Consumer Attitudes towards Shampoo, Conditioners and Treatments

Questionnaire on Consumer Buying Intentions of Shampoo, Conditioners and Hair Treatments

Project Report on Shampoo and Conditioners Market

Data Analysis on Buying Shampoo, Conditioners and Treatments Market in UK

How has the economic downturn affected shampoo, conditioner and treatment sales?

Like deodorants and soap, bath and shower products, shampoo has been cushioned to a large extent by its perceived status as a necessity. Unfortunately, the same cannot be said for conditioner or treatments, which don’t enjoy the same status.

That said, the category also suffers from excessive commoditisation, with almost two thirds of products on offer at any one time. This may support volume sales, but it has held back value growth to the extent that it no longer keeps pace with inflation.

The market value has also been hindered by consumer economy measures regarding hairdressing salons. Both men and women have reduced the visits to salons and have also reined back the amount they spend once they are there. The result is a fall in sales of professional and retail haircare products through salons, and a further brake on the market.

However, it’s not all bad news. Rising competition in the workplace, and an ageing population forced to stay in work for longer due to pension changes and low interest rates for savings, means that people are more concerned than ever that their hair should look in good condition.

Against this backdrop, how are brands and own label operators faring?

The leading manufacturers, Procter & Gamble, L’Oréal and Unilever, have all grown in value since 2008. A constant stream of innovation from its huge brand portfolio, coupled with a domination of advertising spend, has secured market leadership for Procter & Gamble, which currently holds a 38% value share of the market. Together, these three manufacturers control more than 60% of the market.

In contrast, own label has a much smaller share than it enjoys in, say, the soap, bath and shower market, claiming just 6% of overall sales. Despite its commodity status, the shampoo, conditioner and treatment category has an image of expertise, and prices are so low that own label products find it hard to compete on either level. A quarter of consumers wait till their regular brands are on offer rather than seek cheaper, own label alternatives.

Own label operators could fight back by adding a premium status to their products through a service model. Tesco has already indicated how this could be done. The retail giant is trialing beauty salons in two of its stores, providing hair treatments, manicures and depilation. They currently sell branded products, but future salons could be used to spotlight the retailer’s own haircare brands. Similarly, Superdrug is running instore beauty clinics that offer skincare treatments such as fillers and peels. These, too, could be extended to offer hair treatments using Superdrug products.

Which product attributes should manufacturers focus on?

Moisturisation is the key claim for shampoos, conditioners and treatments, with one in four actively looking for it in their purchases. The haircare category is drawing closer to skincare in terms of ingredients and claims, and the use of the word moisturisation, rather than conditioning, is a symbol of this convergence. Increasingly, haircare products contain hyaluronic acid, superfruit antioxidants, ceramides and newer cereals such as quinoa, all of which are more commonly found in facial moisturisers.

Other attributes that are important to the consumer when buying shampoos, conditioners and hair treatments include products that are effective at repairing hair, smoothing and defrizzing as well as strengthening.

These functional benefits far outweigh the attractions of natural, organic, detoxing and curl defining claims.

What drives the purchasing decision?

Price is the most important purchase motivator when buying haircare products, especially shampoos. Incomes will continue to be squeezed in 2011 by rising prices and low wage increases, as well as measures introduced by the government to cut the fiscal borrowing deficit. Thus, consumer focus will remain on value for money. Any price premium will have to be backed with discernable added benefits.

Recommendations are another important factor, with consumers asking for recommendations from their hairdressers, as well as friends and family and sales assistants. Product reviews in magazines, newspapers, ezines and blogs also help consumers judge which products they will try. The increasingly wide array of media and forums that discuss haircare products makes word of mouth more important than ever.

Women and the under-25s are the most likely to respond to marketing. Almost all haircare advertisements over the past couple of years have featured young celebrities such as Cheryl Cole, but with the UK population ageing, manufacturers should consider using older but still glamorous celebrities such as Helen Mirren and Dame Judi Dench.

Is there room for more segmentation?

At first sight, the shampoo, conditioner and treatment market appears highly segmented. This is true, but there is certainly room to add a touch of premiumisation to the category in the form of more tailored products.

Combination products - Manufacturers could look to introduce shampoos and conditioners that offer care for both hair types and conditions. For example, formulations for curly and dry, straight and greasy or curly and coloured hair would appeal to consumers who want a more tailored haircare experience

Dry shampoos - While usage of dry shampoos is low compared to standard shampoos, their current popularity is essentially due to their use as a volumising product, so there might be a possibility to develop a dual pack, with one powder or foam designed to clean the hair, followed by a second, leave-in product to add shine. Apart from a few colour enhancing dry shampoo variants, there has been little attention given to this aspect of the product. Manufacturers should consider creating specific products for different hair shades, conditions and ethnicities.

Anti-ageing - As consumers age, their hair may change condition, becoming dryer and coarser or finer. Many older consumers feel that they are forgotten by haircare manufacturers, who are failing to address their specific needs. All-too frequently, anti-ageing shampoos and conditioners refer to fine and thinning hair, but ignore the need for additional moisturisation and reinforcement. Conditioning rinses that also promise to clarify certain shades of grey hair would also attract this group. Products that address these needs would fill a gap in the market, and should be stocked where older consumers shop – supermarkets and pharmacies.

Children - By 2015, the number of 5-9-year-olds is expected to grow by 12%, offering more potential for gentle formula shampoos and conditioners that are easy to use. To attract the attention of parents and children, manufacturers should focus on making hair cleaning fun, using character merchandising on pack, as well as increasing the fun element of products such as luminous formulations, products that crackle and pop on the hair, and packaging that features wipe-off puzzles and pictures to be coloured in. These could come with waterproof books and comics.

Men - The limited offering for men has held back usage of male-specific shampoos and conditioners. Most men’s products are marketed on the basis of anti-dandruff, anti-hair loss or volumising properties. Manufacturers should examine segmentation along the lines of hair type, condition and ethnicity. This would help boost sales of shampoos, and encourage men to add conditioners and treatments to their regimes. 

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