The Professional Hair Care Market South Africa 2010

December 2009

(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 8
SECTION 1 REPORT SUMMARY 10
TABLE 1 Hair care market at a glance (2010) 10
An important, growing market 10
Leading services and products 11
Brands / key suppliers 11
Leading categories, services and products 11
Country specifics 12
Brand loyalty 12
Currency 12
Data sources 12
Date of publication 13
SECTION 2 SALON MARKET SIZE AND TRENDS 14
Introduction 14
TABLE 2 Salon market size numbers of units and stylists 14
Numbers of salons and stylists 14
Trends in salon and stylist numbers 15
TABLE 3 Salon market value, revenues and products 15
Basis of estimated market size 15
TABLE 4 Salon business value of different service categories, black salons 16
Taxes on salon services / retail 16
TABLE 5 Salon market sales variations or trends, period 2007-2010 17
Sample outperforms national and international market 17
Salons escape recession and outperform GDP 17
Salons and plans for future 18
Historical trends included some negatives 18
Impact of informal channel 18
Salon market drivers 18
Appearance conscious consumers 19
2010 FIFA World Cup South Africa 19
SECTION 3 SALON MARKET SEGMENTATION AND STRUCTURE 20
Introduction 20
TABLE 6 Hair salon market (%) black and white salons 20
TABLE 7 Country specific salon market segments 21
The formal and informal salon economies 21
TABLE 8 Salon market (%) volume/revenues by segments (ABC) 22
Salon segments profiled, formal segment 22
Top locations for salons 23
But beyond the mall walls 23
High spending and high profile clients 23
Salon segments profiled, the informal salon market 24
SECTION 4 DEVELOPING A QUALITY SALON MARKET, INDUSTRY CHALLENGES 25
Introduction 25
TABLE 9 Developing a quality segment – challenges and barriers 25
Developing black salon industry 25
Rolling out training 26 Top down initiatives required 26
From hair specialisation to diversity 27
Hair types, African hair and Caucasian hair 27
Challenges of diversity, for salons and clients 27
Diversify product and brand purchasing 28
Diversity, the many costs 28
Salon specific strategies 29
Quality salon services and the client consultation 29
Marketing 29
Barriers to salon development 30
What salons want from their suppliers (and government) 30
Market saturation in some segments, and unfair competition 30
Salon quotes on competition 31
Educate stylists and consumers, prevent counterfeits 31
Salons’ suggestions for brands 31
How salons are helping themselves 32
SECTION 5 SALON BUSINESS ACTUALITIES - SERVICES AND PRODUCTS 33
Introduction 33
TABLE 10 Salon business (%) services and retail 33
TABLE 11 Salon business (%) hair services and beauty services 34
TABLE 12 Salon business hair care services (%) category, black salons 34
TABLE 13 Salon business (%) service categories, white salons 35
Salons multitask for multiple service users 35
TABLE 14 Salon’s product purchases (%) wet and dry products 36
Services with zero products 36
TABLE 15 Salon product categories (6), ranked 36
TABLE 16 Salon spending on products as (%) of annual revenues 37
SALON SERVICE AND PRODUCT CATEGORIES (CHEMICAL RELAXER SYSTEMS) 37
Who relaxes and why? 37
Why choose professional relaxing services? 38
TABLE 17 Salon relaxer purchases (%) mild, medium, and strong 38
Relaxers - product requirements and challenges 39
Relaxing brands 39
Shorter processing, longer lifetime 39
SALON SERVICE AND PRODUCT CATEGORIES (AFRICAN STYLING) 40
African styling business 40
African styling trends 40
Braiding as % of salon revenues 41
Hair extensions, techniques and process 41
Dreads highly specialist 41
Extensions and product development 41
Why braid or use hair extensions? 42
Bring your own 42
African styling brands and product categories 42
Salons’ attitudes to complex African styling 43
Lose contact with clients 44
Boring 44
Salon service and product categories (maintenance and treatments) 44
Common hair problems 44
Hair loss 44
HAIR SERVICES IN WHITE SALONS 45
TABLE 18 Salon business (%) service categories - white 45
Diversify consumer segments 46
Men as consumers 46
Brand switching 46
BEAUTY SERVICES IN HAIR SALONS 46
TABLE 19 Salon business (%) beauty services 46
Continue to specialise in hair services 47
Mall based salons and beauty 47
SALON PRODUCT RETAIL 48
TABLE 20 Salon business (%) - product retail sales 48
Retail product categories 48
Retail varies seasonally 48
Why salons retail 48
Retail business and drivers and barriers 49
Retail training 49
Competition from retail stores 49
Salon retail strategy 50
SECTION 6 SALON PRODUCTS MARKET BRAND SHARE, AND BY PRODUCT CATEGORY 51
TABLE 21 Companies’ share (%) black salons, the Top 5 51
