The 2010 Professional Salon Industry Appliances Study reveals overall growth of salon appliances at 6.5%—that’s 50% greater than the overall salon industry’s growth rate of 4.4 % for the same timeframe. Salon appliances continued to be the leading growth category for the fifth straight year. As a result, leading softgoods companies have entered the hardgoods category, which they have identified as a highly lucrative market segment.

The study identifies key findings and growth drivers that impacted appliance sales in 2010:

Major struggle for industry domination and leadership continues. Erosion occurred with major brands, as new entrants increased their market share and captive store brands gained in importance.

• The Top 10 professional salon appliance companies by dollar volume are:

1. Helen of Troy (all brands – including Belson, Gold n’ Hot, Hot Tools, Revlon, Vidal Sassoon, Wigo)
2. Conair (all brands combined, including BaByliss, Conair Pro, Jilbere, Plimatic, Rusk, Forfex)
3. Farouk Systems (CHI)
4. Bio Ionic
5. Paul Mitchell
6. Cricket
7. GHD
8. HAI Elite/Angles Beauty Care Group
9. FHI Heat
10. T-3 Micro

• Premium and private label brands were affected by major distribution changes and direct sales.
• “Salon-only” appliances grew 6.7%, but “Pro-Beauty Gray Market” posted lower growth at 5.9%.
• An important growth factor of the appliance market was the continuing trend in home hair maintenance, the popularity of straightening and conditioning, ionic dryers, plus the resurgence of curly looks.
• New product features, higher premium prices and trendy new appliances supported growth.
• Curling and flat irons grew at 8.7%, blow dryers grew 8.1% and clippers/trimmers at 1.0%.
• Booth-rental salons continued their growth and propelled sales for open-line appliances at Sally Beauty.
• Continuing gray-market diversion accounted for 26.6% of sales, with “exclusive” salon appliance lines, now available at major drug chains, Sephora, Target, Bed Bath & Beyond and other retail stores.
• For the second year, Helen of Troy, the market leader, and Conair were negatively impacted by a mature product mix, economic conditions and trends to captive store labels.
• Farouk, which ranks third with its CHI brand (now in Beauty Systems Group distribution), was heavily diverted.
• The report identifies significant changes at Bio Ionic, Paul Mitchell, Cricket, GHD, FHI Heat, HAI Elite and T-3.
• Wahl, Andis, Oster and Forfex, the market leaders in the clipper/trimmer category, are reviewed in depth.
• Shears, a leading must-have category in every salon, are also now reported in the study.

The study covers major trends and influences on the market, as well as growth projections and upcoming market needs, while cataloging and projecting leading salon industry store stocking by brand and manufacturer. Trade advertising data for appliances and shears is now reported in greater depth along with an analysis of promotions. A special section reveals market shares for top companies and names more than 129 North American brands.

For purchasing information or questions regarding the 2010 Professional Salon Appliances Study, please contact Cyrus Bulsara, president of Professional Consultants & Resources, at cbulsara@augustmail.com or go to www.ProConsultants.us.

The 2010 Professional Salon Haircolor Study shows US salon haircolor product dollars growing at 3.2%—the fastest growing major product category—in an economy emerging from recession. (In comparison, overall salon hair care growth was 4%.) Growth comes primarily from increased salon visits and minor price increases in demi/semi permanents and permanents. Haircolor services grow by 3.3%, as consumers’ frequency of salon visits and demands for haircolor services start to rebound.

Some of the major findings detailed in the 2010 Professional Salon Haircolor Study are:

