Among consumers there is a tendency to prefer natural ingredients, such as argan oil, which are considered not harmful to either the hair or the end-user. Brands such as Tío Nacho have launched their products containing organic coconut, announcing this through advertising campaigns as highly moisturising products for the hair.
It is common to see that all shampoo commercials advertise these two attributes (cleanness and shine) that are often reinforced through different communication strategies. Peruvians are accustomed to washing their hair daily, as a sign of the importance they give to cleaning and also to ensure that the hair is shiny as a reflection of being healthy and well cared for.
Until a few years ago hair colouring had very low penetration and its use was reserved for women, in the middle and upper class, who wanted to conceal their grey hair. However, recently the use of these products has been democratised and now it is common to see men who also dye their hair or women who since they were teenagers experiment with new colours and styles.
This strategy has been developed to satisfy the demand that increasingly seeks products more in line with their specific needs. The main brands offer different lines according to hair types, evidenced by Sedal, Pantene and Dove, among others.
Those companies that follow regional strategies instead of having a local focus cannot respond fast enough to market requirements. There are two elements that distinguish Peru; the first is that near 70% of distribution is still through traditional channels, therefore companies need to develop distribution strategies that help them to cover the entire country and a vast variety of points of sale, where most distribution companies are local ones.
In recent years, beauty specialists have expanded, mainly through modern retail chains such as Aruma and Sally Beauty. Thus far, this has not affected multinational brands’ penetration, since they dominate hair care and are distributed mainly through small independent grocery stores, pharmacies, supermarkets and hypermarkets.
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This industry report originates from Passport, our Beauty and Personal Care market research database.