Mane St. - Inspiring Champions

Transcription

Mane St. - Inspiring Champions
NOVEMBER 2010
volume 13 issue 11
Why does your
company exist?
By Simon Sinek
A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ
highlights
2
Lafayette Jones’ Multicultural Report
5
Keune: Dedicated to salon professionals 6
UBC brings back personalized distribution8
Int’l Congress of Esthetics/Spa Report 10
It’s all about family at Peel’s show
12
Modern Salon’s new distributor database 15
Don’t miss these first quarter shows
21
New Beauty comes to life at Fred Segal 22
Rumors say Regis, OPI for sale
24
Mane St.
Watch list: Industry goes to Capitol Hill
VISIT US ONLINE
www.bironline.com
& check out BIR’s 2010 BIG! Show Calendar
This is your industry’s newsletter, and
BIR welcomes your feedback!
Mike Nave, editor
818-225-8353/[email protected]
I invite you to connect with me on Facebook and
follow me on Twitter@MikeNave
by Mike Nave
EDITOR
W
ith Thanksgiving this
month, it’s an ideal
time to give thanks to the
professional beauty
industry. I feel blessed to
have spent my entire
career in our wonderful world of beauty.
What could be better than making a living in
a marketplace that’s about what’s new and is
populated with wonderful people?
This month’s feature interviews profile
two companies on the move. Nancy Carroll,
president, shares Keune HairCosmetics’
success story. At Ultimate Beauty Companies,
owners Morad and Nancy Zahabian operate
a distributorship that covers a large, diverse
customer base. In addition, Beauty Industry
Report travels to Council Bluffs, IA, to report
from Peel’s Salon Services’ Creative Edge
Show. We also include exclusive coverage of
the International Congress of Esthetics and
Spa Conference in Long Beach, CA.
Regards,
I
n the 1970s, there were two choices of
Colgate toothpaste. But as competition
increased and more and more brands entered
the market, Colgate kept adding line
extensions. And as it added more choices, so
did the competition. Today, Colgate has more
than 30 line extensions. There are now
hundreds of choices of toothpaste. The
result is bad for everyone—buyers and
sellers. Consumers bombarded with choices
have trouble choosing what’s best for them,
and show less loyalty to one brand than they
used to. But sellers also struggle. One of their
biggest challenges is how to differentiate
themselves in a market they created.
This race is not exclusive to dentifrice.
Nearly every brand manager feels the
pressure to make more choices available, and
in so doing, have turned their products into
commodities. In contrast, those who thrive in
a cluttered marketplace exist outside of what
they do and focus more on why they do it.
It is too easy to say, “Simply offer fewer
choices.” There has to be a reason to offer
fewer choices. The decisions a company
makes and the products it offers have to
serve to deliver an experience beyond the
purpose of the product or service being sold.
For example, fine dining is not just about
food for sustenance; it is about the
experience and the company we keep. There
is a reason we choose different restaurants to
visit with good friends compared to casual
acquaintances.
A business, however, cannot just start
reducing choices and decide on an arbitrarily
chosen experience it wants to offer (such as
the “best service”) as its reason for being. An
authentic experience must be born out of
the truth; it must be born out of the
founder’s intent when he or she first started
Why does your company exist?....cont. on p. 2
The Beauty Industry Report Visit www.bironline.com
Why does your company exist?...cont. from p. 1
the business. That is what authenticity
means—that the things you say and the things
you do you ACTUALLY believe. Do that and
the results are profound. The experience sold
is perceived as genuine and honest, not
contrived by a cocktail of trend data, market
conditions or best practices.
Starbucks, for example, became what it is
today, not from selling coffee, but from
offering people a place between work and
home. Likewise, there is an opportunity to
reinvent a salon to stand for something
beyond the obvious hairstyling services.
If the founder started the business because
he or she used to love helping style friends’
hair, then it was more about the social aspect
of the haircut and not the cut itself. Try
adding a coffee bar (that is different from
offering a free cup of coffee) and
comfortable chairs right next to the salon
chair so a group of friends can come get their
hair done as a social outing and not just as
something they need to do.
Give people a reason to do business with
you beyond the products you sell, the
services you offer and the number of options
you give them and they will come for that
thing…everything else is just part of the total
experience.
_____________________________
Simon Sinek teaches leaders and companies
how to inspire people. He is the author of the
book, “Start With Why,
how great leaders inspire
everyone to take action.”
Reach him at
[email protected]
or visit
www.startwithwhy.com.
BIR invites you to become a Guest
Columnist. Send your thoughts in about 450
words, including a one-paragraph author
bio, to [email protected] in an MSWord
document. We will edit your column for
style and space.
2 NOVEMBER 2010
More than 700 key staffers and decisionmakers from Capitol Hill enjoyed haircuts,
mini-manicures, makeup applications and hand
and neck massages from 144 industry
volunteers, as they learned about the
professional beauty industry during the
Professional Beauty Federation’s (PBF) 11th
Annual Welcome to Our World. Welcome to
Our World has become the most popular
event on Capitol Hill because of the unique
way it combines learning with a fun and
rewarding event. In addition, many members of
the professional beauty industry spent the day
meeting with members of the House and
Senate to discuss key issues and the industry
at large.
Two issues of immediate importance to the
professional beauty industry are fairness in
taxation and access to cosmetology education.
S.3430/H.R. 3724, the Small Business Tax
Equalization and Compliance Act, would make
it possible for salon owners to claim a tax
credit for the FICA taxes they must now pay
on their employees’ tips, a benefit that
restaurant owners already receive. The
legislation will also improve income reporting
within the industry, promote tax fairness and
help small businesses—the backbone of the
American economy. According to the U.S.
Department of Commerce, every dollar spent
in the salon industry generates an additional
$1.77 of sales for other industries in the
economy. To get involved, send a message to
Congress asking for their support of the Small
Business Tax Equalization and Compliance Act.
In regard to education, the discussion this
year centered on a set of proposed rules
introduced by the Department of Education
that will have a tremendously negative impact
on the access to Title IV funds for those who
choose to make their living as a licensed
professional in the professional salon industry.
Schools around the country would experience
sanctions that could range from limitations on
new enrollment to potential closure. In an
industry that has virtually zero unemployment
and is predicted to grow by 20% over the next
seven years, this policy makes no sense.
Contact your member of Congress and ask him
or her to voice concern to the Department of
Education over the Gainful Employment
Regulations.
“This important event brings an entire
$60 billion industry to Capitol Hill in just one
day,” explains Eric Schwartz, president of the
PBF. “It provides the perfect forum for our
legislators to learn about important smallbusiness and education issues that affect
millions of their constituents, while they enjoy
the services that are performed by 1.6 million
licensed professionals hundreds of times a day
in hundreds of salons in each of their districts.”
Founded in 1999, the PBF represents the
political interests of the professional beauty
industry. Members include the American
Association of Cosmetology Schools, the
International Salon/Spa Business Network,
the International Spa Association, the
Professional Beauty Association, OPI
Products, Inc. and JCPenney Salons. Visit
www.probeautyfederation.org.
The Professional Beauty Association’s MidYear Market Shipment Survey for salon hair
care products based on actual factory
shipments of reporting members shows a
2.45% increase for the first six months of 2010
over the same period in 2009. Hair coloring
continues to lead the category with shipments
of $377.9 million versus $352.8 million in 2009.
Other subcategory comparisons of the two
six-month periods include hair care at $319.2
million compared to $311.4 million; styling
products show a slight decrease at $241.2
million compared to $255.8 million; texturizers
also show a slight decrease at $28.8 million
compared to $31.9 million and other hair care
products report $19.1 million compared to $11.1
million. The total for hair care shipments for
the first six months for 2010 is $986.3 million
compared to $962.7 million for the like period
in 2009. Visit www.probeauty.org.
Stylists who are confused about keratin,
chemistry and straightening systems can
relax. Not only does Caribbean Dream
Relaxer (CDR) allow four options in hair
retexturizing results, it also uses ammonium
hydroxide to swell the cuticle and
cysteamine hydrochloride to restructure the
hair’s bonds—a totally different science than
hair-coating “Brazilian” systems. CDR, which
is compatible with thio-based straightening
systems, can be used to straighten hair,
create soft wave, tame texture or reduce
frizz. It is also an alternative for AfricanAmerican clients who “texlax” their hair:
home buffer (with olive oil) and intentionally
under-process the relaxer, which often
creates uneven results that stylists must fix.
Until November 19, CDR is offering 50% off
of orders totaling $125 or more to help
offset the cost of transitioning from other
systems to CDR. Contact Jesse Briggs at
954-328-6993 or [email protected].
Visit www.caribbeandreamrelaxer.com.
De Fabulous introduces Amazon Secret, a
natural smoothing line featuring the
moisturizing and healing benefits from
botanicals and extracts from açaí fruit and
murumuru plants from the Amazon
rainforest. “De Fabulous will donate
proceeds to rainforest foundations and
charities that help the people who harvest
the fruits and plants used in the line,” says
Rebecca Letizia, marketing director. The line
includes Silk Açaí Botanical Hair Repair
Therapy (16 ounces/SRP $50.00); Açaí Oil (2
ounces/SRP $24.00); Ker Açaí Restorative
Leave-in Treatment (8.5 ounces/SRP
$32.00); MuruMuru Anti-frizz Keratin
Shampoo (8.5 ounces/SRP $19.00) and
MuruMuru Anti-frizz Keratin Conditioner
(8.5 ounces/SRP $20.00). Reach Jorge Freire,
vice president of sales, at 888-920-6008
or [email protected]. Visit
www.defabulous.com.
Allure recently named several professional
beauty companies as winners in its 2010
Best of Beauty Awards. Spornette
International’s G Series wooden porcupine
rounder captured honors as best brush. The
collection includes five brushes with SRPs
ranging from $8.00 to $21.00. Reach Jeffrey
Sporn, regional sales manager, at
800-323-6449 or [email protected]. Visit
www.spornette.com. The magazine also
selected Tweezerman’s Slant Tweezer as
best tweezer for the 10th consecutive year.
Reach Kathy Harvey, director of sales, at
800-645-3340, ext. 166, or
[email protected]. Visit
www.tweezerman.com. Finally, Allure also
named SalonTech’s Silicon 450 as the best
flat iron. Reach Lee Ann McColl, SalonTech
national sales manager, at 516-941-3462 or
[email protected]. Visit
www.salontech.com.
Robanda International snagged three
Launchpad magazine Readers’ Choice
Awards: best brush/comb category—
Marilyn Brush Flatter Me Too; best dry
shampoo—Batiste; best cosmetic blush—
Bodyography Cosmetics. The San Diego
Business Journal also awarded Robanda
International with the 2010 Fast 100 Award,
recognizing it as one of the fastest growing
private companies in San Diego. The
company’s growth is attributed to aggressive
marketing, smart acquisitions and expansion
into new markets worldwide. This is the
third time Robanda has been awarded this
distinction within the past four years. “Our
team is very proud that we have been able
to maintain an annual growth in excess of
20% even in the difficult economic climate
of the past two years. We are 100% service
driven and are clearly focused on future
growth,” says David Leib, president. Reach
David at 619-276-7660 or
[email protected]. Visit
www.robanda.com.
CND recently presented its annual awards to
employees who honor CND's philosophy of
providing exemplary service and creating a
positive workplace. MaryAnn Garcia
received the fourth annual Mary Nordstrom
Memorial Award, which is presented to the
employee who, during the year, has most
embodied the true spirit of the matriarch of
CND, Mary Nordstrom. Mary was
responsible for creating a familial culture in
the CND workplace. On top of managing her
team, MaryAnn took on additional staffing
during the exponential growth experience of
the Shellac launch, while also lending a
hand to distribution services and domestic
sales teams. Karen Scheaffer received the
Employee of the Second Quarter Award.
Reach John Heffner, CND president/CEO,
at 800-833-6245, ext. 277, or
[email protected]. Visit www.cnd.com.
Two members of The Kirschner Group were
recognized recently by its manufacturer
partners for exceptional performance.
Fromm International named Mike
Cevetillo, sales executive in the Northeast,
as the top sales person of its Special Offers
Incentive program. Burmax selected Brett
Ury, sales executive in the Southeast, as the
top sales person generating orders at
Cosmoprof North America. “We are proud
of the accomplishments of both Mike and
Brett,” says Jane Caris, vice president of
sales and marketing. Reach Jane at
800-328-4353 or [email protected].
Visit www.kirschnergroup.com.
Lori Silverstein is a double winner. Recently,
her Peninsula Beauty Supply was voted the
best beauty supply in Metro’s 25th annual
Best of Silicon Valley edition. It was the
eighth year in a row that Peninsula Beauty
Supply topped the list. In addition, Peninsula
Beauty Supply was listed in the San
Francisco Business Times’ “Top 100 Women
Owned Businesses in the Bay Area,” an
annual listing sponsored by Wells Fargo
Bank. Reach Lori at 650-348-1454, ext. 21, or
[email protected]. Visit
www.peninsula.com.
News continued on page 4
NOVEMBER 2010 3
The Beauty Industry Report Visit www.bironline.com
News continued from page 3
An Verhulst-Santos, president of the
Professional Products Division (PPD) of
L’Oréal USA, has been promoted to
managing director of L’Oréal PPD
Worldwide, effective January 1, 2011. Pat
Parenty, formerly brand president of L’Oréal
USA’s PPD, replaced An last month and
reports to Frédéric Rozé, president/CEO of
L’Oréal USA. An began her career nearly 20
years ago with L’Oréal Professional Products
in Belgium as marketing director of L’Oréal
Professionnel. She moved to Paris in 1998 to
take the position of marketing director of
the Europe zone and was then appointed
general manager of the PPD in Holland in
2000. In 2004, she became the general
manager of the PPD in Brazil, and four years
later was promoted to her current position.
