Hair Products
...n their advertising without making any changes to their products. (eopinions.com) Companies desire to show the many uses of their products and one way is to show that its products can benefit all cultures and hair types and styles. Suppliers & Distribution There are too many suppliers of hair care products to list. For any one person, the choice is extensive and purchaser’s needs are usually personal. When strangers on the street were asked to list 5 of their most used hair products, included in the usual list was one or more major suppliers. From professional salons to superstores and local grocery stores, it would be more uncommon to find a store that did not offer some type of hair products. Even the Convenient Store and Dollar Stores report having a multiple variety of hair products to offer. Looksmart.com provides a top ten listing of hair care providers (please see Appendix II). Buyers can browse the internet or find many product options on a regular shopping trip. The distribution and sales figures are hard to come by and usually companies charge a fee to obtain information providing detailed market size and sales to the average individual. Many companies do seek to distribute demanded products by a variety of ways. Customers can use internet resources. Also free samples via mail and internet have become increasingly popular. Distributors offer a product for every concern one could possibly imagine in a creative manner to lure in sales. Competitive Environment In any market companies face fierce competition. It is a way of business and no different in the hair industry. It is not unfamiliar to find that many companies market products in such a way that consumers can be misled. Corporations use this to their advantage, making such claims that hair can be repaired, shinier, and more volume with particular specialized ingredients. Even with the fact and common knowledge that hair cannot be repaired consumers easily buy into advertising claims with hopes of better hair. Biologists often do years of research to provide the latest scientific knowledge to consumers. L’Oreal, a leading competitor in hair products, collaborates with 20 countries worldwide and supplies over 3000 new formulas each year (www.loreal.com). Not only do companies race to develop the latest products, they also fight for customer’s loyalty by offering many different products under the same name line. For example, L’Oreal offers shampoo, conditioner, hair spray, gel, mouse, straightener serum, frizz serum, hair colors & dyes, as well as curling irons, straighetners, hair rollers, and blow dryers. In addition, they provide hair accessories and make- up to complete an all over look. With special promotions, coupons, and extensive product lines companies have yet another way to entice consumers. With internet tests, quizzes, and guidebooks, persons can log on and build a hair profile to determine what best fits his/her needs and gain expert advice. Pantene offers a healthy hair advisor that gives personalized solutions for individuals (Appendix III). Economic Analysis With the strike of 9-11 the United States Economy has suffered financially. Families focus more on the important life factors and luxuries seemed of less importance as a whole. In 2004, society still faces financial difficulties and reported profits for many products are still at a low in comparison to previous years. However, the hair product industry continues its campaigns with full force in hopes that people will pamper themselves by indulging in hair care to give themselves a feeling of luxury and a beautiful look. We can review the growth of the shampoo & conditioner market from1997 through 2002 as follows. It supports a steady growth in sales. 1997 - $14.137 billion 1998 - $14.759 billion 1999 - $15.461 billion 2000 - $16.256 billion 2001 - $16.795 billion 2002 - $17.509 billion Source: Soap, Perfumery & Cosmetics, 76 (11) p. 22 Nov 2003 L’Oreal also has reported growth in sales and operating profits from 2003 – 2004. With a 3.6% increase in sales L’Oreal had an overall net income growth of 21.8% (www.loreal.com). L’Oreal gives much credit to the upward sales achieved from the launch of Redken for Men and the complete revamping of the Tecni Art styling line from L’Oreal Professional and continuing development of Matrix. Sales are the success of new products such as shampoos and styling gels and expansion in Western Europe. (Appendix IV for more details). Social/Cultural Environment Environment plays a key factor in the sale of hair products. Consider the different hair types: curly, straight, course, damaged dry and brittle, short or long. Each type demands a product for a degree of manageability and many conditions add new factors. In example, humidity might cause curly hair to frizz, causing the need for a serum to tame curls (where sales of John Frieda Hair Ease Serum might be one of many options). Often times long hair is more popular in the winter whereas short hair is more common in summer. We must also consider that the above statement is a typical American point of view. Other cultures are less caught up into the “Paris Hilton” concern for fashionable hair. In some countries, women cover up their beautiful hair due to cultural values. Other countries live in such poverty, that hair fashion is of little concern. A quick glance at the Asian culture might suggest that sales of hair products are much less than United States reports. With the high Asian diet of vitamin E, many Asians have naturally healthy hair and less of a need for reconstructive products. Biologically, Asians have a natural tendency for straight fine hair, which also causes less of a demand for products such as hair strengtheners. However, it also causes the demand for the natural opposite: a desire for curls presses the sales for perm products, curling irons, and mouse, gels, and sprays. (Fashionalley.com, or see Appendix V). Care of the hair is important. Tiny glands of the sides of the hair follicles secret sebum, an oil that lubricates the hair as it grows and makes it soft and flexible. Hair should always be rinsed carefully and kept clean of dead cells that constantly scale off the skin of the body. Modern shampoos aid in care and cleanliness. (The World Book Encyclopedia). Because hair has little real function in human beings diseases that affect it generally cause cosmetic and psychological problems rather than medical problems – such as the ‘bad hair day.’ Political, Legal, and Regulatory Environment A popular question arises when discussing shampoos, conditioners, and hair color. Are companies still testing products on animals and is it safe? Safety is a continuous debate as some companies do continue to test their products in what they claim is “safe” to the animals. Consumers must think beyond hair: to eyes, skin, and toxic tests. Consumers want a safe product for themselves, but this can mean an unsafe test for an innocent animal. Common animals used in testing are: cats, chimpanzees, dogs, ferrets, guinea pigs, hamsters, macaques, mice, rabbits, rats, and cauchins (www.bellaonline.com) Companies claim that animal testing offers humans more certainty that a product is safe for use. However, many companies are now offering products with natural ingredients (that there is no need to test on animals) and/or a guarantee that products have not been tested on animals. (Please see appendix VI for more articles regarding animal testing). There are enough available ingredients safe for human use that companies could stop animal testing all together and use alternate testing methods. “These modern tests are more humane, can be cheaper, faster, and more accurate (ivillage.co.uk.com).” The Federal Drug Administration regulates ingredients for shampoos and conditioners. Manufactors can make other claims on the unregulated portions of the label (www.hair-shampoo.com) Technological Environment Technology is ever changing and moves more rapidly than ever. Currently the half life of almost any computer technology is counted in weeks and months instead of years. Where does this leave a recently purchased blow dryer for the average consumer? The average life span of styling tools is determined b...