This chemical is primarily used in hair dye formulations due to its ability to effectively penetrate the hair shaft and provide long-lasting color. It acts as a key intermediate in oxidative hair dyes, where it reacts with other components like hydrogen peroxide to produce the desired shade. Its water-soluble nature ensures even distribution and smooth application. Additionally, it is valued for its stability in formulations, contributing to the durability of the color. It is also employed in research settings for studying dye chemistry and developing new coloring agents.