Pat was appointed brand president of
L’Oréal USA’s PPD in February 2009. He was
responsible for overseeing all PPD brands,
including L’Oréal Professionnel, Kérastase,
Logics, Matrix, Mizani, Pureology, Redken,
Shu Uemura Art of Hair and Essie. He
joined L’Oréal USA in 1997 as vice president
of sales for Redken and shortly thereafter
was promoted to senior vice president/
general manager. Throughout his tenure at
Redken, Pat demonstrated strategic
leadership qualities and a strong
understanding of the professional products
industry. He succeeded in delivering Redken
results ahead of the market with cuttingedge, added-value products and services.
With his entrepreneurial approach, Redken
became recognized for its top position in
the industry. In 2007, Pat assumed additional
responsibilities for Pureology and
subsequently managed the integration of
that brand into Redken, while achieving
valuable chain distribution and developing
the education and merchandising platform
for future market share growth. “With her
insight, expertise and ability to lead, An
expanded the impact of PPD within the
United States,” says Frédéric. “Additionally,
under her guidance, the division has
continued the strategic implementation of
SalonCentric through distributor acquisitions
which has further driven our success in the
industry.” He adds, “Pat has fostered a
customer and employee-centric culture
within PPD that has resulted in the
continued growth and success of our
business, while contributing to the
development and leadership of his team.
That makes him an ideal successor for this
important position, and I am confident that
he will use his extensive knowledge to
continue to build our professional salon
brands in the United States.”
L’Oréal also announced the appointment of
a new managing director for its luxury
products division and the creation of a new
strategic marketing department. The Paris
headquartered cosmetics giant has created a
new department to help anticipate market
movements and inform future decisions.
Marc Menesguen will head up the new
strategic marketing department and drive
the group’s strategy in digital
communication, distribution, advertising and
consumer understanding. He has been with
the company since 1985, most recently as
managing director of the luxury products
division. Replacing Marc will be Nicolas
Hieronimus, who has spent 18 years within
the consumer products division. Reach
Frédéric at 800-543-3839 or
frozé@us.loreal.com.
Spilo Worldwide announces the retirement
of Robert Steuer after 27 years with the
company. He is moving to Florida to be
closer to family and friends. Bob launched
his career as a hairdresser. He joined Spilo in
1983 and built his territory into one of the
most profitable in the company’s long
history. “Through his impeccable work ethic
and ability to make and sustain personal and
professional relationships, Bob has become
one of the most respected salespeople in
the industry. We wish him all the best as he
embarks on this new phase in his life,” said
Marc Spilo, president of Spilo Worldwide.
“He has earned the right to reap the rewards
from all his hard work over the years.” Bob
will remain with Spilo through the end of
2010 to help transition the territory to a new
salesperson. Reach Marc at 800-347-7456 or
[email protected]. Visit www.spilo.com.
GK Hair (previously Global Keratin) has hired
Harold Leighton and John Benedetto. As
creative director, Harold will lead GK Hair’s
creative group and oversee advertising and
branding efforts. As director of education,
John will develop and drive growth within
education, especially for GK Academy’s
classes and curriculum. He will also build a
team of educators and guest artists for the
creation of seasonal collections and brand
image. Reach Harold at 866-361-7366 or
[email protected]. Reach
John at 866-361-7366 or
[email protected]. Visit
www.gkhair.com.
Bill Deliman has joined SureTint Systems,
LLC as business development manager. In
this new position, he will establish and
cultivate direct, strategic partnerships with
national cosmetology schools and multi-unit
salons and spas in order to help them
provide consistent color results through
SureTint’s Complete Color Control. Bill will
also work to refine the company’s
educational and training methodology,
establish criteria for SureTint certification
and collaborate on product refinement. Bill
has more than 25 years of cosmetic industry
experience in sales, branding and target
marketing for key manufacturers, distributors
and retailers. Previously, he served as vice
president of operations for Mirabella
Beauty and prior to that he served as
Mirabella's director of sales. Prior to joining
Mirabella, Bill served as director of services
for Maly’s West and also worked with
Modern Organic Products, Goldwell, West
Coast Beauty Supply and Sears Roebuck.
Reach Bill at [email protected]. Visit
www.suretint.com.
News continued on page 16
4 NOVEMBER 2010
The Multicultural Report
I
t looks like some established multicultural
brands will be on the move again with the
announcement of the Unilever
(www.unilever.com) buyout of Alberto Culver,
(www.albertoculver.com) and its ethnic brands,
including Soft and Beautiful, Just for Me and
Motions. The Anglo-Dutch company is on the
way to becoming a powerhouse in the black
hair care category. It wasn’t too long ago that
those famous brands were at home in the
Texas company, Pro-Line, founded in 1970 by
multi-millionaire black entrepreneur,
philanthropist and author Comer Cottrell, who
tells his story in “Comer Cottrell: A Story
That will Inspire Future Entrepreneurs.” In
2000, Comer sold his operation to Leonard
Lavin, founder of Alberto Culver. According to
the Unilever press release, the purchase price
was $3.7 billion. The Wall Street Journal said
Alberto Culver was valued at $3.1 billion
("Unilever, Alberto Culver in Talks”).
The Atlanta Post can be found on the
Internet at www.moguldom.com and covers a
variety of topics, including Caltha Crawford’s
story on how the 2000 census gave cosmetic
manufacturers a wake-up call (“Multicultural
Approach Charts Future of the Beauty
Business”). The Moguldom Media Group is
moving to capitalize on high income AfricanAmericans between the ages of 25 and 55 with
a household income of more than $75,000.
They represent 17% of the African-American
population and account for 45% of the
community’s total buying power—which has
been projected to exceed $1.1 trillion by 2012
(www.packagedfacts.com). Jet magazine reports
online at www.myjet247.com on “The Wealth In
Black America,” an online survey, conducted by
the Northern Trust bank, tracking spending
habits of wealthy blacks. The study looks at 361
affluent blacks ages 18 and older with a
household income of more than $250,000 and
those with $1 million or more in investable
assets. For more information, contact Mark
Welch, director of global diversity and
inclusion for Northern Trust, at 312-557-9078.
Visit www.northerntrust.com.
Clyde Hammond Sr., president of Summit
Laboratories, is the fourth term chairman of
by Lafayette Jones
the board for the American Health and
Beauty Aids Institute (AHBAI). Other officers
are vice chairman, Ursula Dudley Oglesby,
who is president of Dudley Beauty Corp.;
treasurer, Nathaniel Bronner, Jr., who is
executive vice president for Bronner Brothers;
secretary, Marty Joshua, who is president of
M3 Cosmetic Labs; and parliamentarian, Dr.
Milton Moore from Moore Unique Skin Care.
AHBAI is a national trade association
representing leading manufacturers of ethnic
hair care and beauty-related products. Founded
in Chicago in 1981, it works closely with all
segments of the beauty industry, including
cosmetologists, barbers, beauty and barber
suppliers, retailers and distributors. For more
information, visit www.proudlady.org or call
executive director, Geri Jones, at 708-633-6328.
According to the U.S. Census, about 44% of
the nation’s Dominicans live in New York City
and about half of the nation’s Cubans are in
Florida in Miami-Dade County. “Thirty-eight
percent of Mississippi’s population is black, the
highest of any state. Blacks also make up more
than a quarter of the population in Louisiana
(32%), Georgia (31%), Maryland (30%), South
Carolina (29%) and Alabama (27%). Black
Americans are 56% of the District of Columbia.”
The bureau notes that computer literacy is high
in Asian households with 73% having Internet
access. That is higher than any other race or
ethnic group. Visit www.census.gov.
Feeding Dreams is a General Mills
multicultural platform to support black
consumers; it recognizes and celebrates local
heroes who have devoted their lives to helping
others, nurturing their communities and
charting a better future. Honorees will receive
collectively more than $30,000 for their
charitable organizations. The Feeding Dreams
Grand Finale & Gospel Salute will take place at
the historic Ebenezer Baptist Church, (Martin
Luther King’s home church and the site where
he and Coretta Scott King are buried) on
Saturday, December 11. Susan L. Taylor, editorin-chief emeritus of Essence magazine and
founder of the National Cares Mentoring
Movement (www.caresmentoring.com), will
host the free event open to the public with
special gospel performances from the Sounds
Of Blackness and Dorinda Clark-Cole. In its
third year, Feeding Dreams, tapped SMSi
(www.segmentedmarketing.com), a minorityowned national marketing company, to deliver
free product samples and a 34-page custom
publication, “Feeding Dreams: A Magazine to
Celebrate the African American Family and
Community” in beauty salons and churches in
Atlanta and in Columbia, SC; Jackson, MS;
Jacksonville, FL; New Orleans; Miami; Norfolk,
VA; Memphis, TN; Birmingham, AL and
Charlotte, NC. Visit www.feedingdreams.com.
Liquid Keratin Bold is for dark, coarse,
frizzy and curly hair and suitable for chemically
treated hair. The $69 kit includes Liquid
Keratin 30 day Bold Treatment (4 ounces); a
de-frizzing shampoo (1.7 ounces); a de-frizzing
conditioner (1.7 ounces) and a leave-in
conditioner (1.7 ounces). Not a relaxer, it offers
the choice to wear hair wavy or curly without
frizz (or straight with very little styling or
product required). Visit
www.esmemarketspecialists.com.
Ampro products offers a 15-ounce Berry
Ice Ultra Hold Gel plus oil sheens and hair
polishers in three varieties, including Organic
Olive, Mango Marmalade and Lavish Limon.
Visit www.amprogel.com.
Dr. Miracle introduces the Follicle Healer
Energizing System, which includes Deep
Conditioning Treatment (SRP $1.59), Hydrating
Oil (SRP $4.99), Pomade (SRP $4.99) and Creme
(SRP $3.99). Ingredients include shea butter;
vitamins A, E, C and B3; a variety of oils: castor,
almond, coconut, safflower, tea tree and jojoba
oils; soy protein and aloe vera gel. The
introduction is supported with nationwide
television on BET cable, free product samples,
point of sale materials and a public relations
campaign. Visit www.drmiracles.com.
Lafayette Jones is CEO of SMSi-Urban Call
Marketing, a promotion and
marketing company, and publisher
of Urban Call custom publications.
Contact him with your
multicultural news at 336-759-7477
or [email protected]. Visit
www.smsiurbancallmarketing.com.
NOVEMBER 2010 5
The Beauty Industry Report Visit www.bironline.com
Keune is dedicated to the salon professional
K
eune Haircosmetics is an independent,
family-owned Dutch manufacturer of hair
care products that has been marketing to the
professional hairstylist for
more than 88 years and
doing business in America
since 1997. In recent years,
the brand has grown
rapidly under the
leadership of Nancy
Nancy Carroll,
Carroll, president of
president
Keune Haircosmetics
USA, Inc. Beauty Industry Report (BIR)
recently had the opportunity to chat with
Nancy to find out more about her keys to
success in supercharging the company’s growth.
BIR: Nancy, please tell BIR’s readers about
Keune Haircosmetics.
Nancy Carroll (NC): The company has been
family owned for 88 years and has stayed true
to its mission statement, “Lifetime of
dedication to the salon professional.” It truly is
a business with integrity, working to give the
industry back to the salon professional where it
belongs.
BIR: Working with a company with such a
long heritage must be very satisfying. What
are some of the benefits from Keune that
have allowed you to double its U.S. salon
market business in the last two years?
NC: The benefits are numerous. The mere
fact of financial success for 88 years gives
stability to the building of a brand in a new
market and the security that the company will
not “go out of business due to cash flow”
during that building process.
BIR: What does your mission statement,
“Lifetime of dedication to the salon
professional,” mean to you, and how does it
show up in Keune’s marketing activities?
NC: Dedication to the salon professional
means that everything we do as a company
must serve to benefit the salon professional. It
starts with products made with only the finest
ingredients and attractive commercial
packaging. It means support programs, such as
Keune Point, our salon reward program, and an
ongoing color conversion program; high quality
education from the beginning intro class to
advanced level offerings, such as color theory,
6 NOVEMBER 2010
owner. One salon became two, two became
chemistry, cutting and business; annual fashion
four and then I became involved doing
collections from the international design team
education with a manufacturer. I also spent
and training offered in the international facility,
some time working with Michael Cole and
and in early 2011, in the new academy in
facilitating his boot camp program in its early
Atlanta. Most importantly, it is a mission
years. I had been associated for several years
statement supported by never offering Keune
with another manufacturer when Keune came
products for sale in any drug, discount,
to the United States and established Keune
department or grocery store.
BIR: What have you done differently that has Haircosmetics, USA, Inc. as a subsidiary of the
parent company. In 1999, I accepted an
resulted in business doubling in spite of the
education position with the company and left
challenging economy?
Chicago for Atlanta. Soon after, I became the
NC: When the economy changed, we knew
education manager. During the company’s
we needed to change the way we did business.
formative years, there were several individual
If you continue to do business the way you did
and management changes, as is typical of any
before the economy went askew and expect
foreign company finding its way. During that
different results, you will fall short. Doing
time, there were few employees; therefore, it
business the way we always have, the way the
was a good way to learn every aspect of the
competition does or based on the news does
not work in today’s economic environment. The company. It wasn’t unusual for me to pack an
order or a show pallet, prepare bimost important question to ask is,
monthly promotions, launch a new
“What does my customer want?”
distributor, conduct sales meetings and
Consumers are spending money; they
train educators. As the company grew, so
are just spending it differently. They are
grew the team. In 2002, my goal was to
looking for better results from their
establish an infrastructure of programs,
investment and better value. We make
policies, department functions and
it a point to find out what they want
anything that would allow the company
and help our distributors deliver.
to rapidly expand distribution when the
BIR: How is “Keune giving the
opportunity was there. I have had
industry back to salon
many titles, including national
professionals”?
education manager, vice president of
NC: We align ourselves with likeeducation and marketing, chief
minded distributors who actually
operating officer and now president.
service and listen to stylists. We
involve them in conversation to find
The new Design While the titles have changed, my
out what they want. We encourage
Style line offers focus has always remained on planning
extra care for hair. ahead 5 to 10 years for a successful
them to voice their opinions and
and continually growing company.
thoughts, and then we act on them.
