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Getting Into The Hair Extensions Business: What You Need To Know

The hair extensions business has witnessed significant growth in recent years, transforming into a popular and profitable venture within the beauty industry. According to a new report by Intellectual Market Insights Research, the global hair extension market size was valued at USD 1.1 billion in 2021 and it is projected to reach USD 2.9 billion by 2028. 

More and more hairstylists and salon owners are now recognizing the importance of mastering hair extensions due to the numerous advantages they offer. But, the question remains:

Should You Get Into The Hair Extensions Business?

The answer to this question depends on how sustainable your salon business is at the moment. For us, it is always best to offer hair extensions services at your salon because these services are popular and there will always demand for them regardless of season.

Let's take a closer look into the key reasons why hairstylists and salon owners should consider mastering hair extensions and explore the benefits of adding this service to their portfolio.

Expanding Service Offerings

One of the primary motivations behind mastering hair extensions is the opportunity to diversify service offerings. With hair extensions, hairstylists and salon owners can provide a broader range of services to cater to the diverse needs of their clients.

Clients seeking hair extensions come from a wide range of backgrounds and hair types, making this service an essential addition to salons striving to be more inclusive.

Increased Revenue

The potential for increased revenue is a compelling reason to consider adding hair extensions to your salon's services. Hair extensions are in high demand, and clients are often willing to pay a premium for quality work. By offering this service, hairstylists and salon owners can significantly enhance their revenue streams and profit margins.

increase salon revenue

Client Retention

Client retention is the lifeblood of any successful business in the beauty industry. It's not just about attracting new clients – it's equally important to keep your existing clients coming back. Mastering hair extensions can be a powerful tool in achieving this goal.

In the beauty industry, where trends come and go and where personal relationships between stylists and clients often play a significant role, building and maintaining a loyal client base is crucial. It's the foundation upon which a thriving salon or hairstylist's career is built.

Competitive Advantage

Providing hair extension services in the competitive beauty industry offers a distinct advantage for salons and hairstylists. It sets them apart in a crowded market where many offer traditional services like haircuts and coloring. By specializing in hair extensions, they cater to a niche market seeking transformative changes, from volume and length to unique styles. This specialization builds trust and reputation, conveying a commitment to quality and expertise that clients value.

It also attracts a diverse clientele, making the salon more inclusive to different backgrounds and hair types. The marketing potential of this unique service allows salons to distinguish themselves and potentially command premium pricing, ultimately contributing to their success in the competitive beauty industry.

Boosting Confidence

Hair extensions not only transform appearances but also boost the self-esteem and confidence of clients. By helping clients achieve their desired look, you are not just providing a service but also playing a part in enhancing clients’ self-satisfaction and confidence. Happy clients are more likely to recommend your salon to their friends and family when they felt they have been given importance and were able to get their money’s worth.

Word-of-Mouth Marketing

Satisfied clients are your most effective promoters. When they leave your salon with beautiful hair extensions, they are likely to spread the word to their social circles. Positive word-of-mouth marketing can substantially increase your client base.

word of mouth marketing

Client Education

Offering hair extension services also involves educating clients on the proper care and maintenance of their new hair. This provides an opportunity to establish yourself as an expert, further building trust with your clients.

Knowledgeable clients are more likely to take proper care of their extensions and return for maintenance, benefiting both your business and their satisfaction.

Skill Enhancement

Learning and mastering the art of hair extensions can be personally fulfilling for hairstylists. It adds a new dimension to your skill set and keeps your work engaging. As you gain expertise, you may find yourself taking more pride in your craft, which can be truly rewarding.

Varied Client Demands

Clients have diverse requests when it comes to hair extensions. Some may seek to add volume, while others want extra length or to experiment with different styles. By mastering hair extensions, you can cater to these varied demands, establishing your salon as a one-stop shop for all hair needs.

Adapting to Trends

The beauty industry is always changing, and trends constantly evolve. Hair extensions remain a prominent and enduring trend. By staying updated with the latest techniques and styles, you can ensure your salon remains relevant in the industry and attracts trend-conscious clients.

Economic Resilience

The beauty industry, like any other, is subject to economic fluctuations. However, hair extensions have shown resilience during economic downturns, as people continue to invest in their appearance even in challenging financial times.

economic revenue


Offering hair extensions opens up opportunities for cross-promotions with other beauty services within your salon. Clients getting extensions may also be interested in complementary services such as hair coloring, styling, or maintenance, which can further boost your business.

Training and Certification

To truly excel in this field, it is important to invest in hair extensions training and certification programs. This not only improves your skills but also adds credibility to your salon. Clients are more likely to trust certified professionals, giving you an edge over competitors.

Quality Products and Suppliers

Selecting the right hair extension products and suppliers is crucial for client satisfaction. Investing time in researching and partnering with reputable suppliers who provide quality materials is essential. Satisfied clients will become your most enthusiastic advocates, helping your salon grow.

Client Consultations

Understanding your client's needs and preferences is essential when offering hair extension services. Conducting thorough consultations to determine the right type, length, and style for your clients is a key component of providing exceptional service. This personalized approach can lead to happier, more loyal customers.

client consultations

Indeed, learning and mastering hair extensions is a wise choice for hairstylists and salon owners looking to expand their business and thrive in the competitive beauty industry. It offers a range of benefits, from increased revenue and client retention to a competitive advantage in a crowded market. It allows you as a hair stylist to diversify your skill set, stay current with industry trends, and provide a valuable service to your clients.

service offerings


If you’re looking for hair extension trainings facilitated by hair stylists and entrepreneurs with 15+ years of experience, get in touch with us today. Perfect Locks Pro conducts tape-ins, fusion, and beaded weft extensions training through our Prestige Education Bundle. You will learn three methods that will guarantee your growth both in knowledge and in revenue.



