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Happy health india All Plan & products Pdf Download 2023 -2024 [HHI]

Happy health india business review | business plan | products | reality.

Hello mlm leaders,today we are going to review HHI(Happy health india) business who claims to be the legal Indian Direct Selling industry and its products are best in the Market as vestige , modicare and safe shop india products.

hhi business plan pdf 2022

We Fully Explanation Happy health india business plan | products | product price and all steps to show legality, are approved for the direct selling industry and follow the guidelines of IDSA Mores.

About Happy Health india Business Review

HHI (happy health india) is a Indian wellness FMCG industry who works on direct selling concept .HHI started from Ludhiana Punjab year of 2016 and " Reema Jain & Satinder Kaur and Pooja are president and managing director of Happy health india."

Happy health india Company basic Profile

Company name

Happy health india private limited

Company types

Shares by limited, MLM

President of HHI

Reema Jain,

Company associate & CEO

Satinder Kaur and Pooja

Cin Registration

U51909PB2016PTC04009

Startup years

08 June 2016

Products Categories

Personal care, health care, agro, household, garments and footwear

Head office

Arjun dev nagar,near samrds chowk, Ludhiana 141805, Punjab

Email support

Official Website

Happy health india.com

Company basically works on health and wellness products, much More products and provides Business opportunities to people as duplicate Modicare, Vestige Marketing and Awpl business . Happy health india company profile was transparent in website but some distributor complained against HHI Products and plan .

HHI business plan | HHI income plan Review

Talking about the company's business plan, the company is giving you a direct profit of 25% to 35% on the product from here. For example, if you buy a company's toothpaste which costs ₹50 in DP and sell it at MRP ₹75, then you get a direct profit of 25% here.

Separate profit margin has been fixed on each of the company's products, which you can see in the company's product price list . Apart from retail profit, the company provides you an opportunity to earn money in many other ways, which we have talked about in detail below.

HHI provide you following types of income:-

Retail Profit 25% 35%

Accumulative performance incentive income 10% to 30%

A special incentive for each rank up to 15%

Leadership bonus 14%

Travelling fund 2%

Motorbike fund 2%

Housefound 2%

Loyalty fund 5%

For a better understanding of the company's business plan , refer to the company's business plan PDF , in which a complete analysis of the company's business plan has been done and what is the reward placed on each. Click on the download button below to download the Company's Business Plan PDF.

Download HHI business plan pdf

hhi business plan pdf 2022

Download HHI e-plan brochure Book pdf

HHI Products Review | HHI Products Price list

The leaders of Happy Health India claim that the company has 300+ product variants and its price is comfortable for everyone, it can be used by anyone without any loss, while the truth is, only the company's product users know.

HHI Business providing following products categories:-

Health And Wellness Products

Food Products

Bio energy products

Personal care products

Home Care products

Agriculture products

Beauty and Cosmetic products

Download HHI Products Price list Pdf

HHI legal & Fake Review

If we discussed company legal proof we should see HHI Legal documents and certificate , after we take discussion yes,it was legal network marketing business.

HHI Distributor claims our company have following legal documents:-

Good manufacturing product(GMP)

ISO Certified

Fssai license

Haccp certificate

HALAL Certificate

GST certificate

MCA Certificate

Insurance IPO

MSME Certificate

How to Join Happy health india | is Safe to join HHI

There are some rules and regulations for joining any direct selling business, which are very important to know and understand, knowing that unknowingly, many new distributors join the company without reading the terms and conditions of any company.

According to the Indian newspaper "The Amway company is in trouble, it is alleged by the ED that the company has committed a fraud of ₹757 crore, due to which all its assets have been confiscated, but today the company's distributor is facing many problems. Because any direct selling company takes only its responsibility and not its distributor.

In a meeting by the Direct Selling Association Committee, it is clearly being told that now all the direct selling companies will get 100% responsibility of their distributor or if any wrong thing is done by any distributor, then the companies themselves will compensate.

Here is the following process for joining the Happy health business.