BIR: Please give me a brief description of the
BIR: You have said that Keune can provide
organization’s structure. Who are the key
salon professionals with what the
members of your management team?
conglomerates took away. Please explain
NC: We have full-time and contractual
what that means.
employees. The sales department has two
NC: By working solely with independent
arms—distributor sales, headed by Eddie Gwin,
distributors, we can be assured that stylists get
and chain sales, headed by Christian Faircloth.
the personal service they deserve, the
The field sales educators report to the sales
education they crave and the exclusivity of the
department and are responsible for daily
Keune brand.
activities in their assigned distributor. The
BIR: Tell me about your career.
marketing department executes activities with
NC: I started my career in the beauty
the help of an outsourced public relations firm
industry in my early 20s as a cosmetologist
in New York City and is coordinated by Donna
behind the chair and quickly became a salon
DiNapoli. Operations are headed by the
financial manager, Karen Tobey.
BIR: In the crowded salon products
marketplace, what is your brand’s point of
difference to both beauty professionals and
consumers?
NC: The point of difference to beauty
professionals is, of course, the quality
performance, but most importantly, our
products are sold only to the salon—no
compromises. To the consumer, it is also
exclusive. Brands that can only be purchased
through a salon have increased perceived value.
BIR: What is your flagship product?
NC: Tinta Color, our permanent color, is
our core product. Tinta Color’s success is
associated with its superb performance and
unsurpassed durability. It is easy to use and
always has dependable results. The product has
a unique formulation of Triple Color
Protection: a combination of silk proteins,
LP300 and solamer.
BIR: Tell me about your distributor network.
NC: We currently have 27 independent
distributors covering the continental United
States and Hawaii. We are specifically looking
for distributors for New York City, Wyoming,
Montana, New Mexico and Arizona.
Our distributors are independent owners
who do business with integrity and whose main
focus is the salon professional. They offer easy
access to great education and partner with
salon owners to help maximize their retail
business through inventory control, marketing
and training. They encourage the stylists to
increase their service revenue through the
promotion of on- or off-site education. Service
and attention is their main focus. They still care
about relationships. Many of these are secondand third-generation owners who are planning
growth for the future generations.
BIR: Describe your ideal distributor.
NC: The ideal distributor is independently
owned and operated and isn’t “line heavy.” That
allows sales consultants to know everything
about and believe in the products they sell.
They understand how to build the territory and
that they must invest in building the territory,
along with the manufacturer. They do business
with the same integrity as Keune.
BIR: What’s new in your line?
NC: We recently launched Design Style. It
is a complete concept that distinguishes itself
through recognizable professional products and
“The most
important
question to ask
is, ‘What does
my customer
want?’
Consumers are
spending money;
they are just
spending it
differently.”
extra care for the hair. It has DLP2, a double
layer protection of grape seed extract and
Vitamin E that reinforce each other for
protection against external influences.
BIR: How does Keune partner with salons?
NC: We are structuring several activities that
relate directly to the salon professional,
including information that can be accessed via
iPhone and similar devices, hands-on business
training that launched this fall, trips to the
international headquarters and the launch of
the new academy facility.
BIR: Tell me about your education program.
NC: We have an explicit format of classes
offered to stylists through every distributor, as
well as in Atlanta, that encompass product
knowledge, beginning-to-advanced color
training, sculpting, texture, finishing and
application classes. Those are facilitated by a
vast group of educators of all levels. Christian
Faircloth oversees those programs. We also
offer a business/training program for sales
consultants headed by Roy Peters.
BIR: What role do salon and distributor
shows have at Keune?
NC: Since the daily connection is that of the
distributor sales consultant, shows are an
important vehicle for Keune management to
connect directly with the salon professional.
BIR: Product diversion continues to plague
the professional beauty industry. What steps
have you taken to ensure that Keune
products are sold only through licensed
salon professionals, not in drug, discount,
department or grocery stores?
NC: It is pretty simple. We don’t sell to the
mass retailers. We do not sell to beauty outlets
or marts who sell directly to the consumer.
BIR: What are the major marketing
initiatives you have planned for 2011?
NC: At our recent North American
distributor meeting in Atlanta, George Keune
and I unveiled the plan for the new Keune USA
headquarters, training center and flagship salon
in the heart of Buckhead here in Atlanta. We
project an early 2011 grand opening. This will be
a “mother ship” for our clients, educators and
distributors’ sales staff to experience all levels
of training and education, as well as the Keune
story. We will bring in guest artists and visitors
from all corners of the world.
BIR: What is your company’s biggest
challenge for 2011?
NC: Finding qualified field staff to support
our network of distributors.
BIR: What is the best business advice you
ever received, and who was it from?
NC: My dad, a business owner, always told
me, “Nancy, if you are always honest, tell only
the truth and do the right thing, you will be
successful and respected!”
BIR: What would BIR's readers be surprised
to learn about your company?
NC: It is independently owned, operated by
the second and third generation, George
Keune Sr. and George Keune, Jr., and
continually growing. Keune products are sold in
more than 60 countries. The company has five
subsidiaries, along with 60 export distributors.
Its state-of-the-art research and development
department and manufacturing facility is in The
Netherlands.
Reach Nancy Carroll at 800-330-9302,
ext. 256, or [email protected]. Visit
www.keune.com.
NOVEMBER 2010 7
The Beauty Industry Report Visit www.bironline.com
UBC brings back personalized distribution
U
ltimate Beauty Companies (UBC) is an
umbrella company with four divisions that
service all areas of the beauty industry and
provide stylists, salon and
spa owners, estheticians
and students with service
and products they can
count on. Beauty
Industry Report (BIR)
recently interviewed
Morad Zahabian, Morad Zahabian,
CEO/founder
CEO/founder, and
Cynthia Heisser, senior vice president, about
the benefits of partnering with a distributor
that carries a large variety of products and
proves that trust and excellent customer
service are key components of success.
BIR: Morad, please share your organization’s
story with BIR’s readers.
Morad Zahabian (MZ): What differentiates
Ultimate Beauty Companies from other
distributors is our commitment to providing
high-quality products that we truly believe in;
annual giveaway campaigns centered around
giving back to beauty industry professionals,
such as the Ultimate Rewards Program for
2010-11; a web of top-notch education
initiatives; the capability to serve as a onestop-shop for stylists, salon and beauty supply
owners, estheticians, spa directors, nail techs
and students and our mission to grow UBC
through a dedicated and focused approach to
finding new business avenues while remaining
consistent and loyal to our customers.
BIR: Tell me about your four divisions.
MZ: Over the past decade, we saw an
opportunity to maximize our distribution
channels by creating four segmented divisions
built to service the different segments of the
professional beauty industry. We run each
division as its own company. Consequently,
many of our customers are surprised when
they learn that Nancy’s Beauty Warehouse,
Bella Spa & Salon Distributor, Exclusive
Salon Distributor and viaBeauté, a distributor
of fine beauty brands, are all under the UBC
umbrella. Nancy’s is a nationwide open-line
distributor of salon and beauty supply
products. Nancy’s was the first division of UBC
8 NOVEMBER 2010
and is the backbone of the company. It was the
sustained success of Nancy’s that inspired us to
diversify ourselves. Bella is a nationwide openline distributor focusing on spa products.
Exclusive Salon Distributor carries professional,
salon-exclusive lines in California and caters to
mid to high level salons. viaBeauté, the first
luxury distributor, offers elite brands whose
target demographic is top tier salons.
BIR: Who are the key members of your
management team?
MZ: Our UBC team includes more than 60
people. Our strong infrastructure has enabled
us to achieve 18 consecutive years of profitable
growth. With strong leadership and strategic
planning from senior vice president, Cynthia
Heisser, we have attracted talent and placed
the right players in the right positions to
maximize our effectiveness. We have all of the
pieces in place to continue to grow in 2011 and
beyond with Angelica Montoya, division sales
manager, managing the outside sales force for
Exclusive Salon Distributor/viaBeauté; James
Perkins, director of sales, responsible for
Nancy’s salon and beauty supply sales; and
Richie Lugo, division sales manager,
responsible for Bella sales and managing all
marketing communications.
BIR: What is your company’s philosophy?
MZ: Each employee, no matter what his or
her role in the company, understands that we
are on a mission to be a $100-million company.
Each employee takes ownership of his or her
job and comes to work every day prepared to
do whatever it takes with integrity to reach our
ultimate goal. Personally, I approach each day
with a hunger to outwork our competition and
consistently strive to demand exceptional
results from each employee and myself.
BIR: What makes UBC different from other
distributors?
MZ: Our execution of our many initiatives,
programs, promotions and top brands sets us
apart. We focus on what our customers’
customers need. When our customers and
manufacturers work with UBC, they are doing
business with a dedicated organization focused
on customer success and exceptional results.
BIR: What is UBC’s greatest accomplishment
in the past five years?
MZ: Exclusive Salon Distributor and
viaBeauté have enabled UBC to enter another
segment of the beauty industry successfully.
With those additional divisions, we are able to
service our customers to an even higher degree
with a broad spectrum of product offerings.
BIR: What is the salon industry’s biggest
distribution challenge in 2011?
MZ: Salons want to be serviced by educated
sales reps and are looking for brands that
perform. Many times when we open new
accounts, stylists and owners are skeptical of
bringing in new lines or working with another
distributor because of past challenges. Too
often distributors over-promise and underdeliver, which results in a lack of trust. UBC is
committed to bringing back personalized
service and trust.
BIR: What trends are having a positive effect
on the salon industry?
Cynthia Heisser (CH): Whether through
Google, beauty trade magazines or television,
salons are getting educated on the products
they’re using on themselves and their clients.
Traditionally, an appealing design and good
scent were all it took to get a brand on a salon
shelf. Now, customers also examine the
ingredients. There is a heightened awareness
about parabens and sulfates and a movement
toward organic and green lines. Educated
stylists demand safe products that perform and
ask about ingredients and formulas.
BIR: What would BIR's readers be surprised
to learn about your company?
CH: They would be surprised by the volume
of business we do and the number of beauty
professionals we reach. Like Morad stated
earlier, many customers are surprised that all
our divisions operate under the UBC umbrella.
Beauty professionals are pleasantly surprised
when they learn that we are essentially a onestop-shop for all of their needs. We offer
nearly every category of product found in most
hair salons, nail salons, spas, beauty suppliers,
beauty schools and barber shops.
BIR: What is your 2011 marketing campaign?
CH: UBC continues to partner with the
Professional Beauty Association (PBA) and
top companies, such as Helen of Troy, Clairol
Professional, Wella, BaByliss PRO and
L’Oréal, to spoil beauty professionals with
dynamic giveaways. Our UBC Ultimate
Rewards program gives incentives to all of our
customers for shopping with us. As an added
benefit, all new and existing customers are
automatically entered to win one of four
$5,000 cash giveaways at the 2011
International Salon & Spa Expo (ISSE) in Long
Beach, CA. We incorporate various
promotional tools, such as e-blasts and
Facebook and Twitter posts, along with text
messages and ads in American Salon and
Beauty Store Business, to educate our
customers about the program.
Ultimate Rewards is our way of indulging
customers. Ultimate Rewards members receive
up to a 2% return on all purchases in the form
of a UBC Dollar voucher when they shop with
any of our four divisions.
BIR: How were you involved with the North
American Hairstyling Awards (NAHA)?
CH: As a major sponsor of NAHA, we
launched our UBC Ultimate Rewards program
at the event. Our goal was to reach top tier
stylists, salon owners and students. NAHA
attendees had an opportunity to enter to win
the Ultimate Stylist Session Giveaway, which
included tickets to Juan Carlos Obando at
New York Fashion Week, compliments of
Number 4 High Performance Hair Care. We
also participated in Beacon, Symposium and
sponsored the NAHA After Party.
BIR: What new lines are you distributing?
CH: Our most recent additions include Kim
Vo, Simply Organic and OPI. Blending ancient
Vietnamese botanicals with French
- offers luxury hair care
nanotechnology, Kim Vo
mfor color-treated hair. Simply Organic is a
plant-based hair and skin care, bath and body
and lifestyle accessories brand. With OPI, we
are hoping to reach more salons and expand
on our existing business. All three brands are
sold through our Exclusive Salon Distributor
division and featured in our catalog.
BIR: Why should a manufacturer select UBC
as its distributor?
CH: Manufacturers want a distributor who
will focus on their brand, share the passion
they have for their products and make it their
personal mission to grow the line as if it were
“When our
customers and
manufacturers
work with
UBC, they are
doing business
with a
dedicated
organization
focused on
customer
success and
exceptional
results.”
their own and their future depended on it. We
promise that to our manufacturers and only
bring in brands we absolutely love.
BIR: What are some of your most popular
products/lines and why?
CH: In Exclusive Salon Distributor, we are
having a great deal of success with Kim Vō. For
Bella, Satin Smooth has been key to our
business. Two of Nancy’s most consistent
performers are BaBylissPRO and Hot Tools. In
regard to viaBeauté, all of our brands (Philip B,
Number 4 High Performance Hair Care,
Orofluido and Salontech) are thriving. What
makes a brand successful is its involvement in
our sales trainings, focus weeks, detail days and
participation in our annual campaigns.
BIR: What do you have planned for 2011?
CH: In addition to our annual campaign and
more advertising and viral marketing, we have
big plans for growth and expansion. Having
weathered the economic challenges of the
past two years, we will build on our success,
carry momentum into 2011 and grow our sales
team in both new and existing markets. All
interested sales professionals can email me
their resume. This month, we are launching our
blog, Diary of a Beauty Exec
(www.diaryofabeautyexec.com), to establish
another means of communication by which we
can reach beauty professionals on a personal
level to share advice, along with the exciting
challenges and triumphs that come with being
an executive in the beauty industry.
BIR: Tell me about your online initiatives.
