Competitive analysis of the hair relaxer market

Demand side dynamics

The value and volume of hair relaxer purchased in Nigeria has declined considerably in the last one and half decade because of the growing popularity and acceptance of weaves. (Most females, especially those in the working class, say weaves last longer and are cheaper to maintain.)

Based on our research, across all age brackets, price of relaxer, the hair texture of a user and perceived quality of a relaxer are the major factors driving purchasing decisions (See Chart 5). 
Among the working class however, there is a clear indication that relaxers are purchased based on two major parameters: perceived quality and the hair texture of the buyer; only among students does price really matter. 

But there are other elements which matter in the market. Seven in every ten of those we surveyed favour a relaxer that has Anti-Breakage properties and in terms of expenditure per purchase, a third of respondents spend between N1000 and N2000 whenever they buy hair relaxers. 

Consumers classify products along packaging lines: into cups or kits. There are about 19 different brands offering relaxers in complete kits format, while another 16 brands offer their products in sealed cup format. Essentially, the kits are more expensive because they are equipped with accoutrements that make the user experience deeper. 

Based on the survey we conducted, Olive Oil and Dark and Lovely are the dominant brands in the kits market while Ozone and Universal Basic are the dominant players in the cups segment of the market. 

Once consumers identify a product as suitable to their needs, they stick with that product. Based on our findings, three out of every ten user have stuck to a particular brand for over five years. Consumers usually make changes only if there are obvious reasons pointed out to them to consider other brands.

(Typically the average user sticks to the same product for two to three years before switching to other brands.) When respondents were asked if they have switched brands in the last 12 months, an overwhelming majority said no.  Only 29% answered in the affirmative. 

What’s the modern woman’s preference?

Advertising in the market for relaxers is mostly though TV, bill boards and posters displayed in beauty parlours. But our respondents however identified word of mouth and personal recommendations (from operators of beauty parlours) as the most potent reason for trying out new brands in the past (See Chart 2).

Our analysis shows a strong migration towards the Olive Oil brand. Most of those switching to the brand attribute their attraction to recommendation, the perception that it is organic and the aesthetic features of its packaging. Respondents also said it is cost effective, comes with sample products and has a unique and comprehensive combo. 

We believe that brands looking to get a greater share of the market should know that the little extras that come with their brands can go a long way to influence buying decisions. Also, they have to convince salon operators about the potency of their products and have them influence potential customers. 

We believe that demonstrations organized by marketers, which bring together salon operators, can be used to engender the patronage of salon operators. Key features like the environmental and health friendliness of particular brands should also be drummed up as part of the marketing/advertising campaign. 

Through our research, we discovered that there is a correlation between age and frequency of change of relaxer brands among respondents. Those in the older age bracket seem to change brands more often probably in response to hair texture changes. (That should also help marketers know how to target campaigns across demographic divide.)

The relaxers market 

There are 41.49 million women above the age of 19 in Nigeria. Which amounts to 24% of Nigeria’s 173.6 million population. The urban-rural divide of relaxer usage is not clear, but according to data provided by the United Nations Children Fund (UNICEF), as at 2010, the 75 per cent of Nigeria’s population live in urban centers while 43 per cent live in rural areas.

Over the years there has been a steady rise in spending on beauty, aesthetics and wellness and Nigerian cities are often densely populated and have proved a ready market. 

According to information provided on the website of Beauty Africa Exhibition and Conferences, “77% of Nigerian women uses skin enhancement products – the highest percentage in the world. In 2014, the personal care industry generated over $35 billion where skin care has a market share of 33%, hair care has 25%, make-up has a market share of 17% and fragrances has 17%. 

In 2015, the market is expected to grow to over $42 billion due to increase in the construction of shopping malls, beauty, wellness, spa and aesthetics centres in the country across different cities. The local market for relaxers may not expand remarkably in the near future, but it certainly will not contract.