Euro launches, new demos dominate hair

Drug Store News, May 19, 2003

Hair care, which has maintained healthy growth across all segments, was bolstered by a flurry of activity in the second half of the year. A handful of major players sought to revive once-stellar sales growth by reacquainting consumers with familiar brands and introducing new ones.

Procter & Gamble re-introduced consumers to its recently acquired Clairol brand through a massive ad campaign "Colorwonderful" intended to pave the way for new introductions in 2003.

Last winter, a flood of European hair care lines washed across the pond for their U.S. debuts. Gamier introduced its European, fruity-acids-infused hair care brand Gamier Fructis, which originally bowed in France six years ago.

After much speculation, Unilever got its head wet in the hair care business with the launch of a Dove hair care line in the United States, which already had success in European and Asian markets.

Hair color did its part to fuel growth by catering to new consumer groups, such as men. Indeed, the extension of Combe's Just For Men brand with Maxim helped the brand earn an extra $4 million in drug stores last year, offering both new technology and delivery systems. Splashy advertising campaigns complete with celebrity spokeswomen, such as Sarah Jessica Parker for Gamier Nutrisse and Laila Ali for Soft Sheen, lured salon regulars to the hair color section of the drug store. Leaders in hair color, namely L'Oreal, continue to entice women and push the price ceiling up further with leading-edge multi-tonal technology.

TOP 10 GAINERS IN DRUG

                                      $       %
Brand/segment                      sales *  change

L'Oreol Preference - color          $65.9    -0.5%
Scunci - occessories                 61.3    -1.4
L'Oreal Excellence - color           56.8    16.4
L'Oreal Feria - color                46.7     2.5
Clairol Nice N Easy - color          43.1     1.2
Just for Men - color                 37.6    11.8
Clairol Natural Instincts - color    33.5     8.4
Goody - accessories                  27.0    -8.1
Garnier Nutrisse - color             25.4     7.3
Clairol Hydrience - color            22.1    -1.5

Source: Information Resources Inc. for the 52 weeks ended Dec. 29

* Sales in millions

TOP 10 GAINERS IN DRUG

                                             $       %       $
Brand/segment                             sales *  change  change *

Revlon High Dimension - color             $13.7    155.7%  $8.4
L'Oreal Excellence - color                 56.8     16.4    8.0
L'Oreal Open - color                       17.4     81.4    7.8
Scunci Style - accessories                  6.0      NA     6.0
Clairol Herbal Essences - color            20.7     29.2    4.7
Head & Shoulders Classic Clean - shampoo    9.7      1.8    4.6
Got 2B gel-mousse                           8.5    105.6    4.4
Just For Men - color                       37.6     11.8    4.0
Clairol Natural Instincts - color          33.5      8.4    2.6
Pantene Sheer Volume - shampoo              8.4     36.7    2.3

Source: Information Resources Inc. for the 52 weeks ended Dec. 29

* Sales in millions

HAIR CARE SCORECARD

                                    Total F/D/M *          Drug
                                                          stores

Category/                         $        % chg.        $
segment                        Sales **  vs. yr. ago  sales **

Shampoo                        $1,293.6      0.7%     $347.4
Hair color                      1,107.5      0.2       599.5
Conditioner                       799.5      0.2       259.4
Gel/mousse                        551.2      6.1       229.9
Spray/spritz                      410.5     -2.0       151.5
Hair growth products               73.5     -6.3        55.3
Home permonent/relaxer kits        63.3    -10.5        38.6
Shampoo and conditioner combo       6.0      6.7         1.2

                                Drug stores       Drug chains only

Category/                        % chg.        $         % chg.
segment                        vs. yr. ago  sales **  vs. yr. ago

Shampoo                            4.2%      $297.6       4.6%
Hair color                         3.2        524.4       3.9
Conditioner                        2.5        227.9       2.9
Gel/mousse                         9.4        203.8      10.0
Spray/spritz                       3.1        129.7       3.3
Hair growth products              -3.1         47.7      -1.5
Home permonent/relaxer kits       -7.7         33.1      -6.8
Shampoo and conditioner combo    -13.8          1.1     -11.7

Source: Information Resources Inc. for 52 weeks ended Dec. 29

* Total F/D/M excludes Wal-Mart

** Sales in millions