CH: We have been actively promoting each
division and marketing our brands through
social networking for nearly two years. We
have more than 1,500 friends and followers via
Twitter and Facebook (stylists, salon owners,
beauty suppliers, estheticians, spa directors and
manufacturers). We do promotions, education
announcements, product launches, sales
training pictures and shout outs. While the
purpose is to generate business, we understand
that our social networking communications
need to have a human feel. Our tweets and
posts must be informative and engaging.
BIR: What is the best business advice you
ever received, and who was it from?
CH: Jim Markham told me, “Find what’s
missing and create a better mousetrap.” That
way of thinking inspired us to create viaBeauté
(there were no other luxury distributors) and
Exclusive Salon Distributor
(there were no other green
inspired distributors.)
Reach Morad Zahabian at
800-888-4055, ext. 320, or
[email protected].
Cynthia Heisser, Reach Cynthia Heisser at
sr. vice president 866-200-6005, ext. 250, or
[email protected]. Visit
www.ultimatebeautycompanies.com.
NOVEMBER 2010 9
The Beauty Industry Report Visit www.bironline.com
BIR reports from Int’l Congress of Esthetics/Spa
T
treatment in the convenience of the home or
just two to four weeks, you can see visible
he annual International Congress of
results. Blinc Long Lash can be used up to twice when traveling. Alla Dorodny, marketing
Esthetics and Spa in Long Beach, CA, codirector, said, “They are enriched with
a day and is applied to the base of lashes, as
produced by Les Nouvelles Esthétiques & Spa
hyaluronic acid, a natural
would
apply
eyeliner.
It
you
attendees
an
alland Dermascope, offers
molecule of the skin that is
causes no stinging, eye
inclusive $60 registration fee. That one fee
known for its moisturizing
irritation or skin or eye
covers the show entrance plus all general
properties. Hyaluronic acid
discoloration” (SRP $48.00).
session lectures, manufacturers’ workshops and
is capable of restoring 1,000
Reach Sarah at
seminars. On an annual basis, sister shows are
times its own weight in
877-454-7763, ext. 2739, or
also produced in Dallas, Miami and
water. It redensifies the skin
[email protected]. Visit
Philadelphia.
and
refills wrinkles from
www.blincinc.com.
Beauty Industry Report (BIR) talked with
the inside.” The line consists
Also displaying an
Christele De La Haye, show director and
Lotus Moon Green Spa Network Village of six tissue facial masks
eyelash growth product
marketing director for Les Nouvelles
and one set of hydra gel eye patches (SRP
was first-time exhibitor GrandeLASH-MD. CEO
Esthétiques & Spa, who shared that a total of
$5.50). Each mask performs a different function
12,000 skin care and spa professionals attended Alicia Grande shared, “Our GrandeLASH-MD
and features ingredients, including caviar
eyelash conditioner and eyebrow enhancer
the show, an increase of 30% over last year’s
extract, arbutin, deep sea pearl extract, CoQ10,
made with natural ingredients feature a lower
event. Almost 200 exhibitors, including 44 new
retail price point for a four-month supply and a aloe, green tea and olive oil. Iroha products are
vendors, displayed their product lines.
paraben free. Reach Alla at 818-551-0209 or
90-day money back guarantee. We sell
Said Christele, “An upbeat mood resonated,
[email protected]. Visit
exclusively to the salon/spa industry and are
creating a positive atmosphere that lasted the
www.irohamask.com.
not sold in the mass market” (SRP $59.95).
duration of the conference. We were very
Cailyn, a cosmetic and skin care contract
Reach Alicia at 877-835-3010 or
pleased with the show results and the new
manufacturer, also markets a select few
[email protected]. Visit
features introduced at this year’s show,
products under its brand. Jin Kim, CEO,
www.grandelashmd.com.
including the Medical
showed the Exfoliating Peeling Gel, which
BIR had the opportunity
Esthetic Seminar,
provides gentle exfoliation and vitamin C in
to spend a few minutes
Salon/Spa Management
one application. Taking advantage of a new
with Emmett and Beth
Business Seminar, Green
technology in the preparation of vitamin C
Hickey, who operated EOH
Summit round tables, the
beads, the Exfoliating Peeling Gel removes dead
Industries, a nail care
Aesthetics International
skin cells, leaving skin with a healthy glow,
manufacturing business,
Association Education
while supporting the natural cell renewal
which they sold to
classes and the National
process
and stimulating circulation. Vitamin C
Marianna
Industries
in
Aesthetic Spa Network
Attendees discussed how to be more
stimulates
collagen production, improves
2004.
Their
new
company,
round tables.” Over the
green at the Green Summit roundtables.
elasticity and helps protect against damaging
Spa Specialties
two days, there were 51
environmental aggressors (SRP $38.00). Reach
Representatives, is a manufacturer’s rep
workshops, 12 lectures/demos and more.
Jin at 877-980-0783 or
organization. “We started the company
Indicative of the trend that lashes are a hot
[email protected]. Visit
because no one was focused on the emerging
fashion accessory and big business for salons
www.cailyncosmetics.com.
spa distributor. This distributor has different
and beauty stores was the large number of
Natural Selection Bath and Body’s Zenneeds than that of the beauty distributor,” said
exhibitors promoting products for eyelash
inspired bath and body products pamper the
Emmett. The company has a network of
growth, including Divaderme Lash Extender,
resources for product development and private body while lifting the spirit. Each scent has a
JB Cosmetics Lash Food, Rapid Lash,
spiritual uplifting quote on the label, so you
labels everything from hair care to foot care, as
GrandeMD Revitalash and Rogze. Marketing
well as major national brands. Reach Emmett or can add a positive affirmation to your daily
eyelash extensions were Extend Your Lash, JB
ritual. Buddha Baby provides moms with a
Beth at 817-706-4700 or [email protected].
Cosmetics, Minky’s Eyelash Extensions by E
Zephyr Pacific Distributors launched Iroha product to pamper their little ones after
and Bio Touch.
pampering themselves. “You can use the
Masks as part of its goal to bring quality,
Blinc marketing director, Sarah Lowe,
melted oils of our massage candles on your
convenient cosmetics to the market at lowshared, “Blinc Long Lash is designed to
skin as a body oil or warm massage oil,” said
cost prices. Iroha Masks are manufactured in
dramatically enhance the look of a woman’s
Jean Vavra, owner and creator of the line.
Spain and offer a 15-minute mini spa facial
natural lash length, fullness and thickness. In
10 NOVEMBER 2010
Reach her at 877-994-7627 or
[email protected]. Visit
www.naturalselectionspa.com.
Kristy Armijo and Noelle Mathieu debuted
their organic coconut oil product line.
According to Kristy, Extra Virgin Coconut (8
ounces/SRP $20.00) is an anti-aging moisturizer
for men, women and children. “While
smoothing and softening the skin, our deeply
penetrating and vitamin E rich oil’s antiinflammatory, anti-viral and anti-microbial
properties go to work to help heal burns,
soothe rashes and calm psoriasis—even cold
sores,” she added. The company plans to add
to the line shortly. Reach Noelle or Kristy at
800-997-7916 or [email protected].
Visit www.nohonaproducts.com.
LaDonna Sheridan, Fake Bake national
sales educator/manager, noted, “We featured
the Airbrush Mobile Tanning Package, which
gave attendees the opportunity to get a quick
tan of their own, while they learned how to
increase their salon dollars.” LaDonna added
that the company’s pitch is, “Don't just wait for
money to come to you...go to the money. Go
mobile and include home airbrush tanning
treatments to your repertoire." The Fake Bake
Airbrush Tanning Package includes airbrush
machine; pop-up tent; two 32-ounce tanning
liquids; six sets of disposable panties, hairnets
and sticky feet; Fake Bake towel and Fake Bake
poster (# FBABP-01/list $599.00). Reach La
Donna at 888-244-4826 or
[email protected]. Visit
www.fakebake.com.
The show floor was crowded with attendees.
Lori Nestore, president/CEO of Eva’s
Esthetics, said, “It has been about four years
since we have participated at this show, and we
were pleasantly surprised by the caliber and
quantity of attendees. Show management was
supremely available and helpful, which is
always great for an exhibitor and educators.”
Consumers
want beautiful,
luscious lashes,
making lash
growth
products and
extensions a
huge
opportunity
for salons, spas
and beauty
supply stores,
and as a result,
popular
choices at this
show.
“Nothing cleans like a cleansing oil” is the
concept behind Eva’s Esthetics Tu’eL skin care
line. When properly-formulated cleansing oil is
massaged into the skin and converted into a
The Eminence workshop.
water loving oil with the addition of a sugar
complex serum, the skin is left ph-balanced
and perfectly prepared. It can be used at the
deep pore cleansing stage of a professional
treatment and at home in the evening. It is
available for the following skin types: dry;
combination; acne and dry-reactive (4-ounce
retail size/SRP $27.00; 16-ounce professional
size/$38.00). Reach Lori at 800-765-7597 or
[email protected]. Visit tuelskincare.com.
Micabeauty added Glisten hair jewelry to
its 100% all natural mineral makeup collection.
These long strips are quickly applied with a flat
iron to any desired area on the hair, making it a
sellable accessory, especially for the holidays.
All materials are non-toxic, heat resistant and
durable. Each package contains six strips
(SRP $19.99). Reach Roni Paz, president, at
818-709-6900 or [email protected]. Visit
www.micabella.com.
PFB Vanish is a roll-on gel with moisturizing
and exfoliating ingredients used to prevent and
treat ingrown hairs, razor burns and bumps
resulting from shaving, waxing, tweezing,
electrolysis and laser hair removal. Available in
a small counter display, it is an ideal line for
beauty stores, salons and spas. President
Ottmar Stubler said, “The Long Beach
International Congress of Esthetics was the
best show in our 10-year history of exhibiting at
trade shows. My only regret was not bringing
enough products to the show.” Reach Ottmar
at 877-225-0233 or [email protected]. Visit
www.pfbvanish.com.
The next Long Beach Congress of Esthetics
and Spa Show will be on September 11-12, 2011.
To learn more about the various opportunities
to get in front of this important audience,
contact Christele De La Haye at 800-471-0229
or [email protected]. Visit
www.lneonline.com.
NOVEMBER 2010 11
The Beauty Industry Report Visit www.bironline.com
People are the stars at Peel’s Creative Edge Show
P
eople are the heart and soul of the beauty
business, and at Peel’s Salon Services, that
starts with the Peel family, who has served
several generations of salon professionals in
the Midwest. Peel’s Salon Services has a large
network that extends into Colorado, Wyoming,
Kansas, Nebraska, Iowa, North and South
Dakota, Missouri and parts of New Mexico,
Oklahoma and Minnesota.
Peel’s was founded in 1938 by Bob Peel Sr.,
who still goes to the office early every day and
focuses on his first love: salon equipment. His
two sons work with him, growing the business
to annual sales in excess of $100 million, thanks
to the efforts of almost 100 distributor salon
consultants (DSC) and managers at its chain of
57 professional-only beauty supply stores. Bob
Jr. runs the company’s Hutchinson, KS
distribution center, and Bill leads the La Vista,
NE distribution center. Bill’s daughter, Lindsay,
is executive director of sales, and son, Eric, is a
DSC. Bob Jr.’s two daughters, Evan Peel and Erin
Kooiman, are DSCs and Erin’s husband, Bart
Kooiman, is sales director. Erika Peel-Barnes’
husband, Darren Barnes, is a DSC, as well.
In fact, at Peel’s, both customers and
vendors are treated like family as well, making
this one of the last large distribution
companies that still relies on intimate personal
relationships to help its customers and vendors
grow their businesses. Nowhere is that more
apparent than when the Peel family invites its
extended professional salon industry family to
its semi-annual shows.
On September 18-19, Beauty Industry
Report (BIR) was welcomed into the family
when we attended the Peel’s Salon Services
Creative Edge 2010 Show at the MidAmerica
Center in Council Bluffs, IA, just minutes from
downtown Omaha. The fact that the show is
able to attract a large attendance on a
Saturday/Sunday schedule (as opposed to the
traditional Sunday/Monday schedule) is
evidence of Peel’s Salon Services’ drawing
power and the value salon owners and beauty
professionals take home from this event. As a
result, they come back show after show.
According to Beth DeGeorge, executive
assistant, the Peel’s Fall Creative Edge show had
12 NOVEMBER 2010
4,400 attendees, a significant increase from last
year’s 3,800 and the second largest in the
show’s history. The vendor count also increased
from 75 last year to 90 exhibitors this year.
Why a Saturday/Sunday schedule with an
8:00 a.m. start time? Bill explains, “If salon
owners or stylists work on Saturday, they can
have a full day on Sunday to attend the show,
and then have their Monday free. It also gives
those attendees who prefer to attend on
Saturday a day of rest on Sunday. Also, what
distributor show do you know that has a strong
attendance and sales on Monday?”
The Mid America Center is a round structure
built around an arena that makes the show
floor layout a combination of a few good sized
halls. Dominating the arena were L’Oréal’s
Redken, Pureology and Matrix. In contrast,
Tom Bowles’ Wholesale Beauty Club/Special
Premium Plus had the worst location, yet was
the busiest exhibitor by far. With his large array
of merchandise, including clothing, sunglasses,
belts, scarves, gloves, costume jewelry and
purses, it was like a miniature ASD General
Merchandise show. Tom shared, “Salon owners
are realizing they can buy and sell accessories,
and when you offer them a deal, they will load
up and many buy for personal use, as well.”
Reach Tom at 316-267-7533 or [email protected].
Dinorah Gomez, Moroccanoil account
manager, showed two round cosmetic cases in
the brand’s signature blue shade with the
orange “M” logo. One case featured the wet
line and contained one each of Treatment
(100ml), Repair Shampoo (250 ml), Repair
Conditioner (250 ml), Hydrating Mask (250 ml)
and Restorative Mask (250 ml) (a $75.00 value
for $65.00). The other case featured the styling
line, including one each of Treatment (100 ml),
Styling Cream (300 ml), Curl Cream (300 ml)
and Glimmer Shine Spray (100 ml) (a $62.00
value for $55.00). Reach Dinorah at
514-448-8967 or [email protected].
