This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
4/10/2006
Tanning Industry
The needs and wants of people today are getting more and more into their physical look. One industry in particular is the tanning industry. People spend more than $5 billion a year on tanning. It is also an industry that isn’t dominated by any one company. The single largest company has only 5% of the market. This is identical to the video rental stores in the 80s before the Blockbuster stores came out. Entrepreneurs are seeing this trend and trying to jump at the opportunity. This is a real possibility that most people have overlooked.
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9 comments:
What kind of liability are you taking about TOM!!!!!
It really is surprising what people spend their money on, isn't it?
This is a good way to put in perspective how important other prominent industries are. How much does a great movie make? Three hundred million or so is a drop in the bucket compared to tanning. The tanning industry bring in more in a year than the Lord of the Rings trilogy did in all media forms in all markets combined! What about sports teams? A decent one costs $500M, and you'd be lucky to bring in a fraction of that in revenue each year.
Who knew?
There have been several tanning salon chains come and go in the last few years. I do think that some will be successful, but I also think a lot of the mom and pop tanning salons are also a social center not just a place to go get a tan or to lay in the tanning bed. Also a lot more people are putting tanning beds in their home, which takes away from the tanning industry all together. There will always be a market for tanning lotions though. They are a large part of the profit for tanning salons, but with tanning lotions being sold on the internet that is changing too. It will be interesting over the next few years.
Thanks for reading and commenting!
The tanning industry is a booming business. I didnt realize that untill I worked in one myself. Done right and with the right resources, an owner can make a boatload of cash. Any entrepreneurs out there, get moving.
Thanks for commenting.
It's very interesting to know that the tanning industry is doing so well. I would imagine it's because there's no shortage of people looking to become better looking.
I'm just curious, where did you find the $5 billion figure and other information on the tanning industry? I'm trying to do a little research on the tanning industry to help give me a vague idea of the market for a new drug. I recently invested in a small Australian biotech, Clinuvel, which is developing a tanning drug. It could be on the market as early as 2009. It is seeking approval for diseases aggravated by UV light, but I believe the biggest market (whether approved or used "off-label") is the cosmetic market. The drug is a synthetic analog of the human hormone that normally directs the skin to make pigment.
Aargh ... spam
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