You would think that during times of crisis that the beauty industry would be the first one on the chopping block to be affected by a recession. This is far from the truth.
In this blog I am going to outline why the beauty industry, an industry that is considered as a luxury, will never be impacted even during the most critical times in history. This indeed is great news for anyone working in the beauty industry as it means much more job security, especially if you work for yourself.
Why the Beauty Industry will always be recession-proof
The “Lipstick Effect” is described by Investopedia as “a theory that states that during periods of recession or economic downturn, consumers will eschew purchases of big-ticketed luxury items and seek material solace in smaller indulgences, suck as premium lipstick.”
In other words, when we go through economic crisis or hardships occur on a personal and financial level, people will look to inexpensive ways to pamper themselves to keep up appearances, make themselves feel better and renew their self-confidence. This natural human behaviour means that their will always be business in the beauty industry.
Big Business & Growth for the Beauty Industry in the near future.
Even though the recent pandemic, it is safe to say that the beauty industry is looking down the barrel of big growth in the near future. According to the Bureau of statistics, experts believe that by mid-2021 customers will need 15.7% more hairstylists, beauty therapists, makeup artists and lash technicians, which means that there will be a huge increase of positions that need to be filled. In Australia alone, this estimate is nearly 98,400 positions that need to be filled.
Beauty businesses will continue to grow, so even though most other industries find themselves in an unfavourable position during a time of financial crisis, those who are already established in the industry and those who are at the verge of starting a new career in the industry will reap the most rewards.
During tough financial times, most businesses will seek alternative options to stay afloat and reduce costs, these include things like outsourcing overseas or replacing the employee with an automated system or machine. A common example of this is when they introduced Self-service checkout at supermarkets and stores like Target, and these industries are considered essential. Thank goodness beauty is an art that can not be outsourced or replaced by a machine. Although that would be funny, having a gadget or robot doing your makeup, I imagine that episode of the Simpsons, when Homer blasts Marge in the face with a makeup gun!
At the Academy of Hair and Makeup we offer professional courses on all things Makeup Artistry and Hairstyling, we also back that up with our courses in Business studies and photography studies for building a hair and makeup business and portfolio, ensuring our students have everything they need to reach success in their businesses.
Director of the Academy of Hair & Makeup
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