How to expand your business with the Hair Care boom: the best tips to make your company profitable

The hair care industry is experiencing a golden age, with a number of opportunities that retailers and distributors can take advantage of to multiply their sales and attract more and more loyal customers. But you need to know how to understand the market and then respond accordingly. To facilitate this, here is a brief guide with 5 essential recommendations.

How much will the Hair Care market grow in the coming years and why?


The global hair care market is projected to grow at a compound annual growth rate of 6.6 % through 2027, according to Mordor Intelligence.

One of its drivers is the growing demand for natural products for personal care, which has personal care products, which has become one of people’s main concerns. Among organic and natural hair care products, due to their widespread use, conditioners and shampoos had a majority market share. The high demand for natural ingredients has led most companies to launch products with ingredients inspired by nature. Another factor to consider is the importance people give to hair care. According to Aitex, 82% of Europeans consider hair care to be important or very important. It also emphasizes that 70% believe that cosmetics and personal care products have a direct impact on their quality of life and self-esteem.

On the other hand, there is a palpable concern about the climate crisis, so that consumers are looking for the most sustainable options. In this respect, brands are influenced by environmental regulations.

All of this means that they are committed to techniques that contemplate the circular economy and the minimum generation of waste.


5 factors to consider to take advantage of these trends and boost the profitability of your business



Against this backdrop, retailers and distributors Hair Care distributors a range of possibilities opens up that they must take advantage of in order to achieve a privileged place in such a competitive environment. Here are 5 on which you should focus your efforts:


1.- Listen to what the market demands and offer it.


To grow, you have to know in detail the traits that define your market and your potential buyers. The fact is that, although we can see cross-cutting trends such as those mentioned above, each geographical area has its own particularities.

Knowing the aspects that differentiate them, whether cultural, socioeconomic or psychographic, is a priority in order to know what they really demand and expect from a Hair Care brand.

In addition, in this sector it is very important to consider the differences in the hair type of different differences in the hair type of different ethnicities and races. Without forgetting other points, such as the fact that there are areas in which the hair must be protected more from solar radiation and others in which environmental humidity is a challenge when it comes to having the desired hair, for example.

An essential part of this process of selecting brands and products is to pay attention to the ingredients used and seek information on their efficacy and safety.

Understanding the key ingredients and their benefits will allow you to make informed decisions and avoid products that contain harmful or unnecessary components.

A product portfolio aligned with all these factors will meet customer expectations and build customer loyalty, creating an emotional connection with them and thus increasing the perceived value of the brand.


2.- Establish an appropriate selling price


In order to set the selling price of a hair product, several elements must be weighed in detail. The first of these is the cost of their acquisition from the supplier or the manufacturer. This does not necessarily mean that you have to choose the cheapest one, since you also have to analyze the quality of the service, which ensures a supply adjusted to your needs and without delays, the payment conditions and the return policies.

On the other hand, it is necessary to define what value the customer gives to the product. That is, how much are you willing to pay for it? A prestigious and established brand will have a higher value, although we must also consider the fact that consumers are more willing to pay more for products of natural origin and environmentally friendly.

Keep an eye on the competition and see what prices they have in the different sales channels. In this way, we will be clearer about where to position ourselves with respect to it. You can do it with similar prices; below, if you want to quickly gain an important market share, although in the long term you will have to raise the price; or above, if you want to transmit an image of exclusivity.

Finally, within all these pricing strategies, it is important to include profit margins. profit margins are important to include. Top-selling products tend to have a lower margin, which is compensated for by the high volume of sales, while the most exclusive products have a higher margin.


3.- Intelligent stock management


Retailers must have the products their customers demand at the right time and in the right place, in order to maximize profits and avoid stock-outs or overstocks. maximize profits and avoid stock-outs or overstocking, which can lead to losses or dissatisfaction.which can lead to losses or dissatisfaction. To optimize stock management, it is necessary to take into account the internal and external factors that influence product demand. The internal factors are those that depend directly on the manufacturing company, its distribution channels and the retailer’s own stock management systems. These factors can be controlled to some extent through the use of technological solutions such as ERP, CRM or predictive AI, which allow for greater knowledge of the business and customers.

The external factors are those that do not depend directly on either the manufacturer or the distributor, but are related to the social, economic and cultural environment in which the business is developed. These may affect product demand in an unpredictable or seasonal manner. Examples of these are trends or fashions, consumer habits or psychosocial factors.

In order to take into account these external factors, it is necessary to market research to better understand potential and current customers, their needs, desires and expectations. It is also important to analyze the competition. In this article you will find the most effective strategies to optimize the stock management of Hair Care products.


4.- Planning effective marketing and promotion strategies


You have to shout to the world (or your target audience) that you have what they are looking for, that your store has the products they demand to have the best hair possible and that these brands fit with their lifestyle and their principles.

There are many ways to do this, such as physical or online advertising, but there is none more effective than good customer references. So, in addition to providing them with the best possible experience, you need to make sure that their opinions are known.

If you have a website, give your testimonials a prominent place on it; create a community with an active social media profile that encourages participation, and always respond to comments, whether positive or negative, especially the latter.

Consider the option of to set up a loyalty program. You’ve probably heard that attracting a customer is much more difficult than retaining one, so it’s worth defining one. For example, you can offer exclusive discounts or preferential access to new products to loyal customers. This will increase the average ticket and will give you a better understanding of their preferences and shopping habits, as well as favoring the arrival of new regular customers..

Among the objectives of these marketing actions, it is important not to forget the possibility to cross-selling through promotions that combine products that complement each other. You can also attach samples or launch communication campaigns that reflect the added value of acquiring more than one product.


5. Sustainability and social responsibility


Today’s society’s consumer priorities include issues that go beyond the quality of a product and whether it delivers the expected results. Retailers and distributors should therefore consider working with brands that have a conscious vision of their role in society and on the planet. Consumers are looking for brands that use greener production methods and have packaging based on eco-design. In addition, they value the inclusivity that brands consider all types of beauty, as well as the individuality of each person and their ability to empower them.

In conclusion, with these 5 elements you have an exceptional starting point to be on the crest of the wave of a sector that does not stop growing. And, if they all have one thing in common, it’s the fact that they can count on the suitable products. Or, in other words, the Kativa products.

Kativa offers retailers and distributors a range of products that perfectly match market trends, such as the use of natural ingredients and sustainable techniques, as well as its firm commitment to accompany women in their personal development challenges. But to all this we must add how its product families are prepared to face the particularities of each market and each type of person, embracing individuality and all the beauty models we can find.

For all these reasons, if you are a retailer or distributor, Kativa is synonymous with profitability. A profitability that will be more easily  if you join the Starbrands partner program, where you will receive unique advantages with which you will take a giant step in your growth. Would you like to know more?


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