Hair care merchandising's a family affair

Drug Store News, March 5, 1990 by Elizabeth Parks

Hair care merchandising's a FAMILY AFFAIR

Peoples Drug has become one of the first major drug chains to begin merchandising all major hair care lines by family rather than category segment. The new planogram was implemented in January; it presents all Flex together, all Studio Line together, all Salon Selectives together, and so on.

"We did it because we felt it was the most logical way for consumers to shop," said Vicki Williams, vp-cosmetics at Peoples.

"I think this is the way consumers buy hair care products. The way we were merchandising hair care was a hodgepodge. Shampoos and conditioners were in one place, gels and mousses were in another place and hair sprays were somewhere else. But people don't shop hair care by department, they shop by brands," she added.

In Detroit, Perry Drug has just begun to test a family set for hair care. It is presenting families by blocks, just as they do in their new skin care set. The test, which began in January, is limited to three semi-professional lines, all located in the mass hair care set in the higher-priced segment of the planogram.

Perry has organized the Jhirmack, Salon Selectives and Redmond Aussie products as family lines. Everything is merchandised by family from shampoos to styling aids.

Scott Gorley, assistant vp for H&BA marketing/merchandising at Perry, said the test will probably last about six months, and when it ends Perry should know whether this approach has lost sales or created incremental sales. Gorley thinks it will probably grow sales, because people should find it easier to shop for companion products.

This year, many buyers say they expect hair care sales to go up, but not dramatically. In the past year, category growth for most chains seemed to be hovering between 4 percent and 7 percent on average.

Some sources say they've seen their growth in hot categories like styling aids and professional or semi-professional products slow down considerably, as these segments approach what may be their maturity. But these are still the fastest growing segments in hair, buyers say, up between 8 percent and 10 percent on the average. A few years ago, however, they were generating more dramatic growth.

This year, many buyers say it is new products and relaunched, repackaged products, rather then segments, that are driving their business. Some buyers were excited about the New Revlon Internationals launch and the Helene Curtis launch of Degree, which is being backed up by a $35- to $40-million ad budget.

Revlon is not spending anything like that, however, to support Internationals, and as a result, there are buyers who are skeptical as to how big a splash it will make. Some felt that without aggressive ad support, it will make a minor impact and then fade from sight. A few said they felt the packaging doesn't justify the higher-price points.

Almost everyone said that specialty products for thinning hair have been disappointing, and they expect the category to be a "slow build." Shulton's Thrive and Revlon's Nutrasomme are still turning slowly, while Pantresse's Folicure still seems to be the best line in the segment, buyers said.

Several buyers who merchandise these brands in men's grooming said they are thinking of remerchandising them in the regular hair set. "Women don't shop the men's section as much," said one source, "and it's really the women who will buy these kinds of things for their men. I also feel there may still be a stigma to products that say they are for thinning or balding hair. Men may be put off reading that. It's sort of a taboo to admit you're balding."

In metropolitan stores, Clairol's new Option Hair coloring for men seems to be catching on and Grecian Formula's Just For Men is also continuing to do well, according to merchant reports. But in some Midwestern stores and in more rural areas, Option, in the words of one buyer, "is not setting the world on fire yet."

Again, buyers said they are rethinking merchandising strategies for men's hair color. Several chains are trying to decide if they should cross-merchandise these lines with women's color, as well as with grooming to try to capture a wider variety of shoppers, especially women shopping for men.

Hair color doing well

Women's hair color is still doing well, with growth averaging between 6 percent and 10 percent, depending on the chain. In some Midwestern markets, however, the category has gotten very competitive with chains like K mart, F&M and Target often advertising top brands below cost.

In styling aids, most buyers say they see their best turns on any aid that promises ultimate hold or maximum hold. "If it's a regular hold, forget it," said one source.

Multi-benefit products are also doing well in hair care, just as they are in skin care and cosmetics. "The more a product can do, the better," said Perry's Gorley.

Styling aids that shape the hair while enhancing shine or conditioning are doing well, as are shampoos and treatments with moisturizing and conditioning benefits, with volumizing and curl revitalization benefits.