Forecasting strong growth in the next 10 years

The beauty industry has been given the opportunity to ensure qualifications of those entering the industry meet the future needs. A landscape report in 2012* confirmed the steady but strong growth of the beauty industry in New Zealand. According to Statistics NZ Business Statistics (ANZSIC06), in December 2010 there were 3,850 businesses in the Hairdressing and Beauty Services Industry. This represented a 12% growth from 2006, well above the average business growth in New Zealand.

The number of workers in this industry showed an 11% increase during the same period.

Workforce and training data show 28% of workers in the industry have no formal secondary qualification compared to 25% of the total workforce* . 52% of the workforce gained a certificate (level 1-4) after leaving school. Beauty industry workers are less likely to have a diploma or degree qualification. Department of Labour, Skills Challenges Report forecasts have indicated that the industry will face strong growth in the next ten years; however, the skills in demand will be at a higher level of vocational qualification. This poses a challenge for an industry which has a proliferation of qualifications at a similar level, and no identified pathway with a formal qualification link.

Another hurdle that impacts on the industry is the many small beauty businesses who fail. This is partly due to significant financial problems caused by a general lack of owner/manager management and marketing skills. Management skills include financial areas such as pricing, cash flow management and cost control, as well as keeping abreast of industry technical developments.

Education & Training in the NZ Beauty Industry – A Landscape Report 2012