Current Situation And Trends Of The Nail Industry In South Africa
Background info on the market
In our country, South Africa, the nail industry is actually one of the fastest growing industries since the late 1990’s and its growth has not been inhibited. The many factors that influence the growth in the industry are:
Women expressing themselves - Nail care is not just about grooming anymore, it is about being unique and expressing yourself. Over the last few years tattoos have become very popular, and a similar trend is seen with Nails and Nail Art. In previous years, Nail Art was not very common in South Africa –consumers were fixed to what they knew which was the conservative French Nails design, but now everyone wants their nails done with their own unique Nail Art design that represents their personality or that represents or is suitable for a specific occasion.
Innovative Nail products currently in the market: Gel Polish and acrylic plays a part in modernizing and transforming the nail sector drastically.
The state of the South African economy itself plays a role in helping the Industry to grow. With the economy being extremely tough and with South Africa facing a technical recession, people everywhere have been considering second sources of incomes.
Social Media sites and apps like Facebook, Pinterest and Instagram have contributed to a major influence in the Industry, if one has to do research on the internet, they will discover that “Nail Art” is actually one of the most popular and top five most tagged items on both Pinterest and Instagram. When the popularity of image driven social media sites like Pinterest and Instagram commenced a few years ago, nail businesses and nail art designs have been marketed all over the world.Market segments In South Africa the market for nail care is segmented on the basis of product, sales channel, and price.
On the basis of product type, the market will be segmented into various nail products such as nail polish, nail wraps/other extensions, nail art, nail polish remover, manicure products, pedicure products, and other product types. On the basis of sales channel, the market is segmented into pharmacies, hypermarket, supermarket, e-commerce, health & beauty retailer, however Alarasi will focus on service technicians. In terms of the cost/price, the market is segmented into economical/affordable as well as premium.Region-wise - the market is segmented into the various provinces.
Customer Analysis
Womens intensions of doing nails ranges from Occasional Indulgence to Everyday Wear. Also as more women join the workforce and move up the career ladder in South Africa, cosmetics play an imperative and essential part of the well-kept professional womens wardrobe. Even though nail care is not as dominant or does not make a large amount of profit compared to hair or skin care, South Africa’s nail industry is increasing and has made marked strides. Looking back South Africa has come a long way and there has been major improvement and innovative ideas in the past few years when it comes to the nail industry. Currently ,there is a revolution in this market for nails because getting ones nails done is not just a matter of spoiling yourself anymore. It has become part of a womens budget for personal care. Alarasi’s customers are the consumers of the nail grooming services which we will be providing. Alarasi must ensure that the understanding of this consumer is prioritised because they are critical to our success as a business and they expose us to a lot of uncertainty risk because their changing tastes, preferences and styles can be problematic if we do not ensure that their demands are met. According to statistics ofthe International Nail Industry, the customer segment that uses the nail grooming services are mainly teenagers and women between the ages of 21 and just over 46. The fastest growing segment being the women between the ages 36 to 46, who experienced a 42% increase in the year of 2017.
Environmental context
South Africa’s common nail techniciansarewomen between the ages of 20 and 50; the younger aged women regularly work busy full-time schedules at some of the popular salons while the olderwomen technicianssee nails as just been ahobby or part-time employment, seeing clients from small home-based salons. Aspiring nail technicians typically will enroll in training programs at beauty schools and colleges, however the quality of education is not consistent — a problem compounded by a lack of government licensing. There are plenty of schools/colleges that offer nail technology / nail care courses. The issue with these schools is that sadly many of them are not offering internationally recognized certification or the training needed conferring to the necessary standards. If this is not done the nail technician is not aware of absolutely everything she needs to know to work on clients safely.
Demographic forces
Demographics is the study of a population in terms of its size, location, gender, race, occupation and income. Anyone gets their nails done here in South Africa: women, men, young girls, and boys. There are salons and spas catering to the more economical / average income earners, while on the other end there are salons in upmarket and classy business areas that cater to business/corporate women and men, and even celebrities. Alarasi will cater to the average and high income earners across South Africa. Alarasi will cater in the main cities such as Durban, Cape Town and Johannesburg Socio-cultural forces Doing nails has also become a social and even brings family together along their little ones enjoy the service and treatment experience in the comfort of their own homes/place. Clients can choose from various options such as gel, acrylic, French ombre, chromeand holographic nails. Most women will opt for gel-polish in the couture colors of the moment. An example is in summer, bright colors are usually trending while in winter are the nude/warm/softer colours.
