Nail Polish Market, By Product Type (Nail Lacquer, Gel Polish, Shellac, and Others), By Distribution Channel (Supermarkets & Hypermarkets, Pharmacies & Drugstores, Specialty Beauty Stores, Salons & Spas, and E-commerce/Online), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Aug 2024

Code : CMI2970

Pages :120

Formats :

Excel and PDF

Industry : Consumer Goods

Market Challenges: Fragmented industry and loyal brand ownership

The nail polish market currently faces the challenge of a fragmented industry structure with hundreds of brands competing for consumer attention and wallet share. Many consumers have developed strong brand loyalty to one or two nail polish brands that they regularly purchase. It can be difficult to convince these loyal customers to switch brands and try new products. Building brand awareness for a new or smaller brand is a lengthy and expensive process in this competitive space. Companies must spend heavily on marketing initiatives like social media campaigns, influencer partnerships, and point-of-sale displays. Sustained investment is required to gain market share from the large and established brands. New entrants may find it challenging to achieve the scale needed to be profitable given the brand strength of industry leaders. Customer acquisition costs remain high as consumers are content sticking to the brands they already know and trust.

Opportunities: Popularity of nail art and self-expression

The nail polish market presents an opportunity in the growing popularity of nail art and self-expression through fashion accessories like nails. Younger consumers in particular see nail color and designs as a way to reflect their personalities and moods. Social media has increased the exposure to creative nail trends and techniques which consumers now try to emulate. Brands that tap into this desire for uniqueness and personal style through their product ranges and marketing are poised for growth. There is potential for brands to partner with influential nail artists on social media and collaborate on limited edition collections. Focusing marketing communications on the emotional and self-expressive benefits of nail products rather than just color and wear properties could help resonate better with trend-conscious consumers. Innovation in product formats like specialty polishes, stencils, gems, and decals allow for ever more intricate nail art possibilities appealing to creativity-seeking customers.