Global Hair Care Industry Analysis Paper

1263 Words3 Pages

Describe in detail the characteristics of the consumers in the market.
What does demand look like?
This is a growing industry that is promising for making good sales in the future. The global hair care market has of late expanded at a steady rate, and there is a likelihood to continue expanding. One of the most vital factors that have led to the prevailing stability in the hair care market is the demand for lustrous, healthy, and manageable hair and this is the determining factor that drives the consumers to make most of the purchasing decisions. The market for the hair care products is expected to grow across the globe due to the increasing R&D activities that are meant for the enhancement of these products (MKTG 5, 2012). There has been an …show more content…

In 2015, the global hair care market was estimated to a value that is close to US$81.3 billion and is expected to grow up to US$ 105.3 billion by 2024 (Transparency research analysis, 2016). The consumption of hair care products is highest in Asia, followed by Europe, North America, Latin America, Middle East and Africa.
Is it elastic or inelastic?
The demand for hair care products is inelastic (MKTG 5, 2012). This means that a change in the price of the hair care products will lead to a smaller change in the demand.
Are there obvious substitute goods available?
The market for the hair care products is a monopolistic competition where the sellers or the producers deal with products that are differentiated from one another. There exist substitute goods in the hair care market. For instance, there are different types of shampoos across the global market, that is, there is two-rye flour, six-henna, and seven-tea among others. These have been necessitated simply because different customers will demand a different type of shampoo that they think works well on their hair (Larson, 2011). Customers will always want to pay for what they believe will work out on their hair well or as …show more content…

Yes, there are important compliments regarding the fragrance that is used mixed with some types of hair care products. For instance, it will be good to have a nice fragrance mixed with the shampoo so that when applied to the hair it can make it smell nice over a certain period. Besides that some other hair care products are sprayed to the air so that it can remain moist and smell nice; the pink after shampoo hair treatment Roux is one of the products that serve well to make the hair smell nice (Larson, 2011).
Is there decreasing marginal utility of consumption?
There is no decreasing marginal utility of consumption in the hair care products. Once a customer has got the products that they believe works well on their hair, they cannot stop buying the same products since they know what the results will look like.
Write down a utility function for a typical consumer. Justify the functional form you have chosen.
A utility function is a vital concept that is believed to measure preferences over a set of products within the market. For this case, the hair care products are the line of products that is dealt with.
U(dc, ic)=

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