Your Step By Step Guide in Starting A Hair Extensions Business

1. Market Research

To get started, it is highly recommended to conduct thorough market research to understand the demand for hair extensions in your area. Identify your target audience, including their preferences, needs, and buying habits.

Moreover, analyze your competitors, their pricing, and the quality of their products and services. This information will help you formulate a solid strategy for your upcoming business.

2. Business Plan

Creating a comprehensive business plan is crucial when getting into the hair extension business. Your plan should outline your goals, strategies, and financial projections. Determine your startup costs, including inventory, marketing, and operational expenses. Additionally, define your business structure (sole proprietorship, LLC, etc) and register your business with the appropriate authorities.

A well-thought-out business plan serves as a roadmap for your success.

3. Source Quality Hair Extensions

Partnering with reputable hair extension suppliers like Perfect Locks is also a vital step. Partnering with a reputable supplier ensures you offer high-quality products, which is the cornerstone of customer satisfaction and repeat business.

Consider offering a variety of hair types, such as synthetic, human, and virgin hair, to cater to diverse customer preferences. It's also essential to test the quality of the extensions to ensure they meet your standards before selling them to customers. Needless to say, building trust in your products is key.

4. Legal Requirements

Meeting legal requirements is non-negotiable. Obtain all necessary licenses and permits to operate your hair extension business legally. Comply with health and safety regulations, especially if you plan to offer hair extension application services. Consulting with a business lawyer can ensure your business adheres to all relevant laws and regulations. Failure to do so could result in costly legal issues down the line.

5. Location and Online Presence

Selecting a suitable location for your business is essential if you plan to have a physical store. Before opening one, make sure it's easily accessible and in a high-traffic area.

You should also create a professional website and establish a robust online presence through social media platforms and e-commerce websites. Then, utilize search engine optimization techniques to make your online store more discoverable. The combination of physical presence and online reach can significantly boost your customer base.

6. Inventory Management

Maintaining an organized inventory system is key to smooth operations. Implementing inventory management software can streamline your processes and prevent overstocking or understocking. It's also crucial to offer a range of hair extension products, including different lengths, textures, and colors, to meet varying customer needs.

Providing a variety of options ensures that your customers find the perfect match for their desired look.

7. Marketing and Branding

Developing a unique and appealing brand identity is essential. This includes creating a memorable logo and brand colors that resonate with your target audience. Crafting a comprehensive marketing plan that encompasses online advertising, social media marketing, and email marketing campaigns is vital to creating brand awareness.

One great way to do this is by collaborating with influencers and beauty bloggers. They can help promote your products and services, reaching a wider audience.

8. Customer Service

Providing excellent customer service is the backbone of your business. Offering clear and helpful product information, including care instructions for the extensions, is highly valuable. Moreover, addressing customer inquiries and concerns promptly and professionally is essential for building trust and loyalty. Happy customers are more likely to become repeat customers and recommend your business to others.

9. Pricing Strategy

Setting competitive and profitable pricing for your hair extensions requires careful consideration. You can also consider offering bundle deals, discounts, or loyalty programs to attract and retain customers. Monitoring your pricing strategy regularly and adjusting it as needed based on market trends and customer feedback is essential. It's crucial to strike a balance between affordability and profitability to ensure long-term success.

10. Staffing and Training

Hiring skilled and knowledgeable staff is essential, especially if you plan to offer hair extension application services. Providing comprehensive training to your employees ensures they can assist customers effectively and maintain product quality. If you don’t have the expertise when it comes to the key services you will be offering, consider attending in-person training being conducted by veteran hair stylists and established companies.

Creating a positive work environment with opportunities for growth and development will boost employee morale and productivity. Happy and well-trained employees are more likely to provide exceptional service to your customers.

11. Quality Control

Implementing strict quality control measures is critical to meeting customer expectations consistently. Regularly inspecting your inventory for defects or issues and removing subpar products from your shelves ensures product quality.

Likewise, encouraging customer feedback and using it to improve your product quality is a continuous process. Quality control is an ongoing commitment that reinforces your reputation for providing high-quality hair extensions.

12. Expansion and Adaptation

Staying informed about industry trends is also a good thing to do. You should be ready to adapt to changing customer preferences as you go along. Expanding your product range to include related items, such as haircare products, wigs, or accessories, can enhance your product range and reach more markets.

Exploring opportunities to open additional locations or expand your online presence as your business grows is a strategic move. Remaining flexible and open to innovation is key to long-term success in the beauty industry.

Starting a hair extension business is a step-by-step process that requires careful planning, quality products, effective marketing, and exceptional customer service.

By following these steps and staying committed to providing top-notch hair products, you can build a successful and profitable business in the beauty industry. Remember that success may take time, so be patient and persistent in your efforts to establish your brand and reputation in the market. With dedication and a customer-focused approach, your hair extension business can thrive in this highly competitive industry.

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Trending Hair Extensions
Priyanka Swamy, Founder of Perfect Locks LLC

Priyanka Swamy

Author and Founder of Perfect Locks LLC

Priyanka Swamy, the visionary founder of Perfect Locks LLC, is a passionate advocate for empowering women and promoting cultural diversity. With an unwavering commitment to ethical sourcing and quality craftsmanship, she redefined the hair extension market and created a supportive community that celebrates individuality. Priyanka's dedication to sustainability and social responsibility continues to inspire positive change within the industry. Her journey with Perfect Locks remains an inspiration, unlocking the true potential and confidence of countless individuals worldwide. Connect with Priyanka on Instagram and LinkedIn.

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