First, you have to go to the official website of the company, www. Happyhealthindia.com

Click on registration.

After that, fill in the basic details of yourself with referral code l, 

Securely Fill up lots of personal information, like nominee details and bank details, mobile number etc

Click on submit wait for HHI SMS confirmation.

Note:- company provides you many payment methods like UPI transaction,visa transaction

paypal payment mode,net banking transactions mode and more transaction facilities available to buy HHI Products.

My Last Conclusion:-

It has been only a few years for this company to do its business, yet this company is moving forward with its products, it is being alleged by some distributors that this company does not mind manufacturing its products by itself. Selling by sticking its brand level on the products of other companies.

Today many mlm companies are booming in India and in such a situation, the day is not far when network marketing companies will let each other down and people will hear the provocative competition by distributors. In such a situation, choosing the right company Very necessary.

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hhi business plan pdf 2022

  • Economy & Politics ›

Market Concentration: Herfindahl-Hirschman Index score worldwide from 1988 to 2020

Annual herfindahl-hirschman index market concentration score worldwide from 1988 to 2020.

CharacteristicHerfindahl–Hirschman Index score
2020444.38
2019424.74
2018421.43
2017411.02
2016423.73
2015425.94
2014403.8
2013387.95
2012392.32
2011389.79
2010395.21
2009382.83
2008382.51
2007415.56
2006453.45
2005476.54
2004478.31
2003500.54
2002534.19
2001538.77
2000562.02
1999559.57
1998519.24
1997486.61
1996487.74
1995513.3
1994572.78
1993697.21
1992836.64
19911,099.93
1990888.13
1989860.24
19881,597.75

Additional Information

Show sources information Show publisher information Use Ask Statista Research Service

October 2022

1988 to 2017

Other statistics on the topic Monopolies & Oligopolies

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1 All prices do not include sales tax. The account requires an annual contract and will renew after one year to the regular list price.

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  • Basic Statistic Total imports, total exports, and trade balance of the U.S. 1790-1970
  • Premium Statistic United States: annual number of banks and thrifts 1920-1935
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Stock market

  • Basic Statistic Dow Jones: monthly value 1920-1955
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Manufacturing

  • Basic Statistic Change in industrial production in the U.S and European countries 1929-1938
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  • Basic Statistic Average weekly earnings in manufacturing industries in the U.S. 1914-1969
  • Basic Statistic Nonagricultural employment in the United States 1900-1943
  • Basic Statistic United States: number of strikes and workers involved 1881-1975
  • Basic Statistic Industrial recovery after the Great Depression in select European countries 1928-1938
  • Basic Statistic Increase in European import tariffs during the Great Depression 1927-1931
  • Basic Statistic Interwar period: manufacturing index in selected American countries 1923-1944

Agriculture

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  • Basic Statistic Index of agricultural wages in the United States 1818-1948
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  • Basic Statistic United States: arable crop output 1866-1988
  • Basic Statistic United States: net migration of farm population 1921-1970
  • Basic Statistic Wheat exports of the U.S., Canada, and Argentina 1852-1988
  • Basic Statistic Federal share of relief spending in the U.S. during the Great Depression 1932-1940
  • Basic Statistic Great Depression: annual benefits compared to manufacturing wages U.S. 1933-1940
  • Basic Statistic Number of executive orders signed by U.S. presidents 1789-2024
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TechMistri

Happy Health India Products List 2023 PDF Download

This post is about Happy Health India Products Price List. In one of our previous posts, we have already discussed Happy Health India Business Plan.

In this post, we will check the Happy Health India Products, Ranges, Category, and Pricing with DP & BV .

At the end of the post, we have added a button, so you can download HHI Products Price List PDF.

Happy Health India Products

Happy Health India is an Indian MLM Company that is growing at a very good pace. It started in the year 2016 from Ludhiana, Punjab which is among the legal direct selling companies in India.

Happy Health India Products

Happy Health India’s compensation plan promises to give 9 different types of income.

