The Mexican Professional Haircare Market 2009

Table of Contents

REPORT STRUCTURE 6

SECTION 1 REPORT SUMMARY 8

• TABLE 1 Market at a glance - Mexico (2009) 8
• Positives with the negatives 8
• Best salon category - services and products 9
• Leading brands 9
• Currency 9
• Data sources 9
• Date of Publication 10

SECTION 2 - SALON MARKET SIZE AND TRENDS 11

• Introduction 11
• TABLE 2 Salon market size volume and value (2009) 11
• What is included in counts of salons 11
• The barber segment 12
• The formal salon market 12
• The sector expanded and expanded 12
• The unlicensed / underdocumented 13
• How experts estimated market value 13
• TABLE 3 Salon market (%) value of services and product retail 13
• TABLE 4 Salon market (%) variations period 2006-2011 14
• Impact of downturn by market segment 14
• Forecasts for the salon market (2010 and 2011) 14
• Historical trends in the salon market 14
• TABLE 5 Hair salon market revenues in different segments 15
• TABLE 6 Hair salon market examples prices different segments 15

SECTION 3 SALON PRODUCTS MARKET (SIZE, AND CATEGORIES) 16

• Introduction 16
• Mexico compared to other markets 16
• TABLE 7 Salon products market as % of revenues by market segment 16
• TABLE 8 Salon products market (%) by product category and by salon segment 17
• Colour category 17
• Suppliers to salons 17
• Indirect sales 18
• Counterfeit and related products 18

SECTION 4 SALON PRODUCTS MARKET BRAND SHARE 19

• Introduction 19
• Sources identifying brands 19
• TABLE 9 Market share of the product leaders and others 20
• TABLE 10 Market leaders (%) brand share (salon segments A and B) 20
• Variables in brand share by salon segments and geography 20
• Changes in market share, since 2007 21
• TABLE 11 Brands gaining market share (5 names) 21
• Brands noted as sold in salons 22
• Own label brands 22
• Scope outside of the most developed markets 22
• Awareness of Mexican brands in top salons 23
• TABLE 12 Companies and brands in salon segments C and lower 23
• Companies and their brands in Segment C 24
• Sales trends for brands in C salons 24
• Names hard to trace 24
• Other Mexican brands 24

SECTION 5 SALON PRODUCTS MARKET - BRAND SHARE BY PRODUCT CATEGORY 26

• Introduction 26
• TABLE 13 Brands (%) share by product category, colour 26
• Colouring brands 26
• Brands gaining in colour in salon segment C 27
• TABLE 14 Brands (%) share by product category, perming/straighten 27
• Perming market is fragmented 27
• TABLE 15 Brands (%) share product category - styling, shampoo and conditioners (S&C) 28
• TABLE 16 Brands (%) share product category, in-salon retail products 29
• Retail brands and consumer recognition 29

SECTION 6 BRANDS, SALON PURCHASING CRITERIA, AND THEIR ASSESSMENTS OF BRANDS 30

• TABLE 17 Salons�Ebrand purchasing criteria 30
• Quality/price ratio 30
• Variables by salon segment and geography 30
• Word of mouth recommendation or marketing? 31
• Product range / line up 31
• Stylists habit and brand loyalties 31
• Distribution as a criterion 31
• Technical support and professional prestige 32
• TABLE 18 Salons�Erankings of brands, by price 32
• Salons�Eviews of brands (I) 32
• Salons�Eviews on brands (II) 33
• Salons�Eviews on brands (III) 33
• Professional prestige 34
• How brands maintain exclusivity 34

SECTION 7 SALON SERVICE MARKET BY CATEGORY (BUSINESS ACTUALITIES) 35

• Introduction 35
• TABLE 19 Salon business (%) services and retail 35
• TABLE 20 Salon business (%) hair services and beauty services 35
• TABLE 21 Salon business (%) hair services by category 36
• TABLE 22 Comparison salon revenues by category 36
• Salon colouring services 36
• Salon colouring concerns and trends 37
• What salons said about colouring 37
• Colouring trends in recession 37
• Demand for salon perms 38
• Perm or colour? 38
• Salons refuse to perm 38
• Superior alternatives 38
• Salons and low cost alternatives 39
• Salon hairstyling business 39
• Special occasion hairstyling 39
• Salon retail business, both good and bad 39
• Colouring consumers are the key to strong retail sales. 40
• Retail brands backed by marketing or hard to find 40
• Retail in non hair lines 40
• Salon beauty services 40
• TABLE 23 Beauty (spa) services 41
• Trends in client demand for beauty services in recession 41

SECTION 8 SALON STRATEGIES TO SURVIVE THE DOWNTURN 42

• Introduction 42
• Price reductions disguised? 42
• Salons versus manufacturers - who cuts first 42
• Above average prices requires above average service quality 43
• Worst affected salon services 43
• A switch to DIY? 43
• TABLE 24 Drivers of sales variations in salons 44
• Positives 44
• Negatives 45

SECTION 9 SALON MARKET STRUCTURE AND SEGMENTATION 46

• Introduction 46
• TABLE 25 Salon market (%) licensed and unlicensed 46
• TABLE 26 Salon market segments (A, B, C) as % of units and revenues 47
• Segment A salons profiled 47
• The segment B salons 48
• The segment C salons 48
• Segments growing/decreasing? 48
• Segment criteria / comparisons other countries 49
• TABLE 27 Salon segments benchmark data (revenues) 49 TABLE 28 Names of salons - segment A (9 examples) 50
• TABLES 29 Names of salons - segment B (13 examples) 50

SECTION 10 SALON PRICING AND PRICES 52

• Introduction 52
• Salon pricing variables 52
• TABLE 30 Salon prices - haircut and colour (segment A) 52
• TABLE 31 Salon prices - hair services by stylist' s status (segment A) 53
• TABLE 32 Salon prices - perming (segment A) 53
• TABLE 33 Salon prices - hair services (examples, segment B) 53
• Comparison - hair salon spending in USA 53

SECTION 11 SALON DATA AND SEGMENTS BY GEOGRAPHY, AND REGULATORY PROPOSALS 54

• TABLE 34 Salon market data circulated 2008 54
• Salon distribution by geography 54
• Areas where segment A salons concentrated 55
• TABLE 35 Popular locations for leading salon chains 55
• TABLE 36 Hair salons - estimated numbers in the top states 56
• TABLE 37 Mexico listing of geographic regions and major cities 57
• Proposed quality upgrade and the main regulatory bodies 57
• Impact of standards on salon numbers 57

SECTION 12 METHODOLOGY, DATA SOURCES, MARKET AUTHORITIES (GOVERNMENT, INDUSTRY, PROFESSIONAL), ORGANIZATIONS, MAGAZINES, EXPOS) 59

• Sources consulted 59
• Expert sample / criteria for choosing experts 59
• TABLE 38 The expert sample is representative of 60
• Breadth of experts�Eexpertise 60
• Data issues noted by experts 61
• Data conflict 61
• Secondary sources consulted 61
• TABLE 39 Professional and salon trade shows / expos (listing) 62

SECTION 13 TERMS AND GLOSSARY, SYMBOLS AND ABBREVIATIONS 63

• TABLE 40 Selected terms hair related (English/Spanish) 63
• Symbols 63

SECTION 14 COUNTRY DATA 64

• TABLE 41 Mexico data at a glance 64
• TABLE 42 Mexican population (%) by ethnic origin 64
• TABLE 43 Mexico GDP data compared to USA, Canada and Brazil 64
• TABLE 44 Mexico distribution of monetary income 1994-2006 65
• INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 66
• DIAGONAL REPORTS STATEMENT 69