A quote I came across on Google says: “Invest in your hair, it is the crown you never take off.”
Kenyan women seem to be living by the quote, as we have found they could be spending in excess of Sh659 billion.
Different salon owners and stylists all said on average, a Kenyan woman spends at least Sh50,000 a year on personal grooming, a number that could go up to Sh1 million, depending on one’s disposable income.
Adding on to the fact that UN populations division estimates there are about 13.19 million female adults in the country, the cumulative amount spent on hair and beauty could be in the trillions, when we factor in the female youth and child population.
“The industry is generally doing well because more women are working and now have disposable income to pamper themselves,” Ashleys Kenya Limited CEO Terry Mungai told the Star.
Kenya has a thriving beauty industry, evident from the increased number of nail technicians in the Nairobi CBD, calling out to passersby at every street corner. In residential areas, we have also seen an increased number of beauty parlors and salons popping up.
“Kenyan women are estimated to use about 20 per cent of their income on hair, up from 15 per cent in 2016,” AfroUrembo CEO Irene Kieru said.
POOR INVESTOR SENTIMENT
The market, made of dry hair products (hair extensions and weaves and wigs) and wet hair products (hair oils, treatments, relaxers and chemicals), has seen minimal investor sentiment over the years especially when compared to the beauty and cosmetics industry.
Indian conglomerate Godrej Group is one among investors who saw the value of Kenya’s booming hair and beauty industry when they entered the Kenyan market by acquiring 90 per cent stake in the maker of Darling hair brands- Style Industries Limited.
The firm has a footprint in 14 African countries including Kenya, South Africa and Nigeria.
“At least 50 per cent of revenue the company gets from Africa is from its business in Kenya,” Godrej Kenya marketing manager dry hair Victoria Kieti told the Star.
She said that although a number of foreign investors have shown interest in setting up base in the country, they fail to commit due to the huge labour and innovations requirements. This means, foreign firms would much rather bring in their products than set up locally.
“Kenyan women have proven to be very trendy. Investment in this industry means you have to be ready to abandon projects once the trends die down without fixating on the losses,” Kieti said.
With its two manufacturing plants situated in Industrial area, Godrej Kenya has employed 5,000 employees, 90 per cent of whom are women.
INDUSTRY BREAKDOWN
Kieti said the hair category rakes in at least Sh25 billion annually, 70 per cent of which comes from dry hair products, while the remaining 30 per cent is from wet hair products.
She added that researchers have estimated there are about 150,000 hair salons across the country, a number set to grow rapidly over the next few years. This means there could be well over one million hair professionals in the country.
The industry not only empowers employment but is a great tool for job creation and promoting entrepreneurship.
“It’s a good thing because young ladies who can’t afford joining high school or campus can learn to plait hair and once they are employed in a salon, chances are high that a few months or years later they are able to open their own,” Kieti said.
Just like all other industries in the country, hair and beauty is expected to employ technology to drive up consumer satisfaction and increase sales.
For instance, a new mobile application is set to be launched in the market that is expected to change the entire salon experience.
AfroUrembo, created by Irene Kieru, will be a digital marketplace, connecting clients with thousands of beauty care and grooming professionals.
“The idea was birthed after having lived abroad for so many years, and coming to a realisation that there was no app out there dedicated to afro hair and grooming needs,” she said.
Customers will be able to decide on professionals based on their ratings on the app, as well as proximity. The app will also help foreigners who visit Africa find professionals from the comfort of their phones.
Godrej Kenya is also working on increasing its visibility in the market through a mobile application, one that will reward professionals based on collection points earned with the use of Darling products. The app will allow professionals
to scan a QPR code on the product or send a number provided for USSD.
“Tech has a very large role to play in the industry, which is why it is best if we all embrace it,” Kieti said.
BUY KENYA BUILD KENYA
Although there are a number of local hair manufacturers, some women still prefer to import hair extensions from abroad.
Kieti says the industry’s biggest challenge is competing with cheap Chinese products that make their way into the Kenyan market. She added that although less costly, the products are often of poor quality.
For Ashley’s CEO Terry Mungai, a bigger challenge is the high levies and taxes imposed on some of the cosmetic and hair products they have to import.
The Kenya Revenue Authority has been moving in to impose excise tax on cosmetics, non-alcoholic beverages and food supplements under the legal notice 53 of March 2017, in a bid to collect Sh4.7 billion.
The High Court,
however, quashed the law, terming it inconsistent with the Constitution and the Statutory Instrument.
Synthetic hair is a type of plastic, and recycling the material is one of the key issues Darling is looking to tackle going into the future.
“We are working on a pilot project with a firm that turns the waste hair into bricks and other materials. The project is still in its pilot stage,” Kieti said.