Global Hair Removal Products Industry
In recent years, the global hair removal products industry (part of the body care business) has witnessed a falling off in the numbers of customers attending beauty salons, which is in part due to the economic recession. With less money to spend on non-essentials, such as hair removal services, consumers have been increasingly opting for the less expensive option of at-home hair removal. In turn, demand for hair removal products has risen. Hair removers and bleaches remain among the most popular products as they afford consumers the ease of using a cream or gel format without having to pay high salon prices for hair removal procedures.
Both in manufacturing and marketing efforts, industry players are focusing on ease of use. Cosmetics companies tend to concentrate their efforts more on catching the attention of individual consumers, and less on professional beauty salon products.
The laser hair removal market segment continues to attract rising numbers of customers due to its long-term benefits. Market growth may be slowed by increasingly strict regulations as official bodies scrutinize products and procedures more closely to ensure a higher degree of safety.
Demand for electric hair shavers is forecast to increase due to economic recovery and rising levels of disposable income. The US electric shaver industry will continue to lose market share to import penetration, while climbing input costs are also negatively impacting revenue. Companies operating in the electric shaver market segment offer razors, clippers and shavers powered by electric motors, along with accessories, including razorblades and chargers.
Regional Market Share
The year 2010 was a less than satisfactory year for the US depilatory market. Euromonitor International puts this down partly to a lack of innovation. Following the launch of Venus Embrace and Quattro for Women TrimStyle in 2008 and 2009 respectively, the industry offered less new products in 2010, and manufacturers shied away from product launches that year due to the volatile economic climate. Procter & Gamble’s 40% market share in the depilatories sector remained unchanged in 2010. A small degree of share losses to Schick-Wilkinson Sword and Bic is thought to leave Procter & Gamble’s top spot unshaken. With effective product innovation and marketing strategies, the company may grow its market share further. Over coming years, retail sales growth in the depilatories sector is expected to remain low. The remaining potential for product innovation remains narrow as product offerings in the women’s razors segment come on par with offerings for men.
China’s depilatory market, in contrast to the US, recorded 10% growth in 2011, according to figures from Euromonitor International. Factors fuelling market expansion include increasing globalization, growing importance of physical appearances and a trend toward Western lifestyles, which sees consumers adopting Western consumer habits, in particular younger consumers in cities like Guangzhou, Beijing and Shanghai. Procter & Gamble holds close to 40% market share in China’s depilatories sector, and its high overall market share is mainly due to its 70% value share in women’s razors and blades in 2011. The company’s high quality products and strong brand loyalty have spurred its market penetration. Its Gillette razor product offerings for both men and women remain its most successful range. In China, Procter & Gamble’s marketing efforts have focused on online and TV advertising to reach a wider customer base. Its price promotion efforts have also attracted new consumers and promoted loyalty among existing consumers. Its women’s razors range is forecast to record 3% growth in coming years, partly due to belief among Chinese women that shaving could be harmful to their general skin health. The company also continues to face rising rivalry from companies offering hair removers and bleaches, which may well drive Procter & Gamble to dedicate its business efforts to other countries outside of China.
Over coming years, companies operating in the global hair removal products industry will likely focus on product innovation and seek to appeal to health conscious consumers with natural ingredients in products such as hair removers and bleaches. Different formats offering improved ease of use and application will also encourage consumers away from the salon and turn them more toward at-home treatments.
Leading Industry Associations
- The Society for Clinical and Medical Hair Removal
- American Electrology Association
- International Aesthetic and Laser Association
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