• Haircolor makes a big comeback and is projected to grow to mid-to-single digits by 2015.
• Salon Industry distribution realignments have abated, so all salon haircolor companies can grow.
• Haircolor is the “AXIS SERVICE” that generates other salon services and sales for haircare products.
• Salon haircolor services  grow 3.3%, as booth rentals continue taking share from leading salon chains.
• Demi & semi permanents  register a much higher growth and nearly double the overall category.
• Permanents grow at slower rates. Growth is lower than the category rate and indicates a new trend.
• Crèmes & gels now totally surpass liquid haircolor sales in the United States for a major paradigm shift.
• L’Oréal is the undisputed category leader with Matrix, Redken, L’Oréal Technique and Professionnel.
• P&G grows in full-service and follows closely behind with Clairol, Wella and Sebastian divisions.
• Goldwell/KPSS ranks third and Schwarzkopf follows, both with flat to minor gains.
• Newer category entrants, like Sally’s ION, Paul Mitchell, JOICO and TIGI, continue to steal market share.
• Aggressive new haircolor companies, like IT&LY, Alfaparf, Pravana, Aloxxi, will increase the category.
• Major, unique, new products and line extensions in 2010-2011 are covered.
• L’Oréal’s INOA launch has mixed results in salons. Future still uncertain on pricing and performance.
• The study features haircolor trends from top US master colorists.
• Study covers hot hairstyle and haircolor trends, like the “Beckham Bob,” the “Pob,” “Mop,” “Aniston,” “Hollywood Glam,” “Peek-a-boo” and their market impact.
• “Simple Cut N’ Color” service demand at booth rentals. Multi-chromatic face framing highlights are hot.
• Future US Market Haircolor products needed by Master Colorists and leading salons and chains.

“A really surprising finding is that Sally Beauty’s ION brands have grown so dramatically that they are now the fifth largest haircolor marketer, behind L’Oréal, P&G, Goldwell and Schwarzkopf,” says Cyrus Bulsara, president of Professional Consultants and Resources.

New sections on haircolor shipment market shares for all leading haircolor corporations/by divisions show L’Oréal, P&G, KPSS/Goldwell and Schwarzkopf as leaders. Sally, Paul Mitchell, Farouk, Aveda, Framesi, TIGI and JOICO follow.

Electronic copies are now available for immediate transmission and hardcopies by overnight.

For purchasing information, pricing or questions regarding the 2010 Professional Salon Industry Haircolor Study, please contact Cyrus Bulsara, president, Professional Consultants & Resources, at: cbulsara@augustmail.com or go to www.ProConsultants.us.

Top-line highlights, trends and bright growth spots indicate strong future industry growth:

• Sally Beauty and BSG same store sales were up 4.6% in FY 2010. Booth-rental salons and consumer drive sales at open-line Sally stores and Booth-rentals. High-end independents and Booth-rentals propel sales at BSG stores.
• Salon haircare service revenues experience strong growth at 2.75%, mainly via family/economy chains like Great Clips, booth -rentals and new high-growth Men’s barbershop chains – SportClips, Boardroom, Roosters, Floyds, Knockouts etc.
• Booth-rentals continue growth in certain sectors of USA. Clients demand personalized, private, services and move away from the big cookie-cutter chain-salons like Regis. Regis falters throughout 2010 as growth hits the wall.
• Great Clips and Sports Clips the new fast-growing family/economy chains, see revenues and franchise increases.
• Home hair styling still grows after the recession and new genres of Electrics and styling tools grow 6.5%.
• Hair Color experiences its best growth in years at 3.2%, due to gray-coverage, fashion-color and increased use of home haircolor from Sally. Booth-rentals and high-end independent salons come out with bold new looks in Fall 2010.
• Specialty Products grow at a phenomenal 9.3% and Hair Styling grows 6.4%. Shampoos and Conditioners are in a low single digit growth mode mainly from back-bar use, post haircolor and straightening services.
• Mega Salon Stores like Ulta, Beauty Brands, etc., see good sales growth all year and sales boom during Holiday 2010.
• Direct sales begin to plateau, as only Aveda makes good gains as they sell direct to salons.
• Redken and Paul Mitchell are only two major companies growing robustly. Mid-sized product companies like TIGI, JOICO, Sexy Hair all grow mid to high single digits, while some market leaders wane due to distribution gaps and issues.
• New “Brazilian Keratin” Straightening and care products grow exponentially, in spite of dangers of Formaldehyde. Naturals like “Moroccan Oil”, “Argan Oil” and others show good vitality.
• Updated section reveals shipment market share data for all top companies, with L’Oreal, P&G Prof. Care and John Paul Mitchell Systems ranked as the top three manufacturers. Zotos, Estee Lauder and Colomer follow.
• NEW sections and analysis of Barbershops by State and % of USA. Also new, approximate sales data on Keratin Complex, Brazilian Blowout, Phyto, Fekkai, Pravana, Coppolla, Cadiveau, Alterna, Marcia Teixeira.

