CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

In this chapter, it deals with the past studies and

literature that are related to current study, for
supplement ideas regarding the Feasibility Study in
establishing Mobile Salon in Cabanatuan City and presents
the concepts, which are part of local and foreign studies
by authorities in this topic. Specifically, the following
related literature and studies serve as factual information
in connection between past works which can provide
adequeate background for the researchers to conduct this
study.
This literature review investigates the following areas
of this study: the definition of cosmetology, the history
of cosmetology, the status of careers in cosmetology
especially during this pandemic,the role of technology in
training cosmetologists,establishing a salon and other
local literature related to this study.
This literature review will emphasize the
entrepreneurship process which will lead to a successful
business. For starters the review will go over how to
generate good business ideas and how to recognize
opportunities. Secondly the emphasis will be on how to plan
and structure the business in all aspects including
finance, management, marketing, operation, etc. This
business plan will serve as a road map for the effective
execution of a salon business (Wu, 2011).

FOREIGN LITERATURE AND STUDIES

Definition of the Cosmetology Profession

Cosmetology is defined “as the study and application of
beauty treatments” (Pivot Point, 2005, P. 12). Cosmetology
allows the performance of numerous beautician treatments,
including shampooing, pressing and curling, hair coloring,
applying cosmetic preparations, antiseptics and powders. It
is the art and science of beauty care (Pivot Point, 2005).
The beauty industry includes fragrances, hair and skin
care products, sun care, color cosmetics (including make-up
and other products for the face, eyes, lips, and nails),
men’s grooming products (including shaving creams), bath
and shower products (including toilet soap), deodorants,
oral care, and baby care.For example, Women’s Wear Daily,
which annually lists the largest beauty firms, excludes
toiletries such as toilet soap and dental products. The
beauty industry, as defined here, overlaps with many
others, including fashion, professional services such as
beauty salons and hairdressers, and medical products and
services such as Botox and plastic surgery (Jones, & Reisen
de Pinho, 2006).

History of Cosmetology

Cosmetology is the care of hair and makeup as well as

skincare and beauty products. They can also offer other
services such as coloring, extensions, perms and
straightening (Cosmetology, 2018).
Understanding cosmetology requires understanding its
purpose, trends and the impact that it plays in society.
Therefore, an assessment of this trades’ history is
required.
The history of the global beauty business and beauty is
a fascination for all of us. Artists, philosophers,
scientists, clerics, economists, and many others have
argued its nature and implications. Beauty has been less
studied as a business, and for many reasons. Obviously the
industry is currently widespread but its origins are buried
in 17 numerous small firms. These firms have left a legacy
of colorful myths, but fewer archived records and concrete
facts. In part, this was intentional, due to beauty being
an industry constructed around mystique, with secrets that
are closely guarded. In spite of the imperfections of this
research project, the hope is that it will make a
contribution to showcase the beauty industry’s importance
and significance in all our lives. This industry has a
fascinating history full of men and women larger than life
(Jones, 2010).