Products Range

HHI’s products are slightly overpriced compared to market products, quality is average and HHI claimed to have 350+ products.

As most MLM companies do, Happy Health India also focused on Health and FMCG products which are the most demanding products of every family.

happy-health-india-products

Happy Health India has products from the following categories.

  • Agriculture
  • Personal Care
  • & Wellness Products.

In the below product price list, MRP means Maximum Retail Price, DP means Distributor Price, and BV means Business Volume.

DP is the price at which Happy Health India Direct Seller gets products. You can calculate retail profit by subtracting DP from MRP.

BV are fixed points on every product which used to calculate the various income.

Happy Health India Products List

S. No.PRODUCTS DESCRIPTIONPACK SIZEM.R.P.DPBV
1AJWAIN100 gm.43327
2Amchur Powder50gm.534012
3AMLA CANDY BLACK CURRANT400 gm.25021050
4AMLA CANDY PAAN FLAVOUR400 gm.25021050
5AMLA CANDY MANGO FLAVOUR400 gm.25021050
6AMLA CANDY MASALA FLAVOUR400 gm.25021050
7AMLA CANDY CHATPATI250 gm.16011036
8AMLA CANDY SWEET250 gm.16011036
9AMLA SWEET CANDY JAR500 gm.25019060
10BESAN (GRAM FLOUR)1KG12511220
11BESAN (GRAM FLOUR)500gm.656012
12BLACK CARDAMOM(MOTI ELAICHI)25 gm.604515
13BLACK PEPPER POWDER25 gm.454012
14Chana Masala100 gm.755515
15CHAT MASALA100 gm.656022
16Chicken Masala50gm.453510
17CHICKEN MASALA20 GM.15124
18CHOCO FLAKES250gm.15013025
19CHUNDA CHUTNEY400 gm.15012040
20CLASSIC BASMATI RICE5KG850625125
21COCONUT SHAKKER500 gm.16013030
22Coconut Water Powder250 gm.400350130
23CORN FLAKES250 gm.11510525
24CORN FLAKES250 gm.11510525
25CRISPY BITES250gm.15013025
26CRUNCHY OATS250 gm.12510530
27Degh Laal Mirch100 gm.756517
28DELICIOUS SALT1 Kg.25225
29DELIGHT BASMATI RICE5KG550475100
30DHANIA POWDER100 gm.453513
31Dhania Powder250 gm.1008030
32DHANIA POWDER20 gm.15103
33DIET CRUNCHY MUESLI250 gm.21519050
34Elaichi (Choti)10 gm.48378
35FROOTOOZ250gm.15013030
36FUSILLI PASTA200 gm.453712
37Gano Coffee360 gm.999850325
38GARAM MASALA100 gm.857020
39GARAM MASALA250 gm.17516057
40GARAM MASALA20 gm.15124
41Ginger Powder50 gm.504010
42GOLGAPPA/ PANI PURI50 pc.15011035
43GREEN CHILLI PICKLE500 gm.15013042
44HALDI GUR500 gm.16012535
45HALDI POWDER100 gm.333010
46HALDI POWDER250 gm.907225
47HALDI POWDER20 gm.15103
48HHI Aloo Sev Namkeen400 gm14012528
49HHI Bhujia Sev Namkeen400 gm14013028
50HHI Mast Mixture Namkeen400 gm14012528
51HHI Navratna Mixture Namkeen400 gm14012528
52Instant Coffee50 gm.14512545
53JEERA100 gm.514010
54JEERA DRINK6 pcs.90607
