Kids' items add curl to flat ethnic hair care sales

Discount Store News, June 21, 1993 by Dawn Wilensky

Ethnic hair care, a category traditionally geared towards women, is expected to experience flat growth for the next five years. Looking to rejuvenate it, manufacturers have turned to other segments of the population to boost growth.

According to Packaged Facts, a New York-based research company, the hair care segment, the oldest and largest segment of the ethnic H&BC market, gained 4% in 1992 to post sales of $390 million, and is expected to experience an even smaller 3% gain in 1993, and maintain that 3% level through 1997.

While some are skeptical about the category, Jeri Jones of the American Health & Beauty Aids Institute in Chicago feels confident that the category will continue to see small increases. "The category will gradually increase over time based on population increases and the new opportunities offered by male and children's styling."

Picking up the slack of the mediocre women's hair care market, manufacturers have begun to target the juvenile market. Soft Sheen has just introduced Tender Care, a line of products geared towards the pre-teen and teen market. Soft Sheen had debuted Baby Love, the first children's line in 1990.

Other products on the market designed for the juvenile group are ProLine's Just For Me line, geared to the 6- to 14-year-old segment. Tony Scott, advertising assistant, Proline, said, "The children's market is real competitive. Our new line of products has a new spin - no lye in the relaxers or maintenance products, which is ideal for the younger consumer.

Also seeing the potential growth of the juvenile market, Clairol has introduced its Condition 3-in-1 detangler plus, which can also be beneficial to the ethnic market.

Juliette Brown, director of public relations for Shark Products, which manufactures a number of hair care products for the mass market, feels that targeting a younger audience can be lucrative since teens have disposable income and are willing to spend it to look better.

Retailers have also seen the potential of the entire ethnic hair care category with Kmart devoting at least 2 1/2 ft. of space in its stores, regardless of the demographics, and as much as 25 ft. in its stores with higher concentrations of ethnic consumers.

Bruce Michelotti, Kmart's H&BC buyer, said that while nothing stellar is happening in the category, he feels growth exists in the children's market. "Our relaxer kits for kids have been doing very well. I feel that this is going to be a strong category as we go down the road," he said.

However, growth must also come from other avenues. Allyn Thompson of Packaged Facts feels that wrap styles and retro styles will drive the category in the next few years. "The category is fashion-driven. Women want to achieved smoothness and some of the new hair styles like french rolls achieve a well-maintained look." Michelotti agrees, "It seems that wrap and wave products seem to be generating some sales."

Kmart, which uses six distributors across the country to keep in-stock on product, also relies on advertising. The discounter advertises in almost every issue of Ebony magazine, it uses network radio to highlight an item or two and in some of its stores with higher ethnic demographics, products are advertised over the public address system.

Cashing in on the trends seems to work. Kmart's Michelotti said the category essentially includes two segments. The first is the maintenance products which have been around a while and will continue to be around for many years to come. The second is the style products which are driven by trends. "As new items come along, we get rid of the slow movers and replace them."

While only a few years back the curly look was hot among ethnic groups, nowadays, there is a marked increase in the use of relaxers. "Today's hairstyles are going toward the soft body curl. The curly look has really lost out while the relaxer market has gained popularity," said Jim Normandin, merchandise manager, Beauty Enterprises, a distributor of black H&BC products.

Another market ripe for growth is the men's hair care market. According to a 1992 study of media and markets conducted by New York-based Simmons Market Research Bureau, 16.5% of black men used hair coloring products in the last six months vs. 11.1% that had used hair color in 1991, and more importantly, 45% more black men use hair color products than the total male population.

With margins of 30% to 35% and turns of six to seven at discount chains, the category seems to be holding its own. However, some retailers have complained of some problems. Michelotti said, "This category presents more problems than most others, specifically, with reading UPC numbers on the packaging."

All problems aside though the ethnic hair care also offers potential in an untapped resource of the population which falls under the ethnic umbrella - Hespanics and Asians - groups which will become more important in the next few years.

"Hispanics are attracted to fragrances that promise herbs and scents of the Caribbean. Fragrances are very important to them. I also feel there is a lot of potential in the Asian market even though no one has really tackled that market yet," said Thompson.