ENTRANCE POLICY: Professional Beauty is reserved for trade and professional visitors only. Due to the professional nature of the event, babies and children under 16 cannot be admitted.
‘Adapt to changing market, or close down’29 May 2017Stav DimitriadisSouth African salons need to adapt to the changing beauty landscape, or face the very real possibility of having to close their doors. This was the message from Twincare International CEO Stav Dimitriadis, who presented a business workshop at the recent Nail World event held at Twincare’s head office in Sunninghill, Johannesburg. “This is an unbelievable time of social, political and economic change in South Africa,” said Dimitriadis. “The buying habits of consumers have changed; they now consider every purchase and are down buying. People are having fewer treatments at salons and buying less product. Now they are only purchasing a moisturiser, whereas before they used to buy a moisturiser, toner and cleanser. “Lots of clients are buying cheaper products purely because of the deteriorating economic climate in the country. As salon owners you need to understand the problem first in order to find a solution. The reality is that we all have to take a slight drop in margin to survive.”Dimitriadis went on to talk about how the world is changing because of technology. “Social media is affecting the buying of products. Consumers have a lot of brands to choose from, so they start narrowing down brands to see what suits them best. In the past, consumers tended to stick with a brand. Now with social media, they reconsider when they finish their current batch of products. In the hairdressing world, the consulting process has been reduced because consumers do their own research. So, you have to find out what clients are thinking and you can do that by asking them questions. “Our attention span is getting shorter because of email and social media and the fact that these are all instant platforms.”Dimitriadis pointed out that there are certain basic laws in business and that salon owners can only control three things – turnover, margins and expenses. He spoke about the need to protect margins while being able to control expenses, as well as keeping the correct amount of stock for retail.“You can’t run a business without indicators that show you how your business is actually performing. The five crucial indicators are: turnover (daily monthly and yearly); average docket value; retail to turnover percentage; stock level; and cash flow. According to research, the latter is the biggest reason businesses go out of business,” explained Dimitriadis, who went on to talk in depth about each of the above indicators. (Report by Joanna Sterkowicz)