Popularity of straight hair styles sets sales for ethnic H&BA - health and beauty aids sales at discount stores - Product Movement Audit

Discount Store News, April 11, 1988 by Tom Hood

Popularity of Straight Hairstyles Sets Sales for Ethnic H&BA

By Tom Hood

Vice President, Sales Ben Sheftall Distributing Co.

Ethnic hair care sales, which grew 8 percent during 1987, are expected to rise between 8 percent and 10 percent during 1988, driven by escalating sales of no-lye relaxers, setting gels and oil sheens.

While there has been a drop-off in sales of curl kits and the popularity of the curly style, straight hairstyles have once again become vogue and have stimulated volume of hair preparations formulated to enhance straight styles.

A 10 percent to 15 percent rise in sales of no-lye relaxers and 5 percent to 10 percent growth for styling gels, oil sheens, and hair and scalp conditioners is projected for 1988.

Curl kit sales dropped 12 percent between 1986 and 1987, but curl maintenance items such as curl activators and curl moisturizers have remained constant since these formulas add moisture, and are therefore helpful in adding vitality the hair is worn in of whether the hair is worn in straight or curly styles. In fact, the majority of the 25 top dollar movers reported on this product movement audit continue to be curl formulas.

No-lye relaxers, the strongest growth category in ethnic hair care at Ben Sheftall, currently represent 10 percent of the company's ethnic hair care business.

Properly relaxed hair can be worn in many different styles, calling for the use of products such as styling gels, oil sheens, holding sprays and hair dresses. Combined, these maintenance items account for 33 percent of total ethnic hair care sales.

Straight Hair Leaders

Among the leaders in straight hair grooming aids are Lustrasilk Right On Curl Instant Moisturizers and Conditioner Sta Sof Fro Oil Sheen and Ultra Sheen Conditioner & Hair Dress.

Unit sales of straight hair care formulas are rising. However, retailers face the problem of the relatively lower price points these formulas carry when compared with curl kits.

Retailers will need to either broaden their customer base, or otherwise increase unit volume in order to reap the same gross margin gains.

Growth in Hair Colorings

Hair colorings for the ethnic shopper is another segment of the market experiencing tremendous growth. Nationally, sales are estimated to be climbing $15 million per year. Carson Products, makers of Dark & Lovely, is the market leader by far, however, Soft Sheen and Revlon are making inroads in its dominance.

Hair colors manufactured specifically for the black consumer fill a need that has been long overlooked. Hair colorings formulated for the general market do not bond as well with the hair and do not deliver the true desired color as well as those created with the black user in mind.

While there are reliable, steady sales performers within the ethnic H&BA category, lack of product innovation is causing problems for the retailer.

"Me too" introductions fail to deliver a new customer to the retailer. As a result, retailers must go out of their way to entice the consumer into their stores through the use of promotions and competitive pricing as well as continuing to maintain an in-stock position on popular products.