Hair, Skin, and Nails (HSN) supplements have become increasingly popular in recent years, especially in the U.S market.
The HSN Supplements category on Amazon saw a 48% increase in revenue from Q1 to Q2 in 2020, as compared to its much smaller average QoQ growth rate of roughly 2% over the past two years.
When analyzed further, the surge in HSN supplement sales in Q2 2020 could be largely attributed to the MoM growth of 26% in April, followed by 15% in May. This growth, however, quickly slowed down in June, resulting in an average MoM rate of 3% from June to October without any decline in between.
What trends are we seeing with the HSN category and where is it headed?
Along with the high overall market capacity due to increased demand, the HSN category has room for growth for many of its brands, no matter their sizes. As a matter of fact, the top five leading brands represented only 36% of the total market share. Among those five, Nutrafol, the leading brand, had only 9% market share. Additionally, the best-selling product in Q3 2020 was from NuHair, a brand that ranked only 93rd in the category by total revenue. It also saw QoQ increases of 53% and 22%, respectively in Q2 and Q3 2020, consistently outperforming the whole category. NuHair served as an outstanding example of a smaller brand capturing opportunities and having great momentum for growth in the HSN category.
HSN products are produced and delivered in various forms. Capsules have been dominating this category, generating over 40% of revenue in each quarter with stable QoQ growth. Tablets, gummies, softgels, and liquid were the next most popular delivery methods, in that order. When compared with the other three delivery forms, tablets, with 18% of the total revenue in Q3 2020, showed higher potential for sustainable growth. Tablets’ sales increased by 40% in Q2 and continued to grow by 21% in Q3. Even though gummies and softgels had 67% and 73% QoQ growth in Q2, the former had a comparatively small 7% growth while the latter essentially stayed the same in Q3.
According to ClearCut’s data, the average price of all products sold in the HSN category dropped for three consecutive quarters with -1.5% in Q4 2019, -2.2% in Q1 2020, and -4.4% in Q2 2020. When Q3 2020 came around, the average price rebounded with a 5.6% increase. Products with lower-than-average prices generally made up around 64% of the total units sold, while those with higher-than-average prices took up the remaining 36%. This ratio did not necessarily vary proportionally with the changes of the average prices. Additionally, the top 10 best-selling HSN brands in Q3 2020 had an average price of $36.62, significantly higher than the category’s average of $23.14.
In closing, there remains massive room for growth and numerous opportunities to be discovered and captured for the HSN brands in the Amazon marketplace. The race is just getting started.
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