MARKET STRUCTURE -

COSTMETOLOGY/BARBER
SHOP INDUSTRY
BY: ANNAMARIE BADIANG
WHEN IT ALL BEGAN…

• Cosmetology and barbering have been services that has evolved throughout centuries but
still means to provide service to enhance a particular face, hair and skin.
• Barbers have been known to work primarily with male clients which involves services
such as men’s cuts, face shaves, facial trimming and kids cuts.
• Cosmetology have been a wider range of services such as haircuts, facials, make up, hair
coloring, styling, perming, and even nail services.
STRUCTURE

• In the service providing industry, the market structure would be considered to be a

monopolistic competition because not all service providers offer the same service. Some
may offer the same services but it can differ slightly by pricing, time and over all
outcome. There are also many different products lines that can used and redistributed to
the consumers to buy. Location is also another key factor because even though a
barbershop or salon is 15 minutes away or even in another town it still influences
consumers to stay more local for service.
REGULATIONS AND LICENSING

• Barbering and Cosmetology are highly regulated and must require and obtain a professional
license at all times in order to provide professional services, or huge fines/fees may be given
and depending on the circumstances, there may be jail time involved.
• There must be many different legislations that require minimal hours needed for training to
offer certain services, just like everything else, experience is what people look for to make
sure they get the proper services for their money.
• When monetary value is involved, more rules are put in place, therefor regulations must be
strictly enforced to prevent fraud or failure to offer proper care.
ECONOMIC POSITION

• Life before Covid-19, economic positions for cosmetologist and barbershops have been in a steady pace.
Business equally opening and closing shops, with more and more talent and the works of social media,
more workers are able to get a huge networking and advertising in the most versatile way of getting your
name out there to the world.
• Early before the internet and social media, most stylist/barbers had to use the power of consumer’s words
and business cards. Now today we type up a specific style or look that you are looking for and hashtags
(#) from people’s post will pop up along with their work.
• With social media becoming such a trendy and most effective way of advertisement, comes many facing
issues like standing out from the rest. Such examples like cutting hair with fire or even crazy cool designs
or colors.
AFTER COVID19

• A world wide pandemic had hit the US in early 2020 causing many businesses to plumet or even permanently go out of
business leaving many Americans on their own to survive without pay for many months. This not only hurt economy as a
whole but also all the of the barbershops and salons.
• With people still getting help from governments or even their associated state that they reside in and of course the fear of
getting sick has influenced Americans to stay home considering they get more pay for not doing anything than get paid less
to work really hard and risk yourself from exposure.
• The service providing industries not just barbershops and salons are struggling, with the lack of staffing, minimal
occupancies, reduced hours and even reduction of services have caused many businesses to fall behind and not able to meet
it’s market goals for the year.
• Paying unemployed Americans and providing assistance that they need will eventually be the reason inflation is rising,
causing the cost of living, items of clothes or even just consumable items to go up. This has also caused the barbershops or
salons to do the same. Prices are needing to go up to make up for the increased pricings of products or even pay employees.
WORK CITED

• Driscoll S. Barber. Salem Press Encyclopedia. 2020. Accessed April 27, 2021.

http://search.ebscohost.com.ccbcmd.idm.oclc.org/login.aspx?direct=true&AuthType=ip,url,uid,cookie&db=ers&AN=87321099&site=eds-li
ve&scope=site

• Image - https://www.icoc.edu/bay-area-cosmetology-school/#iLightbox[postimages]/0
• Peabody, K. (1993). Board of Barbering and Cosmetology. California Regulatory Law Reporter, 13(4), 35.
https://digital.sandiego.edu/cgi/viewcontent.cgi?article=1698&context=crlr
• Ceylan, R. F., Ozkan, B., & Mulazimogullari, E. (2020). Historical evidence for economic effects of COVID-19.
https://link.springer.com/content/pdf/10.1007/s10198-020-01206-8.pdf
• Image - https://www.thethings.com/haircut-on-fire-literally/
• Image - https://www.makeup.com/hair/hair-styling/buzz-cut-design-ideas
• Seiler, P. (2020). Weighting bias and inflation in the time of COVID-19: evidence from Swiss transaction data. Swiss Journal of Economics
and Statistics, 156(1), 1-11. https://sjes.springeropen.com/articles/10.1186/s41937-020-00057-7