The Professional Hair Care Market South Africa 2010

The Professional Hair Care Market South Africa 2010 published by Diagonal Reports in December, 2009. This report price starts from US $ 4308.

Introduction

Abstract

Supremely confident market registering strong growth rates. South African salons unaffected by economic downturn.

Products formulated to suit new service combinations - such as colouring relaxed hair - in demand, command premium prices in salons.

The South African haircare market - both professional and consumer - is growing in double digits and this strong growth is expected to continue for 2010 and beyond.

Hosting the World Cup may have inspired the country but the economic fundamentals are extremely positive. The economy develops and employment expands in South Africa. The number of people in image or appearance conscious workplaces - such as consumer service industries, media sector and the professions - is growing strongly. The middle classes, in particular the black middle class, are increasing in size and influence.

In South Africa patterns of consumption of hair services and products differ by consumer segment and by ethnic group. The ethnic African segment is the single largest consumer group and this market has the most potential. As one salon expert in Johannesburg explained, “There is a big market for ethnic hair. These needs have to be addressed”

Chemical relaxing and African hair styling are the most popular services accounting for almost 80% of salon business. Hair relaxing is the leading service category and will continue to be the mainstay of the African professional and consumer hair care market. The complex relaxing process consists of a package of services with many procedures. A wide product range covering different formulations and packages for the various process stages is required. There is strong - as yet unmet- demand for colourants suitable for using on relaxed hair.

African styling is the next most important service category in black salons. This term is used to cover a number of styles such as braiding, hair extensions and pieces, dreadlocks or dreads, bonding, their infinite variations and many combinations. These hairstyles can last for up to three months, during which time they require the on-going use of conditioners and treatments to prevent damage and breakage.

South African consumers - for reasons of convenience and comfort - need salons and hairdressers to provide these complex and labour intensive services. Chemical relaxing and African hairstyling which require specific and different stylist skills are quite different markets. Salons must be multi-service on order to meet their clients' needs. In addition, the product range required for styling and dealing with relaxed hair is extensive. A multiplicity of brands and products is now needed because few, if any brands, can be described as “multi tasking” that is effective on the different types of hair seen by salon stylists on a daily basis. Salons are looking for multi-platform products to be formulated. Products that deliver these goods can command double the price in salons in South Africa..

Th South African market is the largest in Africa, is a bridge head to the larger sub Saharan regional market, and to the descendants of ethnic Africans in other parts of the world. In this new report Professional Hair Care Market South Africa, Diagonal Reports quantifies the value of the salon haircare market (in South African Rand) and the number of salons and hairdressers -both formal and informal- operating in South Africa. The market is segmented in terms of price points, service categories and products used.

This new research determines demand for chemical relaxing, African hair styling and colouring services in hair salons in South Africa. The research also focuses on company and brand share in this fragmented market. Findings are based on in-depth discussions conducted with salon experts in Johannesburg during November 2009.

Table of Contents

(Hair care, haircut, style, African styling, braiding, weaves, wefts, hair extensions, dreadlocks, relaxing, texture, curls, colour, treatments, wet and dry products, beauty, nails, brands, salon, spa.)

REPORT STRUCTURE

SECTION 1 - REPORT SUMMARY

• TABLE 1: Hair care market at a glance (2010)
• An important, growing market
• Leading services and products
• Brands / key suppliers
• Leading categories, services and products
• Country specifics
• Brand loyalty
• Currency
• Data sources
• Date of publication

SECTION 2 - SALON MARKET SIZE AND TRENDS

• Introduction
• TABLE 2: Salon market size numbers of units and stylists
• Numbers of salons and stylists
• Trends in salon and stylist numbers
• TABLE 3: Salon market value, revenues and products
• Basis of estimated market size
• TABLE 4: Salon business value of different service categories, black salons
• Taxes on salon services / retail
• TABLE 5: Salon market sales variations or trends, period 2007-2010
• Sample outperforms national and international market
• Salons escape recession and outperform GDP
• Salons and plans for future
• Historical trends included some negatives
• Impact of informal channel
• Salon market drivers
• Appearance conscious consumers
• 2010 FIFA World Cup South Africa

