Why is Beauty On-demand App a Successful Investment?

The industry of beauty salons has ruled for centuries with no considerable challenge of disruption. Entrepreneurs of different times considered it a successful investment owing to the massive demand. However, the statistics shared later in the text reflect that the industry is undergoing a drastic decline. Nevertheless, this industry is not going to disappear – instead, it is transforming into its beauty on-demand app parallel.

Disruption of Brick & Mortar Spa and Salons

Considering the statistics from the past five years, there is a sharp decline in growth rate of spas and salons. The figures forecast growth of meager 2.2% in the next ten years (Data USA). This projection is based on the increase in number of physically located beauty salons.

However, it does NOT take into account the effect of on-demand beauty service app businesses. As other on-demand services expanding like wildfire, beauty apps are also making an impressive mark.

Soothe – a mobile app for booking stylists and therapists – is one of many examples. The business took less than four years to expand as much as up to 51 US cities by February 2017. During this period, Soothe earned $48.7 million in revenue. Moreover, it was not much longer until the business started returning big time. It collected a whopping $600,000 in revenue in the initial six months.

It is highly unlikely that people today are spending less on personal care than before. Therefore, the only plausible explanation for brick and mortar salon disruption is the rise of beauty on-demand app services.

Top Stylists Turning toward On-demand Jobs

Since the start of beauty on-demand industry, employees of traditional salons are swiftly adopting on-demand jobs. The reasons are evident as listed below.

1. Traditional salons make up one of the lowest paying industries in the US. As per the statistics of 2016, average annual salary of $24,443 stands at the 251st position off 266 industries.

2. In contrast, on-demand economy ensures better earning opportunities for employees as well as business owners. For instance, on-demand massage therapists take $70/day (Financial Times, 2017). If we scale up this amount, an individual earns $110,880 annually if one works for only 30 hours/week. Assuming a revenue-sharing model where app owner keeps 40% of the revenue share, the employee still earns $66,528/year. Hence, this number is almost 2.75% more than the average annual salary of therapist at a regular spa.

3. Traditional services have a massive gender wage gap. Despite the fact that 90.1% of workers are female, male stylists earn 1.62 times more than their female counterparts.

4. Apart from earning significantly higher, the employees also enjoy the flexibility of choosing the most suitable work hours. Thus, a person may work with another employer in the morning and on-demand beautician service provider in the evening.

5. Stylists and their employers do not have to coexist in the same location. Employees can find jobs anywhere if the company provides services in the region. This remote employment brings great relief for workers who are working in non-native cities.

Consumers Shifting to App for Beauty Services at Home

Owners and employees are not the only ones reaping benefits of beauty on-demand app services. This advanced business model also attracts consumers.

At home service allows customers to save time – which would otherwise be spent in traveling and waiting at salon. Moreover, they are also able to save costs. A comparison of various brick and mortar salons with on-demand services indicates that customers pay 15% more in case of at-home services. This surcharge is insignificant if one considers the amount of time and cost saved.

The comfort of home is always ahead of inconvenience at salons. At-home services enable customers to perform home chores in parallel.

Customers may not care about the skills of their Grubhub delivery agent or Uber driver. However, they do care about the stylist and therapist. One would rarely want to acquire services of an uncertified therapist. On-demand beauty app can add the functionality of sharing certification of employees to satisfy customers. Thus, the top beauty apps ensure sharing authentic information about the agent’s qualification.

Beauty salon app development

The drastically growing interest of customers and remarkable revenues for entrepreneurs make success inevitable. However, efficiency in app development is essential to satisfy customers. Following are some of the most important features of beauty salon app.

Tracking and Route Navigation

Route navigation enables the agent of service provider to find an appropriate route to customer’s location. This feature is essential given the fact that customer pays more than at traditional salons to save time.

Meanwhile, customers should be able to track their beauty services agent after booking. The tracking and estimated arrival time allow users to manage time.

Profiles for Customers and Worker

Similar to Uber, customers and beauty agents should have separate profiles. This identity enables customers to view ratings and feedback before selecting the agent of their choice. Profile record also enables service providers to offer occasional discounts and bonuses based on loyalty and performance of customer and agents respectively.

Payment Methods and Feedback

One of the most relieving factors of on-demand apps is the ability to pay via multiple options. Virtual wallets facilitate customers to add the balance upfront or pay later.

Customers are rarely able to find feedback about traditional salons. In contrast, feedback is a must-have part of a beauty on-demand app. Thus, users can choose the agent of their choice by assessing all from feedback.

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ODTap Framework for Beauty On-demand App

Forecasting the transformation of multiple industries including beauty salon industry, our developers introduced ODTap framework. The entrepreneurs are able to rebrand this framework with features of their choice. You can also find out the cost of beauty app. Moreover, you do not require technical expertise to perform the rebranding. Our experts will provide a turnkey application and will satisfy you about its efficiency before you make the payments.

Are you interested in starting an on-demand business? Contact us today to get started.