UmSumayyah
Well-Known Member
Countries covered: United States
Though FDM sales have been down since 1999, the $1.9 billion black haircare market in the US has grown an estimated 19% from 1998-2003. Growth has been relatively sluggish at constant prices, however, growing only 6% over the period. The fact that these increases have come through a rising volume of sales at channels with lower average prices-beauty supply stores and Wal-Mart-explains the slower growth over the years
Since 1998 the black haircare market has undergone significant change. Attracted by good margins, a loyal customer base and potential for broader ethnic sales, large multinational mass-market suppliers have been acquiring the more popular black haircare brands (especially mass-market brands). The acquisitions give the multinationals entry into the black haircare market with established brands without the costs of development. The black haircare brands, in turn, receive resources needed to increase mass-market shelf space and to market internationally. The potential for increasing sales in the black haircare market has thus increased as the parent companies have the research and development strengths and the marketing expertise needed to attract new consumers and to increase repeat purchasing by existing consumers.
However, the acquisition trend also threatens the black haircare market as it currently exists. Competition among suppliers and growing populations of ethnic consumers are directing mass-market suppliers' attention away from products for the usual black haircare consumer and towards broader based ethnic products designed for non-race-based hair needs. Suppliers are racing to develop, for example, products that attract Hispanic consumers.
A specific haircare market for black consumers appears less likely in the future as population and industry changes threaten the market for products designed specifically for race-based haircare needs. A broader ethnic haircare segment will develop, possibly resulting in higher overall sales of haircare products but a shrinking of sales of products specifically designed for and marketed to black consumers.
Though FDM sales have been down since 1999, the $1.9 billion black haircare market in the US has grown an estimated 19% from 1998-2003. Growth has been relatively sluggish at constant prices, however, growing only 6% over the period. The fact that these increases have come through a rising volume of sales at channels with lower average prices-beauty supply stores and Wal-Mart-explains the slower growth over the years
Since 1998 the black haircare market has undergone significant change. Attracted by good margins, a loyal customer base and potential for broader ethnic sales, large multinational mass-market suppliers have been acquiring the more popular black haircare brands (especially mass-market brands). The acquisitions give the multinationals entry into the black haircare market with established brands without the costs of development. The black haircare brands, in turn, receive resources needed to increase mass-market shelf space and to market internationally. The potential for increasing sales in the black haircare market has thus increased as the parent companies have the research and development strengths and the marketing expertise needed to attract new consumers and to increase repeat purchasing by existing consumers.
However, the acquisition trend also threatens the black haircare market as it currently exists. Competition among suppliers and growing populations of ethnic consumers are directing mass-market suppliers' attention away from products for the usual black haircare consumer and towards broader based ethnic products designed for non-race-based hair needs. Suppliers are racing to develop, for example, products that attract Hispanic consumers.
A specific haircare market for black consumers appears less likely in the future as population and industry changes threaten the market for products designed specifically for race-based haircare needs. A broader ethnic haircare segment will develop, possibly resulting in higher overall sales of haircare products but a shrinking of sales of products specifically designed for and marketed to black consumers.