TABLE 22 Company leaders in relaxers, Top 5 51
TABLE 23 Companies and brands (%) share of leaders in black salons (19 brands) 52
The latest buzz brand 52
Leader in white salons 53
TABLE 24 Brands supplying hair care products to salons (52 companies) 54
TABLE 25 Brands supplying hair extensions to salons (22 companies) 57
SECTION 7 SALON BRANDS, PURCHASING CRITERIA, AND DETERMINANTS OF BRAND SHARE 58
Salons and product purchasing criteria 58
One or many brands? 58
Price consciousness of salons 58
Prices too expensive 59
TABLE 26 Price points and brands 59
A turn to consumer brands? 59
Professional brands and training 59
Preferential treatment by suppliers 60
Why salons drop brands 60
Innovation and marketing 60
Effective and safe on chemically treated and on problem hair 60
Black empowerment brands 61
Animal and eco-friendly 61
SECTION 8 SALONS AND SALON COMPANIES 62
Introduction 62
TABLE 27 Largest salon franchises and networks (6 companies) 62
New entrants 62
Salon companies - salons for men 63
TABLE 28 Salon companies - specialists in African styling (7 companies) 63
TABLE 29 Top salons, “best in class” identified by experts (13 companies) 64
SECTION 9 SALON BUSINESS AND PERFORMANCE BENCHMARKS 66
TABLE 30 Salon segments benchmark data (revenues per unit / year) 66
TABLE 31.A Benchmark staff numbers - flagship hair salon 66
TABLE 31.B Benchmark staff wages - upmarket flagship salon 67
Hairstylist commissions 67
SECTION 10 SALON PRICING AND PRICES 68
Prices, starting prices and stylist levels 68
Comparison - hair salon spending USA 68
TABLE 32 Salon prices, relaxing and African styling, black salons 68
Weaves or hair extensions 68
Hair extension salon services, and rental charges 69
TABLE 33 Salon prices (ZAR), 3 month treatment plans for braiding and weaving, black salons 69
TABLE 34 Salon prices hair care, upmarket white salons 69
SECTION 11 HAIRSTYLING TECHNICAL DATA (AFRICAN STYLING AND RELAXING) AND HAIRSTYLING IDEOLOGIES 71
Salon hair service menus 71
Chemical relaxing (terms and variants) 71
TABLE 35 Chemical relaxer process - the many different steps 71
Hair extension process and components 72
Hair extensions types (bulk hair, wefts) 72
Hair extensions methods (cap, attachment, clip on, weave, track) 73
Hair extensions methods – tracking and weaving 73
Hair extension attachments (glues, rings, tips, guns, bonding, fusion) 73
Hair types used in extensions and other styling 73
TABLE 36 Interpretations of hairstyles – negative and positive 74
The many ideologies of (black) hairstyling 74
SECTION 12 SALON DATA, SALON REGULATIONS, AND TRAINING 75
Data conflict 75
Data issues noted by experts 75
Salon and Standard Industrial Classification (SIC) codes 76
Data in circulation about hair salon numbers / revenues 76
TABLE 37 Quantifying the numbers of viable professionally run salons 77
Salon registration requirements and tax thresholds 77
Business regulations for hair salons 77
TABLE 38 Hairdressing bargaining councils, numbers of employers/employees 78
Salons part of the SME sector (defined) 78
TABLE 39 SME benchmark business sizes 79
Salon industry development and training initiatives 79
Services SETA 79
Salon training - theoretical and practical and costs 79
Recognised hairdressing qualifications 80
Hairdressing training providers (examples) 80
Salon management training 81
BEE 81
South Africa cosmetics and toiletries (C&T) and spa market size 81
SECTION 13 MARKET AUTHORITIES (GOVERNMENT, INDUSTRY, PROFESSIONAL), ORGANIZATIONS, MAGAZINES, EXPOS 82
Professional organizations, and web sites for hair salons 82
Salon magazines and publications for professionals 83
Magazines, publications - consumer 83
Trade, professional shows, and competitions 84
SECTION 14 METHODOLOGY, DATA SOURCES, THE EXPERT SAMPLE 85
Sources consulted 85
Confidentiality 85
TABLE 40 The expert sample, what it represents 85
Expert sample / criteria for choosing experts 85
Experts represent breadth of expertise 86
Experts and locations 86
Languages of interviews 87
SECTION 15 COUNTRY DATA (SOUTH AFRICA) 88
TABLE 41 Population of South Africa (%) by ethnic origin 88
South Africa and SADC 88
TABLE 42 Population of South Africa (%) by age and gender 88
TABLE 43 GDP data South Africa compared to USA 89
TABLE 44 South Africa population by state 89
TABLE 45 Consumer spending power, cities where concentrated 89
TABLE 46 Population ethnic Africans as (%) adults and household income 90
The “Black Diamonds” 90
Young professionals 90
SECTION 16 TERMS, SYMBOLS, AND ABBREVIATIONS 91
Symbols 91
INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 92
DIAGONAL REPORTS STATEMENT 96
Summary of Report
African and Middle East Market Reports
Hair and Skincare Market Reports
Buy This Report