Nourish the scalp. Un-split the ends. Volumize the lustrousness... Unilever lowered shampoo prices last quarter in the fight over American hair against Procter & Gamble. Straight from its latest earnings: "Competitive intensity remained high in hair care, in particular in the US." Both companies' brands battle leader L'Oréal for space in your shower caddy:
- L'Oréal (20.8% of the US hair care market): Redken, Kiehl's, Garnier
- Unilever (17.1%): Suave, Axe, Tresemme
- P&G (13.9%): Head & Shoulders, Pantene, Herbal Essence
Pulling hair is fair game... Unilever and P&G have ruthlessly fought over each fraction of a percentage point of the shampoo market for years.
- 2001: Unilever sued P&G for millions for spying on its hair care division, stealing docs from the dumpster outside Unilever's Chicago office.
- Brand-ifest destiny: Unilever stocked up on silky smooth ammo, acquiring Tresemme's owner and V05. Then P&G unleashed its Herbal Essence and Aussie shampoo brands globally.
Wet hair. Lather. Rinse. Repeat... Adding that last word to the instructions on your 2-in-1 bottle was a quick/dirty way to boost sales for the shampoo industry. Here's why Unilever's so hungry for hair care sales.
- Big profits/high margins: Humans splurge to keep their heads keratin-empowered — low production costs mean P&G and Unilever keep a big chunk of each sale as profits.
- "Minnovations": Small new benefits ("now with avocado oil!") can generate entirely new shampoo/conditioner lines — and you justify the extra buck you paid for it.
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