COVID a ‘massive shock’ to Hair & Beauty sector already losing €500m a year to black market, warns consultant Jim Power, author of the first ever Economic Impact Report on the Irish Hair & Beauty Sector commissioned by HABIC.
It’s been a very different year for HABIC than what we had planned at launch last Oct 2019. An unprecedented and unexpected shockwave engulfed our industry on so many levels as our colleagues and peers dealt with business, personal and social concerns and challenges. HABIC responded and continues to do so, while all the time remaining focused on the strategic tasks that we set out to accomplish in our Statement of Strategy at launch.
HABIC’s vision from the get go was and is ‘to be part of a revolution in which the Hair and Beauty industry is highly supported, included and truly valued by all stakeholders as a key industry that makes a significant economic impact to the national GDP and labour force.
To this end, in June 2020, HABIC commissioned leading economist Jim Power to research and deliver a detailed economic analysis report of the Irish Hair and Beauty sector.
The findings of the HABIC report, the ‘Economic Value of Hair & Beauty Market in Ireland’ are powerful:
- Total Employment in the Hair & Beauty Sector is equivalent to 2.1% of total employment in the economy at the end of 2019
- Turnover for Hair & Beauty sector is estimated at €2.6bn in 2019
- Total contribution to GDP is estimated at €2.79bn
- Expenditure – hairdressing, hair & beauty services €1.44bn in 2019
- Expenditure – hair products, cosmetic & skincare products €1.2bn in 2019
- Black Market is worth €400m with a cost to the exchequer of €55m
- 9,286 Hair & Beauty Salons
- 88.9% employees are female
- Impact of COVID-19 of 15 week closure: €580m in lost turnover
Key challenges identified in the report include:
- Direct impact of COVID-19 and physical distancing on the sector.
- The increase in the VAT rate from 9 per cent to 13.5 per cent for hairdressing services in Budget 2019. In its pre-budget submission HABIC is calling for a five per cent rate.
- The ongoing growth of the black market for hair and beauty services.
- The abolition of the ‘training rate’ in March 2019.
- The more challenging economic environment post-COVID.
- The lack of regulation and the need for a national apprenticeship model.
Please note that an earlier report from Jim Power formed the basis of a HABIC submission to Government as part of the July Stimulus, and has also formed the basis of HABIC’s Pre Budget Submission.
Key demands in the HABIC pre-budget submission include
• Continuation of the wage subsidy scheme.
• Financial support to cover commercial rates is essential.
• Business Recovery Supports in line with the Small Business Recovery Plan
HABIC prides itself on taking a factual and researched approach and it is with great pride that we release this landmark and ground-breaking report, which is Ireland’s FIRST and ONLY comprehensive Economic Report of its kind. Our Industry contributes significantly to employment and to our country’s GDP, our voice deserves to be heard. We invite you to read this report and to share it wide and far on your social platforms.
This report has only been made possible by the generous sponsorship of our sponsors and to them we express our gratitude.
Thank you WELLA PROFESSIONALS, L’ORÉAL Professional Products, CIDESCO, PROFESSIONAL Beauty, Phorest, iTEC and VTCT.