The professional ethnic hair and beauty sector generated over £72.5m in the UK in 2005, and London has around 80% of the market. It is an important contributor to London’s economy comprising, for example, more than 2000 African-Caribbean hair and beauty businesses, over 300 licensed Vietnamese nail shops (with an estimated 300 or more run informally from hairdressing salons or elsewhere), over 380 Chinese salons and an as yet unspecified number of businesses serving the Indian community.

The key component linking these seemingly culturally specific business areas is the African/Caribbean consumer who spends up to eight times more than her mainstream counterparts on hair and beauty products and services. Moreover, as opposed to the mainstream markets, which have been in decline due to changes in social behaviour, ageing populations and lower birth rates, the cross-cultural ethnic sector has been growing for the opposite reasons albeit in an unregulated manner. The business of hair and beauty is a valuable asset to the economy and the UK’s diverse BAME (Black and Minority Ethnic) communities. It is a sector that best exemplifies the role of BAME businesses in both creating opportunities and addressing the problem of social exclusion of the wider BAME community.

The ethnic hair and beauty sector is one of the few business sectors that are built upon BAME communities being both the customer and the supplier, providing a circular flow of income within these communities, thereby offering sustainability. As a business sector, it stands out as many of the businesses employ significant numbers of women, or are owned or managed by BAME women – highly significant given the poor representation of BAME women in London’s enterprise sector. It also offers invaluable opportunities for refugees and new migrants in the UK, and especially London, where they still face significant disadvantage in the labour market and in enterprise participation.

Ethnic hair and beauty outlets also act as social hubs for many communities and provide informal forums for the discussion of community issues and the interchange of community dialogue. Entrepreneurs in the sector are often in a position to both validate and disseminate information to the wider community. But despite being the youngest and fastest growing sector in the hair and beauty industry, as well as the largest and most established sector in the African Caribbean community, London’s ethnic hair and beauty sector is being threatened by increased interest from mainstream enterprises seeking to enter the market. In order to address evidence of obvious market failure, Salon Strategies was launched to support the creation and growth of black and minority ethnic-owned businesses in the sector. The programme aims to enable the sector to realise its’ full potential for economic and social impact.

This is achieved by:
Establishing productive business networks for the sector by supporting the development of the Ethnic Beauty & Hair Association (EBHA).
Actively supporting the creation of black and minority ethnic-owned new businesses, and supporting the growth of existing businesses within the ethnic hair and beauty sector. Designing, developing, and delivering practical training and development programmes, business diagnostics and consultancy, and information materials to enhance business performance. Supporting the development of skills, knowledge, and competencies at all levels within the sector by working in partnership with education and skills development organisations. Supporting the development of local, national, regional, and European policy by conducting and contributing to research into the particular characteristics of the sector. Spearheading positive change in the sector through the annual European Business Of Beauty Conference which brings together businesses, educators, business support agencies, and policy-makers to address the sectors’ challenges and opportunities. Cementing the UK sector’s position as a primary international market through the annual Strictly Business! trade exposition and bringing together all aspects of the sector’s supply chain to support cooperation and partnership. Providing marketing opportunities for the sector through web-based promotional strategies (e-salonfinder.com) and preferential rates arranged through ethnic media publications. Protecting consumers and employees by providing qualified specialist health & safety advisors for the sector. Providing specialist support to enhance innovation within the sector. Raising awareness within minority ethnic communities of the business opportunities that exist at all levels of the supply chain.