Baby 'zoomers' chase youth; improved skin and hair care products drive demand

Drug Store News, Jan 9, 1995 by Barbara White

Forget Generation X. The real force influencing HBC is the baby boomers, that census-bulging group that has dictated the consumer market for the last decade.

Boomers continue to influence HBC products from hair care to skin care. They're getting older, and rather than aging gracefully, they want to look as though they're not aging at all.

In the hair care department, baby boomers who want to get rid of traces of gray are making hair color the biggest news in the category. Men's hair coloring products have also been on the rise. Clairol's Just for Men alone had a dollar share increase of 40.7 percent last year.

According to Information Resources Inc., sales of all hair coloring products for women were up by 13 percent across all three channels last year to reach a total of $896.8 million in 1993. Drug store sales of hair color increased 8.3 percent in 1994 to $470.8 million. And drug stores grabbed 52.9 percent of all hair color product sales last year.

The segment will get hotter

The category is getting hotter still since there's more fueling the category than baby boomers wanting to wash gray away. New introductions to the category have proved to consumers that the quality of at-home hair coloring products is getting better and better. With the introduction two years ago of L'Oreal's Castings and Clairol's Glints, women can now experiment with semipermanent hair color that conditions well and will wash away after a number of shampooings. Thanks to the products' promotion and education campaigns, many consumers now view hair color as a fashion accessory.

The newest introductions to the segment will be the products to watch. L'Oreal has introduced the first cream on the market, Excellence Creme, along with Accenting, a new highlighting duo in six shades that's designed for darker hair tones. The manufacturer is also in the process of launching a product that will be packaged in an oval-shaped canister. Rumors say the product will be a shampoo-in color that will last one week, but L'Oreal is not publicly discussing the product yet.

On the Clairol front, the manufacturer is still riding high from its launch of Natural Instincts, the 18-SKU line of naturally derived, botanically based hair colors that has already had a high acceptance from consumers. Clairol has put more money behind this launch than any other previous hair color launch.

Natural helps, but no ace in the hole

Beyond hair color, natural is hot in hair care. Indeed, Aveeda is one of the hottest hair care lines around, one which retailers are knocking themselves out to put on their shelves via diverters. The success of the salon line has sparked knockoffs, such as Aura Inc.'s Aura Fluorescence Aromatherapy line, which closely mimics Aveeda's packaging. Clairol, for its part, has introduced Herbal Esences (not to be confused with the manufacturer's niche line, Herbal Essence).

But retailers say that when it comes to shampoo and conditioners, natural doesn't mean a thing if the products don't perform.

Salon means brand names

That's why some knockoffs aren't cutting it. As long as there's diverted product to be found, drug store buyers and consumers will always prefer the real thing. That means Paul Mitchell, Nexxus, Sebastian and, of course, the much sought-after Aveeda.

There's still room for quasi-salon brands, such as Aussie and Citre Shine. Tom Redmond has launched a new line called Foret, which has some buyers excited about the 10 to 12 new SKUs on the drawing board. A hefty ad budget is sure to get the brand off the ground.

Niche products, such as Mane 'n Tail, Advanced Labs' Fuller Thicker Hair and Neutrogena's Healthy Scalp, are allowing retailers to make solid margins on products that answer specific consumer hair care needs.

Neutrogena's niche approach to hair care has given the manufacturer one of the biggest recent hits in the terminally flat styling aid segment. Heat Safe, a high-ticket, high-margin, hair protection product, has gained high consumer acceptance and has been moving well since its introduction this summer. The product's success proves that consumers will pay more for an item that performs well. Knockoffs are already on the market; CCA has introduced a similar product.

Niche products will drive styling aids

According to Clairol, sales of mousses are actually up 8 percent over one year ago, sales of gels are ahead 5 percent, and spritzes are down 13 percent. What's the forecast for 1995? After the Seventh on Sixth fashion week, it's clear that glamour is back. That means waves and coiffed hair, which needs styling aids and appliances to keep it looking its best.

L'Oreal has introduced Studio Line Any Waves to meet the demand for controlled wavy tresses. Shine products will also continue to be important as sleek looks abound. And consumers are beginning to understand that products with an alcohol base aren't doing their hair any long-term favors. Alcohol-free formulas will become more popular than ever. Bright spots in the styling aids category will continue to be driven by niche products.