SECTION 3 - SALON MARKET SEGMENTATION AND STRUCTURE

• Introduction
• TABLE 6: Hair salon market (%) black and white salons
• TABLE 7: Country specific salon market segments
• The formal and informal salon economies
• TABLE 8 Salon market (%) volume/revenues by segments (ABC)
• Salon segments profiled, formal segment
• Top locations for salons
• But beyond the mall walls
• High spending and high profile clients
• Salon segments profiled, the informal salon market

SECTION 4 - DEVELOPING A QUALITY SALON MARKET, INDUSTRY CHALLENGES

• Introduction
• TABLE 9: Developing a quality segment - challenges and barriers
• Developing black salon industry
• Rolling out training 26 Top down initiatives required
• From hair specialisation to diversity
• Hair types, African hair and Caucasian hair
• Challenges of diversity, for salons and clients
• Diversify product and brand purchasing
• Diversity, the many costs
• Salon specific strategies
• Quality salon services and the client consultation
• Marketing
• Barriers to salon development
• What salons want from their suppliers (and government)
• Market saturation in some segments, and unfair competition
• Salon quotes on competition
• Educate stylists and consumers, prevent counterfeits
• Salons' suggestions for brands
• How salons are helping themselves

SECTION 5 - SALON BUSINESS ACTUALITIES - SERVICES AND PRODUCTS

• Introduction
• TABLE 10: Salon business (%) services and retail
• TABLE 11: Salon business (%) hair services and beauty services
• TABLE 12: Salon business hair care services (%) category, black salons
• TABLE 13: Salon business (%) service categories, white salons
• Salons multitask for multiple service users
• TABLE 14: Salon' s product purchases (%) wet and dry products
• Services with zero products
• TABLE 15: Salon product categories (6), ranked
• TABLE 16: Salon spending on products as (%) of annual revenues
• SALON SERVICE AND PRODUCT CATEGORIES (CHEMICAL RELAXER SYSTEMS)
• Who relaxes and why?
• Why choose professional relaxing services?
• TABLE 17: Salon relaxer purchases (%) mild, medium, and strong
• Relaxers - product requirements and challenges
• Relaxing brands
• Shorter processing, longer lifetime
• SALON SERVICE AND PRODUCT CATEGORIES (AFRICAN STYLING)
• African styling business
• African styling trends
• Braiding as % of salon revenues
• Hair extensions, techniques and process
• Dreads highly specialist
• Extensions and product development
• Why braid or use hair extensions?
• Bring your own
• African styling brands and product categories
• Salons' attitudes to complex African styling
• Lose contact with clients
• Boring
• Salon service and product categories (maintenance and treatments)
• Common hair problems
• Hair loss
• HAIR SERVICES IN WHITE SALONS
• TABLE 18: Salon business (%) service categories - white
• Diversify consumer segments
• Men as consumers
• Brand switching
• BEAUTY SERVICES IN HAIR SALONS
• TABLE 19: Salon business (%) beauty services
• Continue to specialise in hair services
• Mall based salons and beauty
• SALON PRODUCT RETAIL
• TABLE 20: Salon business (%) - product retail sales
• Retail product categories
• Retail varies seasonally
• Why salons retail
• Retail business and drivers and barriers
• Retail training
• Competition from retail stores
• Salon retail strategy

SECTION 6 - SALON PRODUCTS MARKET BRAND SHARE, AND BY PRODUCT CATEGORY

• TABLE 21: Companies' share (%) black salons, the Top 5
• TABLE 22: Company leaders in relaxers, Top 5
• TABLE 23: Companies and brands (%) share of leaders in black salons (19 brands)
• The latest buzz brand
• Leader in white salons
• TABLE 24: Brands supplying hair care products to salons (52 companies)
• TABLE 25: Brands supplying hair extensions to salons (22 companies)

SECTION 7 - SALON BRANDS, PURCHASING CRITERIA, AND DETERMINANTS OF BRAND SHARE

• Salons and product purchasing criteria
• One or many brands?
• Price consciousness of salons
• Prices too expensive
• TABLE 26: Price points and brands
• A turn to consumer brands?
• Professional brands and training
• Preferential treatment by suppliers
• Why salons drop brands
• Innovation and marketing
• Effective and safe on chemically treated and on problem hair
• Black empowerment brands
• Animal and eco-friendly

