Most Popular in:

Hair Care

Email This Item! Print This Item!

Brazil's Salon Hair Care Market Lagging

By: Sérgio Rebêlo
Posted: August 25, 2011

page 3 of 4

On the other hand, the companies that manufacture such products for this segment, usually multinational companies of great size, still have not found economic and effective ways to support the development of the salon channel. The offerings of products/brands are still limited, and they are still perceived as having a point of difference when compared to the products sold in traditional retail. The communication efforts with consumers, training and support in sales techniques and management for entrepreneurs in this sector, and distribution and logistics are still lagging.

Demographic and Other Changes to Impact Salon Hair Care Market

According to Factor de Solução, the hair salon segment in Brazil will be positively affected by a series of demographic, social and economic factors that will boost growth, as well as the professionalization, of this sector. Oddly enough, Brazil is beginning to be an “old country.” In recent years, there has been a reduction in the birth rate; a change in the demographic profile of the Brazilian population. Brazil has never had such a concentration of population between the ages of 15 and 64 years old (ready to work; higher salaries; higher income). In 1990, around 60% of the Brazilian population (88.4 million) fell in this age group. In 2010, the percentage reached 67% (131 million inhabitants), and, in 2020, 71% of the population is expected to be in this age group (147 million consumers).

Additionally, Brazil is becoming be a country with more women than men, and these women will be more educated, wealthier and more independent. Women already account for 42.5% of the workforce in Brazil, and their income is becoming the equivalent of men's. According to the Brazilian Institute of Statistics and Geography (IBGE), the current salary of a woman professional in Brazil is equivalent to 71% of a man who has the same job. In 1993, the number barely reached 32%.

The number of women who support a family is also increasing. According to IBGE, from 2001 to 2009, the number of families supported by women in Brazil rose from approximately 27% to 35%. And when they do no support their families alone, they collaborate significantly with the family budget, notably in families with lower incomes. A recent study by Data Popular Market Research Institute shows that in higher income families, women are responsible for about 25% of the family income; at the bottom of the income pyramid, women's participation easily reaches 41%. As far as schooling is concerned, women, regardless of their position in the family, study longer on average, and those who support their families alone have the highest education.

This “new woman” (older, richer and more educated) taking her place in Brazilian society will be also more demanding, and will likely impact the profile of the Brazilian beauty market—boosting growth in categories of products with more aggregated value, as well as services that provide well being and convenience (where the professional segment will be of the utmost importance).

Opportunities for Brand Owners in the Brazilian Salon Segment