Visit www.moroccanoil.com.
At the AminoGenesis booth, its instant
wrinkle eraser, Gone In Sixty Seconds, was
being snapped up by stylists so quickly that it
almost lived up to its name. Gone in Sixty
Seconds contains oxygenating peptides, micro-
collagen and firming proteins that tighten, firm
and eliminate wrinkles and puffiness instantly.
The formula time releases key ingredients all
day, eliminating wrinkles around the eye area,
mouth and forehead, while also eliminating
under-eye bags and puffiness on contact.
Reach Tori Kinney, marketing director, at
877-523-4455 or [email protected]. Visit
www.aminogenesis.com.
BIR talked with Joyce Beehmen, a long-time
Peel’s Salon Services DSC who was working the
company’s holiday booth, to find out more
about this year’s seasonal marketing program.
Joyce noted, "Peel’s offers a holiday program
every year to our customers by providing them
with a catalog of suggested holiday-themed
products and promotions in August and then
shipping these presold orders in October.” She
added, “In addition, the program gets a big
boost on the one Sunday a year that all of our
stores are open offering the catalog items,
other holiday oriented goods and bag deals.”
Bob Peel Sr., was working with the Peel’s
Salon Furnishings Department team showing
equipment from Kaemark, Belvedere,
European Touch, Kayline, International
Tanning Equipment (HEX) and other
associated suppliers. Bob shared that his first
year in business, company sales hit $100,000.
(Fast forward to today and you have to add
another set of three zeros for Peel’s current
annual sales.) The Salon Furnishings department
has 10 full-time employees and plays a
significant role in the business by focusing on
delivering quality products and service. At a
young 83 years old, he arrives early to work
every day. What a great role model!
At FHI Heat, vice presidents Dave Genes
and Les Haverty said the company is
expanding its distributor network successfully
across the country. Les told BIR that FHI Heat is
consistently among the top sales volume
producers at its distributor shows, due to its
creative promotional packs and education with
Phillip Wilson, global creative director. He also
shared that the company has shipped 8,000 of
its new salon merchandising units since June.
They’re designed to put salons into the tool
retailing business. He said, “Our displays give
salon owners of all sizes a true retail
opportunity to generate an additional stream
of revenue by getting into the business of
retailing professional quality styling tools.”
Reach Les at 216-456-0346 or
[email protected]. Visit
www.fhiheat.com.
HAI-Elite introduced Big Heat and Big
Power, two tools designed for styling multitextured hair. The Big Heat hair dryers feature
an improved AC motor generating 1,875 watts
of power and twice as many restoring
tourmaline and ions. The dryer comes with two
nozzles and a diffuser (#GO 38/SRP $169.00).
The companion Big Heat flat iron delivers a
true 450 degrees of heat. It makes single-pass
smoothing a reality and comes with a bonus
heat-resistant leather storage clutch. As the flat
iron’s temperature rises, it triggers a reminder
timer that activates a voice message that
announces, “Big Heat achieved,” when the unit
reaches 450 degrees (#CO37/SRP $169.00).
Reach Rick Elliot, national sales director, at
858-776-6968 or [email protected]. Visit
www.hai-elite.com.
Matrix recently launched five new styling
and finishing products under the Design Pulse
line, bringing its total to nine total products
(with more to come in 2011): Fiber Shuffle
Paste, Glow To Pieces Wax, Go Big Extra
Strong Hold Mousse, Hard Lock Hairspray,
Loosely Defined Texture Crème, Messy
Couture Molding Paste, Rock 'N Hold Hard
Hold Gel, Switch-Flicks Wax-Gel and Thermo
Glide Express Blowout Crème. Guest artists
Ammon Carver and Sandra Carr gave ideas,
tips and cocktailing ideas for all of the new
products. SRPs are an affordable $14 to $15. Visit
www.matrix.com.
Mirabella Beauty launched its Le Smoking
Collection of three simple steps to smoky
eyes. The collection is available in classic (gray
hues), fashion (violet hues) and shy (brown
hues). “Le Smoking is so easy to apply and
absolutely beautiful on the eyes! Anyone can
be a makeup artist with Mirabella, especially
with this collection,” said Jennifer Rider,
regional manager. Reach her at 661-702-9910 or
[email protected]. Visit
www.mirabellabeauty.com.
Doreen Guarneri, who owns American
Culture with her husband, featured their
Simply Smooth Keratin salon intro units in her
classroom and busy booth. Reach Jennifer
Israels, vice president of national sales, at
631-293-3145 or [email protected]. Visit
www.americanculturehair.com.
“Thank you,
Peel’s, for a
show that
takes a stand
for the success
of the
hairdresser.”
Don Shedrow, national sales manager for
InfraShine, introduced the MST or microsilica
infused ceramic styling irons using anionic or
negative ion technology. Don said, “Working at
the molecular level, ultra-fine high-grade silica
fills the ceramic micro-pores of the floating
beveled plates to allow irons to glide easily
through even the coarsest hair to smooth the
cuticle layer and seal precious moisture in,
leaving hair silky and luster-rich.” This new
technology has been introduced in both the
Classic Line and Red Line professional styling
tools. Reach Stephen Nenadich, vice
president, at 877-973-4259 or
[email protected]. Visit
www.infrashine.com.
Education was a chief show attraction. Both
days featured hands-on workshops and
platform presentations from a number of
vendors, including Matrix, Pureology, Redken,
Aquage, Nioxin, American Crew, TIGI, Kenra,
InfraShine, Hai-Elite, FHI Heat, Monroe hair
brush, Oster, Simply Smooth Brazilian
Keratin Treatment and Product Club. Bob
Peel Jr., Kevin McKowen and Geno Stampora
provided business and motivational tips to help
stylists earn a better living.
BIR sat in on one of Geno’s motivational
presentations. Philip Wilson, global artistic
director for FHI Heat, popped in just in time to
introduce Geno and referred to him as the best
motivator in the industry. Geno is a master
when it comes to assisting stylists and salon
owners with generating more income. He
opens his sessions by writing responses to
some key challenges stylists and salon owners
face on a large easel poster, and then gives his
solutions. Reach Geno at 540-338-7747 or
[email protected].
Bob Peel Jr. presented, “17 Ways to Grow
Your Business 17%,” which he bases on his visits
to more than 400 salons a year just to ask
them what is growing their business. For
example, he said it’s critical to properly manage
gift certificate revenue. “Don’t use gift
certificate income as cash flow,” he explained.
“Create a separate bank account to hold your
gift certificate income. You need to track the
net dollar amount from sales and redemptions
every month and move the cash between the
savings and checking account accordingly.”
Other suggestions for salons include to create
a VIP program and offer discounts, bonuses
and/or incentives; offer daily specials; develop
creative promotions to excite clients and your
team; reach new clients through social media;
create frequent email blasts and newsletters to
keep your clients up to date and engaged with
your salon; design a referral program to reward
clients who refer a new client; and create
special events, such as a “Night of Color.”
Bob also shared the nine traits of great small
businesses: 1. They are about more than money;
2. They are fun; 3. They are creative; 4. They are
led by charismatic entrepreneurs; 5. They have
a great team; 6. They experiment and innovate;
7. They risk failure; 8. They work hard and play
hard and 9. They strive to be the best
Bob stated, “These ideas have credibility
because they are not hypothetical, they are
being used successfully and are easy to
implement.” Reach Bob Jr. at 620-662-3374,
ext. 102, or [email protected].
Peel’s Show continued on page 14
NOVEMBER 2010 13
The Beauty Industry Report Visit www.bironline.com
Peel’s Show continued from page 13
The Aquage show featured two gymnasts
from Cirque d’ Soleil, who opened the
presentation with a display of strength and
balance. BIR caught up with Luis Alvarez, vice
president, who said, “The big news is the recent
launch of the Biomega line. Between the high
degree of thermal heat we apply to hair today
and the frequency of hair color services, the
scalp’s own natural oils can no longer
effectively repair and protect the hair from
dryness and damage,” he explained. “Today, hair
needs a boost, a more effective solution to
replenish natural oils, but unfortunately, until
now, there was not an effective way to mix
natural oils into a water-based system. That’s
the Biomega breakthrough. We have discovered
a new way to suspend highly-active amounts of
ultra-light, ultra-rich botanical oils in our extragentle, sulfate-free and water-based shampoos
and conditioners so they can be infused into
the hair shaft at the highest beneficial levels to
replenish, repair and renew the healthy look
and feel of color-treated hair and deliver
longer lasting color results.” SRPs are $17. Reach
Luis at 440-893-1100, ext. 105, or
[email protected]. Visit www.aquage.com.
The Sweet Spa area was located in a quiet
space off the show floor and featured OPI,
CND, Art of Beauty, Medicool, Nufree, Berins
Wax, Escential Wax, Norvell Tanning &
Skincare Solutions, Clinical Care Skin
Solutions, Bioelements and Mirabella, in a
more peaceful atmosphere.
According to Warren Peskin, who was
working the booth for his client, La-tweez, a
line of illuminated professional tweezers, the
brand’s breast cancer awareness tweezers
received a great response. “La-tweez continues
to be a successful brand for Peel’s, as evidenced
by the number of satisfied salon professionals
who came by the booth to buy and let us
know how great their retail sales have been,”
stated Warren. “It has been a long time since I
attended a distributor show in which the sales
people brought by their accounts for us to talk
to. Thank you, Peel’s, for a show that takes a
stand for the success of the hairdresser.” Visit
www.la-tweez.com. Reach Warren at WRP
Business Development at 530-320-6633 or visit
www.wrpbusinessdevelopment.com.
At Shark Fin Shear Company, the Double
Shark Fin Shear was the big seller. It is the
14 NOVEMBER 2010
newest addition to the Shark Fin Family and has
the company’s patented handle design—times
two. It features a ball bearing system in the
pivot and swivel area for ultra smooth
performance, as well as cobalt enhanced
blades for harder, sharper steel and crisp cuts.
It is available in non-swivel, swivel and superswivel thumb for the right or left hand
(available in 5.5 inches or 6.25 inches/list
$519.95). Reach Randy Ferman, CEO, at
888-544-7254 or [email protected].
Visit www.sharkfinshears.com.
Daniel Baumwald, vice president of sales
and marketing for TheraPearl, said, “The Peel’s
show highlighted the launch of our new Pink
Packs to benefit breast cancer research ($12.99
for eye-mask, $11.99 for sport pack). The new
Pink line allows the consumer to enjoy all of
the soothing benefits of TheraPearl, while
supporting a cause that impacts millions of
people each year. TheraPearl is pledging
$10,000 to the fight against breast cancer.”
Reach Daniel at 877-PEARL09 or
[email protected]. Visit
www.therapearl.com.
At the Bling Strand booth, owner Joanne
Richardson and her partner, Angela Cooley,
demonstrated how easy it is to put their multicolored strands of metallic vinyl strips in the
hair. Joanne said, “There's no better way to start
the holiday season off right than with a
successful show like Peel's. Their clients are
always looking for the new, exciting trends to
help them add a few dollars to their ticket, and
Bling Strands are the answer. What better way
to set your salon (and your clients) apart from
every one else than by offering a service that
always gets noticed—especially around the
holidays.” Reach Joanne at 801-791-4399 or
[email protected]. Visit
www.blingstrands.com.
Beatrice Fogle, Tantowel director of sales
and marketing, showed the new fall and
holiday sets, including the Express Tan kit. It
contains five half body plus towelettes and
new Express Tanning Mist (2 ounces/SRP
$30.00). “This is the perfect cocktail for that
instant color and the continued development
of the tan over the next 24 hours. Even with
this instant color, you will dry in minutes and
there will be no color transfer,” noted Beatrice.
Reach her at 702-360-4879 or
[email protected]. Visit www.tantowel.com.
The Lano Company’s new natural Pure
Illumination 3-in-1 lip gloss offers a medicalgrade lanolin-based lip gloss with an LED light
and mirror for flawless application (.30
ounces/9 ml/SRP $20.00). Layne Coggins,
director of sales, also featured Pure
Illumination Light Up Lip Plumper, a
physician-formulated lip plumper that plumps
and moistens lips without irritation (.30
ounces/9 ml/SRP $35.00). Reach Layne at
816-223-9453 or [email protected].
Visit www.pureillumination.com.
“At Peel’s, both
customers and
vendors are
treated like
family.”
It wouldn’t be a salon show without a party.
At the end of the first day, more than 1,000
attendees, exhibitors and Peel’s employees
were treated to a concert of Rock Legends
featuring Billy McGigan and his rock group. Billy
entertained the audience by performing a tour
of rock legends that included the Beatles,
Buddy Holly, the Eagles, U2 and many more.
Also happening at same time was a wine
tasting hosted by Bob Jr.
At Peel’s, L’Oréal-owned brands, including
Matrix, Redken and Pureology, are major
players, which fuels speculation that it’s only a
matter of time before the family sells to
L’Oréal’s Salon Centric distribution division.
Rumors have continued to run rampant. BIR
asked Bill Peel about it, and he said, “The Peel’s
family goal is to stay as an independentlyowned distributor, but we realize the industry is
changing.”
BIR looks forward to returning to Council
Bluffs for the Peel’s spring show scheduled for
April 9-10, 2011.
Modern Salon to offer database of distributors
I
n the past, salon product marketers made
distribution changes based on performance.
Today, however, marketers are constantly
changing distribution partners as a result of
new strategic alliances—regardless of the
distributor’s track record. In addition,
international marketers target the U.S. salon
market and are looking for distributor partners.
As a result, smart distributors make sure that
manufacturers and marketers know who they
are and how and where they operate.
To help them do just that, Modern Salon is
creating a comprehensive distributor database
to facilitate the process of bringing marketers
and distributors together. Beauty Industry
Report (BIR) contacted Steve Reiss, publisher
of Modern Salon Media, to find out more.
BIR: Your distributor database is just what
the industry needs. Please share the details.
Steve Reiss (SR): The beauty industry is
going through some fairly significant changes,
impacting both the landscape and the players.
