2008-09 Fact Book: An Evolving Industry

In 1984, the indoor tanning market literally exploded. Dozens of importers, distributors and manufacturers of equipment seemed to spring into existence overnight, but demand still outweighed supply. This period of rampant growth lasted well into the mid-’80s. In fact, by 1985, there were more than 70 manufacturers of tanning equipment in America or the U.S. offices of foreign companies or U.S. importers of foreign tanning equipment. In addition, there were in excess of 500 distributors in the United States. The industry was very cosmopolitan and many people were making money.

According to industry veterans, the 1986 drop in the equipment market was attributed to the indoor tanning industry growing too quickly and too much profiteering from undesirables in the industry. As a result, competition became keener, forcing equipment manufacturers to become more progressive and updated.

Between mid-1985 and 1987, times were still profitable for the indoor tanning industry. Salons saw the typical slump in business during the summers, and some of the less stable manufacturers vanished as quickly as they had come into business one or two years before. Yet, the overall tenor was still strong.

But 1987 was a year met with mixed reviews from equipment manufacturers. After the previous few years, 1987’s more moderate expansion was disappointing to many. However, one factor playing a role in the lower growth rate was an ongoing decrease in the overall price of new tanning equipment-a trend that had been in motion since the end of the so-called boom period.

Another area that affected the U.S. tanning market involved the influx of toning. During the late ’80s toning facilities were popping up nationwide and adding tanning to their offerings. This phenomenon spurred increased equipment sales and made the industry even larger. However, when toning dropped off in 1988, it dropped hard, flooding the market with a huge surplus of used tanning equipment.

The next few years were lean ones for equipment manufacturers and contributed to the cleansing of the industry. As the opportunists were cleaned out, companies cut back on their overheads and consolidated their interests. Equipment manufacturers were not the only ones to feel the pinch. Many distributors and tanning salons closed shop because their owners did not know how to run a business or plan for their future. Many other companies emerged, only to close shop because they expanded too quickly and were caught with a lot of overhead when the market dropped.

Interestingly, most of the companies that have survived have been very conservative. The adage of having to walk before you can run is quite true.

As the ’90s approached, the industry experienced a rebirth. The companies that had survived the ’80s now had their sights set on the future of tanning and began providing state-of-the-art tanning equipment and products.

The new millennium ushered in more technological advancements from equipment manufacturers. However, many agree that sales suffered somewhat after Sept. 11 when salon owners, and the rest of the nation, held back on large purchases.

With the 2008 tanning season securely underway, we can look back at the evolution of an industry and be proud of where we are today. There are leaders who have weathered the storms of time and economics and set the standards by which other companies have learned to follow. Today, the indoor tanning industry is a viable business with suppliers working toward a common goal of sensible, moderate and responsible tanning.