For purchasing information/questions, on the 2010 Professional Salon Industry Haircare Study, please contact Cyrus Bulsara, President – Professional Consultants & Resources, via E-mail at: cbulsara@augustmail.com.

Current and future trends for 2010-2011 reported by the Top US Master Colorists and leading color salons and chains are:

• Low-cost, low maintenance, in-salon “Simple Cut N’ Color” that needs less upkeep and simple styling care are in demand. Recessionary style trends continue as clients try to stretch out salon visits.
• Mature women and men are now open to allowing some % of gray showing. Tone-on-tone Semis are hot again. Demis are requested by young urban women to avoid the harsh chemicals of Permanents.
• Salons are also using demi-permanent haircolor for hair painting and high-impact highlights.  Low-lighting instead of whole-head application, is still used as a gray-minimizing technique.  Clients want a “natural” look with no roots in three weeks so they can get a salon service every 10-12 weeks instead of every month.
• Fashionable, younger clients and teens request dramatic haircolor.  Bright, strong, whole-head or high contrast color in red, blonde or even navy blue/violet casts are popular for dark hair. Tweens n’ Teens are going in for the multi-chromatic color look with 2, 3 or even 4 shades of highlights on hair.
• Multi-dimensional and multi-chromatic highlights are still strong haircolor trends, with rich, dark or light shades complementing highlights. Low-lights in deep red, mahogany or burgundy, which complement darker hair are still popular. New red, brunette and pure-gloss shades are used.
• Bold color with complementary highlights and undertones that are warm, instead of ash, are popular. “Natural looking” Blondes are very popular with Strawberry, Wheat, Champagne, Gold or Sunlight tones. Whole-head blonding, Platinum blondes and blonde highlights are still major demand drivers for powder lighteners, pastes, crèmes and gels. Tinted lighteners are used for face-framing, highlights, hair-painting and balayage. “Baliage” is a retro 1970’s French technique used to color paint select hair strands to create natural looking highlights without developing noticeable roots.
• Older, mature clients seek softer, more natural looking color, with gentle highlights. Duo-lights or low-lights are popular in trendy major metro city salons. New genres of high-lift shades and gel or crème lighteners with tone, are being used for these techniques. Red tonal and yellow blonde streaky highlights are still popular with Hispanic and Asian clients.
• Celebrities drive “The Bob” or “Cropped Bob,” popularized by Victoria Beckham and friend Katie Holmes-Cruise’s dark colored “Cropped Mop,” and  it is now hot this summer in Hollywood, NY and major metro cities. The haircolor is undemanding, but the “Bob,” or “Blunt Bob,” like Christina Aguilera’s, is a difficult and challenging cut.
• African-American and Latino haircolor follows Hip-Hop and music TV artists. Chunky highlights over a dark base continue as a strong trend in inner cities. High-lift permanents and lighteners to add tone, dimension and bright yellow-gold highlights are strongly in demand by African-American clients.
• “The Anniston” continues to be in vogue and presents relaxed “Hollywood Glam”  with various multi-chromatic highlights on healthy, shiny hair with movement. Slightly long, mid to shoulder length hair with glam haircolor drives growth for permanents, lighteners and blonde Demis.
• The aging, graying, baby-boomer population drives huge demands for permanents and also gray-blending products like traditional semi-permanents.
• Permanent haircolor hi-lift blondes are now used for highlighting, face framing highlights.
• Clients try to extend normal time between salon visits of between 4-6 weeks. This is the major factor affecting salon traffic. They are using salon or retail touch-up kits, haircolor refreshers etc.
• In conclusion, all leading USA Master Colorists, colorists and stylists, once again report that haircolor is  the most vital and an “Axis service” today. Haircolor is a major salon service revenue builder and traffic driver. Haircolor services support the sales of color protection haircare, shampoos, conditioners, styling and haircolor refreshers at salons, mega salon stores and beauty stores.