SECTION 8 - SALONS AND SALON COMPANIES

• Introduction
• TABLE 27: Largest salon franchises and networks (6 companies)
• New entrants
• Salon companies - salons for men
• TABLE 28: Salon companies - specialists in African styling (7 companies)
• TABLE 29: Top salons, “best in class” identified by experts (13 companies)

SECTION 9 - SALON BUSINESS AND PERFORMANCE BENCHMARKS

• TABLE 30: Salon segments benchmark data (revenues per unit / year)
• TABLE 31.A: Benchmark staff numbers - flagship hair salon
• TABLE 31.B: Benchmark staff wages - upmarket flagship salon
• Hairstylist commissions

SECTION 10 - SALON PRICING AND PRICES

• Prices, starting prices and stylist levels
• Comparison - hair salon spending USA
• TABLE 32: Salon prices, relaxing and African styling, black salons
• Weaves or hair extensions
• Hair extension salon services, and rental charges
• TABLE 33: Salon prices (ZAR), 3 month treatment plans for braiding and weaving, black salons
• TABLE 34: Salon prices hair care, upmarket white salons

SECTION 11 - HAIRSTYLING TECHNICAL DATA (AFRICAN STYLING AND RELAXING) AND HAIRSTYLING IDEOLOGIES

• Salon hair service menus
• Chemical relaxing (terms and variants)
• TABLE 35: Chemical relaxer process - the many different steps
• Hair extension process and components
• Hair extensions types (bulk hair, wefts)
• Hair extensions methods (cap, attachment, clip on, weave, track)
• Hair extensions methods - tracking and weaving
• Hair extension attachments (glues, rings, tips, guns, bonding, fusion)
• Hair types used in extensions and other styling
• TABLE 36: Interpretations of hairstyles - negative and positive
• The many ideologies of (black) hairstyling

SECTION 12 - SALON DATA, SALON REGULATIONS, AND TRAINING

• Data conflict
• Data issues noted by experts
• Salon and Standard Industrial Classification (SIC) codes
• Data in circulation about hair salon numbers / revenues
• TABLE 37: Quantifying the numbers of viable professionally run salons
• Salon registration requirements and tax thresholds
• Business regulations for hair salons
• TABLE 38: Hairdressing bargaining councils, numbers of employers/employees
• Salons part of the SME sector (defined)
• TABLE 39: SME benchmark business sizes
• Salon industry development and training initiatives
• Services SETA
• Salon training - theoretical and practical and costs
• Recognised hairdressing qualifications
• Hairdressing training providers (examples)
• Salon management training
• BEE
• South Africa cosmetics and toiletries (C&T) and spa market size

SECTION 13 - MARKET AUTHORITIES (GOVERNMENT, INDUSTRY, PROFESSIONAL), ORGANIZATIONS, MAGAZINES, EXPOS

• Professional organizations, and web sites for hair salons
• Salon magazines and publications for professionals
• Magazines, publications - consumer
• Trade, professional shows, and competitions

SECTION 14 - METHODOLOGY, DATA SOURCES, THE EXPERT SAMPLE

• Sources consulted
• Confidentiality
• TABLE 40: The expert sample, what it represents
• Expert sample / criteria for choosing experts
• Experts represent breadth of expertise
• Experts and locations
• Languages of interviews

SECTION 15 - COUNTRY DATA (SOUTH AFRICA)

• TABLE 41: Population of South Africa (%) by ethnic origin
• South Africa and SADC
• TABLE 42: Population of South Africa (%) by age and gender
• TABLE 43: GDP data South Africa compared to USA
• TABLE 44: South Africa population by state
• TABLE 45: Consumer spending power, cities where concentrated
• TABLE 46: Population ethnic Africans as (%) adults and household income
• The “Black Diamonds”
• Young professionals

SECTION 16 - TERMS, SYMBOLS, AND ABBREVIATIONS

• Symbols

INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL)

DIAGONAL REPORTS STATEMENT

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