The polarization spreading in the beauty industry
In society, there is a growing polarization between those who prioritize high quality and high prices and those who focus on low prices and efficiency. A typical example in retail is the contrast between specialty stores and 100-yen shops. The beauty industry faces a similar situation, where salons that cannot differentiate themselves through quality or brand identity are forced into difficult business conditions. In particular, the number of bankruptcies among hair salons reached a record high in 2024, and from January to August 2025, the number rose to 157, surpassing 139 cases during the same period the previous year (Teikoku Databank). This trend is driven by rising prices and a worsening labor shortage. Additionally, barbershops are experiencing a decline in the number of stores, as younger male customers tend to prefer beauty salons. Moreover, there is an increasing number of aging owners who run their businesses modestly, serving only local customers.
The market position of the EFFY reservation system
In this situation, we constantly ask ourselves how to appeal our reservation system to which target audience and in what way. Broadly speaking, we consider the following three key points: the trend toward IT adoption, expectations for "moving away from Hot Pepper," and responses to the economic situation. Taking these factors into account, we will explore where the EFFY reservation system can find its path to success.
The Wave of Digital Transformation and Salon Management
People now live lives centered around smartphones, so the idea that reservations are mainly made by phone feels increasingly outdated. In salons, reservation systems offer significant business advantages such as reducing phone handling tasks and preventing booking errors, while also providing customers the convenience of making appointments anytime, 24/7. However, some older salon owners may still feel resistance toward operating or initially setting up such systems, but it is also true that salons with relatively younger owners or successors have great potential to adopt them. Among the approximately 110,000 barbershops nationwide, it is estimated that tens of thousands have yet to use services like Hot Pepper or reservation systems. Similarly, among the 270,000 beauty salons, many still do not use such systems. It should be noted that the situation regarding IT adoption and online reservation services differs greatly between beauty salons and barbershops. In beauty salons, especially in metropolitan areas, the use of major customer-attraction sites like Hot Pepper and reservation systems is becoming common, whereas many barbershops still rely mainly on phone or face-to-face bookings. Therefore, barbershops have a large potential for IT adoption and online reservations, and a high proportion of salons remain unimplemented. Additionally, in recent years, the number of freelance hairdressers operating individually by renting space has increased, and there is a growing demand for reservation systems that can flexibly accommodate such working styles. Our company believes that this segment is the target we should focus on.
the option to move away from Hot Pepper
Hot Pepper has strong customer attraction power, but its listing fees vary by region and plan. Generally, the monthly cost ranges from about 30,000 to 70,000 yen, with top-tier plans in urban areas sometimes exceeding 300,000 yen per month. Additionally, there are often commission fees based on sales, and strict contract terms such as annual contracts with no refunds allowed upon early cancellation. Because of this, many business owners feel uncertain about the cost-effectiveness yet find it difficult to cancel easily. While Hot Pepper contributes to acquiring new customers, the industry increasingly hears concerns that heavy discount competition and high advertising costs lead to insufficient profits and unstable management. In response to this situation, a management strategy has become widespread where Hot Pepper is used purely as a "trigger for initial customer acquisition," while repeat customers are firmly secured through an in-house reservation system. EFFY is a system that fits well with this trend.
Economic Concerns and Selecting a Salon
The worsening economic situation is directly impacting the management of beauty salons and barbershops, with an increase in bankruptcies symbolizing this trend. Many customers originally chose salons because they were nearby, reasonably priced, and familiar, providing a sense of security. While platforms like Hot Pepper can easily attract new customers through points and discounts, this approach tends not to foster long-term customer loyalty for salons. Therefore, the strategy of implementing a unique reservation system to retain regular customers is becoming increasingly important for business stability. Systems like EFFY have the advantage of supporting flexible customer acquisition activities.
Our Company’s System and Future Prospects
Based on the above, our reservation system still has significant potential to approach many untapped markets. I myself am advancing efforts to build an efficient system development and support structure through collaboration with AI, while strengthening sales capabilities remotely. Moving forward, I hope to increase the number of partners who understand these possibilities and will work together with us to expand our sales channels.