The Hair Care sector: Opportunities and challenges that every distributor or retailer should not miss out on

The Hair Care sector is a dynamic and unstoppable market that offers numerous opportunities for distributors and retailers. As awareness of the importance of hair care increases, so does the demand for high quality hair care products with a number of qualities that are highly valued by the consumer. However, there are also challenges that must be addressed in order to succeed and achieve the goals set in this highly competitive industry environment. Shall we take a look at them?

The 4 major market opportunities in the Hair Care sector


Global growth of the hair care industry


The hair care market has experienced steady growth in recent years and this trend is expected to continue in the future.

According to some market studies, its size reached US$91.60 billion in 2022 and is expected to reach US$147.49 billion by 2030, with a compound annual growth rate of 5.8%.

By geographic area, Europe expects to occupy the highest position in global market share during this period. This is due to the presence of a highly beauty-conscious population that will drive the adoption of hair care products.

North America is expected to experience a significant market presence due to high spending on personal care, including hair products.

On the other hand, Asia-Pacific will occupy a vital position. Among the main drivers for this is that countries in this region suffer from intense pollution that requires regular hair cleansing.

Latin America will show a crucial presence in the market due to the growth of the urban population and, therefore, the number of people who attach importance to the maintenance of their hair.

The Middle East and Africa are also making progress, as they are enjoying economic development that is helping to promote the consumption of hair products.


A clear focus on products based on innovation


Marketing and distribution of products developed using advanced technology should be a priority for retailers. and Hair Care distributors. These make it possible to offer more customized, efficient and sustainable solutions. Some key aspects of innovation in this area are:

  • The role of biotechnology and nanotechnology, which make it possible to extract and exploit the benefits of natural losingredients, as well as to improve their penetration and stability in the hair.
  • The search for cleaner formulas (clean beauty), which eliminate or reduce ingredients that are potentially harmful or irritating to the hair and scalp, such as sulfates, parabens or silicones.
  • Eco-design packaging, which seeks to minimize the environmental impact of product packaging by using recycled or biodegradable materials and optimizing their size and shape.
  • The Consumer empowerment, which allows consumers to choose and customize products according to their preferences and needs through smart devices or mobile applications.


Increased awareness of natural products


Consumers are increasingly interested in hair care products that are mainly of natural origin, avoiding products containing chemicals that are harmful to the hair strand and scalp.

According to a macro-analysis carried out by the National Association of Perfumery and Cosmetics, Stanpa, the consumer identifies and relates these products to values such as well-being, health and respect for the environment.. Therefore, it is necessary to trust brands that reflect them.

The profile of the heavy user of natural cosmetics The target market is an urban woman, with children or pregnant, between 30 and 45 years of age, with medium-high purchasing power and who leads (or intends to lead) a healthy lifestyle. In addition, it is often informed through social networks and specialized blogs.

Among the main reasons that lead to the acquisition of these products are the following:

  • 62% of Spanish natural beauty consumers opt for them because they care for the environment.
  • Forty-six percent cite simplicity and the small number of ingredients.
  • The third factor is the transparency and ethical values of companies and brands.

However, only 36% of consumers claim to be able to distinguish which cosmetics are natural. and which ones are not. In more than half of the cases, they do so through the information on the label, especially on the front of the product. 15% do so because they see a seal or certificate.

This means that, in principle, products that clearly convey their natural character will have a competitive advantage.


Growth in demand for specialized products


As consumers become more aware of their hair type and specific needs, the demand for specialized products is also on the rise.

This means that products designed for colored hair, curly hair or damaged hair, among others, are gaining popularity.

Distributors and retailers who offer a wide variety of specialty products can meet the needs of a diverse audience that expects the best results and, if successful, will greatly increase their market share by gaining more loyal customers.

They will make repeat purchases and are more likely to buy other complementary products from the same brand, multiplying the effects of cross-selling.

Here again, it is important to consider working with a product portfolio adapted to the type of hair and its problems according to the predominant races or ethnicities in each market.


Main challenges currently facing Hair Care retailers and distributors


A very high level of competition


The hair care sector is one of the most dynamic and competitive in the beauty market, with a wide variety of brands and products offering solutions for all hair types and needs.