55KASOORI METHI25 gm.402410
56KHEER MASALA125 gm.908527
57KITCHEN KING MASALA20 GM.15103
58LIFE N RICH BRAN OIL (POUCH)1 Ltr.23021035
59LIFE N RICH RICE BRAN OIL2 Ltr.49044070
60MACARONI200 gm.453712
61MANGO CHUTNEY500 gm.15013042
62MANGO PICKLE500 gm.958022
63Meat Masala100 gm.756215
64MEAT MASALA25 GM.20155
65MEETHA PAN GULKAND500 gm.15012040
66Methi Dana50gm.25155
67MINT CHUTNEY280 gm.15013040
68MIRCHI POWDER20 gm.15103
69MIRCHI POWDER100 gm.453513
70MIRCHI POWDER250 gm.1309530
71MIX FRUIT JAM500 gm.14012532
72MIXED PICKLE500 gm.958525
73MUESLI MIX FRUIT250gm.23521050
74MULTIGRAIN ATTA2 Kg.30027575
75Mustard Oil1 Ltr.22022030
76PAPAD CHANA MASALA400 gm.12512025
77PAPAD MOONG SPECIAL400 gm.14212527
78PENNE PASTA200 gm.453210
79PREMIUM BASMATI RICE5KG40033060
80PUNJABI AMRITSARI WARIAN200 gm.605010
81PUNJABI GUD1 kg.14012025
82PUNJABI SHAKKAR1 kg.16013030
83Rai Powder50gm.503510
84RED CHILLI PICKLE500 gm.15013042
85RICE PAPAD500 gm.15011540
86ROCK SALT (SENDHA NAMAK)1 Kg.907515
87SABJI MASALA100 GM.706525
88Sabut Black Pepper50gm.755515
89SABUT DHANIA100 gm.45327
90SAMBAR MASALA50 gm.40308
91Shahi Hing25 gm.655513
92SOAN PAPDI400 gm.15514035
93SOYA CHUNKS WARIAN200 gm.655510
94SPICE ERA GULAB JAMUN1 kg.23022055
95SPICE ERA KITCHEN KING50 gm.453712
96SPICE ERA NOODLES300 gm.554512
97SPICE ERA RAJBHOG1 kg.23022060
98SPICE ERA RASGULLA1 kg.22020550
99SPICE ERA ROASTED SEWIYAN150 gm.30278
100SPICE ERA WHITE PEPPER25 gm.604510
101STRAWBERRY MUESLI250 gm.21519050
102TAMARIND KHAJUR CHUTNEY310 gm.16013040
103TEA MASALA40 gm.857527
104URAD PAPAD400 gm.14412527
105ZEST PLUS TEA500 gm.26020055
106ZEST PREMIUM TEA250 gm.14011527
107ZEST PREMIUM TEA50 gm.25203
1ARHAR DAL500 gm.80708
2BLACK CHANNA500 gm.65608
3CHANNA DAL500 gm.60487
4KABULI CHANNA (WHITE CHANNA)500 gm.70658
5MAH CHILKA (URAD) DAL500 gm.75658
6MAH SABUT (URAD DAL)500 gm.75658
7MASUR DAL500 gm.65607
8MOONGI DHULI DAL500 gm.857812
9RAJMAH500 gm.1109512
10SABUT MASOOR Dal500 gm.65607
11SABUT MOONG DAL500 gm.75648
1GREEN CHILLI SAUCE620 gm1059025
2Green chutney (Dhania Pudina)50 gm454010
3RED CHILLI SAUCE620 gm1059025
4SOYA SAUCE620 gm1059025
5TOMATO KETCHUP590 gm12010530
1AMLA GLAZDE MURABBA1 kg.24018045
2APPLE GLAZDE MURABBA600 gm.24019030
3CARROT GLAZDE MURABBA600 gm.24018045
1BRAHMI SHARBAT750 ml.19017042
2JALJEERA MASALA POUCH10 gm.1083
3JALJEERA SHARBAT750 ml.19017042
4LEMON SHARBAT750 ml.19017042
5LITCHI SHARBAT750 ml.19017042
6ORANGE SHARBAT750 ml.19017042
7ROSE SHARBAT750 ml.19017042
1ROASTED ALSI (FLAXSEED)100 gm.655522
2ANARDANA GOLI100 gm.605522
3HARDE VATI100 gm.605020
4HING GOLI50 gm.655522
