Opening a hair salon in Richmond, VIC: Market & Competitor Analysis (2026)

64 hair salons currently operate in Richmond. That's a competitive density score of 100/100, meaning the suburb is saturated. In practical terms, there's roughly one salon per 276 residents. Most suburbs see one salon per 500–800 people, so Richmond has double the typical concentration of operators fighting for the same customer base.

Richmond presents a mixed picture. The market opportunity score is strong at 89/100, suggesting demand exists. However, the strategique score is only 50/100—the lowest quartile for viability. The real barrier is effective density of 44/100, meaning many existing salons underperform. Entry is possible, but you'd be competing in a crowded, weak market where half the firms struggle.

Three operators stand out: Frankie Salon Richmond (4.9★, 656 reviews), KOHORT (4.9★, 431 reviews), and XVI Collective (5★, 81 reviews). These three dominate customer satisfaction. The broader competitor strength index is 44/100, so while the top tier is solid, most other salons in the area are weaker—suggesting uneven competition rather than uniform strength across all 64 firms.

Median weekly household income is $2,577. At that level, customers can afford regular salon visits—typically $50–$150 per appointment depending on service—but aren't targeting luxury or specialist markets. Population is 17,671, so the total addressable market is moderate. Most households here prioritize value and accessibility over premium positioning.

First, audit the three leading competitors' positioning and pricing to identify gaps—they've captured most reviews, so differentiation is critical. Second, scout locations near Chapel Street or Bridge Road where foot traffic is highest; 64 salons already operate here, so foot traffic matters more than availability. Third, secure a space before pursuing licensing, as rent and location viability determine your actual startup cost in this dense market.