Business Builders

How to Conduct a Hair Salon Competitor Analysis


Source: Vadimgozhda |

The necessity for a comprehensive competitor analysis cannot be overstated in the hair salon industry’s fiercely competitive landscape. This strategic examination goes beyond acknowledging the existence of rival businesses to delve deep into understanding their operational intricacies, market positioning and customer engagement strategies. The insights from such an analysis empower salon owners to create a business plan for their hair salon, make informed decisions, refine their services and strategically position themselves to thrive in the dynamic and ever-evolving beauty and grooming market. Read on to discover how to conduct a hair salon competitor analysis.

1. Define Objectives

The initial step in this process involves defining clear objectives for the competitor analysis. These objectives act as guiding principles, aligning the investigation with the broader business goals. Objectives could range from understanding the nuances of competitors’ pricing structures and identifying unique selling propositions to gaining profound insights into the diverse marketing strategies employed by competitors. 

2. Identify Competitors

Cast a wide net when identifying competitors. This includes both identifying the established brick-and-mortar salons in the vicinity and acknowledging the disruptive forces introduced by online platforms. The list should consist of names with a long-standing presence and newer entrants that might be leveraging innovative approaches. 

3. Gather Information

Services and Products

A thorough analysis demands a meticulous exploration of each competitor’s products and services. Beyond the basics of haircuts and styling, this entails identifying distinctive or specialized services that might be carving a niche for competitors in the market.


Analyzing the pricing structures is paramount in deciphering market dynamics. This involves examining the costs of various services and looking for promotions, discounts or package deals that competitors might employ to attract and retain clientele.

hairdresser shampooing his client hair

Source: Poppypixstock |

Target Audience

Understanding the demographics that competitors cater to is a crucial facet of the analysis. Define the target audience for each competitor and discern the strategies they employ to attract and maintain their customer base. These insights are foundational for tailoring marketing efforts and service offerings to meet prospective clients’ distinct needs and preferences.

Marketing and Promotion

Unraveling your competitors’ marketing strategies requires an exploration of the advertising channels they leverage, which could range from traditional media to digital platforms. Equally important is assessing the effectiveness of these strategies.

Location and Facilities

Geographic positioning and the salon’s ambiance contribute significantly to customer satisfaction and loyalty. Evaluating competitors’ salons and assessing the quality and aesthetics of their facilities provides valuable insights into the customer experience and the salon’s allure. 

4. Conduct a SWOT Analysis

S: Strengths

Identifying and expounding upon each competitor’s strengths is a pivotal analysis aspect. This involves recognizing and dissecting elements such as a robust brand reputation, a diverse range of high-quality services or an exemplary customer service model.

W: Weaknesses

A critical examination of competitors’ weaknesses sheds light on areas where they may be falling short. Weaknesses could include gaps in their service offerings, inefficiencies in customer experiences or deficiencies in their marketing strategies you could exploit for strategic advantage.

O: Opportunities

Exploring potential growth areas or emerging market trends provides a forward-looking perspective. Recognizing these opportunities allows salon owners to proactively position their businesses to capitalize on untapped markets or evolving consumer preferences. Whether that means stocking up on new products from a hair supply store or learning a new technique, identifying opportunities is an important step in staying competitive.

T: Threats

Identifying external factors that could pose challenges to competitors is integral to the analysis. Whether it’s economic downturns, shifts in consumer behavior or the emergence of new competitors, understanding these threats allows the salon to navigate potential challenges with resilience.

5. Benchmarking

Benchmarking the salon’s performance against industry standards is crucial in gauging its standing in the market. Compare key performance indicators against established benchmarks to create a baseline for evaluating success and areas that may require improvement.

6. Analyze Online Presence

The digital landscape is a key battleground in today’s business environment. Therefore, a comprehensive competitor analysis includes examining competitors’ online presence by scrutinizing their hair salon website designs, social media profiles and other digital platforms to understand how they engage with customers in the virtual realm. Customer reviews on Google, Yelp and social media channels for hairstylists provide real-time insights into customer satisfaction levels and highlight potential areas for improvement.

7. Summarize Findings

Distill the data uncovered during the analysis into a comprehensive report. This summary should encapsulate key insights from the competitors’ landscape, providing a brief yet rich reference point for decision-making and strategic planning.

hairdresser working reception area

Source: Yuri Arcurs |


Conducting a hair salon competitor analysis is not a one-time endeavor but an ongoing and adaptive strategy. By continuously monitoring and understanding the competitive landscape, salon owners can refine their strategy, enhance their services and maintain a competitive edge. This approach positions the salon as a dynamic player in the beauty industry, capable of withstanding challenges and thriving in an ever-changing business landscape.


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