Status of Careers in Cosmetology

Financially speaking cosmetology is a sound career
choice (Heos, 2011). The excellent outlook for cosmetology
career opportunities are based on a number of factors,
among them the booming economy and our increasing
population (Reese, 2001). Aside from economic stability, a
cosmetology career allows people to provide an important
service. Regardless of the career path a cosmetologist
chooses, working well with people is essential (Heos,
2011).
By 2010, the salon industry was left with either value
oriented salons or high-end salons with strong financial
backgrounds. The recession has changed the structure of the
salon industry. It has created a gap in the industry by
creating a gap in the market. Recent research has shown a
decline in the business of the low-end segment and the
recovery in sales of the high-end segment. Research shows
that people are now willing to spend more for their hair
(Sharma, 2010). The demand for quality is higher than ever
because of the gap created by the recession. The high-end
market in the salon industry allows for new business
opportunities.
The coronavirus pandemic continues to significantly
affect the hair and beauty industry, with many struggling
to adapt to the sudden changes that have affected how
businesses are run, and hugely disrupted day-to-day
operations.
Whilst the government has established a number of
schemes to support UK businesses, such as VAT cuts, Eat Out
To Help Out, and the employee retention scheme, as a
predominantly self-employed industry those in the hair and
beauty world have been mainly left to look after
themselves. For an industry that contributes £6.6 billion
to the UK economy 1 with a large High Street presence, this
has been a bitter pill to swallow and left many
professionals feeling frustrated.
According to a poll by the NHBF2, the largest trade
association for the hairdressing, barbering and beauty
industry, salons are doing an excellent job minimising the
spread of COVID-19 despite offering close contact services.
Yet, salon owners remain fearful that their businesses may
have to close their doors again, with little to no support
from the government to see them through these difficult
times.
Takings have also been affected. Restrictions have
limited passing trade opportunities and social distancing
and heightened hygiene guidelines, mean salons are
servicing fewer clients each day to give time for clean
down. To survive, hair and beauty professionals have
embraced digital platforms to diversify their services to
overcome barriers to service and create additional income
streams.
When the country entered lockdown in March, many hair
and beauty businesses began operating an ecommerce
business, selling aftercare products to their customers.
With customers unable to visit the salon, these businesses
were able to make sales and serve their clients. Even after
salons reopened in July, ecommerce has remained an active
business component, topping-up in-store revenue and
enabling them to cope better if another lockdown were to
hit the industry.
 Encouragingly, hair and beauty professionals also
developed creative ways to serve their customers throughout
the pandemic. From offering custom DIY hair and nail colour
kits and telephone consultations to running virtual
tutorials, it is testament to the industry’s ability to
adapt, taking a typically “non-digital” product and
exploiting technology to maintain contact with clients.
While these may not work in the long term, they enabled
clients to achieve a decent finish at home and prevented
potential damage. and finding solutions to keep servicing
their customers. For a more permanent revenue stream,
salons may consider developing their own product, which
could be sold nationwide and grow their business beyond
their local community.

As tightening coronavirus restrictions increase business

concerns and Tier 3 becomes a reality for many, social
media will play a key role to maintain customer relations
and drive new sales. An aesthetic industry, Facebook and
Instagram have always been popular platforms for hair and
beauty consumers and businesses can build on this interest
to open new sales opportunities. Social media also offers
channels of communication to reassure consumers concerned
about new measures, enabling salons to share their new
systems and hygiene measures – which may also appeal to new
clients. For salons able to offer discounts and deals,
social media advertising allows hyper targeting, ensuring
that for minimal spend is directed towards people who are
closest to or most likely to buy.
The hair and beauty industry is full of smart, savvy
business men and women but greater emphasis on developing
business skills will prove vital for this industry, which
traditionally focuses training on technical ability rather
than commercial acumen. This growing sector proved
successful in the wake of the 2008 recession and can play a
valuable role in Britain’s post-pandemic economic recovery.
It’s time that the government supports this industry
recovery and celebrates its entrepreneurial spirit,
recognising the fantastic career opportunities it offers.
https://drive.google.com/file/d/1puB_bNY-
in48RybtPqoHceeyrlBo3lmj/view