In this environment, access to good
information and resources is more valuable
than ever—especially as it can be the
difference between success and failure. For
more than 70 years, Modern Salon has been an
advocate for all segments of the industry—
beauty school owners, students, stylists, salon
owners, manufacturers, sales reps and
distributors. We are very aware that our
success is tied to the larger success of the
industry, and when we find areas where we can
add value, it’s our obligation to get involved
and do what we can to help.
BIR: Why are you creating this database?
SR: We’re regularly approached by marketers
looking for a listing of industry distributors.
Some are considering changes to their current
distribution, some are new to the market and
others are bringing in lines from overseas. But
pretty uniformly, they say they’ve had problems
getting an accurate listing of their distribution
options. Since we couldn’t find what they were
looking for, we decided to create one.
BIR: Being a former distributor, I love this
idea! My first question is what are you going
to do with the information I supply?
SR: We’re going to create a searchable
database of distributors, including the
information that potential customers are
looking for—territories covered, lines they
represent, number of stores, etc. and contact
information. And we’re going to take advantage
of Modern Salon’s resources to make it easy
for the industry to find and use these listings.
BIR: How well do companies currently
understand their distributor options?
SR: It really is a mixed bag. For some people,
this list will primarily be a way for them to
keep current on the distribution landscape. For
others, it will provide a huge benefit and give
them access to their full range of options.
BIR: What steps should distributors take to
make sure that they are included?
SR: Distributors can feel free to contact me
directly. As a first step, we will confirm that
“We are very
aware that our
success is tied
to the larger
success of the
industry, and
when we can
add value, it’s
our obligation
to help.”
they belong in the database. After that, we’ll
send them to our easy-to-use online interface
to update their listing and ensure that all their
information is correct. For the user, the whole
process takes no more than five minutes.
BIR: Is there a charge to the distributor?
SR: There is no charge for a distributor to be
included in the database.
BIR: Will your database also be a resource
for salons that are trying to find out who
distributes a particular brand in their area?
SR: We will make that info available to
salons as a free service. Often, salons are
looking for a local contact who can provide
information on a particular brand/product and
are not sure where to go. They will be able to
find that information on modernsalon.com.
BIR: When will the directory be available?
SR: As soon as we’ve gathered all the data—
in the next month or so.
BIR: Can distributors update their data
throughout the year?
SR: Since the market is continually changing,
we expect that distributors will need to update
their information during the year. We’ll accept
changes throughout the year, and will also be
sending out regular messages to the
distributors in the database reminding them to
keep their listing current.
BIR: Will the data be available online?
SR: Our intent is to make this as easy to use
and as current as possible. To that end, online
delivery makes the most sense. Regardless,
we’ll be talking to suppliers on a regular basis
and will accommodate their needs.
BIR: Steve, is there anything that you want
to add that I have not asked?
SR: Mike, there seems to be a lot of interest
in the project, and we really appreciate the
opportunity to communicate directly with your
audience. I encourage anyone who has
questions about the database or a listing or
who has suggestions about how it can be made
more valuable to contact me
directly.
Reach Steve Reiss, publisher of
Modern Salon Media/Vance
Publishing, at 847-634-4354 or
[email protected].
NOVEMBER 2010 15
The Beauty Industry Report Visit www.bironline.com
News continued from page 4
Karie Davies has been promoted to national
creative director at Empire Education
Group. In that role, she will lead Empire’s
efforts to incorporate cutting-edge styles
into the training and curriculum for
educators and students alike in each of its
100+ schools across the country. Karie will
also be developing Empire’s Creative Artist
and Artist in Residence programs to identify
internal and external talent to help bring
new and innovative ideas to Empire’s
classrooms, curriculum and education. That
includes working with Nick Arrojo, the twotime National Platform Artist of the Year and
the leader of Empire’s Masters of Beauty
advanced education program, along with the
Arrojo team. Karie will help nurture the
relationship Empire has with many other
celebrated industry icons to continue to
elevate the Empire student experience. Karie
comes from Empire Beauty School in Spring
Lake Park, MN, where she served as
academic director. Reach her at
[email protected] or visit
www.empire.edu.
As mentioned last month, Ken Mammini,
Nova Salon Systems co-founder/CEO,
passed away September 4 at 69 years old.
The following is a tribute to Ken from
company employees and business
associates: “Ken Mammini’s rebellious ways
made him an icon in the beauty industry. He
was a force to be reckoned with, and that
tenacity led Nova through many successful
years. Those of us who were lucky enough
to work with him will remember how great it
felt to have him as a leader and an ally.
Once you were on his team, you knew that
he had the utmost faith in your abilities and
that you had his unyielding support and
guidance in reaching success. His loyalty,
honesty and wicked sense of humor won
everyone over. I know that many people
share my sentiments; Ken made my career at
16 NOVEMBER 2010
Nova an experience of a lifetime. I am
grateful to have had Kenny as my mentor
and very dear friend.” (Michele Del Castillo,
senior sales at Nova 1988-2008)
“I knew Kenny for 33 years. He made me
smile, laugh, cry and shake my head in
wonderment. However, the thing I remember
most is that when his brother, Larry, died,
Kenny became the driving force that helped
build Nova into one of the most successful
beauty supply houses in the industry.
Because of his determination (and
sometimes desperation), we enjoyed great
success for many years. Although we had
our differences, he was like a brother to me.
I loved him and will miss him.” (Jeff Woods,
Nova executive vice president, 1984-2008)
"He had confidence in me and allowed
me to run a part of his business as if it was
my own. He was a true friend and mentor."
(Lori Bagdasarain Ruh, Nova Fresno store
manager 1991-2008)
“Ken was like a brother to me. He had a
great sense of humor, and he was always
trying to get me to change my serious
demeanor. He was a person who had a heart
of gold and was very caring to all people
that he came in contact with.” (Steve
Stefano, founder of Joico Laboratories and
Cinque Science.)
“Kenny, many came to your company as
inexperienced sales consultants and young
adults. You helped us to grow and to believe
we were the best in the beauty industry. I
am a better man for knowing you. You
taught me that family came first, and you
made us part of yours. I will miss you. I will
love you all of my life. Good-bye for now,
my friend.” (Marc Valez, senior sales at Nova
1986-2008.)
“Ken was truly a renaissance man! His
word was his bond. When Kenny made a
decision to represent your line, there was no
turning back. Loyalty, tenacity, integrity and
commitment permeated Nova Salon
Systems and made it the premier
distributorship in Northern California for 20
years. Over time, Kenny became my
confidante, my friend and my brother. Shine
on, Kenny! Knowing you, I’m sure you’re
dancing with stars! Peace.” (Ralph Coccaro,
co-founder, Taberco Cosmetics & Skincare)
“Kenny’s classic response to new
manufacturers, ‘I am already committed to
you. We need to make sure we sell our sales
people, and we are all off to the races.”
(Jeffrey Moore, director of chain sales at
Nova 1988-2008.)
“Nova was a once-in-a-lifetime
experience. I have not had as much fun on a
job as I did working for Nova, nor have I ever
seen a company like it. We did have a good
run! Happy trails, Kenny; I’ll see you on the
other side.” (Tom Richardson, salon
consultant at Nova 1994-2008.)
Jason Lang has 20 years of experience in the
professional beauty business and is seeking a
national or regional sales management
position with a growing company. As a sales
leader and strategist, he achieved double
digit growth for Nexxus, Empress Beauty
Supply, Nisim International and West
Coast Beauty Supply. For the past six years,
Jason has worked for French manufacturer,
Rene Furterer, Inc., as director of U.S. sales
and also managed its distributor network.
Reach Jason at 602-717-0562 or
[email protected].
Alterna introduces Bamboo, everyday care
for sustainable healthy hair. Free of
chemicals and full of eco-cert, fair-trade
compliant, certified organic ingredients, this
strengthening line presents the eco-chic
consumer with luxury formulas at accessible
prices (all Bamboo products fall within the
$18.00 to $24.00 SRP range.) Each formula
starts with organic bamboo, a fast-growing
and resilient botanical resources. Launching
this fall is Bamboo Smooth, a collection
with anti-frizz shampoo, conditioner,
Kendi Pure Treatment Oil and Kendi Dry
Oil Mist, all featuring organic kendi oil.
Kendi is a highly sustainable ingredient from
Sulawesi, Indonesia that supports the local
community and creates straight, smooth and
frizz-free hair with a blend of omegas and
tocopherol. In early 2011, Bamboo Smooth
will launch Frizz-Correcting Blow-Out
Lotion, Intensive Moisture Masque and
Humidity-Resistant Flexible-Hold Hair
Spray. Two more collections within the
Bamboo line will follow: Bamboo Volume
(four skus), featuring maca root, and
Bamboo Shine (five skus), featuring Indian
gooseberry. Reach Joan Malloy, president, at
424-253-2090 or
[email protected]. Visit
www.alternahaircare.com.
Recently, the New York Times and
Women’s Wear Daily featured blow-out
services and a new crop of salons that focus
on finishing hair services. Salons need the
training and products to compete. That's
where Blow, the New York Blow Dry Bar,
comes in. The Blow Dry Bar was created
more than five years ago. Last year, Blow
launched its product line and The Blow Dry
Bar Academy. Blow launches Ready Set
Blow, a blow dry lotion that accelerates
blow dry time. The less time a stylist takes
performing a service, the more time he/she
has to make additional money performing
other services. New heat-conducting
polymers speed up blow outs, eliminating
frizz, static and flyaways (4 ounces/
SRP $21.00). Visit www.blowny.com.
Affinage has assembled its reds in the new
bRed Collection Kit. The off-the-scalp,
intensive red highlighting system is now
available at substantial savings to salons.
Used with or without heat, its fast action
means no pre-lightening. The formulation
allows bRed colors to be used with lower
volumes of developer, including 10 volume.
Hair is left in great condition with brilliant
results. It is not generally necessary to use a
high-volume developer to achieve maximum
lift and color. High volume developer can
give more lift, but reduces the intensity of
the color. The bRed Color Highlighting
Crème Kit includes five 100-ml tubes of
copper, red copper, red, red violet and
magenta; one 250-ml 10 volume Affinage
Crème Developer; one 250-ml 30 volume
crème developer; a mini bRed swatch shade
chart and one Refresher Red (list $40.00).
Reach Michael Ifergan, managing director,
at 877-597-2929 or [email protected].
Visit www.affinage.com.
At New York Fashion Week, Number 4 High
Performance Hair Care launched Jour
d’automne Mighty Hair Spray (Memory
Hold Finishing Spray) during Juan Carlos
Obando’s Spring Summer 2011 Collection in
collaboration with MAC Cosmetics, Milk
Studios and Swarovski Crystals. Lead
stylist, Didier Malige, along with the
Number 4 Pro Team, created the Messy Knot
finished with Number 4’s Mighty Hair Spray
(10 ounces/SRP $26.00). Reach Toni Wells,
brand director, at 800-507-6250 or
[email protected]. Visit
www.number4hair.com.
USP, Inc., the parent company of Enjoy hair
care, has new packaging. Stackable jars and
tall cylindrical bottles look good and make
retailing more efficient. Enjoy offers a full
range of sulfate-free, pH-balanced and
stable products. In other company news,
Enjoy Life magazine, a salon-oriented
lifestyle publication, was launched at the
House of Blues in West Hollywood, CA.
Enjoy president and co-founder, Patrick
Dockry, unveiled the premier issue of the
quarterly print magazine while the video
version, Enjoy Live, was shown on a loop.
Patrick said, ”The House of Blues was the
perfect venue for our launch, since Los
Angeles is the focal point of the inaugural
issue. There has also been a great response
to the video magazine, which is available
online at www.enjoylive.tv.” Reach Patrick at
760-597-1886 or
[email protected]. Visit
www.enjoyhaircare.com.
Moxee, a deep reconstructing conditioner
from SUDZZfx, helps revitalize hair that has
taken a summer beating. Certified organic
and homeopathically balanced botanicals of
asparagus, parsley, cucumber and
sandalwood help naturally exfoliate, soothe
and balance the scalp and skin. Moxee
provides the nourishment needed to rebuild,
revitalize and restore hair, while defending
against daily environmental stresses (10.1
ounces/SRP $27.50). Reach Aris Koroyan,
president, at 888-783-9939 or
[email protected]. Visit www.sudzzfx.com.
New from Redken is Shine Form Defining
Wax, a styling wax that helps re-mold, reshape and refine a man’s look. Now, he can
sculpt polished styles with a moldable
cream-wax that delivers a clean feeling,
flexible and flake-free hold that easily takes
him from day to night. Shine Form gives hair
strength, shape and malleable hold. And
application is a breeze with the easy-to-use
pump packaging (75 ml/SRP $16.00). Reach
John Woloshyn, senior vice president of
Redken sales management, at 212-984-4779
or [email protected]. Visit
www.redken.com.
L’Oréal Professionnel Homme adds several
line extensions. Homme Mat sculpting
pomade provides flexible, malleable texture
with directional styling. Wheat starches
provide a matte finish and wheat protein
nourishes the hair. It can be applied to wet
or dry hair for a groomed or tousled look
(80 ml/SRP $18.00). Homme Clay provides
strong hold, definition and texture with an
intense matte finish. Kaolin clay adds matte
texture, beeswax adds even more texture
and density and resins give control and high
definition (50 ml/SRP $18.00). Reach Manny
Montalvo, vice president of field sales, at
800-545-8152 or [email protected].
Visit www.lorealprofessionnel.com.
News continued on page 18
NOVEMBER 2010 17
The Beauty Industry Report Visit www.bironline.com
News continued from page 17
Andis introduces the e.logica Tourmaline/
Ionic/Ceramic Hair Dryer, which combines
new, improved technologies with 1875 watts
of drying power for smoother, shinier,
healthier hair. A portion of the proceeds will
be donated to nonprofit organizations that
help preserve rainforests worldwide. The
dryer's high-velocity, hyper-DC motor
generates 40% more airflow, resulting in a
faster drying time. The dryer is equipped
with three heat and two air settings and
comes with a concentrator and pick
(#80840/SRP $45.00). Reach Fred Koeller,
vice president of marketing, at 800-558-9441
or [email protected]. Visit
www.andisco.com.
