Bad Hair Days

KELLY GATES

Hair care is hurting. Due to the sluggish economy, shoppers aren't spending as much on shampoo, conditioner and styling products.

Only select consumers are continuing to shell out cash for salon-grade sundries. Some are willing to pay slightly more for items with functional features like straighteners, anti-frizz ingredients and curl enhancers, but only if they offer conveniences they don't want to live without.

The rest are moving toward less-expensive brands, retailers told SN.

Publix Super Markets, Lakeland, Fla., has experienced an uptick in sales of budget-conscious items such as V05 and Tresemme due to the economy, according to Publix spokeswoman Maria Brous. Shoppers there are also stretching their dollars by buying bulk.

“Bonus packs, mainly [supersized] portions of conventional hair care products, are selling really well,” she said. “Products focused on length and volume are of interest to consumers too.”

L'Oréal has a line of length-centered accoutrements on the market. Its Vive Pro Nutri shampoos and conditioners are made for medium-to-long locks, with individual varieties designed for fine, curly or damaged hair.

Sexy Hair also has an abundance of rinses and conditioners, styling gels, mousses, anti-frizz oils, creams and other potions for short, medium and long hair. The products target a wide variety of hair textures and boast hip names like Slept In, Control Maniac and Play Dirty.

Some of these high-tech hair helpers are popular at Publix. However, the most frequently bought brands there are Pantene, Herbal Essences and Head & Shoulders, Brous said.

Across the country, retailers are seeing similar trends, and most report a decrease in overall sales.

Data from Information Resources Inc., Chicago, supports this. During the 52 weeks ending July 13, 2008, sales were down in virtually every segment in the category, according to IRI.

Shampoo and conditioner sales dipped 2.9% to $520 million and 1.5% to $391.6 million. Sales of styling products — gels and mousse — were also down 3% to $214.6 million, and hair sprays/spritz dropped 1.4% to $156.3 million. The one exception was men's hair color, which increased 1.1% to $36.3 million during the same time period, according to IRI.

Bill Martin, HBC category manager, Valu Merchandisers, Kansas City, Kan., expects to see men's hair care continue to grow in upcoming years. Along with hair color, male shoppers at stores supplied by Valu Merchandisers are gravitating toward body washes that do double duty as hair rinse.

“One brand our male shoppers really like is Gillette, which has a new Gentle Clean Shampoo and Body Wash,” Martin said. “The manufacturer wants its products to be merchandised with the other hair care products rather than being assigned to the shaving section, where Consort, another men's care brand, is typically located.”

Robert Passikoff, president, Brand Keys, New York, also believes that men will make up a larger share of the market in the future. Even though the metrosexual movement is long over, there are quite a few men's products he believes facilitate the male consumer's regular grooming routine without requiring excessive primping and preening.

“In short, they are less about beauty and more about maintenance,” he told SN. “These include hair care, two-in-one hair and body washes, and anything made specifically for men that they would use daily anyway, like shampoo, conditioner and some styling gels.”

Functionality

Hair care technologies have advanced significantly in recent years. Consequently, consumers have come to expect products that not only help with hygiene, but have added functions as well.

“Today, the functionality of hair care is vast and individualistic,” said Don Stuart, managing director, Cannondale Associates, Wilton, Conn. “There are products for straight hair, curly hair, frizz control and curl maintenance. It seems as if there's a product for every consumer for every day of the week.”

The Holy Grail of hair care remains, as in cosmetics, to sell hope in a bottle, he added.

John Frieda, which was recently purchased by Procter & Gamble, has a line of shampoos, conditioners and styling products that do everything from fluff to flatten and are simultaneously formulated for different hair colors.

Pantene just came out with an assortment of Pro-V Expressions products infused with “liquid crystal technologies.” The company claims that Expressions items will add tone, depth and vibrancy to one's hair color.

Another new Pantene line, Beautiful Lengths, contains a patented “Aquacurrent Science” that is supposed to moisturize and protect each strand from damage, thus helping grow long, strong hair.

“Anything focused on making hair straight and shiny or adding volume continues to do well here,” said Terry Cerwick, senior category manager, non-edibles, Bi-Lo, Greenville, S.C. “Hair care products made for color-treated hair have also picked up in sales here lately.”

Despite the decrease in spending on the whole, shoppers are still seeking certain scents and ingredients in the products they purchase. Natural and organic items have been popular for several years and continue to attract attention. Unique fruit and floral blends are also well-liked.

Herbal Essences has captured the concept of smell. The company makes 12 fragrance collections, with mixes of orange flower and berry tea, and mango, fig and golden plum, among others.

Cerwick frequently watches shoppers at Bi-Lo study the individual ingredients on hair care labels. Not only are they aware of what goes into the products they buy, they are usually looking for specific add-ins when making purchase decisions.

“People definitely pay attention to the ingredients,” he said. “Our data shows that their acceptance of organic/natural products is much greater when the company can back up claims with the ingredients they are using.”

According to a West Coast retailer, the natural and organic segment of hair care is still largely undefined. Consequently, he believes that the controversy over hair care products that claim to be all natural or organic, but still contain components like silicone, is not that big of a deal.

“Shoppers who are better informed and more serious about naturals and organics are far more likely to take offense if a product promotes natural or organic components but still has unnatural ingredients,” the retailer told SN.

Most people realize that hair care is not a category where they will find a lot of things made with 100% organic ingredients anyway, he noted.

Brous agreed. Only select shoppers care about every last component, she said. Those who do will take measures to ensure that they buy products without synthetics in them, even if that means ordering online or going to a specialty salon.

“The loyal followers of natural and organic ingredients will seek out what they want in their hair care needs,” she said. “Others are happy enough knowing that they are getting more natural or organic ingredients than they did before.”

Taking Action

Retailers may not be able to do anything about the economy. They can, however, boost hair care sales by better catering to consumers' needs, experts told SN.

Don Stuart, managing director, Cannondale Associates, Wilton, Conn., recommends resetting shelves.

“We're seeing more branded hair care centers, led by the salon products, particularly in drug stores,” said Stuart. “These are often boutiques within an existing section, with special signage, lighting or shelving.”

Merchandising an entire line together creates a great visual impact, especially when segmenting brands like Garnier Fructis, which has boldly colored, bright-green bottles, he added.

Maria Brous, spokeswoman for Publix Super Markets, Lakeland, Fla., has been impressed with another unique concept employed in recent years.

“Some manufacturers are using trial sizes to get consumers to try new products, a strategy that seems to be working well so far,” she said.

Pantene produced miniature bottles to help promote its new Full and Thick products during the summer of 2007. CVS currently has a complete line of trial-size Christophe hair care items in its stores.

Having one or two “try me” bins or shelved sections of trial-size products will encourage shoppers to test new items, even during tough economic times like these, said Brous.

Another thing retailers can do is help shoppers watch their wallets, Robert Passikoff, president, Brand Keys, New York, told SN.

“Retailers who recognize that it is a tough time for most consumers and promote affordable hair care products will engage their shoppers in loyal, long-term relationships,” he said.

Economy brands make the most sense. But running an occasional sale on upscale hair care products will allow shoppers to pamper themselves once in a while until the recession ends, he noted.