LITTLE FALLS, NJ, March 29, 2006 – Whether through unauthorized sales or a deliberate change in distribution strategy, more and more hair care brands that were formerly “salon-only” are finding their way into mainstream retail markets. A market study soon to be published by Kline & Company examines this continuing trend and its impact on the salon hair care market.
“For years, salon brands like Matrix, John Paul Mitchell Systems, and Redken have been fighting mass distribution of their products by combating diversion as much as they could, and by staying true to their salon distribution,” says Carrie Mellage, industry manager of the Consumer Products practice for Kline’s research division. “Now there’s an abundance of professionally positioned brands in supermarkets and drugstores, and the separation between salon and mass retail has diminished.”
Even Nexxus, a salon brand that has suffered from diversion for years, has officially gone to mass distribution in 2006 under Alberto-Culver’s new ownership. And famous stylists such as Marc Anthony and Ken Paves have already made the choice to distribute their products through U.S. drugstores like CVS, Walgreens, and Rite Aid.
According to Kline’s SALON HAIR CARE USA market study, growth in the $2.2 billion U.S. salon hair care product industry has been steadily dropping since the 1990s, plagued by the recessionary economy and consolidation among manufacturers, distributors, and salon chains. Increased competition from the mass segment could exacerbate soft sales in salons.
Growth in the overall hair care market has not exactly been stellar either, posting just a 2.2% increase in 2005, in comparison to 2.7% for the salon hair care segment. However, the professionally positioned brands have offered one pocket of growth. Mellage points to John Frieda as an example of a hairstylist line that has performed particularly well in mass channels, noting that the company’s Brilliant Brunette line was the biggest U.S. hair care launch in 2004. John Frieda successfully extended this franchise last year with the Radiant Red line.
“While salon players are still innovative from both a technological and marketing perspective, windows of opportunity are closing more quickly,” says David Vladyka, head of Kline’s Consumer Products consulting practice. “Mass players continue to harvest ideas from the salon market to sell new benefits to consumers, and they’re bringing salon trends to the mass channels faster than before.”
European stylists are making the same move to U.S. retail channels, which is increasing competition even further, says Mellage. Umberto Giannini and Charles Worthington are among the hairstylists from the U.K. that have ventured into U.S. retail territory.
“The European market is slightly different than in the U.S. because the brands are not as universally available, and brands in Europe vary from region to region,” she says. “Often a salon brand may be strong in one particular country, like Clynol and Fudge, which are key players in the U.K. market but are not broadly available throughout the rest of Europe.”
Due to be published later this year, SALON HAIR CARE USA will be the eighth edition of Kline’s comprehensive study on the professional hair care products industry. It examines category size and growth, market shares of the leading companies and brands, and sales by segment for in-salon use and retail purchases, with forecasts to 2010. Kline recently expanded this series to offer SALON HAIR CARE WESTERN EUROPE 2005, which covers France, Germany, Italy, Spain, and the United Kingdom.
For more information on these market studies, go to www.klinegroup.com/reports/y357.htm or contact Carrie Mellage at +1-973-435-3412. Those based in Europe should contact Pilar Pardo at +32 2 776 0737.
To learn more about Kline’s customized consulting capabilities for the consumer products industry, contact David Vladyka at +1-973-435-3402.
Established in 1959, Kline & Company (www.klinegroup.com) is an international business consulting and market research firm serving the consumer products, specialty chemicals, life sciences, and petroleum and energy industries.
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