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Service-Dominant Logic in the Hair and Beauty Industry
Introduction:
The beauty salon is a typical service-based industry. We provide our customers with the most sincere and caring services, and customers will always choose to return to your salon. We aim to understand customers’ needs and to provide satisfactory services. Therefore, service-dominant logic plays a vital role in salon business management. The other reason I chose the beauty salon industry as the topic of this poster was that I owned a hair and beauty salon in Brisbane. Of course, I am a newcomer to managing service-oriented businesses. I also practice while learning in this industry. So, as a manager of the beauty salon, I need to provide a business vision for my beauty service and make it works. It is a callous process. I can not independently implement the service vision into reality. At this time, I need a team to help me achieve the conversion of value and service.
Now, Id like to introduce my beauty salon business briefly. My salons name is Miss.M Hair and Beauty Salon, and we specialize in one-stop service in the beauty industry, including hairdressing, facials, nails and eyelash extension, etc. Our salon is beautiful and comfortable, and we provide customers with free coffee and snacks in the waiting area.
How to define service-dominant logic in the beauty industry?
Service-dominant logic is about creating value between servicers and consumers, and also among other supply and value chain collaborators in a constant interaction process(Lushch & Vargo, 2004).
The core service of Miss. M Beauty Salon is haircutting and facial. However, we are not only offering one single beauty service but also providing a few additional services such as manicures, pedicures, and eyelash extension services. We call it a one-stop beauty service. In the past, customers maybe do a facial in a beauty salon, then go to another hair salon to do a haircut, and then spend more time running to a nail salon just for an essential hand spa. So customers spend a lot of time running around those salons. However, Miss. M helped customers solve this problem, and customers could enjoy all those services in one salon. Therefore, the company value of Miss. M beauty salon is not only providing services but also making a convenience to customers.
Besides, I want to explain how to create value between our salon and customers with a simple example. If a lady comes to my salon to cut her hair, then the simplest requirement for her is to cut her hair. But if we use SDL to analyze her value proposition and the whole process of her thinking that she doesn’t just want to cut hair and she also considers the services that are received when entering our salons such as the attitude, tone of our staff, and environment of the salon. So we also provided a series of additional services such as shampooing and drying after she cut her hair. Then her value proposition is to cut her hair and feel enjoyable’ or comfortable’ when she enjoys the service. Our service just fits her value proposition.
Characteristics of the service-based industry :
I want to talk about a few characteristics of the beauty services industry.
Intangibility. For instance, When a lady buys a skincare product, they can see it, touch it, feel it, and even test it before you buy it. However, the service is intangible. Customers can not feel my facial services’ quality without participating. So most services cannot be experienced by consumers before they are purchased(Martin, 2007).
Inseparability. For example, the hairdryers used in our salons are produced in one factory, sold in another store, and then used in our salon. However, services are unique because they usually provide both services and consumption in the same place, for instance, we provide haircutting service, and the customer can only be done in our salon. Therefore, customers have strong expectations about the services that you provided, and if our services do not meet their expectations, they would be a disappointment, and we could lose customers(Claessens, 2015).
Perishability. Services are usually perishable, which means that unused capacity cannot be stored for future use or sale(Pravab,2010). For example, our salon was quite busy on weekends, and the appointments are full. However, we have very few customers on Monday. If our staffs are not flexible, the income situation will be completely different, which will affect the profit, because the daily cost is the same.
Service has changed in the beauty industry:
Trend 1: More diversified services
In the future, the beauty industry should not be limited to a specific scope. The beauty industry will be developing in a diversified direction so that customers could meet their various needs in one store and feel very convenient and time-saving, and it is also efficient and fast for modern people’s lifestyles (Kestenbaum,2017).
Trend 2: Specialization, personalization, high additional value
Now customers not only have requirements of the technical and standard service for the beauty industry but also they hope to get a lot of information about fashion, such as trendy clothes, popular makeup, hot cosmetics, fashion leisure, etc. Besides, more and more people who go to the beauty salon are hoping to enjoy this high-value-added service, which is also a trend in the future development of the hair and beauty industry(Rajput, 2016).
Trend 3: Men’s beauty is a common trend
In the past, there were not many men who received beauty. Now, this situation is slowly changing. In fact, men’s sebum secretion is strong, and most men lack the correct knowledge of skin cleaning and care. Therefore, men’s skincare is a quite large market. Salon owners should strengthen the training of employees and establish a professional image to meet the needs of male beauty(Silva.2019).
References:
- Claessens, M., 2015. Characteristics of Services: What is a Service And what makes it so special? 3rd June.Marketing Insider. [Online]. [18 August 2019]. Available from: https://marketing-insider.eu/characteristics-of-services/
- Kestenbaum, R., 2017. How The Beauty Industry Is Adapting To Change. 19 June. Forbes. [Online]. [18 August 2019]. Available from: https://www.forbes.com/sites/richardkestenbaum/2017/06/19/how-the-beauty-industry-is-adapting-to-change/#4e8b55de3681
- Lunch, R & Vargo, S (2004). The Service-Dominant Logic of Marketing. [Online]. (2 ed.). :. [18 August 2019].Available from: https://www.taylorfrancis.com/books/e/9781315699035/chapters/10.4324/9781315699035-11
- Martin, M., 2007. Services Marketing: Focus on Service Characteristics to Create Competitive Advantage . 2 April.Cascade Business News. [Online]. [18 August 2019]. Available from: http://cascadebusnews.com/business-tips/marketing/176-services-marketing-focus-on-service-characteristics-to-create-competitive-advantage
- Pranab, P., 2010. Service and the Characteristics of Service: Intangibility, Inseparability, Variability, and Perishability.16 April. Blogspot. [Online]. [18 August 2019]. Available from: http://pravab.blogspot.com/2010/04/service-and-characteristics-of-service.html
- Rajput, N. 2016. Allied Market Research. Cosmetics Market by Category (Skin & Sun Care Products, Hair Care Products, Deodorants, Makeup & Color Cosmetics, Fragrances) and by Distribution Channel (General departmental store, Supermarkets, Drug stores, Brand outlets) – Global Opportunity Analysis and Industry Forecast, 2014 – 2022. [Online]. 52(27), 137. [18 August 2019]. Available from: https://www.alliedmarketresearch.com/cosmetics-market
- Silva, B., 2019. Social Trends Drive Mens Market. 3rd April. Beauty Packaging. [Online]. [18 August 2019]. Available from: https://www.beautypackaging.com/issues/2019-02-01/view_features/social-trends-drive-mens-market/42027
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