Shark Fin Professional Shear Company
announces its “We Love Our Customers”
pattern. Each new Shark Fin patented handle
now displays its new heart-shaped design on
the reverse side of the shears to remind
customers they are loved and valued by the
company. “We want our customers to know
how much we respect and appreciate them
and their business each time they use our
shears,” says Randy Ferman, CEO/founder.
Shark Fin’s patented handle allows for proper
finger alignment, and in combination with its
patented Shear Fit finger fitting system,
offers the stylist an ergonomically designed
shear. Shark Fin’s new address is 961 Route 10
East, Suite 1D, Randolph, NJ 07869. Reach
Randy at 888-544-7254 or
[email protected]. Visit
www.sharkfinshears.com.
Orly International introduces the Pro
Italian Mandarin collection of treatment
18 NOVEMBER 2010
products that leave hands and feet soft and
renewed. Orly Pro can be used as a
complete system to exfoliate, detoxify,
refresh and moisturize hands and feet for an
energizing manicure or pedicure experience.
Purifying Soak with Dead Sea salts and
avocado oil soothes and conditions skin
(1 gallon/list $45.95, 33.8 ounces/list $19.95).
Moisturizing Exfoliator, an exfoliator with
natural sugar cane crystals, polishes and
refines the skin (1 gallon/list $72.50, 33.8
ounces/list $25.95). Detoxifying Mask, a
detoxifying volcanic clay mask, eliminates
impurities and softens skin (33 ounces/list
$29.95). Moisturizing Lotion, enriched with
shea butter and aloe and scented with
Italian mandarin, provides a smooth finish to
a manicure or pedicure (33 ounces/list
$17.50, 8.5 ounces/list $5.95). Reach Liz
Dellinger, director of sales, at 214-855-7875
or [email protected]. Visit
www.orlybeauty.com.
OPI commemorates the tenth anniversary of
Original Nail Envy, a product for stronger,
healthier and natural-looking nails. Since its
inception, Original Nail Envy has spawned
five additional incarnations that target
specific nail care needs. Crafted with
hydrolyzed wheat protein and calcium,
Original Nail Envy transforms weak, damaged
nails into harder, longer and stronger natural
nails. The Nail Envy family of products also
includes Matte Nail Envy, Soft & Thin Nail
Envy, Dry & Brittle Nail Envy, Sensitive &
Peeling Nail Envy and Maintenance Nail
Envy. Reach Suzi Weiss-Fischmann,
executive vice president and artistic director,
at 800-341-9999 or [email protected]. Visit
www.opi.com
Elaine Watson, head of global education for
Star Nail International, and Tony Cuccio,
president/CEO, are doing an original series
titled, “A Tech and the Exec,” as part of the
Meeting of the Minds” seminars. Recently,
the duo traveled to England, Italy and
Greece to run three of these seminars. The
first Meeting of the Minds seminar in
London was produced and hosted by the
company’s head consultant, Stuart
Dickinson, for its network of exclusive Star
Nails/Cuccio Naturalé distributors in Europe.
The two-day seminar kicked off with Tony
presenting his marketing plans, campaigns,
promotions, product launches and his vision
for the brands in 2011. On the second day,
Elaine demonstrated the newest products
and technical information and focused on
the new Soak Off UV Gels. Reach Tony at
661-257-5855 or [email protected]. Visit
www.starnail.com.
A recent report by two Texas dermatologists
claimed that UV nail lamps are a source of
"high-dose UVA rays.” Most in the nail
industry were surprised and suspected the
report overestimated exposure of client skin
to UV light emitted from UV nail lamps.
Industry scientists, Doug Schoon (CND),
Paul Bryson (OPI) and Jim McConnell
(McConnell Labs), teamed up with the Nail
Manufacturers Council (NMC) to review
the claims. They worked with an
independent laboratory to test popular UV
nail lamps to determine how much UV light
is emitted, and then compared the results to
natural sunlight. They tested popular UV nail
lamps designed to utilize four 9-watt UV
bulbs, as well as lamps with two 9-watt UV
bulbs, which they claim are representative of
more than 90% of those used in salons. The
results show that UVA exposure is much
lower than suggested by the dermatologists’
report. Receiving regular UV nail lamp nail
services is approximately equivalent to
spending an extra 1.5 to 2.7 minutes in
sunlight each day between salon visits,
depending on the type of lamp used. The
same levels of exposure would be achieved
by spending 10 to 20 minutes in natural
sunlight once per week. The three industry
scientists agree that the testing shows that
UV nail lamps are safe when used as
directed and brief client exposures are as
harmless as brief exposures to natural
sunlight. Read the full report at
www.schoonscientific.com/uv-nail-lampfacts.pdf. Reach Doug at 949-493-3380 or
[email protected].
The newly designed Repêchage Sea Spa
Body Care Travel Collection in a signature
Sea Spa bag features Sea Spa Body Wash
(1 ounce) with orange and sage extracts;
Seaweed Body Cream (1 ounce) with
vitamin C and gingko biloba; Sea Spa Hand
Cream (1 ounce) with green tea extracts,
eucalyptus, lavender extract and shea butter;
and Sea Spa Foot Cream (1 ounce) with
seaweed and shea butter (SRP $37.00). Reach
Shari Sarfati, executive vice president of
sales, at 201-549-4200, ext. 244, or
[email protected]. Visit
www.repechage.com.
Dermalogica recently launched Age
Reversal Eye Complex, a blend of retinol,
peptides, vitamins and botanicals to combat
the visible signs of aging to the eye area,
including fine lines, wrinkles, hyper
pigmentation and loss of contour (SRP
$75.00). Reach Jerry Wenker,
president/CEO, at 310-900-4000 or
[email protected]. Visit
www.dermalogica.com.
Blow launches Beautique Beauty Ltd. (BC)
this month in Vancouver with a high-profile
Blow Out event for select salons. It joins
Blow's other distributors, TRU Beauty
Concepts (Pennsylvania, New Jersey), Moda
Salon Supplies (Georgia) and Sweis Inc.
(Southern California and Las Vegas). Blow is
looking for distributors, particularly in the
Northwest, Florida and Texas. Reach Blow's
representative, Jim Fogg, at 720-273-0901 or
[email protected].
Bassett Salon Solutions treated more than
250 stylists and salon owners to an event at
the Marconi Automotive Museum in Tustin,
CA to launch the Eufora HERO for men
brand. The museum staff fired up two F40
Ferraris and revved their high-powered
engines to open the event. A champagne
cocktail reception was followed by a runway
show featuring men’s haircutting, styling and
grooming trends. Don Bewley, Eufora Intl.
co-founder, opened the event. Bassett Salon
Solutions’ CEO/founder, Ward Bassett, said,
“In addition to hosting a great gathering of
salon professionals, the event raised more
than $2,000 for ChildHelp USA." Eufora
HERO, a line of specially formulated,
straightforward grooming solutions for men's
hair, scalp and skin needs, offers products
that help prevent premature hair loss. Reach
Ward at 877-BSS-9288 or
[email protected]. Visit
www.bassettsalonsolutions.com
Seattle-based Salon Services & Supplies
expands its store operations with a new
showroom in Kennewick, WA, and adds the
Kim Vo- signature hair care line in all 13
showroom locations throughout the
- ’s line of luxury hair care
Northwest. Kim Vo
and styling products for color treated,
keratin treated and chemically treated hair
blends Asian botanicals with French
nanotechnology to create red-carpet-ready
hair. Also new is the Eugene, OR showroom
for licensed hair and skin professionals,
featuring 1,100 square feet of shopping and
educational event space, easy freeway
access, ample parking and a spacious
classroom area. Reach Sydney Berry,
co-owner of Salon Services & Supplies, at
800-251-4247, ext. 203, or
[email protected]. Visit
www.salonsservicesnw.com.
Lakme USA launches Louisiana, Alabama
and Mississippi distributor, Liquid Assets of
Baton Rouge, LA. Lakme, imported from
Barcelona, Spain, is a hair color and hair care
support line. “This entrepreneurial distributor
is the perfect match because both
organizations believe that the hairdresser is
its most valued commodity. What a great
team, incredible passion and unbelievable
Southern hospitality,” comments Arda Itez,
Lakme USA national education manager.
Reach Lakme USA president, Joseph
Mastalia, at 800-724-4247, ext. 252, or
[email protected]. Visit
www.lakmeusa.com.
Paramount Beauty Distributor Associates,
Inc. is Izunami’s new exclusive distributor
for the Arrojo by Izunami line of tools in
New York and New Jersey. Paramount has 50
distributor sales consultants, 35 of which will
handle the Arrojo by Izunami line. They also
have 20 Royal Beauty Supply professional
stores, which service licensed hairdressers
and cosmetologists. Reach Peter Lim, senior
sales manager, at 866-455-0777 or
[email protected]. Visit www.izunami.com.
When you think about hairdressing, you
envision hair color, shears, styling, fashion,
models and up-dos. Raylon Corporation
looks at hairdressing in a different light with
an emphasis on professionalism, inspiration,
communication and motivational tools to
become professionally fantastic. Nineteen
years ago with that in mind, Raylon created
C.A.M.P (Creating Achievements through
the Mastery of Professionalism), a
weekend devoted to the non-technical, nonartistic side of hairdressing. Recently, 320
professionals celebrated the nineteenth
anniversary of C.A.M.P in the Poconos.
Speakers Geno Stampora, Frank Gambuzza
and Steven Brooks shared experiences,
wisdom and stories that enabled owners and
stylists to view their businesses in a different
light, while generating ideas to make their
salons the best they can be. “Beauty
professionals need to be aware of what’s
happening around them, what their
customers are telling them and what you
need to do to be busy, have fun, make
money and have a higher quality of life,”
states Geno on a summary of the seminar he
performed at C.A.M.P. Reach Erika Hafetz,
Raylon corporation social media specialist, at
800-422-8166, ext. 1336, or
[email protected]. Visit www.raylon.com.
News continued on page 20
NOVEMBER 2010 19
The Beauty Industry Report Visit www.bironline.com
News continued from page 19
Four Star Beauty Supply opened its fourth
professional-only store recently in
Germantown, WI. Four Star has stores in
Milwaukee, Madison and Green Bay, WI. Ed
Stein, owner and president, who acquired
Four Star in 2002, reports that sales and
profits have grown substantially over the last
few years. He says, “We have added new
resources, personnel and expanded the
selection of products we offer to our
customers. This store is just one of the
exciting, new ways in which Four Star will
meet and exceed customer’s needs. Four
Star is always looking for new opportunities
to reach out and expand its distribution
network. We have plans to open two to
three additional stores in Wisconsin and
Minnesota in 2011.” The organization services
more than 4,000 salons and spas throughout
Wisconsin, Minnesota and Upper Michigan.
Four Star carries ABBA, Aloxxi Color,
Alterna, Brazilian Blowout, Enjoy Haircare,
Esuchen, Framesi, Moroccanoil, RetroHair,
Revitalash and Sexy Hair Concepts. Reach
Ed at 414-744-6868 or [email protected]. Visit
www.fourstarbeauty.com.
Bosley Pro taps Gerpri Beauty Corp. to
service hair salons throughout Puerto Rico.
“Early prevention and education are key to
maintaining thicker, fuller-looking hair for
life,” says Eric McLemore, president of
Bosley Pro. “Gerpri Beauty is ready to bring
advanced education about Bosley Pro to
Puerto Rico. Gerpri is a company that
focuses on the hairdresser and education,
which makes it a great fit for Bosley Pro.”
Reach Norbert Feifel, Gerpri Beauty, at
787-792-0800. Visit www.gerpri.com.
Ginny Gordon has joined VNC Sales and
Marketing’s West team and will be taking
over accounts previously called on by Bill
White. Ginny has 18 years of sales and
marketing experience, including business-to-
20 NOVEMBER 2010
business sales, presentation sales, cross
selling and customer care. Ginny is a native
Southern Californian who recently relocated
to the Las Vegas area. She reports to John
Madia, VNC managing partner. Reach Ginny
at 702-533-7014 or [email protected].
Farouk Systems announced that CHI Deep
Brilliance, a line of products for highly
textured hair, including a full wet line, color,
relaxers and heat appliances, will be
available at independent beauty supply
stores and is now represented by Jay Halaby
+ Associates. “By having Jay and his team on
board, we can better meet the demand for
CHI Deep Brilliance in national markets,” says
Gregg Emery, Farouk Systems executive vice
president of sales. “Although we support
every major full-service distributor in the
country,” says president, Jay Halaby, “the
small independent distributors are just as
important.” Reach Jay at 800-651-2106 or
[email protected]. Visit www.jayhalaby.net.
A Crain’s BtoB magazine cover article
recently named modernsalon.com as one
of “10 Great Media Sites.” It was included
alongside such online heavyweights as the
Financial Times and Greenbiz.com. Crain’s
recognized modernsalon.com for its
attention and commitment to the key
needs—education, inspiration and
collaboration—identified by its audience of
professional stylists; its integration of
interactive social tools, including blogs,
Facebook and Twitter conversations and
feedback mechanisms; its strong focus on
video, including Modern Salon TV; and a
strong visual identity that is consistent and
provides seamless navigation over its
different communities, each representing a
different stage in a beauty professionals’
career. Reach Steve Reiss, publisher, Modern
Salon Media, at [email protected]
and visit www.modernsalon.com.
M. Evan Parker Consulting has changed its
name to Élan Marketing and Events and
expanded its services. The management
consulting and event-planning firm
specializes in the support and development
of professional salon industry companies.
