The Mexican Professional Haircare Market 2009 published by Diagonal Reports in October, 2009. This report price starts from US $ 4436.
Abstract
- Hair colouring services sustain salon sales in recession-hit Mexican salons
- Economic downturn has concentrated minds on the price/quality ratio for
both consumers (services) and salons (products)
- Pressure for lower prices may alter the brand status quo. Demand for lower
priced but quality haircare products in salons helps some gain market share
December 2009
High growth rates, which had characterised the Mexican professional haircare
market for almost a decade, abruptly ended with the recession of 2008. With no
improvement in consumer spending expected for a few years, salons in Mexico
must improve their hair and beauty service offerings in order to maintain or
increase sales.
The economic downturn has made consumers become more demanding over the past
two years. Mexican women who use upmarket salons now expect to receive above
average haircare services when they pay above average prices. The salon sector
in Mexico expects a general shake-out and has identified investment in staff
training as key to meeting consumers' higher standards.
Colour services were the main growth driver in the Mexican salon channel in
the decade up to 2007/08. Given the sharpness of the downturn, salons have
been pleasantly surprised by the resilient demand for hair colouring compared,
for example, to sales of beauty treatments which have suffered more.
Hair colouring remains the single largest salon category in Mexico. Colouring
consumers buy not only the most expensive salon service (colour), but they are
the core consumers of retail lines, particularly the more expensive shampoos,
conditioners, and styling products in salons. As one salon manager in Mexico
explained, "Clients spend up to five times more on some colouring services and
products than on one haircut "
Best performing salons maintain demand and client loyalty by offering quality
colouring treatments that clients are not able to do for themselves at home. A
salon manager in Mexico city interviewed by Diagonal Reports noted, "Colour
has been constant because colour clients are the most fashion conscious"
The haircolouring market has been the preserve of a handful of companies which
traditionally dominated the colour category, accounting for almost all sales.
These established but higher priced market leaders are now more vulnerable in
an economic environment, where the rules have changed. Salon managers and
their clients have never been as price conscious and these companies could
lose out to other brands that offer a better quality / price ratio.
Demand for lower priced but quality professional lines has benefited smaller
operators at both the top and budget end of the professional haircare market.
A product supplier with significant market share in segment C type salons in
Mexico reported "The recession has been a positive for us as salons turned to
less expensive brands"
In this new report Professional Hair Care Market Mexico 2009, Diagonal Reports
quantifies the value of the salon haircare market (in Mexican pesos) and the
number of salons operating in Mexico. It determines demand for styling and
colouring services in hair salons in Mexico. The research also focused on
salon segmentation, company and brand share in this fragmented market.
Findings are based on in-depth discussions conducted with salon experts in
Mexico DF, Jalisco and Verocruz during September 2009
Table of Contents
Table of Contents
REPORT STRUCTURE 6
SECTION 1 REPORT SUMMARY 8
- TABLE 1 Market at a glance - Mexico (2009) 8
- Positives with the negatives 8
- Best salon category - services and products 9
- Leading brands 9
- Currency 9
- Data sources 9
- Date of Publication 10
SECTION 2 - SALON MARKET SIZE AND TRENDS 11
- Introduction 11
- TABLE 2 Salon market size volume and value (2009) 11
- What is included in counts of salons 11
- The barber segment 12
- The formal salon market 12
- The sector expanded and expanded 12
- The unlicensed / underdocumented 13
- How experts estimated market value 13
- TABLE 3 Salon market (%) value of services and product retail 13
- TABLE 4 Salon market (%) variations period 2006-2011 14
- Impact of downturn by market segment 14
- Forecasts for the salon market (2010 and 2011) 14
- Historical trends in the salon market 14
- TABLE 5 Hair salon market revenues in different segments 15
- TABLE 6 Hair salon market examples prices different segments 15
SECTION 3 SALON PRODUCTS MARKET (SIZE, AND CATEGORIES) 16
- Introduction 16
- Mexico compared to other markets 16
- TABLE 7 Salon products market as % of revenues by market segment 16
- TABLE 8 Salon products market (%) by product category and by salon segment
17
- Colour category 17
- Suppliers to salons 17
- Indirect sales 18
- Counterfeit and related products 18
SECTION 4 SALON PRODUCTS MARKET BRAND SHARE 19
- Introduction 19
- Sources identifying brands 19
- TABLE 9 Market share of the product leaders and others 20
- TABLE 10 Market leaders (%) brand share (salon segments A and B) 20
- Variables in brand share by salon segments and geography 20
- Changes in market share, since 2007 21
