how valued it is in Irish society. Salons are more then just a destination for glamour; they provide clients with sanctuary, respite, self-confidence, positive mental health and well-being. They are also serious contributors to our overall economy. The entire industry, including services and products, is worth €2.6bn.

“There is no doubt that there is a tough road ahead. People will always want to get their hair and treatments done; however, their disposable income may have decreased. So now, more than ever, it is really important for businesses to put a strategy in place for 2021. Investing time in this is essential. They need to look closely at their service providers, overheads, the bottom line, staffing requirements, productivity, marketing and communication.

“The support from the Government, and the communication between the various departments and the industry, is good; but there is always lots of room for improvement, and this is a key priority for Habic. We would love to see the establishment of a dedicated department and minister, with sole responsibility for SMEs, as the needs of an SME are very different from big businesses or multinationals.

“The Government is doing its best in a very difficult situation; however, businesses are dying on their feet, through no fault of their own. We've been lobbying the Government since the onset of the pandemic, and we welcome all the financial support, although we always want to see higher levels of funding. The newly announced VAT rate cut, wage subsidies, rates waiver and education supports are all critical to sustaining businesses, but we also need to see the Government make a move towards tackling the black economy. This is costing the industry €400m annually, and it’s costing the economy €55m in lost taxes.

“This year, salons, spas, and the professionals who work within them, have done an amazing job in adopting, adapting and adhering to the Covid-19 guidelines. As the pandemic evolves, so too has the industry. The standard of hygiene was excellent prior to the onset of the pandemic, but the industry has since really stepped up, and taken on board the protocols in a serious and professional manner.

“But I do believe a change needs to come from the Government, in the shape of advancement in the areas of Covid-19 contact tracing and rapid testing – where the results are back in one to two hours. Until the testing system is improved, and is faster and more accessible, we will have continuous cycles, and issues getting to grips with the virus. This needs to be more of a priority for the Government.

“My wish for 2021 is that our industry thrives in the wake of this global pandemic; that health and safety remains a priority, and that local people support local businesses, and local jobs. This is key to the survival of our entire industry and economy.”

‘This year, salons, spas, and the professionals who work within them, have done an amazing job in adopting, adapting and adhering to the Covid-19 guidelines’

‘While 2020 has been an extremely challenging year for the hairdressing industry, I believe 2021 will be better’

“While 2020 has been an extremely challenging year for the hairdressing industry, I believe 2021 will be better. The sector has improved its skill set so much in the last decade, but particularly during lockdown. So many hairdressers really used their time well to upskill online, which is fantastic. Clients are expecting more from us now, in terms of service and advice, and rightly so.

“Every salon owner has had to turn into an accountant this year, whether they liked it or not. Each one has been forced to look at what was happening under the bonnet of their business, and get leaner and more efficient.

“Some of the Government supports this year have been brilliant. The Restart Grants enabled many cash-strapped businesses to fund the work that needed to be done, and buy the stock and PPE, in order to reopen. The Temporary Wage Subsidy Scheme was a huge help also; without this, I think a lot of salons would not have survived the fi rst two months of lockdown.

“There is always more that can be done. I’d like to see the new VAT reduction stay in place for a two-year period. This is going to be hugely benefi cial, and could be the saviour of a lot of salons. I’d love to see a much bigger incentive for salons to take on a new apprentice; currently the incentivisation scheme provides a €3,000 payment – €2,000 upfront – when taking on a new apprentice within the National Hairdressing Apprenticeship. It would be great to see that continue, with an added incentive, whereby 50% of the apprentice’s wages were covered for the fi rst 18 months of the three years. I think this would help salons that might be struggling, while also ensuring that the industry attracts new young people, which is vital for it going forward.

“When it comes to adapting to the new health and safety measures, and mobilising against Covid-19, our industry has proved itself to be a leader. It implemented the recommendations so effectively that our work was recognised at Government level. I’ve no doubt that in 2021 we will continue to effectively implement any recommendations to protect our sector and clients from Covid-19.”

‘The spa industry has always been very resilient, and the demand for our services tends to increase in times of crisis’

“Within the spa industry, I think we can expect a more all-inclusive approach to wellness in 2021. There will be a greater demand for products that enhance life, rather than simply making superficial changes. We have been speaking about a holistic approach for 10 years; but now, more than ever, as lifestyles become more fluid and non-linear, people will want solutions targeted at different life stages. Stress will be recognised more than ever as a key health concern, and the emphasis will be on the brands, or the spa, to help the client deal with the causes. This year we saw the value of great partnerships, and working with those brands that have been visible throughout the pandemic. This has enabled the success of our businesses during a difficult time.

“Throughout the lockdown, our industry got great Government support from Heather Humphreys, the former minister for business. During a time when every conceivable business was struggling, she engaged extensively with us as a sector. The Irish Spa Association’s guidelines and protocols were adopted, and she acknowledged the value of our sector to the economy, and gave our members and community muchneeded confidence and a morale boost at a time of great uncertainty. We hope to see a continuation of this Government support next year.

“The reliance on science will really come to the forefront in 2021. Consumer demands and expectations have been evolving rapidly in 2020, and while sustainability will remain a key driver, scientific credentialism is expected to take centre stage. Companies making scientifically-backed, safe, efficient, and sustainable products and treatments will be the winners.

“The spa industry has always been very resilient, and the demand for our services tends to increase in times of crisis. Once you know your client, and understand their wants and needs, you can adapt and make the necessary adjustments. The guidelines will evolve as we continue to understand the virus, and if we work as a global community, we will remain ahead of the tide.

“In Ireland, the crisis highlighted our sector's sizeable contribution to GDP, and its positive impact on the socioeconomic well-being of towns and cities. I hope we can carry that forward, and continue to work together in 2021.”