5HING PEDA100 gm.655522
6IMLI LADDU100 gm.706025
7JEERA VATI100 gm.655522
8JELLY JOY CANDY100 gm.655525
9JET IMLI100 gm.706025
10MANGO SLICE AAM PAPAD100 gm.756525
11PUDINA VATI50 gm.554520
124 HOURS FITNESS CAPSULES60 Caps.380300150
2ALFALFA TAB60 pc.275235100
3ALOEVERA TABLETS60 pcs.25018580
4APPLE CIDER VINEGAR SHOTS20 Tabs.599425200
5ARJUNA TAB60 pc.280240100
6ASHWAGANDHA HERBAL GUMMIES1 Box499425170
7ASHWAGANDHA TAB60 Tab.325275120
8ASHWGANDHA TABLETS100 Tabs.300250110
9BIOTIN VITAMIN C GUMMIES40 pcs.499425170
10BONE HEAL CAPSULES60 Caps.550470225
11BRACELET1 Pc.17501300600
12BRACELET PREMIUM1 Pc.300025001300
13BRAHMI TAB60 pc.25019080
14BRAIN SHARP POWDER100 gm.24921080
15CALCIUM D3 TABLETS100 Tabs.450260110
16CALCIUM SYRUP200 ml.14011550
17CARDAMOM DROPS15 ml.17514070
18CELL PLUS CAPSULES60 Caps.630450225
19CHOLESTEROL CAPSULES60 Caps.630450225
20COW COLOSTROM TABLETS60 Tabs.630500250
21CURCUMIN WITH BIOPERINE60 Caps.999750350
22CURCUMIN WITH PIPERINE30 Tabs.550450200
23DAY ‘N’ NIGHT CAPSULES60 Caps.630450225
24DHA MULTIVITAMIN KIDS GUMMIES40 pcs.499425170
25DHVANI EAR DROP10 ml.958035
26DIABAWAY CAPSULES60 Caps.630550275
27DIABO CARE POWDER100 gm.24921080
28DIGEMIN SYRUP200 ml.14012040
29ELVISH PAIN RELIEVING GEL50 gm.18514550
30ENERGY SYRUP225 ml.350300135
31EYE PLUS TABLET90 Tabs.750650300
32FAMILY PACK55 ml.600450225
33FENUGREEK OIL CAP30 Caps.599500250
34FEVER CARE SYRUP200 ml.15012555
35FLAXSEED OIL GEL CAPSULES60 Caps.550440200
36FLEXI JOINT CAPSULES45 Caps.380320150
37FLEXI JOINT GEL30 gm.12010040
38FLEXI JOINT OIL100 ml.300250110
39FOXILIV CAPSULES60 Caps.450340150
40FOXILIV DS200 ml.17014055
41GANODERMA TABLETS60 Tabs.480430200
42GARLIC CAPSULES60 Caps.400280135
43GARLIC TAB60 pc.285245110
44GASHAR POWDER100 gm.20013050
45GESTOWELL DROPS15ml.13111050
46GILOY TABLETS60 Tabs.27022090
47GINGER DROPS15 ml.17514070
48GINGER TAB60 pc.295250100
49GLUCOSAMINE TABLETS10 Tabs.16012560
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57GREEN COUGH SYRUP100 ml.1007535
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60Greens Superfood Tab.60 Tab.699595275
61Hair, Skin & Nails Tab60 Tab.949745350
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28Panch Gavya Hawan Kund12 Pc.21519060
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33TOOTH BRUSH (ACTIVE SOFT)1 Pc.403213
34TOOTH FRESH KIDS TOOTH BRUSH1 Pc.15125
35TOOTH FRESH TOOTH BRUSH1 Pc.302210
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  • Herfindahl-Hirschman Index (HHI)
  • Formula and Calculation
  • What the HHI Can Tell You
  • Limitations

