Ethnic hair care sales steady but show little growth

Drug Store News, Sept 30, 1991 by Elizabeth Parks

Ethnic hair care sales steady but show little growth

As we move into the last quarter of 1991, the ethnic hair care product category, in terms of dollar growth, is basically static.

Although some sources estimate that industry sales are up by 3 to 5 percent because of sales of professional beauty store operators and salons, most distributors and category buyers say the trend at retail is down, possibly by as much as 5 percent in some markets.

At North American Beauty Service in Baltimore, Founder Dave Pearlman says that in the last six months, the category as a whole hasn't changed much. "It's matured to the point that we're not seeing the revolutionary changes that took place in the past."

He estimates that ethnic HBA sales may be up about 3 percent versus last year.

At Harco Drug in Alabama, Ethnic product buyer Charles Monk reports his year-to-date same store sales are up about 5 percent, an accomplishment he strongly credits to Harco's aggressive promotions for ethnic. |Promoting as much as we do drives our business," he says.

In Oklahoma City, Kent Humphreys, president of Jack's Service Company, says the industry is sluggish, with growth off by as much as 5 percent. "There are no new products out there right now to drive the growth," he says, "although the good news is that there are some interesting developments coming."

Richard Eichholz, president of Ben Sheftall, also sees a "softness" at a retail. "Easter sales weren't near what we anticipated, although the summer has been hot, and that's been good for business," he says.

Category segment analysis

There are several very strong growth segments within the category, but with the exception of relaxers, which accounts for about 15 to 18 percent of dollar sales, the largest growth is coming from segments with relatively small dollar bases.

Hair color is a very strong growth segment, but in some companies, it accounts for only 2 percent of total sales and in others, less than 5 percent.

At Standard Distributing in Detroit, president Dan Medow says that from July 1988 through July 1991, his sales of ethnic hair color increased by 62 percent. On a year-to-date basis, they are up 13 percent, and for some companies like Beauty Enterprises in Connecticut, hair color sales are up 40 percent versus last year.

"The hair color market is expanding and expanding," says Pearlman. "Dark & Lovely is doing very well and Creme of Nature is moving well too."

Relaxers

All our sources reported some growth in relaxer sales, up at least 5 percent in most cases. Dark & Lovely, Gentle Treatment, Soft & Beautiful and Creme of Nature were usually named as the four strongest brands in the segment.

"Relaxers are unbelievably hot," says Eichholz.

"Relaxers are doing so well because they give women so much versatility," says Pearlman. "You can try many different styles with relaxed hair."

According to TCB product manager Maggie Delatour, 70 percent of all ethnic women currently relax their hair. That's created a strong demand for maintenance products for relaxed hair, and TCB, which has a full line of these items, is about to kick off a new ad campaign designed to maximize that marketing opportunity.

Monk says he interprets the new program as Culver's signal that "they're going to get in there and make something happen. There hasn't been anything exciting coming out of TCB in a while," he says," and now they're going to be spending more aggressively and promoting more and more. They're participating in our beauty schools and they're supporting us so we'll be supporting them. It's exciting."

Growth segments

At Beauty Enterprises, buyer Jim Normandin reports that several small segments are showing way above average growth, including medicated conditioners, up 28 percent; soaps, up 22 percent; pomades, up 16 percent; hair food, up 14 percent; skin creams, up 12 percent, and aerosol sprays, up 15 percent.

Normandin singled out Ambi's bar soaps as a top brand in its category. In pomades, he said the top brands right now are Soft Sheen Sporting Waves Pomade and Murray's Hair Pomade. He said Luster's Oil Moisturizing Sheen Aerosol and Revlon's Finisheen are also doing well as is Bronner Brothers Super Gro and TCB Hot Oil.

Styling aids are hot

Styling aids are continuing to show exceptionally strong growth.

Geri Duncan Jones, executive director of the American Health and Beauty Aids Institute (AHBAI), says spritzes, sprays, gels and lotions are particularly popular right now. "These are all items that help finish the styles that people are wearing today," she says.

Humphrey says his two best selling spritzes are the New Era Spritz and the J.M. Products Isoplus Spritz. Eichholz is doing very well with the Summit Pre-Con Gel and with Vigorol.

Normandin also reports that styling gels are up 36 percent versus last year, with LeKair Styling Gel Extra Hold and Pro Con Gel leading the pack.

He adds that bergamots right now are showing the strongest growth in his markets with sales up 50 percent over last year. Posner's Bergamot and Blue Duchess Bergamot are two of Beauty Enterprises's best sellers.