Color

MMR, Feb 26, 2007

Although the hair color category did not enjoy quite as strong a sales recovery as some other segments of the hair care business did last year, participants are upbeat about the prospects for 2007, citing consumer fashion trends that suggest a real upswing is in the offing.

Unlike some other hair care segments, color is dominated entirely by the brands of three major manufacturers: L'Oreal, Procter & Gamble Co. (P&G) and Revlon Inc.--the one exception being the thriving No. 5 brand, Just for Men from Combe Inc. in recent years the category has been marked by competition for market share among these players in the face of tepid consumer interest.

That, however, appears to be changing. According to Information Resources Inc. (IRI), overall hair color sales gained 1.1% to reach $1.03 billion during the 52 weeks ended December 31 (including sales through food, drug and discount outlets, excluding Wal-Mart Stores Inc.). But a number of suppliers assert that women are once again showing interest in coloring their hair, after years of being satisfied with their natural hair shades. On the fashion front they point to reviving popularity for black as well as blondes and reds.

For their part, suppliers are hoping to spur resurgent consumer interest with several product initiatives, most centering around established brands. For instance, P&G's Clairol unit is restaging Herbal Essences hair color to align it with the other Herbal Essences products. The restaged items are scheduled to reach store shelves in March and April.

Other Clairol labels have fared well. Sales of Nice 'n Easy, for example, experienced an 8.7% rise to $96.2 million, while Nice 'n Easy Root Touch Up soared 30.1% to $28.3 million. As a result, the Nice 'n Easy brand garnered a dollar share of 12% last year.

Along with Natural Instincts, Nice 'n Easy is one of Clairol's core brands, and both have been restaged. Nice 'n Easy has borrowed a page from color customization available in salons, offering three blends of color in one step. In addition, the company has taken the Color Seal Conditioning Gloss that comes in its coloring kits out of the box and is presenting it as a stand-alone product selling for $3.99.

Natural Instincts, meanwhile, now boasts updated natural ingredients to protect hair from damage by free radicals. Clairol Hydrience, the No. 12 brand, lost ground in 2006, but will seek to regain traction this year with a heightened focus on the Hispanic consumer.

L'Oreal remains the dominant manufacturer in the hair color arena, with its various brands giving it a dollar share of just over 40%, well ahead of P&G's 29%. L'Oreal's Preference remained the leading brand in the category with a 12.1% share, although sales inched downward 0.7% to $124.2 million last year.

The supplier's other brands turned in mixed results. Gamier Nutrisse posted a robust 14.8% increase to $63.6 million, making it the No. 7 seller in the category, while L'Oreal Natural Match skyrocketed into the No. 9 spot with sales of $36.6 million. The latter entry has benefited from the natural trend since it contains no ammonia and allows women to color their hair more frequently.

However, L'Oreal is relaunching Feria with a new conditioner and new shades, with supporting ads set to appear in April and May.

Finally, Revlon saw its ColorSilk brand turn in a 16% rise in sales to $58.6 million and is wasting no time in launching new initiatives. Last month the company debuted ColorSilk Root Perfect for root touchups, a line of products that encompasses permanent hair color in 12 shades that are applied through a sponge-tipped squeeze-bottle applicator.

On the last day of January the company also introduced the only major new brand of the new year, Revlon Colorist, a line of 26 permanent shades priced at $15.99 each. According to the company, the line is the first to deliver fade-resistant color in a home hair-coloring system.

Each kit comes with permanent hair color plus a shade-matched Colorglaze that is applied once a week in place of regular conditioner. Moreover, each kit comes with enough product to keep color refreshed and shining for up to six weeks.

L'Oreal has enlisted Sheryl Crow as spokeswoman for Colorist, and the ad campaign--which includes television, print, in-store and Internet placements --appropriately enough features Crow's original version of the Buddy Holly hit "Not Fade Away."

"We are thrilled to launch this revolutionary product with Sheryl Crow as our spokesperson," says Debra Dowd, vice president of marketing for Revlon's hair business. "The 'Not Fade Away' message stays true to our product as well as to Sheryl's determination and commitment to women's issues."

Temporary Hair Color Generates Excitement

Colomer USA is capitalizing on revived consumer demand for home hair coloring this year with additions to its Fanci-Full line.

For those who want the convenience of temporary hair color that can be rinsed in and shampooed out with ease, the company offers Fanci-Full Color Refreshing Rinse. "This is the only truly temporary hair color on the market for consumers who don't want to commit to permanent color," says Shawn Tollerson, president of Colomer Multicultural.