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Herfindahl-Hirschman Index (HHI): Definition, Formula, and Example

Michael Bromberg is a finance editor with a decade of experience. He is an expert at elucidating complex financial topics in clear, concise language. Michael received a Bachelor of Arts in literature from the University of Wisconsin-Madison and a master's in linguistics from the Universidad de Antioquia in Medellin, Colombia.

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What Is the Herfindahl-Hirschman Index (HHI)?

The Herfindahl-Hirschman Index (HHI) is a common measure of market concentration and is used to determine market competitiveness, often pre- and post- merger and acquisition (M&A) transactions.

The index measures the size of companies relative to the size of the industry they are in and the amount of competitiveness. The HHI is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers. It can range from close to zero to 10,000, with lower values indicating a less concentrated market.

Key Takeaways

  • The Herfindahl-Hirschman Index (HHI) is used to determine market competitiveness.
  • A market with an HHI of less than 1,500 is considered a competitive marketplace, an HHI of 1,500 to 2,500 is moderately concentrated, and an HHI of 2,500 or greater is highly concentrated.
  • The primary disadvantage of the HHI stems from the fact that it is such a simple measure that it fails to take into account the complexities of various markets.

Investopedia / Crea Taylor

Formula and Calculation of the Herfindahl-Hirschman Index (HHI)

The HHI is a commonly accepted measure of market concentration. It is calculated by squaring the market share of each firm competing in a market and then summing the resulting numbers. It can range from close to zero to 10,000. The U.S. Department of Justice uses the HHI for evaluating potential merger antitrust issues.

H H I = s 1 2 + s 2 2 + s 3 2 + … s n 2 where: s n = the market share percentage of firm  n  expressed as a whole number, not a decimal \begin{aligned}&HHI=s^2_1+s^2_2+s^2_3+\dots s^2_n\\&\textbf{where:}\\&s_n=\text{the market share percentage of firm } n\\& \qquad\,\text{ expressed as a whole number, not a decimal}\end{aligned} ​ HH I = s 1 2 ​ + s 2 2 ​ + s 3 2 ​ + … s n 2 ​ where: s n ​ = the market share percentage of firm  n  expressed as a whole number, not a decimal ​

What the Herfindahl-Hirschman Index (HHI) Can Tell You

The closer a market is to a monopoly , the higher the market's concentration (and the lower its competition). If, for example, there was only one firm in an industry, that firm would have 100% market share, and the HHI would equal 10,000, indicating a monopoly.

If there were thousands of firms competing, each would have roughly 0% market share, and the HHI would be close to zero, indicating nearly perfect competition.

The U.S. Department of Justice considers a market with an HHI of less than 1,500 to be a competitive marketplace, an HHI of 1,500 to 2,500 to be a moderately concentrated marketplace, and an HHI of 2,500 or greater to be a highly concentrated marketplace.

As a general rule, mergers that increase the HHI by more than 200 points in highly concentrated markets raise antitrust concerns, as they are assumed to enhance market power under Section 5.3 of the Horizontal Merger Guidelines jointly issued by the Justice Department and the Federal Trade Commission (FTC) .

The primary advantage of the HHI is the simplicity of the calculation needed to determine it and the small amount of data required for the calculation. The primary disadvantage of the HHI stems from the fact that it is such a simple measure that it fails to take into account the complexities of various markets in a way that allows for a genuinely accurate assessment of competitive or monopolistic market conditions.

Regulators use the HHI Index to measure the largest companies in a particular industry to determine if that industry should be considered competitive or close to being a monopoly.

Example of the Herfindahl-Hirschman Index (HHI)

The HHI is calculated by taking the market share of each firm in the industry, squaring them, and summing the result, as depicted in the equation above. Consider the following hypothetical industry with four total firms:

  • Firm 1 market share = 40%
  • Firm 2 market share = 30%
  • Firm 3 market share = 15%
  • Firm 4 market share = 15%

The HHI is calculated as:

H H I = 4 0 2 + 3 0 2 + 1 5 2 + 1 5 2 = 1 , 600 + 900 + 225 + 225 = 2 , 950 \begin{aligned}HHI &= 40^2 + 30^2 + 15^2 + 15^2\\ &= 1,600 + 900 + 225 + 225 = 2,950\end{aligned} HH I ​ = 4 0 2 + 3 0 2 + 1 5 2 + 1 5 2 = 1 , 600 + 900 + 225 + 225 = 2 , 950 ​

This HHI value is considered a highly concentrated industry, as expected because there are only four firms. However, the number of firms in an industry does not necessarily indicate anything about market concentration, which is why calculating the HHI is important.