Role of Technology in Training Cosmetologists

Maintaining a youthful appearance is extremely important
to many baby boomers, and they are seeking out trained
professionals to help achieve that goal. All states require
cosmetologists to be licensed, but qualifications for a
license may vary. Graduation from a state-licensed
cosmetology school is a general requirement, and the
individual must be at least 16 years old (Reese, 2001).
California requires 1600 hours of training to get a
cosmetology license. In the United States the average
cosmetology program takes less than 2,000 hours to
complete. Cosmetology schools and beauty schools teach
students the science and theory underlying cosmetology.
Students are taught the basic techniques for beautifying
and caring for hair, nails, and the skin. Becoming
knowledgeable of the science behind the craft is essential.
Cosmetology programs teach students how to style hair like
a professional (Ganchy, 2013). Completion of a cosmetology
program usually takes approximately nine months of full-
time attendance. In a full-time program a student usually
attends school from 9 AM to 5 PM. The total number of
credited hours may vary from state. The curriculum is
divided into three areas: theory (classroom learning), lab
(mannequin and student work), and clinical (customer work).
Cosmetology school is hands-on. The students study people
skills, business skills, and they practice grunt work
(Heos, 2011).
Workers need to have the technical skills in order to
perform their tasks, coupled with communication skills to
ensure customer satisfaction (Zeithaml, 2006).
The use of technology in cosmetology may have the following
advantages:
 Educators may be in agreement that distance and mobile
education is here to stay. Studies have supported the
following conclusions: Hundreds of comparative studies
have been reviewed and conclude that there are no
significant differences between traditional forms of
delivering learning and online instruction. The positive
note is that according to no significant difference
studies supply substantiated proof that instruction is
not degraded by incorporating or being substituted by
technology (Russell, 2001).
 Students have access to education ‘anytime’ and
‘anywhere’ with mobile technology. Mobile devices allow
students to have more control over their learning.
Students are able to possess ownership over their
learning plus have the advantage of learning at their
own individual pace. Mobile devices allow students to
connect to the internet, conduct research, check and
receive messages, send emails, collaborate with their
classmates, attend virtual courses, snap photos, create
videos, perform edits, and participate in gamming
 (Traxler, 2007).
 The tools used for communicating in traditional
education are not as impressive, in comparison to the
phenomenal tools used in mobile education. Trinder
(2007) and El-Hussein and Conje (2010) discussed mobile
education with detailed explanations of the
functionalities of various popular and expensive mobile
devices.
 Due to having limited time, the students of today
require and demand course content that is easily
accessible (Waterhouse, 2005).
 The results of studies reveal that multimedia can be
very effective as a teaching tool for development of
greater knowledge and retention.
 Technology is a valuable tool for reaching out to
diverse student populations who possess unique learning
styles (Natarajan, 2006).
 Research has shown that technology use with video is an
effective multimedia tool that enhances content in the
classroom. The use of video couples the valuable
multimedia features of audio, graphics, text and
animation (Bruce & Hwang, 2001; Hsin-Liang & Williams,
2009; Waterhouse, 2005).
 Online access to learning materials through the internet
allows learners the opportunity to access and view
instruction any time of the day or night, from anywhere
and anyplace (Buckley & Smith, 2007).
 Unlimited access to learning materials enables learners
to view instruction and reinforce and clarify their
comprehension and understanding of the material (Buckley
& Smith, 2007).

