Hair accessories keeps growing

Drug Store News, Feb 12, 1996 by Lisa I. Fried

It's an $800 million category (in all three classes of trade) with 60 percent margins, yet many drug chains view hair accessories as an afterthought.

Drug chains currently represent about 24 percent of the hair accessories category, according to Wilhold. While chains such as Rite Aid, Drug Emporium, Phar-Mor, Duane Reade, Walgreen and Thrifty PayLess are taking a hard look at the category, other chains are not. Now, both Goody Products and Wilhold, manufacturers of hair accessories, are taking major steps to open retailers' eyes to the untapped potential of the category.

Taking a cue from hair color vendors, Goody Products is developing an on-shelf educational system called the Custom Care Matrix System for combs and brushes. The system, available this spring, will include colored icons indicating the function of a particular product, such as detangling, styling or blow drying. The packaging on the company's products will contain the appropriately colored icons.

The company is also introducing displays for Revlon hair accessories and significantly expanding this line, as well as its own brand of hair accessories and grooming products.

Wilhold, an American Greetings company, has just redesigned its entire line of 300 hair accessories and grooming products with a fashion orientation. It is also offering new promotions on Finesse hair accessories and grooming products.

"Undeveloped" category

Despite the high margins for the category, it is "undeveloped," said William Berry, president of Goody Products. "All planograms tend to look the same. There isn't enough excitement. Even when new products come in, they get lost in the planograms."

Goody's new merchandising vehicles and educational system and Wilhold's new packaging, as well as new products from both companies, are being designed to create more of a cosmetics/fashion look for the hair accessories/ grooming sections.

Making these sections more exciting/prominent is important because hair accessories are typically purchased on impulse. "The packaging is very important to the consumer," said Deanna Bremer, product manager for Wilhold. "It will make or break the sale. Wilhold's packaging was redesigned to create a colorful impact and help consumers find the right product for their needs."

Here's what else to expect from this category:

Many women consider hair accessories "jewelry for the hair," said John Creel, senior vice president of marketing for Goody, and they buy products to match their clothing. Goody watches the apparel business closely and changes the colors of its lines twice a year to keep up with the latest fashion colors bright colors and tortoise are hot right now for hair scrunchies, pins and clips.

Claw clips, bob pins, basic metal, sleepees and tortoise barrettes are hot now, according to Wilhold. The kids end of the business produces strong turns for retailers as girls tend to lose or break barrettes and ponytailers pretty often. Teenage women and young men are also buying kiddy barrettes and twin bead ponytailers, according to Wilhold.

Goody's acquisition of Philips Industries in August included grooming, hair and cosmetics accessories under the Revlon, Philips, Privado and African Beauty brands. Goody's first action following the acquisition involved revamping the Revlon line and expanding its distribution. In April it will roll out the new, more upscale 250-item line.

Distribution is high priority

"We are aggressively pushing distribution of the Revlon line," said Creel. "It is modest in the drug chain side of business," he said, and the company plans to leverage the relationships it's developed with chains on the Goody line to get the Revlon line into more doors.

The company has also created a new four-sided spinner and two-sided spinner, and will be more aggressive with promotions this year, according to Creel.

In terms of Goody's own line, it w introducing 100 new items. On the grooming end, this includes a line of brushes that contour to the head more than current brushes do. Other new brushes include a very upscale line specifically made for women.

On the fashion end, the company has introduced 40 new products, which include clips, pins and other items; as well as 25 new Caboodles barrettes, headbands and ponytailers for teens.

Wilhold's success in partnering with other companies in value-added promotions prompted t to search for a partner for a premium program. Last June the company teamed up with Helene Curtis to produce Finesse natural wood and salon style brushes, as well as fabric and jewelry style hair accessories. The products are packaged with the same pearlescent blue and silver that appears on Finesse hair care products.

The company will continue to offer the 55 cents coupons for hair care products and claw clips with the brushes this year. It will also offer a Finesse brush promotion that includes a one-ounce sample of Finesse plus shampoo.

To improve sales, Wilhold Street Smart Research creates a demographic profile of the typical shopper in each store, which helps the company advise stores on the appropriate mix to carry.