Oligopoly brief: Regis Corporation
Regis Corporation is the world's leading company in a very special niche -- hair salons. The company owns and franchises over 10,000 salons for men, women, and families, mostly in the US but now spreading throughout Europe and elsewhere. It also runs a number of schools for hairdressers.
The company just added to its empire by buying Hair Club for Men abnd Women, a US-based company that treats hair loss through transplantation and other means. The deal is a nice complement to Regis's hair salon business.
The company has over $2 billion in revenue and a growth rate of over 14%. The company has been a major pursuers of acquisitions, making over 290 in the past ten years, adding 7,400 new salons its holdings. It has lately entered into the styling school business, and has become a major supplier of its own employees.
One of the company's strategies is to fill each niche both in terms of locations (inside malls, in strip centers, in Wal-Marts) and at different levels of service (and price).
What's remarkable about Regis is its domination of a market that has such a low barrier to entry. After all, starting a barber shop or beauty salon takes little more than a space, a little equipment, and a barber//hairdresser. There's no way the company can keep new players out of the business. But it has bought up many successful regional chains. It has used real-estate savvy to get preferred locations.
And it also has latched on to the same phenomenon that motel and restaurant chains have, namely, that people have lost contact with local businesses and business proprietors. They want a brand name experience, not because they are excited about the brand, but because they figure it is a safe, clean, standardized, convenient choice. These places have displaced local hair salons in many places, just as McDonald's has replaced many local burger joints. They will, like most retail oligopolies, gladly give up the highest end customers and the lowest end ones.
Regis brands
| Brand |
Locations |
Type |
Country |
Number |
| Regis Salons |
malls |
women |
US, Canada, Puerto Rico |
1083 owned |
| Mia & Maxx Hair Studios |
malls |
young women |
US |
53 owned |
| MasterCuts |
malls |
families, men |
US, Canada, Puerto Rico |
614 owned |
| Trade Secret/ Beauty Express |
malls |
women, beauty salon |
US, Canada, Puerto Rico |
559 owned, 24 franchises |
| Carlton Hair International |
malls |
women, men, upscale |
US |
27 owned |
| Smart Style |
Wal-Mart |
women, families, value |
US, Canada |
1,313 owned, 204 franchises |
| Supercuts |
strip centers |
mostly men |
US, Canada, Puerto Rico |
883 owned, 971 franchises |
| Cost Cutters |
strip centers |
families |
US |
201 owned, 676 franchises |
| Pro-cuts |
strip centers |
men, families |
US |
189 franchises |
| First Choice Haircutters |
strip centers |
families |
US, Canada |
203 0wned, 196 franchises |
| Magicuts |
department stores, strip centers |
families |
Canada |
88 owned, 108 franchises |
| City Looks |
strip centers |
women |
US |
3 owned, 33 franchises |
| Haircrafters |
strip centers |
women, men, mid-priced |
US |
52 franchises |
| Great Expectations |
strip centers |
women, men, mid-priced |
US |
12 franchises |
| We Care Hair |
strip centers |
women, men, low-priced |
US |
15 franchises |
| Style America |
strip centers |
men, family, low-priced |
US |
133 owned |
| BestCuts |
strip centers |
men, families, value |
US |
99 owned |
| HairMasters |
malls |
women, value |
US |
274 owned |
| Saturday's |
strip centers |
women, value |
US |
33 owned |
| BoRics |
strip centers |
men, women, families, value |
US |
296 owned |
| Holiday Hair |
malls, strip centers |
women, families, value |
US |
150 owned |
| Jean Louis David |
downtown |
men, women, upscale |
US |
13 owned |
| Vidal Sassoon |
downtown |
men, women, upscale |
US, UK, Germany, Canada |
23 owned |
| Vidal Sassoon Academy |
--- |
hairdressingstudents |
US, Canada, UK |
7 owned |
| Regis (UK) |
high street, department stores |
women, upscale |
UK |
170 owned |
| Supercuts (UK) |
strip centers |
families, value |
UK |
101 owned |
| Hair Express |
high street, retail chains |
families, value |
UK |
53 owned |
| Trade Secret (UK) |
malls |
women, beauty salon |
UK |
5 owned |
| MasterCuts (UK) |
department stores |
men, upscale |
UK |
6 owned |
| The Salon |
House of Fraser stores |
women, upscale |
UK |
32 owned |
| Jean Louis David International |
city center |
men, women, exclusive |
France |
1 owned |
| Diffusion |
city center |
women, upscale |
France, Switz., Belgium, Spain, Italy, US |
260 franchises |
| Tradition |
city center, shopping centers |
women, men |
France, Switz., Belgium, Spain, Italy |
324 franchises |
| Quick Service |
shopping centers |
women, men, families, value |
France, Switz., Belgium, Spain, Poland, Italy |
277 franchises |
| Just a Cut |
city center, shopping centers |
women, value |
France, Belgium, Spain, Poland, Italy |
35 franchises |
| Affilié |
small towns |
men, women |
France, Belgium, Italy |
21 franchises |
| Mister Shop |
--- |
men, value |
France, Italy |
6 franchises |
| Saínt Algue |
city center, shopping centers |
women, upscale |
France, Switz., Italy, Portugal, Germany, Poland |
365 franchises |
| Coiff & Co. |
malls |
women, men |
France |
87 franchises |
| Intermède |
small towns |
women, men |
France |
79 franchises |
| City Looks (Europe) |
malls |
women, men, value |
France, Germany |
44 franchises |
9:19:46 PM 
|
|
