Occasionally, our prospective clients aspiring to plunge themselves into cosmetic manufacturing industry approach us with this question: what moves fast, soaps /Detergents o general cosmetics?
Of course it is not hard to tell the level of anxiety these people have, especially in the view of the likelihood of gambling with one’s life investments in the name of manufacturing.
As consultants with some good level of understanding the market dynamics, we cannot be biased when presenting facts about the local market for home grown business.
We believe that anything is sellable, even stones. It is how you strategize your brand and how aggressive you are that matters. However, on comparison bases, hair care products outshine skin care products when it comes to customer spending.
“Part of the reason why hair care products move fast is became of the central role the woman’s hair takes in her beauty consciousness” explained a city based hair beautician. To a woman, natural hair is expensive to maintain and it is what defines her social status. A lady without natural hair will go to any depth to buy artificial hair costing even 8,000.
Hair care products range from shampoos to treatments, with medicinal subcategory (anti dandruff, anti itch, hair loss) stealing the show.
While shampoo brands are clouding the market and struggling for a space on the shelf, hair treatment and conditioner brands are few and carry a personal taste when applied on the hair.
Treatments and conditioners also come in myriad formulations as compared to the shampoos.
Unless shampoos are medicinal, herbal or 2-in-one, their prices are almost at par. Hair treatments and conditioners have higher price tags ranging from Ksh 120-980 for a 200g jar. For example, a trending brand in Nairobi “Judsby Care Hair Serum” retails at Ksh 420 for a 200g Jar. The manufacturer, Vescon Laboratories Inc. says in their catalog that, of 18 components in ‘Judsby Care Hare Serum’ 8 of them are AI’s.
Judsby Hair Serum
A quick review at the brand’s label indicate that it cures itch and eliminates dandruff for good, besides promoting strong hair strands and curing hair fall. It also contains vitamins and hair sheen.
Such is the market story of hair care industry. The cost of production against the selling price yields huge profit margins such that specializing in one brand and strategizing – say a minimum sales of at least one thousand pieces a day countrywide, will see you banking over 300,000 on daily basis (assuming the net profit is 300 Bob.
Elsewhere, conditioners, have a special story for another day in the market circles.