Niche hair care gets lift from fashion

Drug Store News, Dec 14, 1998 by Andrea M. Grossman

Hair care scan data provided by Information Resources Inc. reveals that five brands--L'Oreal, Clairol, Pantene, Suave and Salon Selectives--comprise 50 percent of the category's annual $5 billion in sales. Drug store buyers believe that purchases of these brands are based on quality, brand loyalty, upscale packaging and eye-level shelf space.

For niche brands, products and companies, such as Dep, Jheri Redding's Subtle Shades and John Frieda, success is measured differently. It can translate into selling $15 million worth of hair sculpting gel in one year--or roughly what L'Oreal sells in one quarter. The fundamental success strategy for the niche players making and selling problem/solution shampoos, conditioners, gels and mousses is maintaining a steadfast pace of carving out and inventing new niches within the superfluous hair care category.

One of the easiest ways for these niche players to appeal to mass consumers is to ride the wave specialty hair care thrives on--fashion--since hair care undeniably represents one of the most fashion-influenced categories in personal and beauty care. During last month's Fashion Week in New York City, one fashion-industry insider, Lori Lefkowitz, director of the runway division for Ford Models Inc., provided a snapshot of what hair styles for 1999 will trend toward.

"Basically, trends will be bent on extremes. Stick straight, curly and wavy hair are abundant, mostly on waist-length manes made from hair extensions. Spikes and panels were prominently styled on page-boy do's," said Lefkowitz.

As the above trends evolve into the mainstream, consumers realize these hair styles are about as realistic to attain sans products as hair color is to achieve without dye.

So, if specialty hair care manufacturers think they're riding a wave of success now, fashion will possibly push sales increases of gels, mousses and problem/solution products into next year.

According to IRI, sales of styling aids, specifically gels and mousses, outperformed other segments of specialty hair care. For the 52-week period ended Sept. 27, styling aid sales swelled 9.3 percent to $480.2 million. Drug stores experienced 8 percent growth in the segment, a close third behind mass stores sales, which increased 10.8 percent, and food store sales, which grew 8.7 percent.

Though sales growth in styling aids derives from the fashion-forward circle, getting consumers to choose one mass brand over another comes from niche companies dedicated to improving current products, enhancing packaging and developing new variants.

Dep, John Frieda thrive on niche products

Schwarzkopf-Dep, maker of the Dep and L.A. Looks brands, is the forefather of hair gel. Recently acquired by Germany-based Henkel, a chemical and cosmetics group, Schwarzkopf-Dep is no longer a member of the small-company set. But, when looked upon as a wholly owned subsidiary, its brands are exclusive to styling aids and are also the second-best sellers in dollar and unit sales. Increased financial backing from Henkel will help keep Dep on the cutting edge of fashion, as will its new initiatives for 1999.

Next year will be different for Dep in many aspects.

"We're shifting our ad support to one that will primarily penetrate air waves. For 1999, $15 million has been budgeted for the L.A. Looks brand campaign," said David Berglass, vice president of sales and marketing for Dep.

The company also looked into improving its packaging and products. New formulas for its current five-SKU line have replaced older formulas so the gels emit a more natural look on hair. Gels remain packaged in clear bottles, but now tout five different hues.

New products round out the Dep line, which address some of the trends Ford Models' Lefkowitz picked up on runways. Dep Straightening Cream, which is heat-activated, temporarily straightens curly, wavy and permed hair, leaving hair smooth and fizz-free. Dep Volumizing Spray Gel adds fullness to hair and allows hands-free application. And, Dep Finishing Spray offers extra hold to maintain spikes and panels.

Mike Cirilli of Duane Reade noted that its crowded shelves are stocked with niche players, but none that perform quite as well as Dep and John Frieda.

Though it may not appear on IRI's chart of top-selling brands, John Frieda is in fact a solid and successful niche company focusing on specialty hair care.

John Frieda became a must-have on store shelves with its 1991 introduction of Frizz-Ease, a product carried by almost every drug store in America. Last year, Frieda struck success again with Secret Weapon, a serum that creates increased definition for waves and curls and eliminates fly-away strands for smooth, straight hair. It has since become the company's top-selling product.

This past October, John Frieda targeted another niche when it began shipping Sheer Blonde, a full line of shampoos, conditioners, balms and creams designed specifically for natural blonde or highlighted blonde hair.

"Blondes didn't have a line that addressed their specific problems. Lighter hair has the tendency to attract elements that darken it," claimed Joe Cincotta, manager of research and development for John Frieda.