Fashion, licenses drive hair accessories

Drug Store News, Sept 9, 1996 by Barbara White Sax

Fashion drives the hair accessory business, and the big fashion news for 1996 is new finishes. Mattes, transparents, pearlescent colors and metallic finishes will be the looks for the coming year, manufacturers say.

Drug store sales of hair accessories totaled $8210.4 million last year, about 32 percent of the total sales across the three outlets, according to Information Resources Inc. Of that, barrettes generate 10 percent of sales, ponytailers total nearly 13 percent pins and clips account for nearly 8 percent an] headbands grab 6 percent of sales.

For the moment, claw clips continue in popularity. "Claw clips are very strong and will be through the end of this year," said Sam Hafif, president of Impulse Items. "By the end of January, I think we'll see a decline in claw clips with a movement toward barrettes."

Manufacturers agree that the Summer Olympics did wonders for the popularity of barrettes. "Contour barrettes are very popular, since the Olympics gave a big push to the products," said Beth Haslam, marketing director for Goody. Said Sue Mackey, director of marketing for Wilhold: "The baby doll looks are popular with gymnasts. We have given bob pins a new twist with color, shape and finishes. These functional items of the past are now fashionable."

Once function, now fashion

"I was thinking about how the gymnastic competition would affect the popularity of barrettes," said a buyer at one Canadian chain, "but I haven't seen it yet." The buyer said she brought in a fall line with matte, suede and corduroy finishes. "I'm working with department store vendors to bring more fashion to my department. I almost think of basics and fashion as two separate categories."

Indeed, this retailer displays fashion hair accessories on a spinner rack in the cosmetic section and basics in the hair care aisle. "For a long time, in-line sections have been dominated with basic offerings," said Steve Schoenfeld, vice president of sales at Karina, which supplies department stores as well as mass. "Recently, chains, such as CVS, have been putting fashion products in their in-line pegged sections."

Impulse Items, which concentrates on the fashion side of the hair accessory business with products retailing from 99 cents to $12, is another vendor working to bring fashion to the mass trade. Based on the fact that the company also supplies department stores, it is confident forecasting the trends for the next season in mass. "We see the trends in department stores six months before they come to mass," Hafif said. Right now he sees tortoise, metal mesh in gold and silver, gun metal and copper finishes in barrettes. Animal prints, status labels and techno finishes (with holograms, sport looks or shiny fabrics) are also trends to watch.

Hitting the right mix

Even the major players in the category are waking up to fashion as big business. With its recent purchase of Phillips, Goody hopes to become more of a fashion resource. "While basics will continue to be the bulk of the business, fashion is becoming a bigger part of the category," said Goody's Haslam. "We're seeing that consumers are willing to pay more for a fashion/branded product." Goody plans to inject more fashion through its Revlon license, which it acquired with the Phillips purchase.

"Consumers see hair accessories as a way to introduce fashion to their wardrobe," said Haslam. "And because fashion changes, we have to have new products on the shelves." Haslam said Goody, like other suppliers in the category, will introduce new fashion products to its line every six months.

Manufacturers are working with retailers to balance their mix between basics and fashion. "We are working with retailers to help them make the most of their sections," said Goody's Haslam. "The basic items are the volume drivers, but fashion attracts consumers to the section." Goody is working with Eckerd, for example, to create tailored mixes for its ethnic stores. "In those stores, we try to maximize the impact of the African Beauty line to improve sell through," Haslam said.

Licenses key to kid's line

Knowing how to translate what's happening on the runway to the hair accessory department is only part of keeping on top of the category. When it comes to children's products, an intimate knowledge of which children's licenses appeal to the small set is vital.

Goody, which holds the rights to Disney license tieins, will ship 101 Dalmatians licensed goods in October, just in time for the film's Thanksgiving release.

The company is now launching a line of Princess Gwenevere and The Jewel Riders products, which tie in with the popular Saturday morning cartoon of the same name. The line includes a blinking jeweled twin bead ponytailer that lights up, a hot pink brush with lights and a bow with colored beads that change color in the sunlight. "It's a very toy-like line that will appeal to consumers for the holidays," Haslam said.

Fashion has also reached the brush and mirror segments. Brushes are a major part of hair accessories, generating nearly 28 percent of category sales. Wilhold, which introduced color-coded packaging for its entire line, has added two new brush collections this year.