A new shampoo brand is poised to change the way people think of shampoo. What will happen if this product is successful? It's likely that the old, established brands will see their revenue and market share decline. We've seen this sort of thing before--one example being how opening just a couple Walmart superstores in small towns changed shopping habits for many years to come.
Currently, there are three major companies in the hair care industry: Procter & Gamble (P&G), Unilever and L'Oreal. The market for shampoo is growing at a high CAGR per year in the US alone, where P&G controls about 25% of the market share, followed by Unilever at 18% and L'Oreal at 14%.
The new brand, introduced in 1994 by Suntory Ltd., a Japanese brewer. In December 1996, Suntory bought out Unilever's interest and today S2S is the best-selling shampoo in Japan. This success has been achieved without any significant advertising to date. The products are sold mostly through department stores and discount stores such as Costco and Sam's Club, which have helped sell the brand by offering extremely competitive prices--sometimes below cost. S2S is also sold through thousands of vending machines in Japan.
In the US there's no doubt that new entrants will be a full-fledged marketing juggernaut. Many marketing objectives can be identified, but the primary ones are:
- To increase market share in the Shampoo category by 50% in five years, and 20% per year after that. That means companies must take market share from leading players.
- To increase revenues from $300 million to at least $1 billion by 2001.
- To maintain leadership in the category by appropriate innovation, including new products, new packages and new distribution channels.
The product development team has created a strategy for introducing the shampoo into the US market that's very different from Unilever's strategy. So far it appears to be working well for them at home, and since the Japanese are excellent imitators, Japanese-style marketing may just work here too.
The shampoo market has seen a lot of disruption as the growth prospects get limited due to challenges in demand. However, companies are adopting strategies to increase market share and remain relevant. Some of these include adopting new advertising campaigns or creating variants with new ingredients which are targeted at niche consumers or specific consumer segments.
In this blog post, you will learn about the shampoo market dynamics and how the leading players have successfully managed their costs in order to maintain sustainable operations and profitability, even when faced with various challenges such as low-price competition from emerging markets. You will also learn about recent company acquisitions that have been undertaken to diversify product portfolios.
The Global Market Research Report on Shampoo Market is a professional and in-depth study on the current state of the Shampoo market. It focuses on the key drivers and barriers for Shampoo market growth, offering a comprehensive analysis of the market based on historical and projected data the coming years. The report provides an overview of the industry including definitions, classifications, applications and industry chain structure. The Shampoo market analysis is provided for the international markets including development history, competitive landscape analysis, and major regions.