Color innovations biggest news in hair care

Drug Store News, May 17, 1999 by Andrea M. Grossman

Hair care fueled personal and beauty care's growth throughout 1998. Innovation in hair color, in particular, created most of the excitement as manufacturers raced to launch new color treatments for America's growing demographics, such as baby boomers and teens, and untapped groups such as men. Shampoo and conditioners also registered several new entries, as mass retail for the first time stocked SKUs made for colored hair.

Overall in 1998, the hair care category, which includes shampoo, conditioner, hair color and styling aids, rang approximately $1.3 billion in sales in the drug store class of trade. Increases in hair color (10.3 percent) and hair gel and mousse (6.8 percent), led the way, according to data from Information Resources, Inc. Many different conditions led to the slew of new entries, relaunches and innovations, one being consolidation.

1998 marked a bevy of mergers in the category. Dep, the forefather of hair gel, was acquired by Germany-based Henkel Group, maker of the Schwarzkopf brand in Europe. Now the brand will experience increased financial backing as its marketing efforts evolve from magazine ads to TV spots.

Freeman Cosmetics, which was acquired by the Dial Corp. in the first half of 1998, underwent major brand rejuvenation for its hair care line, Botanicals, which switched to the brand name Beautiful Hair Botanicals, is a change that flows with its other brands for skin and bath. Within Beautiful Hair Botanicals, improved flavors and new variants were added. Packaging of shampoo and conditioners switched from mainly floral containers to cream-colored bottles with shiny bronze caps. Containers now display only a small splash of floral graphics.

While the acquisitions of smaller companies by personal and beauty care behemoths will help fuel future product launches and ad messages, small niche brands still made significant headway in hair care. John Frieda is one such niche brand that took 1998 by storm. The company's October launch of Sheer Blonde captured the light-haired market with a full line of shampoos, conditioners, balms and creams designed specifically for natural blonde or highlighted blonde hair.

1998 also marked a year of technological advances in the hair care segment as Unilever launched the niche brand ThermaSilk, addressing the untapped market of heat-damaged hair. The launch made headlines as women scrambled to sample the shampoo and conditioner formulated to help reconstruct damaged hair caused by blow dryers, curling irons and hot rollers. For the 52-week period ended Dec. 27, ThermaSilk sales reached $47.6 million in the food, drug and mass class of trades. Duane Reade's divisional merchandise manager, Mike Cirilli, believes that ThermaSilk's performance drove sales last year.

Revlon's ColorStay shampoo for colored hair marked the first mass entry of its kind. Revlon launched the six-SKU shampoo and conditioner line in September. ColorStay shampoo and conditioner targeted blondes, brunettes and redheads with specially formulated variants.

Other shampoo innovation came from Procter & Gamble. Its re-stage of the Pert brand improved its formula and packaging. The chief formula change allows the shampoo-and-conditioner-in-one to rinse out of hair better, according Dave Reid, business development manager for health care.

P&G also looked to appeal to style-savvy male and female consumers with a new premium-priced shampoo, conditioner and styling product line under the brand name Physique. The new line was test marketed in several regions in 1998 and expects to hit shelves nationwide in 1999. Product is packaged in a sleek silver bottle.

Other innovation came from Redmond Products' Aussie shampoo brand, which revamped five existing shampoos and added two new shampoos. Conair's launch of Smash addressed the teen demographic with its shrink-wrapped packaging and fruity scents. The three-SKU line (two shampoos and one conditioner) began shipping in September.

Mousses also experienced innovation in 1998. Conair's Jheri Redding brand targeted women who want to enhance their hair color, or maintain their colored hair, with color-specific mousses called Subtle Shades. The built-in but non-permanent color offered consumers a coloring alternative.

Clairol, the No. 1-selling hair care company, also played on the mousse trend when it extended its Daily Defense line of products with styling aids under the same brand. The line includes a styling gel, a spray gel, an aerosol spray, a non-aerosol spray and a mousse.

Throughout 1998, the pace of hair color launches was dramatic. Teens--the fasting growing hair coloring market, as well as the second largest growing demographic--were courted continuously first by Clairol with Natural Instincts Exotics, then by L'Oreal's Feria and finally by Revlon's Super Lustrous Hair Color line. L'Oreal's preference placed first in sales with 3.1 percent increases, followed by Clairol's Nice 'n Easy and L'Oreal's Excellence.

Larry Vick, vice president and divisional merchandise manager for ShopKo, said teens are driving sales for the chain's hair color section. The launch of better-quality products and higher retail rings also helped retailers.