We are in daily contact with numerous studios, run a tattoo studio ourselves and have also recently analyzed the market data of various studios.
First of all: there are certainly exceptions to all the points we report here. There always have been and, fortunately, there always will be. Nevertheless, clear trends are emerging in almost all areas of the industry, which we would like to highlight here.
Many factors, one effect
Tattoos and piercings have evolved from a subculture statement to a mainstream fashion product. This has had its advantages, as the market has exploded over the years. But it also has its disadvantages: While the industry was very crisis-resistant in the past (“Things are going downhill? Then even more so a tattoo/piercing!”), two years of recession have now had a clear effect on consumer behavior in our industry too. Money is no longer so loose or simply no longer enough for the b/g sleeve.
In addition, not only has the customer market exploded, but unfortunately also the provider market. In the last 6 years, the number of tattoo artists and studios has more than tripled. Whereas in the past, lulls could be cushioned by full calendars and waiting times, most now feel every fluctuation in the market immediately.
We have seen a significant decline in inquiries and bookings across all studio sizes in recent months. Although it picked up again slightly in January, it did not even come close to the previous year’s level.
And there is another significant trend in the tattoo segment (not for piercings): For about two years now, the proportion of customers between 18-25 in tattoo requests has been steadily decreasing (see trend analysis 1st half of 2023). Until before coronavirus, this segment accounted for around 50% of tattoo appointments. Even in studios with a focus on “fineline”, “walk-in” and/or “affordable” tattoos, this segment now only accounts for around 35%, and only 25% on average in the classic segments. In addition, the trend is moving towards small tattoos, so that a new tattoo project today generates less revenue on average than it did 5 years ago.
In short: more and more tattoo artists and studios now have to share less and less revenue.
Competition is becoming tougher, more complex and more expensive
In a recent conversation with a tattoo artist, she said: “I simply can’t keep up with the highly professional promotional videos that these chains are putting out en masse on all channels.” This aptly describes another problem. What’s more, many tattoo artists are now getting to the age where they are simply no longer cool, but now belong to the “parents’ generation” and are seen as such. And not everyone wants to tattoo what is currently in fashion. So you’re fighting against an image, fashion and increasingly fierce competition.
For all the hipsters in their studios who might be reading this: This applies to all of them, without exception.
After 10-20 years of being your own boss and tattooing/piercing, only a few people have a real professional alternative if their own store can no longer cover the cost of living or their family. So more and more promotions, discounts, vouchers etc. are being thrown out in order to get enough of the shrinking cake to live on.
A fatal and dangerous trend. Because it attracts a target group that generally expects discounts, promotions and vouchers.
Hard to manage alone
In March last year, we published an information letter with the headline “The comeback of tattoo studios” and pointed out this trend. And we have been observing for several months now that small studios and lone wolves in their late 30s or older in particular are having to close their studios for economic reasons unless they find a happy niche.
Larger studios with many artists from all age groups continue to attract customers from all age groups, which benefits every artist in the studio (including the older ones). And the larger the studio, the more resources are available to stand out from the competition with professional advertising.
At this point, please do not confuse the messenger with the message. None of this happens because we say it. It happens because customers behave that way. This is demonstrated by past trends in countless other sectors: Corner stores have been displaced by department stores. These in turn were replaced by mail order and the latter by online stores. The big one swallows the little one.
And since tattoos and piercings have become part of mainstream society, our industry is subject to the same dynamics.
The market is consolidating
The market is therefore very likely to consolidate over the next 1-2 years: Larger studios, chains and specialized niches will survive, while many of the others will have to close. Or to put it positively: Those that survive the next two years will have significantly less competition afterwards.
In order to survive, you have to offer customers more with less revenue: More service, more accessibility, more cool reels, more promotions, … This is only possible if you:
- merges (studios instead of ateliers),
- works together (Can they all?!)
- and saves costs at the same time (How so?).
The two largest cost blocks of any company are: Rent and personnel. Saving on rent is only possible to a very limited extent if you don’t want to go under in the eyes of your customers in the long term. So the only way out here is Online business and automation. This is another lesson from the development of many other industries!
Over-regulated?
Let’s leave the REACH issue aside for a moment. Not really a blessing for the industry, but certainly not the core problem at the moment. The situation of the tattoo & piercing nation described above would certainly be different if health authorities, customs and tax offices were to fulfill their duty of control to the extent required.
One example: How many of the studios in rented apartments would there be if, when registering a business, it was checked whether a tattoo business is even permitted in these rooms? Or whether the applicant can present a certificate of competence in hygiene?
Existing regulations that nobody checks. As long as this does not take place (due to a lack of staff, budget, interest, etc.), there will always be uncontrolled growth, which ultimately harms everyone.
What is needed is not new, different or even fewer regulations, but more consistent controls. Incidentally, this is something that works better in other countries (Austria, Switzerland).
Hang in there and pull together!
As we said, we believe there is light at the end of the tunnel, so reposition yourselves, be creative, unite and persevere!
If you are interested in what is possible today in terms of automation & service and how it works, simply register for our free webinar:
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