Establishing a Salon
According to American Salon Better Business brand
association today involves education, consumerism, and
empowerment. In the 21st century we are living in a highly
competitive economy. Today’s salons require innovative
methods of generating extra revenue and at the same time
creating brand value (Sandlin, (2010).
In the business world changes mean new opportunities.
Trends are changes that would have an effect on the
industry. Generally speaking, there are four forces that
possibly create changes and opportunities, which are the
economic, social, political/legal, and the technological
(Barringer, 2008).
Finding the gap in the marketplace is the key to
business opportunities. Gaps create windows of
opportunities for entrepreneurs to capitalize on the
opportunities and fill the gaps (Sull, 2005). The gaps
themselves must be attractive, timely, durable, and possess
the abilities to add value to the customers and end users
(Cliff, 2003). Opportunities or ideas may look attractive,
timely, durable, and have the potential to add value to the
customers. Regardless of the appearance entrepreneurs still
have to do more research to confirm the reasonable risk of
starting a business (Wu, 2011).
A feasibility analysis is a research process for
ensuring that the opportunity is good enough to start as a
business. Desirability in quality needs to be determined.
Once this is achieved it is important that entrepreneurs
know approximately how many customers would want the
product or service (Benedek & Miner, 2002).
The formation of a business plan is an important step in
salon establishment. This is a road map to start and
operate a new or existing business. The ultimate purpose of
a business plan is to contribute to the success of a
business (Abram, 2003). Understanding the purpose of the
business plan is important. This leads to writing an
executive summary. An executive summary is a brief overview
of the business. Depending on the purpose of the business
plan, executive summaries can be the first section that
potential investors read (Magloff, 2011).
Making money in business requires a product or service
to be offered. Many products have service components built
into them or vice versa (Nguyen, 2008). For 32 starters,
products and services need to be identified, and detailed
with descriptions of the products and services that are
needed. The science of marketing, terms this as product
differentiation (Rosenbloom, 2004). The owners, partners,
and stakeholders are an important part of the company
description. These are the key people in the company
because individuals signal the potential well-being of the
company (Bernhagen, 2005).
Knowing the factors of success is critical. Knowledge in
both the industry as well as market levels is essential.
Success at a market level relates to marketing. Planning a
careful marketing mix of strategies and tactics totally
contribute entirely to success at the industry level
(Vikinas, 2011). Short-term predictions or observations of
change in the industry are called industry trends. There
are two types of trends: internal and external. Each type
of trend refers to changes in the business and the
environment (Barringer, 2008). Identifying the difference
between industry and market is important. The industry is
made up of businesses, while the market is made up of
customers (Mullins, 2012). According to Nickels (2010),
market segmentation is the process of dividing the market
into groups based on similar characteristics of its
members.
Having the right opportunity and idea is the first step
to starting and operating a successful business. However,
there are significant differences between an opportunity
and an idea. An idea is a vision, an impression and a
hunch. However, it takes much more than just an idea for a
business to be recognized as an opportunity (Audretsch,
2006). Recognition of opportunities are important. Quite
often a business idea may not fit the requirements of an
opportunity in a market place. When identifying
opportunities, there are three things to do: observe
trends, solve problems, and find gaps in the market place.
New opportunities in the business world are represented by
changes. Changes that have an effect on the industry are
called trends. Generally speaking, there are four forces
that may create changes and opportunities (Barringer,
2008).
According to Barringer they are the followings:
1. ECONOMIC FORCES - These are the changes within the
economy. An example of this is the economic recession.
During a recession, lots of businesses struggle to
survive and the economic balance changes. Businesses
such as fast food restaurants and discount retail stores
may experience an increase in revenue. Customer spending
behavior changes during a recession (Barringer, 2008).
2. SOCIAL FORCES - These are changes effected by the
society. An example of this is health food stores. They
are usually pricier than other grocery stores. When
customers cut down on their spending during a recession,
the consumers and health food stores still experience an
increase in revenue. This has less to do with the
economy, but more to do with the social trend of
consumers becoming healthconscious (Barringer, 2008).
3. POLITICAL AND LEGAL FORCES - These are changes in
government or organization rules and regulations which
lead to business opportunities. New regulations were
implemented after 9/11 that boosted airport and flight
security. As a result new jobs and equipment were
created (Barringer, 2008).
4. TECHNOLOGICAL FORCES - These are changes in technologies
which create new opportunities. As an example, lots of
businesses currently advertise online and have mobile
friendly applications for reaching their customers. The
 business aspect of salon life is what beauty salon
establishment is all about (Barringer, 2008).

The right salon environment allows the cosmetologist to

feel proud of their chosen profession. Knowledge of the
salon business can ensure financial rewards, coupled with
personal and professional growth and development. Planning
a salon can be a lengthy process. For starters it is
necessary to be informed of the following: the beauty
industry, job searching, professional relationships, salon
ownership and salon retailing (Pivot Point, 2005).
Successful salon ownership requires ambition and hard
work. This can lead to the enjoyment of personal and
financial security, plus the creative freedom to develop a
35 lucrative business. Being knowledgeable of the
fundamental principles and various salon ownership models
and operations can be beneficial. Creation of a foundation
which allows the cosmetologist and salon owner to
collaborate and reach like-minded goals is important.
Understanding of the inner workings of salons is an
invaluable skill set for beginning the process of
establishing a salon (Pivot Point, 2005).

