Hair color wars heat up as new brands battle for share of expanding market

Drug Store News,  July 14, 1997  by Faye Brookman

• E-mail
• Print
• Link

The always strong hair color wars are turning a new color--bloody red--as competition intensifies and profits leak out of the once high-margin category.

With a barrage of new contenders launched last year, and several more on the way this year, promotional activity has reached a frenzy that retailers hope won't further damage profitability in the $1-billion hair color market.

During 1996, Clairol unleashed its powerful Hydrience water-based color, which retailers said has been very successful. The product and several other existing hair color brands, however, were pushed by heavy promotional activity, such as coupons and two-for-one deals.

At the same time, L'Oreal imported Belle Color from Europe under its Laboratoires Gamier label. Since the brand, which is priced lower than L'Oreal, didn't have the L'Oreal name on it, several retailers believe that it got lost in the marketing shuffle.

Jump ahead to mid-1997 to the much-anticipated launch of Revlon's ColorStay hair color next month. Retailers are scratching their heads over where to squeeze in all the new stock-keeping units but are nonetheless enthusiastic about the new line. ColorStay cosmetics, which are now almost a $200-million business, are credited with re-igniting the color cosmetics business.

Charles Busta, executive vice president and general manager of Revlon's beauty care group, said ColorStay hair color should be in 45,000 doors by the end of the year. It is estimated that the line will ring up sales of $60 million in its first year.

The hair color line, consisting of 24 stock-keeping units, includes permanent hair color that promises to resist fading caused by repeated shampoos. The suggested retail is $6.99, and Busta believes ColorStay will help take some of the promotional sting out of hair color. "Our hair color products have always been associated with profits," he said of the other Revlon color products. "This will bring profits, too."

ColorStay is also the first cream gel on the market, which Busta said makes it easier for first-time users. He hopes that will inspire more people to try color, since only 30 percent of the population currently uses hair color.

The advertising campaign kicks off in October and will use Cindy Crawford--the face of ColorStay. Revlon will cross promote ColorStay hair color and cosmetics, and the hair color items will star in The Revlon Reports, the company's quarterly trend newsletter that is distributed in stores.

"We are very impressed with the things Revlon is showing us, and we are very enthusiastic about ColorStay hair color," said Lance Clark, first vice president and marketing director for K&B Services Inc.

"Last year, the beauty care group promised big things and they are delivering," he said. Clark, like other retailers, is now trying to edit other brands and enlarge hair color to fit ColorStay in. Although he is hoping to enlarge hair color, others said they'll have to make cuts.

"We want to further enlarge hair color, but we will have to cut back some brands," said Andy Giancamilli, senior vice president and general manager for Kmart.

At first, it appeared Belle Color would be the victim for many chains. "It really had a slow start," said Robert Studer, vice president of buying for Harmon Discount Stores. Studer, however, is sticking with Belle Color because of L'Oreal's strength in the category.

"They said they'll be really supporting it," he said. Instead of axing Belle Color, Studer said he's scrutinizing brands and facings, such as Revlon's Shadings and ColorSilk.

L'Oreal's Dave Waldock, senior vice president of sales, admitted it was a tough year for Belle Color, but promises the product will be a hit. "It was a difficult climate to launch a new hair color," he conceded. "But we didn't want to put the L'Oreal name on it because it is a whole different price point. This is a best-selling brand in Europe, and we expect the same here."

L'Oreal also recently added three new vibrant red shades in its Preference line to address demand. Earlier this year, L'Oreal rolled out a chunking kit to attract younger shoppers who wanted to put highlights in large swatches of hair. Retailers said the chunking craze never really took off.

To keep its space tamper-proof, Clairol continues to roll out its entranced point-of-sale merchandising vehicle, which features hair swatches and informational tools to help hair color users find what they want. Clairol is credited by buyers with being a leader in organizing the dizzying choices of hair color processes with fixtures that break hair color into three steps.

Clairol also extended Hydrience to include a Hydrience Cream High-lighter with a cap and hook for more controlled applications.

Another new women's hair color item from Clairol is Healthy Shine conditioner.

While the now big-three hair color players battle it out, a few niche players are keeping busy, too. Combe recently introduced Just 5, a formula that promises a processing time of only five minutes vs. 25 minutes. According to Dominic DeMain Combe came across the idea for a faster product after noticing how many women were buying its quick and easy Just for Men product. "Women are time starved," he said.