Hair trends lead to market share battle in ethnic H&BA products - Health and beauty aid products

Discount Store News, March 28, 1988

Hair Trends Lead to Market Share Battle in Ethnic H&BA Products

Nationwide DSN Report

A vendor battle for market share will spur ethnic health and beauty aids manufacturers to cut prices, develop innovative new products, launch new promotions and increase co-op advertising expenditures during 1988.

The rising popularity of low maintenance straight hair styles is making it difficult for manufacturers to sustain, much less increase, 1987 sales volume. Because the ethnic consumer does not need to purchase as many products to create or maintain straight hair looks, the overall ethnic hair care universe is shrinking.

The entrance of new manufacturers into the ethnic field compounded the problem of the vendor's market share erosion.

Even though the market share battle started in the early to mid-1980s--a period when hair styles shifted away from the curly look--it has only been recently that manufacturers have really felt the pinch.

Barbara Ingram, corporate communications manager at Atlanta-based M&M Products, maker of Stay Soft and other ethnic product lines, said she suggested that the company might consider going beyond U.S. retail channels to combat current volume problems in addition to cutting prices and introducing new curly styles don't require as much moisture as once thought. Today the style is dry," she said.

"The move away from the curl market really started in 1980," said Comer J. Cottrell, president of Dallas-based Pro-Line Corp., maker of the Soft & Beautiful brand. "It wasn't until the latter part of 1985 that the struggle for market share became realized. Market share is shrinking in terms of dollars because most of today's styles don't require maintenance and relaxer products."

Marcus Griffith, president of Hairlox Corp., Washington D.C., said he has increased co-op advertising dollars to most of his discount channels to help maintain market share. However, he finds competition from the likes of Alberto Culver, Revlon and other general market health and beauty aids manufacturers a difficult force to oppose.

"There will be a shakeout. Competition will be keener. Alberto Culver, Revlon and others will gain market share not because that is what the consumer wants, but because of the relationships that exist between the general market manufacturer and mass market retailers," Griffith said.

Photo: Ethnic hair products at K mart, Atlanta: Discounters more than doubled their share of the ethnic hair care market last year, according to the American Health & Beauty Aids Institute. (DSN photo)