Out Of Africa

Africa Survives & Thrives In the COVID-19 Pandemic

With diminished salon services, natural hair care is the current trend.

The world remains in the maelstrom that is the global COVID-19 crisis. African governments have managed to create a somewhat stable environment for daily life to continue. Official figures indicate a less grim picture compared to the rest of the world.


Customers want simple routines, say experts.
This brighter outlook comes without standard operating procedures regarding health and safety measures to control the spread of the virus on the continent.

The less grim outlook has translated into better financial results. For example, L’Oréal Africa and Middle East reported a sales decline of 1.5% in the first quarter of 2021, compared to a 6.3% decline in Q1 2020. Those results easily outperformed Eastern Europe and Latin America.

Results in the region were driven by gains in Morocco, Egypt, South Africa and Pakistan. Despite shuttered retail storefronts throughout the continent, the cosmetics industry is emerging from the storm.

In a previous column on the impact of the COVID-19 crisis on the African cosmetics industry (December 2020), I pondered the future of beauty in the region. We are now more than halfway through 2021 and the word that best describes the industry is resilience. New product development has played a role, too. African companies and brands, like the rest of the world, pivoted production to hand sanitizers, cleaning agents and services to match consumer needs.

The COVID-19 pandemic changed the African cosmetics industry in the past 18 months, but it also unearthed opportunities amidst the chaos. There has been growth in a number of product categories. The most promising? Hair care.


Natural Growth

The 2001 Global Recession popularized Leonard Lauder’s Lipstick Index. The recession of 2020 created the Naturalista Hair Movement; i.e., demand for natural hair care. The trend is particularly popular in key African markets of Kenya, Nigeria and South Africa. Industry observers predict that the naturalista movement will remain a sustainable driver of the growth in the African hair care market.

As a result of lockdowns, the once accessible and affordable hair salon services were closed and later reopened with limited availability for appointments due to social distancing measures. This meant that the next best thing was at home care. That gave the average African consumer the power of choice.

“The hair care market in South Africa registered a modest current value increase in 2020, as the growth was driven by the DIY trend, as salons were closed during the COVID-19 lockdown,” according to Mordor Intelligence’s South Africa Hair Care Market report.

Natural hair care is in the driver’s seat with key market players and leaders such as Procter and Gamble, Johnson & Johnson, Henkel, L’Oréal, Unilever, Estée Lauder and Amka Products controlling the larger shares of the market with the hair care product segments that include shampoo, conditioner, color and styling.


The Power of Influence

Celebrities such as Boity and Pearl Thusi of South Africa are leveraging their audiences with their own hair care ranges such as Boity and African Botanics Black Pearl. African Botanics was the first local brand to collaborate with a local celebrity on hair care range. The result was a consumer-centric line of products that caters to and targets African consumers.

Pre-pandemic, 85% of beauty products were purchased in store. Smaller African brands entered the market by capitalizing on the power of social media, building online presence, and speaking directly to the consumer.The fastest growing in terms of volume continue to be the everyday product categories such as beauty, according to Jumia’s first quarter 2021 reports.

Although e-commerce continues to see growth, the harsh reality of this increase in e-commerce beauty sales in the last year is that the newfound revenue isn’t replacing what was lost in-store.

Niche brands such as Suki Suki Naturals meet customers at their points of need. That means incorporating natural, indigenous ingredients into formulas and creating products that simplify hair care routines.

“The customer wants results, simple routines and solutions to their hair concerns. Most importantly for Afro hair that means detangling and managing curls and coils in order to style their hair,” said Linda Gieskes-Mwamba, founder of Suki Suki Naturals.

Importantly, for the first-time, larger brands on the continent are expanding and investing in their distribution channels.

The investments should make more formulas readily available on drugstore shelves, salon counters and in the talented hands of independent stylists and influencers.


A Positive Outlook

According to Technavio’s recent report, the African hair care market will enjoy a CAGR of 7% from 2020 to 2024. However, Mordor Intelligence puts South Africa’s growth at 5.7% a year through 2026. Whatever the growth, multinationals are moving into the region. Led by Revlon and L’Oréal, corporations are catering to the African consumer who wants to wear her hair naturally.

A desire for a healthier lifestyle, coupled with diminished salon services means that the average African consumer is shopping for her own hair care products and not relying heavily on professionals.

With her increased disposable income, and a variety of hair styles to choose from, make for a burgeoning hair care market.

The past 18 months have been challenging for the beauty industry. Now consumers are in the driver’s seat when it comes to hair care.

Successful brands will create formulas that cater to their needs. 


Zeze Oriaikhi-Sao
Malée, Founder
[email protected]
 
Zeze Oriaikhi-Sao is an entrepreneur, influential speaker, sought-after brand consultant and freelance columnist with a focus on Innovation, sustainability and leadership in the cosmetics, luxury goods and start-up industries. As the founder of Malée, Africa’s first global luxury fragrance and body care brand, an advisory board member at Innocos, the world beauty innovations summit, Oriaikhi-Sao has established herself as a leader in the African-made luxury goods market. She has been featured on CNN, The Telegraph and The Daily Mail. She hosts the podcast Third Culture Africans, and inspires a vast audience with entrepreneurial and lifestyle Insights at zezeonline.

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