The profitability of just-cut barbershops: a case study of QB HOUSEs in Hong Kong

Abstract

The process innovation of QB HOUSEs has made them outweigh the traditional barbershops. It significantly reduces both money cost and time cost on the customer side, and enables a smart increase in total revenue together with a decrease in average total cost at the firm side. The marketing slogan of "HK$60 for a just-cut of 10 minutes" captured the heart of the fast-paced Hong Kong people, and the just-cut barbershop industry has grown rapidly in the past decade. By using data and information collected by field observations and interviews, this study identified the keys leading to QB HOUSEs' success in Hong Kong. It also points out that although the market of just-cut barbershops has not yet saturated, further enhancement in service quality and marketing strategies are needed for sustainable growth.