Quality, multiple benefits fuel consumer demand

Drug Store News,  Jan 12, 1998  by Peter Malbin

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* Natural ingredients are trendy in hair care.

* Strips for the face will continue to be a big hit in skin care.

* Premium, multiple-benefit toothpastes and whiteners will increase revenue and profit in the dentrifice category.

* Baby boomer parents will seek high-quality children's toiletries.

* Ozone depletion and sun awareness will continue to boost sales of high-SPF sun protection.

* Aromatherapy fragrances will be popular in hair care, sun care and bath care products.

HAIR CARE

Retailers say consumers will continue to demand high-end premium-priced shampoos and conditioners in 1998.

"In the past year, we did really well in moving our customers from value brands, such as Suave, to premium brands, such as Pantene. We are hoping that will continue in '98," said Yvette Venable, a spokesperson for Walgreens.

Pantene Pro-V and Herbal Essences should be among top-selling shampoos and conditioners in '98, buyers predicted.

"With Pantene, I think it's good marketing. I think it's very good marketing and good packaging with Herbal Essences," said Gregg Heller, a buyer for May's.

Marketing wars continue

Manufacturers will spend a lot of money advertising hair care brands in 1998, particularly on television.

For L'Oreal, for example, it will be an aggressive year. "We are increasing our budget for advertising and promotion significantly over '97," said David A. Waldock, senior vice president of sales for L'Oreal retail division.

L'Oreal will launch a major initiative in the second quarter for Vive.

Helene Curtis, a division of Unilever Home and Personal Care USA, is introducing in February the ThermaSilk hair care line, which utilizes heat-activated technology. The company has a "huge" marketing budget for ThermaSilk.

"It will create a lot of growth in the category because the product is different," said Venable of Walgreens.

Meanwhile, the Salon Selectives line has been revamped with new packaging and reformulations. Unilever Home and Personal Care's marketing and advertising budget for the line will increase by 50 percent next year.

Helene Curtis will be doing customized sampling in malls. Product improvements across the line are also in store for Finnesse in '98. The line will be improved to deliver a more touchable hold.

Clairol has high hopes (and a large budget) for Daily Defense, a problem-protection shampoo that targets hair damaged by the environment.

Natural products remain hot

Manufacturers are targeting broad desires such as naturals, said Karen Moberly, category director for hair care for Unilever Home and Personal Care USA.

"We think that the growth of botanical-based products (from herbs, roots and plants) will continue at a much greater rate than it has in the past," said Larry Freeman, chairman and chief executive officer of Freeman Cosmetics.

"Consumers are more aware of the benefits of botanical ingredients rather than animal ingredients," Freeman said.

Jason Natural Cosmetics, for example, has a shampoo and conditioner coming out in March containing hemp oil, the "highest natural source of essential fatty acids," according to Jeffrey Light, president of Jason Natural Cosmetics. "Essential fatty acids help with the moisturization of hair over a long period of time." Some manufacturers

are catering to consumers who want products that use natural preservatives as opposed to chemical preservatives.

The word natural is also trendy in hair styles.

"Right now, we are going through a fashion for natural hairstyles, which drives sales, said Don Kauffold, director of hair care category management, sales planning for Unilever Home and Personal Care USA.

"We are seeing growth in mousse and gels, products that add body and volume and leave hair looking natural in feel, and we are seeing slower sales in hair sprays. That reflects a shift in hairstyles People are looking for new and innovative products to create styles, " Kauffold said.

Another trend-problem-solution hair care or more specifically, targeted product lines-has been growing over the years, noted Freeman. Manufacturers have been targeting niches, such as fizz.

Buyers also report that consumers continue to trade up to premium and professional brands. As more hair care dollars shift to mass retailers, drug stores are carving a niche with premium shampoos and conditioners, manufacturers and retailers said.

Among the segment's recent launches have been ProSCription by John Frieda, an all-natural hot-oil treatment, in the Frizz-Ease line. The new TRESemme Changes promises to end shampoo wear out, and Aussie Hair Care has just launched a hair spray called Aussie AirDo.

A trend that is here to stay is the desire to grow more hair. Men with thinning hair will be lining up for Rogaine Extra Strength for Men (5 percent minoxidil) in '98. Pharmacia & Upjohn has requested that the Food and Drug Administration give the product a three-year period of exclusivity. Sales of private-label Rogaine products (2 percent) are expected to drop.