Distributors and retailers operating in this sector face the challenge of standing out from the crowd and capturing the attention of consumers, who are increasingly demanding and aware of the quality and sustainability of the products they use.

To be successful in this sector, it is important to offer high-performance products that meet customer expectations and desires, as well as to differentiate oneself from the competition through a unique selling propositionThe company’s marketing strategy, which can be based on different factors, such as competitive prices, special promotions, exclusive services, technological innovation natural ingredients, ecological packaging or product customization.


Keeping up with the latest trends in a changing environment


Hair care is a constantly evolving industry, with new trends and products emerging on a regular basis. Distributors and retailers must be aware of these and adapt quickly.

This may involve the introduction of new products, the updating of services offered or the adoption of new marketing strategies.

A reality that involves being attentive to relevant and trusted sources of information, such as market research, specialized online and offline media, monitoring social networks and customer opinions, and following the main trendsetters and influencers.

They should also be in contact with suppliers and manufacturers to find out what’s new and what’s on offer. Likewise, they should not fail to analyze their competitors.


Educating and advising the customer


The aim is to offer an added value that differentiates the offer from the competition and builds consumer loyalty.

On many occasions, it is necessary to change their point of view on certain products or treatments, for which it is necessary to give them weighty arguments that make them forget some preconceived ideas.

Some aspects that can contribute to this challenge are:

  • To know the needs, preferences and habits of customers, as well as market trends and technological innovations in the hair care sector.
  • To offer a personalized and professional service, based on the diagnosis of the type and condition of the hair and scalp, and the recommendation of the most suitable products for each case.
  • Brindar información clara, veraz y completa sobre los beneficios, características, modo de uso y precauciones de los productos que se venden, así como resolver las dudas y consultas de los clientes.
  • To provide a satisfactory shopping experience, including a pleasant environment, good product presentation, fast and efficient service, and quality after-sales service.
  • Build customer trust and loyalty by monitoring customer satisfaction, offering promotions, discounts, samples or gifts, and creating an emotional bond with the brand.

To achieve this, it is very useful to draw on resources such as CRM data, which helps to understand the behavior and tastes of customers, or those extracted from various sectoral market studies.


Optimized inventory and logistics management


If done properly, it will reduce operating costs, increase sales revenue, improve customer experience and loyalty, and gain competitive advantage.

This requires accurate control of current stocks and demand forecasts.. This involves using technological tools that facilitate monitoring, planning and decision making, such as ERP (Enterprise Resource Planning) or predictive AI-based systems.

These allow you to integrate and analyze relevant information about stock, orders, sales, suppliers and customers, as well as generate alerts, reports and recommendations.

Another key aspect is the selection of the right products. for each establishment. Not all products have the same turnover, margin or profitability, nor do all customers have the same expectations or buying habits.

Therefore, it is important to take into account factors such as market trends, seasonality, competition and consumer behavior.

Finally, it is essential to have a reliable supplier that ensures a constant and punctual supply of products, as well as personalized service and a relationship of trust.

At this point, we hope that this article will serve as a guide to know where and how to focus your strategies and operations to achieve that distinguished position in your market that you so desire.

From Starbrands we offer to be your companion and guide on this path, facilitating your access to first class products, aligned with the demand of the modern consumer and with very advantageous conditions for retailers and distributors. All this, if you join our partner program designed especially for you. Would you like to get to know it?


Request More information

Join our Partner Program

A unique proposition that offers ongoing support, training and tools to generate more profit for your business and make the most of your market.

If you are a premier distributor in the cosmetics sector or retailer, discover all the advantages offered by our Partner Program.

We look forward to hearing more about you.
Do we connect on social media? Shall we talk?
We want to be where you need us,
so if you have any questions, please get in touch with us
by filling in the following form
or through our networks.

Contact us

Head Office:
Avenue Victor Andrés Belaunde 280,
San Isidro, Lima (Peru)

Legal Notice | Cookie Policy | Privacy Policy

Copyright © 2023. All rights reserved.
Developed by Extravaganza Communication

Esta web utiliza cookies propias y de terceros para su correcto funcionamiento y para fines analíticos. Al hacer clic en el botón Aceptar, acepta el uso de estas tecnologías y el procesamiento de tus datos para estos propósitos. Más información