Over 40% of Hair Salon Management Feel Bankruptcy Risk for Their Own Stores: LiIBe Survey

LiIBe Co., Ltd. (Headquarters: Chuo-ku, Tokyo, Representative Directors: Ryosuke Munakata, Hisaya Hirose), which operates an AI utilization school for hair salon and salon management, conducted a "Fact-Finding Survey on Bankruptcy Risk of Hair Salons" targeting hair salon management (men and women in their 20s to 60s). This survey revealed the awareness of bankruptcy risks among hair salon management, the factors squeezing their business, and future measures for profit improvement.

## Background

Due to prolonged price inflation and rising labor costs, the business environment for small and medium-sized enterprises is becoming increasingly severe. Even in the beauty industry, which is close to consumers' lives, the impact is serious, with the number of bankruptcies in 2025 recording the highest in the past 20 years. While soaring material and customer acquisition costs squeeze profits, price pass-through is not easy in the highly competitive beauty industry with intense price competition, making this revenue structure an urgent issue for hair salon management. There is a need to objectively grasp the reality of bankruptcy anxiety and price increases faced by hair salon managers, as well as the challenges in securing profits. Therefore, LiIBe Co., Ltd. conducted a "Fact-Finding Survey on Bankruptcy Risk of Hair Salons" targeting hair salon management to clarify the background of deteriorating profitability and future challenges.

## Survey Summary

- Over 40% of hair salon management feel the risk of bankruptcy for their own stores.
- The main factors squeezing profits in current hair salon management are the "decline in the number of customers and repeat rate" and "soaring material costs".
- Over 65% of hair salon management answered that they have not raised the prices of treatment menus in the past year.
- Among the hair salon management who have not raised the prices of treatment menus in the past year, the biggest reason is "concern over losing customers".
- Approximately 30% of the hair salon management who answered that they raised the prices of treatment menus in the past year reported that the number of customers "decreased" after the price increase.
- The most crucial task to strengthen for future profit margin improvement of their own stores, cited by hair salon management, is "customer retention tasks".

## Survey Overview

Survey period: April 28 to April 29, 2026
Survey method: Internet survey
Survey target: Hair salon management (men and women in their 20s to 60s)
Number of respondents: 330
Monitor provider: RC Research Data
*Because response ratios are rounded to the first decimal place, the sum of response ratios may not equal 100.0%.

## Over 40% of hair salon management feel the risk of bankruptcy for their own stores

First, in response to the question, "To what extent do you feel the risk of bankruptcy for your own store?", "Do not feel it much" ranked 1st at 39.1%, "Feel it somewhat" ranked 2nd at 31.8%, "Do not feel it at all" ranked 3rd at 17.0%, and "Feel it strongly" ranked 4th at 12.1%. While "Do not feel it much" was the most common answer, the combined ratio of the 2nd and 4th place responses totaled 43.9%. This result revealed that over 40% of hair salon management feel the risk of bankruptcy for their own stores to varying degrees.

## The main factors squeezing profits in current hair salon management are the "decline in the number of customers and repeat rate" and "soaring material costs"

Next, in response to the question, "What are the factors squeezing profits in current hair salon management?", "Decline in the number of customers and repeat rate" ranked 1st at 61.2%, "Soaring material costs" ranked 2nd at 35.2%, and "Burden of rent and equipment maintenance costs" ranked 3rd at 26.1%. This result clarified that the main factors squeezing profits in current hair salon management are the "decline in the number of customers and repeat rate" and "soaring material costs".

## Over 65% of hair salon management answered that they have not raised the prices of treatment menus in the past year

Subsequently, in response to the question, "Did you raise the prices of treatment menus in the past year?", 66.4% answered "No" and 33.6% answered "Yes". This result indicated that over 65% of hair salon management answered that they have not raised the prices of treatment menus in the past year.

## Among the hair salon management who have not raised the prices of treatment menus in the past year, the biggest reason is "concern over losing customers"

Furthermore, targeting the hair salon management who answered that they have not raised the prices of treatment menus in the past year, regarding the question "What was the biggest reason you held off on raising the prices of treatment menus in the past year?", "Because of concern over losing customers" ranked 1st at 42.9%, "Because of consideration for the living burden of customers" ranked 2nd at 33.8%, and "Because we cannot provide added value commensurate with the price increase" ranked 3rd at 7.8%. This result revealed that among the hair salon management who have not raised the prices of treatment menus in the past year, the biggest reason is "concern over losing customers".

## Approximately 30% of the hair salon management who answered that they raised the prices of treatment menus in the past year reported that the number of customers "decreased" after the price increase

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