Reinvented classics revive listless hair care category - Brief Article - Statistical Data Included

DSN Retailing Today, Oct 1, 2001

Blonde, braided, spiked, spiraled or short, whatever the style or shade, the hair care category is batting a thousand at mass and drug. Indeed, a rush of new and diverse hair products have stepped up to the plate in recent months, and some industry experts say a category with such magnitude and innovation is just what mass can depend on to boost sales next year, even in an economic downturn.

"New products and [revamped lines] are what hair care really hit home with this past year," said Jeff Rubin, beauty buyer for Harmon Discount Stores.

The past few months welcomed a slew of new styling and coloring items, hut the year also greeted the reinvention of popular brands such as Head & Shoulders and White Rain. Both took to the likes of new packaging and new formulas, as did Procter & Gamble's Pantene. But will hair care be as equally dynamic in 2002 as it was this year? "I think so," said Rubin, "as long as the prices come down a little bit, only because the way the economy is."

Though Rubin has not seen anything "new or exciting" in hair care, he said relaunched brands will continue to drive sales next year if manufacturers "keep getting this message across."

"Manufacturers are convincing the public they no longer have normal hair, fine hair or oily hair, but they now can have curly hair or straight hair, "He added referring to the hair care lines that have resurfaced with new formulas claiming to enhance an existing look, such as curly, rather than treat a specific hair type, such as fine or oily.

Suppliers are bullish 2002 will he another vigorous year for hair care. "The category is constantly evolving, and there are always new brands, trends and products coming into the market," said Patrice Louvet, marketing director for Procter & Gamble hair care.

Hair care feeds off energy, said another supplier. "There's been a lot of consumer excitement in the category, and we expect it to continue," said Jeremy Cage, Procter & Gamble's marketing director of hair care for North America. Looking forward, Cage said the home coloring trend and the upsurge of styling items will continue. "We see more and more consumers coloring and straightening their hair. [But] fundamentally, they're damaging their hair" Cage said. "So, there'll be an increasing role for conditioners."

According to Chicago-based Information Resources Inc., the conditioner segment grew 9% for the year ending July 15, 2001, as compared to 2000. Procter & Gamble recently added a conditioner sku to its Head & Shoulders line as part of the relaunch. Clairol also took advantage of the new opportunities and now markets shampoo and conditioner for color-treated hair, Louvet pointed out.

But Rick Goldberg, president of the Minneapolis-based hair care company Progressive Beauty Brands, likened hair care success at mass to the economy. "Last year, it looked as though there was no ceiling at all," he said. "But then the first of the year came along and the bottom dropped out. So past performance does not necessarily indicate future performance."

Goldberg added, "A lot of what can drive the category is defining the customers' wants, needs and desires before they even realize that it's a want, need or desire."

Nonetheless, said Dick Hynes, group vp for North American consumer products for Alberto-Culver Co., "People [will always be] conscious of their personal looks and personal care, despite the economy"

Beyond the obvious, Hynes added, hair care is driven by news, and if retailers and suppliers can effectively communicate that to consumers, it will remain a stronghold in mass and drug. "Sometimes the news is about efficacy, where a product is [solving] a particular problem. It's a little known fact 75% of women walk around [with the notion] they have a hair care problem," he said. "So there's this eternal search for the perfect product that's appropriate [for that consumer's] hair condition," he said.

Cage offers another perspective. Hair care will persevere in the leading mass channels even in a soft economy because "for $5 or less, hair care is still a luxurious escape," he said, referring to the price of a typical shampoo or conditioner. "I would say in times of economic hardship, hair care is something consumers can hold on to as their treat."

One factor driving sales at the mass and drug level is the salon, experts noted. "The salon is where things come to birth, are tried and then taken to retail," said Hynes. He used the growing hair pomade segment as an example. "Pomades have been in the salon market for a while now, but they haven't been at retail all that long. Once they became a proven piece to the salons, then it was time to go from salon to mass."

Other suppliers agreed. "We continue to see a move from class to mass. Products traditionally carried only in salons and specialty stores are making their way into mass channels," said Andrew Gross, vp of marketing for hair care at Unilever. According to Rubin, most of the growth in hair care has been in the styling area. If retailers can get a consumer to use pomades or other styling aids daily, "they'll fuel growth, as opposed to [seeing sales increase] once in a while," he added.