For example, assume an industry has 20 firms. Firm 1 has a market share of 48.59%, and each of the 19 remaining firms has a market share of 2.71% each. The HHI would be exactly 2,500, indicating a substantially highly concentrated market. If Firm 1 had a market share of 35.82% and each of the remaining firms had a 3.38% market share, the HHI would be exactly 1,500, indicating a competitive marketplace.

Limitations of the Herfindahl-Hirschman Index (HHI)

The basic simplicity of the HHI carries some inherent disadvantages, primarily in terms of failing to define the specific market that is being examined in a proper, realistic manner.

For example, consider a situation in which the HHI is used to evaluate an industry determined to have 10 active companies, and each company has about a 10% market share. Using the basic HHI calculation, the industry would appear highly competitive .

However, within the marketplace, one company might have as much as 80% to 90% of the business for a specific segment of the market, such as the sale of one specific item. That firm would thus have nearly a total monopoly for the production and sale of that product.

Another problem in defining a market and considering market share can arise from geographic factors. This problem can occur when companies within an industry have roughly equal market share, but they each operate only in specific areas of the country, so that each firm, in effect, has a monopoly within the specific marketplace in which it does business.

For these reasons, for the HHI to be properly used, other factors must be taken into consideration, and markets must be very clearly defined.

History of the Herfindahl-Hirschman Index (HHI)

The concept behind the HHI initially emerged in a 1945 book by German economist Albert O. Hirschman titled "National Power and the Structure of Foreign Trade." The method proposed by Hirschman differed from existing measures of concentration by placing a more significant weighting on larger firms whose greater market share has a greater impact on the level of competitiveness in the market.

A few years after Hirschman outlined this system for measuring market concentration, American economist Orris C. Herfindahl repurposed the idea in his 1950 doctoral dissertation, "Concentration in the U.S. Steel Industry."

Whereas Hirschman applied the idea to the concentration of imports and exports on a countrywide basis, Herfindahl used the framework to analyze the competitiveness of the steel industry. Herfindahl refers to Hirschman's work in a footnote.

What Does the Herfindahl-Hirschman Index (HHI) Mean?

The Herfindahl-Hirschman Index (HHI) is a common measure of market concentration and is used to determine market competitiveness, often pre- and post-merger and acquisition (M&A) transactions. The closer a market is to a monopoly , the higher the market's concentration (and the lower its competition).

How Do I Interpret the Herfindahl-Hirschman Index (HHI)?

A market with an HHI below 1,500 is considered a competitive marketplace, an HHI of 1,500 to 2,500 is moderately concentrated, and an HHI of 2,500 or greater is highly concentrated. As a general rule, mergers that increase the HHI by more than 200 points in highly concentrated markets raise antitrust concerns, as they are assumed to enhance market power.

What Is the Main Advantage of the Herfindahl-Hirschman Index (HHI)?

The primary advantage of the HHI is the simplicity of the calculation and the small amount of data required for the calculation. Also, firms are weighted according to their size, which makes the HHI superior to other measures, like the concentration ratio .

The Herfindahl-Hirschman Index (HHI) is used to determine market competitiveness. It measures the degree of concentration within a specific market. A market with an HHI of less than 1,500 is considered a competitive marketplace, an HHI of 1,500 to 2,500 is moderately concentrated, and an HHI of 2,500 or greater is highly concentrated.

U.S. Department of Justice. “ Herfindahl-Hirschman Index .”

U.S. Justice Department. " Horizontal Merger Guidelines ," Select "5.3 Market Concentration."

Conversable Economist. " The Herfindahl-Hirschman Index: Story, Primer, Alternatives ."

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