- TABLE 11 Brands gaining market share (5 names) 21
- Brands noted as sold in salons 22
- Own label brands 22
- Scope outside of the most developed markets 22
- Awareness of Mexican brands in top salons 23
- TABLE 12 Companies and brands in salon segments C and lower 23
- Companies and their brands in Segment C 24
- Sales trends for brands in C salons 24
- Names hard to trace 24
- Other Mexican brands 24
SECTION 5 SALON PRODUCTS MARKET - BRAND SHARE BY PRODUCT CATEGORY 26
- Introduction 26
- TABLE 13 Brands (%) share by product category, colour 26
- Colouring brands 26
- Brands gaining in colour in salon segment C 27
- TABLE 14 Brands (%) share by product category, perming/straighten 27
- Perming market is fragmented 27
- TABLE 15 Brands (%) share product category - styling, shampoo and
conditioners (S&C) 28
- TABLE 16 Brands (%) share product category, in-salon retail products 29
- Retail brands and consumer recognition 29
SECTION 6 BRANDS, SALON PURCHASING CRITERIA, AND THEIR ASSESSMENTS OF BRANDS 30
- TABLE 17 Salons' brand purchasing criteria 30
- Quality/price ratio 30
- Variables by salon segment and geography 30
- Word of mouth recommendation or marketing? 31
- Product range / line up 31
- Stylists habit and brand loyalties 31
- Distribution as a criterion 31
- Technical support and professional prestige 32
- TABLE 18 Salons' rankings of brands, by price 32
- Salons' views of brands (I) 32
- Salons' views on brands (II) 33
- Salons' views on brands (III) 33
- Professional prestige 34
- How brands maintain exclusivity 34
SECTION 7 SALON SERVICE MARKET BY CATEGORY (BUSINESS ACTUALITIES) 35
- Introduction 35
- TABLE 19 Salon business (%) services and retail 35
- TABLE 20 Salon business (%) hair services and beauty services 35
- TABLE 21 Salon business (%) hair services by category 36
- TABLE 22 Comparison salon revenues by category 36
- Salon colouring services 36
- Salon colouring concerns and trends 37
- What salons said about colouring 37
- Colouring trends in recession 37
- Demand for salon perms 38
- Perm or colour? 38
- Salons refuse to perm 38
- Superior alternatives 38
- Salons and low cost alternatives 39
- Salon hairstyling business 39
- Special occasion hairstyling 39
- Salon retail business, both good and bad 39
- Colouring consumers are the key to strong retail sales. 40
- Retail brands backed by marketing or hard to find 40
- Retail in non hair lines 40
- Salon beauty services 40
- TABLE 23 Beauty (spa) services 41
- Trends in client demand for beauty services in recession 41
SECTION 8 SALON STRATEGIES TO SURVIVE THE DOWNTURN 42
- Introduction 42
- Price reductions disguised? 42
- Salons versus manufacturers - who cuts first 42
- Above average prices requires above average service quality 43
- Worst affected salon services 43
- A switch to DIY? 43
- TABLE 24 Drivers of sales variations in salons 44
- Positives 44
- Negatives 45
SECTION 9 SALON MARKET STRUCTURE AND SEGMENTATION 46
- Introduction 46
- TABLE 25 Salon market (%) licensed and unlicensed 46
- TABLE 26 Salon market segments (A, B, C) as % of units and revenues 47
- Segment A salons profiled 47
- The segment B salons 48
- The segment C salons 48
- Segments growing/decreasing? 48
- Segment criteria / comparisons other countries 49
- TABLE 27 Salon segments benchmark data (revenues) 49 TABLE 28 Names of
salons - segment A (9 examples) 50
- TABLES 29 Names of salons - segment B (13 examples) 50
SECTION 10 SALON PRICING AND PRICES 52
- Introduction 52
- Salon pricing variables 52
- TABLE 30 Salon prices - haircut and colour (segment A) 52
- TABLE 31 Salon prices - hair services by stylist' status (segment A) 53
- TABLE 32 Salon prices - perming (segment A) 53
- TABLE 33 Salon prices - hair services (examples, segment B) 53
- Comparison - hair salon spending in USA 53
SECTION 11 SALON DATA AND SEGMENTS BY GEOGRAPHY, AND REGULATORY PROPOSALS 54
- TABLE 34 Salon market data circulated 2008 54
- Salon distribution by geography 54
- Areas where segment A salons concentrated 55
- TABLE 35 Popular locations for leading salon chains 55
- TABLE 36 Hair salons - estimated numbers in the top states 56
- TABLE 37 Mexico listing of geographic regions and major cities 57
- Proposed quality upgrade and the main regulatory bodies 57
- Impact of standards on salon numbers 57
SECTION 12 METHODOLOGY, DATA SOURCES, MARKET AUTHORITIES (GOVERNMENT, INDUSTRY, PROFESSIONAL), ORGANIZATIONS, MAGAZINES, EXPOS) 59
- Sources consulted 59
- Expert sample / criteria for choosing experts 59
- TABLE 38 The expert sample is representative of 60
- Breadth of experts' expertise 60
- Data issues noted by experts 61
- Data conflict 61
- Secondary sources consulted 61
- TABLE 39 Professional and salon trade shows / expos (listing) 62
SECTION 13 TERMS AND GLOSSARY, SYMBOLS AND ABBREVIATIONS 63
- TABLE 40 Selected terms hair related (English/Spanish) 63
- Symbols 63
SECTION 14 COUNTRY DATA 64
- TABLE 41 Mexico data at a glance 64
- TABLE 42 Mexican population (%) by ethnic origin 64
- TABLE 43 Mexico GDP data compared to USA, Canada and Brazil 64
- TABLE 44 Mexico distribution of monetary income 1994-2006 65
- INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS
(REGULATORY, TRADE, PROFESSIONAL) 66
- DIAGONAL REPORTS STATEMENT 69