LOCAL LITERATURE AND STUDIES

CEBU, Philippines - Despite tough competition, a salon
chain operator sees broader opportunities for growth in the
Philippines while Filipinos have yet to embrace the
importance of hair care in a person’s total well-being.
Hair dressing expert and David’s Salon president David
Charlton said that while a number of salon businesses are
mushrooming around the country, consumers are also
expanding dramatically --- from all age brackets and social
status.
Charlton was in Cebu recently to grace the opening of
the sixth David’s Salon outlet in Cebu at SM City
Consolacion. The branch is operated by his partner, South
Seas Hair Incorporated led by Max and Jojing Telford.
In an interview, Jojing Telford said her company is
planning to open more outlets in malls especially the
upcoming Robinson’s in north reclamation area, and the one
in South Road Properties (SRP).
“Beauty is a growing business in the Philippines
despite the competition. We just have to get people
appreciate the importance of hairdressing,” Charlton said
adding that at this point though, Filipinos have yet to
realize that hair dressing is as important as buying
expensive clothes to dress up and look good.
Unlike in other countries where hair care is part of a
personal priority, in the Philippines, hair care is still
considered as “vanity” rather than part of proper grooming.
Ehda Dagooc (The Philippine Star) - September 28, 2012
- 12:00am
CEBU, Philippines - Despite tough competition, a salon
chain operator sees broader opportunities for growth in the
Philippines while Filipinos have yet to embrace the
importance of hair care in a person’s total well-being.
Hair dressing expert and David’s Salon president David
Charlton said that while a number of salon businesses are
mushrooming around the country, consumers are also
expanding dramatically --- from all age brackets and social
status.
Charlton was in Cebu recently to grace the opening of
the sixth David’s Salon outlet in Cebu at SM City
Consolacion. The branch is operated by his partner, South
Seas Hair Incorporated led by Max and Jojing Telford.
In an interview, Jojing Telford said her company is
planning to open more outlets in malls especially the
upcoming Robinson’s in north reclamation area, and the one
in South Road Properties (SRP).
“Beauty is a growing business in the Philippines despite
the competition. We just have to get people appreciate the
importance of hairdressing,” Charlton said adding that at
this point though, Filipinos have yet to realize that hair
dressing is as important as buying expensive clothes to
dress up and look good.
Unlike in other countries where hair care is part of a
personal priority, in the Philippines, hair care is still
considered as “vanity” rather than part of proper grooming.
Because of this, Charlton said the hair dressing
industry here has still a huge room for growth.
Ideally, hair care regimen such as haircut, hair spa,
and hot oil, among others should be done at least once in
every six weeks. For hair cut though, once a month is
highly recommended.
“We all want to look our best. Hair care is another
way of dressing up,” said Charlton reiterating that beauty
is a growing market — it’s fluid and exciting industry.

Although there is a huge opportunity for growth,

Charlton said salon operators should always be “on their
toes” because sustainability is fragile due to the fast
moving nature of the beauty industry.
At present, there are over 200 David’s Salons across
the country, operated by different partners, Charlton said.
Instead of pushing for more outlets, Charlton said he
is now concentrating on improving the quality of service to
be more at par with international standard. However, if
there is an opportunity to open up in a good location,
Charlton said they are open for partnerships.
Aside from the over 200 outlets in the Philippines, David’s
Salon has also presence in Hong Kong, Dubai, and United
States (LA, California)
Justification of the Study
The beauty industry has one of the most intriguing
stories in modern business history. The birthing of beauty
products lay primarily in local knowledge of the scents and
healing properties of plants, flowers, and herbs. Their
uses were captured by age-old religious and cultural
beliefs. Ironically these delicate flora have become the
foundation of a worldwide industry made strong by a century
of virtually uninterrupted growth. No economic meltdowns or
world wars had been able to stop the beauty industry’s
development (Jones, 2010).
The review of the related literature and study was
somehow related to the present study. The statements of
facts that came from different authors were based on their
own observations, experiences, studies and ideas that
contribute to the present study. This literature and
studies will help the researchers to make the study more
viable.
The proposed business is the study entitled "Feasibility
Study of Establishing Mobile Salon in Cabanatuan City” was
originally conducted by the researchers. Also, they assure
that this study is not a duplicate. Other studies were used
only as reference to help them in making this study.