The company offers product development,
branding, marketing strategies, sales
programs, distribution management,
education, training, event planning,
production, manufacturing (sourcing and
negotiations), packaging concepts and
sourcing. Reach M. Evan Parker-Calderon,
president, at 888-344-3731 or
[email protected]. Visit
www.elanmarketingandevents.com
A big thanks to Larry Oskin, president of
Marketing Solutions, for his report on the
18th annual HBA Global Expo and
Conference. More than 600 international
industry suppliers and educational partners
came together for the three-day event in
New York City to present their newest
products, developments and expertise.
Exhibitors from around the world showcased
raw materials and ingredients, packaging,
private label capabilities and services. This
year, HBA featured 150 new exhibitors, as
well as returning flagship companies.
HBA Global Expo combined show floors
for the first time with the Spa and Resort
Expo, resulting in new educational seminars,
technologies, package designs, ingredients,
business solutions and trends shared in one
location.
The show kicked off with a keynote
address by Pamela Baxter, president/CEO
of LVMH Perfumes and Cosmetics for
North America, sharing her rise to executive
levels from a modest start at the beauty
counter in the 70s. Pamela is responsible for
such prestigious brands as Dior, Givenchy,
Guerlain, Aqua di Parma and Fresh.
Entrepreneur and philanthropist Christie
Brinkley was honored with the second
annual “Positively Beautiful Award” for her
support of Smile Train, which provides free
cleft surgery for millions of poor children in
developing countries and free cleft-related
training for doctors and medical
professionals. Jill Burkett, brand director of
beauty and wellness for HBA Global Expo,
noted, “Christie Brinkley has one of the most
recognizable smiles in the world. Her
awareness building for Smile Train is helping
millions of deserving children discover their
own inner beauty while giving them a
second chance at life!”
The grand prize winner of the 2010 HBA
Global-International Package Design
Awards was L’Oréal Paris’ True Matching
Roller Perfecting Roll On Makeup, which
also won in the Mass Cosmetics category.
Paul Brown Hawaii took home first place
honors for Prestige with its Hapuna Keratin
Retexturizer Stylist Caddy System for the
professional salon and beauty industries. The
actual caddy, collateral merchandising,
point-of-purchase designs and branding
campaign were created by the Marketing
Solutions Team of Fairfax, VA. Other winners
included Jane Iredale Cosmetics, Hanae
Mori Perfumes, Bella Una Fragrances, Bath
& Body Works, RE9 Arbonne Skincare and
Shea Radiance.
Each year the Global HBA offers a Salon
and Day Spa Marketing Seminar aimed at
helping entrepreneurial beauty care
manufacturers who want to launch a new
company or division or want to improve
their market share within the professional
salon industry. For the 15th year in a row,
Larry Oskin, president of Marketing
Solutions, Inc., was the chairperson. He
offered strategic salon, day spa and medical
spa marketing tactics and a recap of current
trends. His presentation, “Successful
Manufacturer Marketing and PR Strategies
for Salons, Day Spas and Medical Spas”
included many of the research statistics
from the 2010 American Salon Green
Book. Dan Kliska, president of Joe
Grooming, presented “Successfully
Marketing Salon Services and Products To
Men” and Andrea Dominic, president of
Spa Trends, discussed “How To Market
Through The Internet, Websites and Social
Networking.” Reach Dan at 703-847-1880 or
[email protected]. Visit
www.joegrooming.com. Reach Larry at
703-359-6000 or [email protected]. Visit
www.mktgsols.com.
There were special pavilions for Taiwan,
Europe, China, private label and technical
and ingredient suppliers. Next year’s show is
scheduled for June 28-30, 2011. For
information on exhibiting, attending or
becoming an educational seminar presenter,
call 212-600-3151 or visit www.hbaexpo.com
and www.spaandresortexpo.com.
It’s time to check your 2011 calendar and
make sure these events are on it: WBRA
Western Buying Conference, January 13-14,
at Bally’s Hotel, Las Vegas; Beauty Expo,
January 17-18, at the Rio Hotel, Las Vegas;
International Salon & Spa Expo (ISSE),
January 28-29, at the Long Beach Convention
Center, Long Beach, CA; New York
International Beauty Show, March 6-8, at
the Jacob Javits Convention Center in New
York City; America’s Beauty Show, March
12-14, at McCormick Place, Chicago, and ISSE
Midwest, March 26-28, at the Donald
Stevenson Convention Center, Rosemont, IL.
Sally Beauty Holdings, Inc. (NYSE: SBH)
announced on October 4, the acquisition of
Aerial Company, Inc. (Aerial) by its
subsidiary Beauty Systems Group LLC
(BSG). The addition of Aerial will extend
BSG's distribution reach and breadth of
professional beauty product offerings in the
Midwest region of the United States. "Aerial
is a leading distributor in the professional
beauty products industry,” says Gary
Winterhalter, CEO of Sally Beauty Holdings,
"The addition of Aerial will complement
BSG’s portfolio and expand its geographic
footprint in the Midwest, directly supporting
our objective to grow Sally Beauty Holdings
over the long-term.”
Aerial was founded in 1912 and is based in
Marinette, WI. The company employs more
than 700 people, including more than 70
distributor sales consultants. Sales revenue
in fiscal 2009 was approximately $100
million. The company owns 82 professionalonly beauty supply stores in Wisconsin,
Northern Illinois, Kansas, Michigan,
Minnesota, Missouri, Iowa, Nebraska,
Colorado and North and South Dakota, as
well as distribution centers in Marinette, WI,
and one in Lincoln, NE.
“This acquisition is consistent with our
strategy to extend our reach in U.S.
geographies where we do not have a strong
presence,” says John Golliher, president of
BSG, “We believe the addition of Aerial will
strengthen our position in this important
region and create additional value for our
customers, suppliers and stockholders.”
Ryan Hmielewski, president of Aerial,
adds, “We are pleased to join the BSG team
to achieve our goal of becoming the
professional beauty industry’s best fullservice distributor. I look forward to the new
opportunities of the combined companies.”
Sally Beauty Holdings paid $70 million,
net present value of the future incremental
tax benefit expected to be realized by the
company from the transaction. The
acquisition is expected to be slightly
accretive, post integration costs, to Sally
Beauty Holdings’ earnings per share in the
2011 fiscal year. Cost synergies are expected
to be realized upon full integration of Aerial,
and the company projects further accretion
to Sally Beauty Holdings’ earnings per share
in the 2012 fiscal year. Reach Gary at
800-777-5706, ext 4444, or
[email protected]. Visit
www.sallybeautyholdings.com. Reach John at
800-777-5706, ext. 4441. Visit
www.beautysystemsgroup.com.
News continued on page 22
NOVEMBER 2010 21
The Beauty Industry Report Visit www.bironline.com
News continued from page 21
Unilever, the multibillion-dollar AngloDutch firm, announced on September 27
that it entered into a definitive agreement to
acquire the U.S.-based Alberto Culver
Company for $3.7 billion in cash. According
to Paul Polman, CEO of Unilever, Alberto
Culver's hair care brands, Tresemmé, Nexxus
and VO5, will complement Unilever's Dove,
Suave, Sunsilk and Clear brands, while its
St. Ives and Simple skin care brands will
complement Unilever's Pond's and Vaseline
brands. Unilever states that the acquisition
will make it the world’s primary company in
hair conditioning, the second largest in
shampoo and the third largest in styling, and
significantly enhance its hair care presence in
the United States, Canada, the United
Kingdom, Mexico and Australasia. Paul
added, “Organic growth was the cornerstone
of the company’s ambition to double in size.
Bolt-on acquisitions such as Alberto-Culver
supplement organic growth and add
powerful new brands to our portfolio.”
According to Unilever, it will use its scale,
reach and technology to take Alberto
Culver’s brands to a new level in existing
markets and extend their presence to new
emerging markets. Alberto Culver has
operations in eight countries, including the
United States, Canada, Argentina, Mexico,
the United Kingdom, South Africa and the
region of Australasia. It has six manufacturing
facilities and employs around 2,700 people.
Alberto Culver generated sales approaching
$1.6 billion for the year ending on June 30.
In 2009, Unilever’s personal care division
had estimated sales of $15.35 billion, up 4.1%
from the previous year. Personal care is
outperforming every other category at
Unilever and is also part of Paul’s
background: he spent a substantial part of
his 26-year long career at Procter & Gamble
Co. overseeing personal care products.
According to Euromonitor International,
the deal will increase Unilever’s global
market share of the beauty and personal
care industry from 6.8% to 7.2%. In total, 75%
of Alberto Culver’s personal care sales are
generated from hair care, and of those, more
than 60% comes from the United States,
22 NOVEMBER 2010
according to Euromonitor International. The
total U.S. hair care market in 2009 declined
by almost 4%. However, with the help of
Tresemmé, Alberto Culver managed to buck
that trend, increasing its overall hair care
share from 6.0% in 2008 to 6.3% in 2009,
stated the Euromonitor International. After
incorporating Alberto Culver, Unilever’s share
of the U.S. hair care market will increase
from 7% to more than 13%, estimated the
Euromonitor, and will remain a distant third
with L’Oréal and Procter & Gamble holding
25.5% and 23.7%, respectively.
The deal adds to a growing list of crossborder transactions that have energized and
come to dominate recent M&A activity in
and out of the beauty and fashion worlds.
Mergermarket reported that such
transactions have accounted so far for more
than half (50.4%) of the $463.91 billion in
M&A value in the third quarter of the
calendar year, up from 28.9% of the $321.3
billion changing hands in the entire third
quarter of last year. The percentage of deals
involving companies in different countries
rose far more modestly to 34% from 32%,
indicating that the bigger transactions have
tended to be the ones involving firms with
different national origins.
Mark Stiller and Charlie Perer, founders
and partners of Intermix Capital Partners,
announce the sale by Studio USA, LLC of its
retail store Studio Beautymix at Fred Segal
in Santa Monica, CA to New Beauty.
Launched more than 25 years ago, Studio
Beautymix at Fred Segal grew into one of the
country’s most influential beauty retailers for
introducing new and original beauty brands.
New Beauty plans to turn the 4,000square-foot location into a new retail
experience. Using the store to bring the
magazine to life, products will be
merchandised alongside relevant
editorial content—allowing consumers
to browse by beauty concern and
educate themselves about the product
solutions. A new sample bar will allow
customers to choose from a selection
of more than 30 bonus-sized take-home
samples before committing to
purchasing the full-size product. They
will also have the opportunity to try
beauty products that are being
developed by some of the top beauty
brands. NewBeauty’s on-site, real-time
video and beauty editorial staff will
conduct interviews with shoppers;
demonstrate the newest products and
host beauty events with product
creators and skin care, makeup and hair
experts. Reach Michele Sotallaro,
assistant to the publisher, at 561-8691255 or [email protected]. To
learn more, visit www.newbeauty.com.
Intermix Capital Partners is a private
equity firm with a strong focus on
beauty, and given that focus, it invested
in Studio USA, LLC two years ago. The
company had two divisions, the retail
store in Fred Segal and a wholesale
division consisting of fragrance and
cosmetic brands, which was sold to
Fusion Brands in August. In addition to
providing equity capital, Intermix Capital
provided consumer expertise and
strategic thinking that helped identify
and craft the transactions with New
Beauty and Fusion Brands. Reach Mark
or Charlie at 818-383-4441 or
[email protected];
[email protected]. Visit
www.intermixcapital.com.
Regis Corporation reported that
consolidated revenues decreased 4.5% in the
first fiscal quarter of 2011 to $578 million,
compared to $606 million a year ago. First
quarter totals for same-store sales decreased
1.5%. In February 2009, the company
completed the sale of its Trade Secret retail
product division to Premier Salons Beauty,
Inc. (Premier). As part of the sales
agreement, the company agreed to provide
certain transitional administrative and other
support services to Premier, including the
supply of certain retail products. As a result,
the reported fiscal 2010 first quarter North
American product revenues included $20
million of sales to Premier at Regis' cost.
Without those sales in the prior year, first
quarter 2011 total revenues declined 1.3%. “As
expected, we are seeing an improvement in
visitation trends, and we were very pleased
with our retail product same-store sales
which increased 1.7%,” says Paul D.
Finkelstein, chairman/CEO. “We are
currently testing and implementing multiple
customer service and marketing initiatives,
which we expect will result in improved
customer traffic. We continue to believe
visitation trends will normalize and are still
budgeting positive comps in the second half
of the fiscal 2011.” Reach Paul at 952-947-7910
or [email protected]. Visit
www.regiscorp.com.
Helen of Troy reported record net sales
revenue and record net income for the
second quarter and six months, which ended
August 31. Second quarter net sales revenue
increased 7.8% to $174,823,000 versus net
sales revenue of $162,193,000 in the same
period of the prior year. Second quarter net
income increased 47.5% to $23,473,000 or
$0.75 per fully diluted share, compared with
$15,911,000 or $0.51 per fully diluted share for
the same period a year earlier. Net sales
revenue for the six months ended on August
31, increased 9.4% to $334,976,000 versus
$306,066,000 for the same period in the
previous year. Net income for the first half
of this fiscal year increased 37.6% to
$41,860,000 or $1.34 per fully diluted share,
versus $30,420,000 or $0.99 per fully diluted
share in the same period of last year.
Gerald J. Rubin, chairman and
president/CEO, stated, “We are extremely
pleased with our record sales and record
earnings results for the second quarter and
fiscal year-to-date. Although the worldwide
retail environment continues to be
challenging, we continue to have organic
sales growth in our Housewares segment,
which sells OXO branded goods.
Consolidated gross profit margin as a
percentage of net sales revenue for the
fiscal quarter that ended on August 31
increased 3.4 points to 45.9% compared to
42.5% for the same period last year.
Consolidated gross profit margin as a
percentage of net sales revenue for the
same six month period increased 4.0 points
to 45.6% compared to 41.6% for the same
period last year. The improved margins were
due to the impact of commodity price
decreases in fiscal 2010 that continued to
cycle through our cost of goods sold during
the quarter and first half of this fiscal year.
We also benefited from a favorable change
in the sales revenue mix, as grooming, skin
care and hair care solution products with
comparatively higher margins became a
more significant portion of the company’s
overall net sales revenue. Our second
quarter earnings per share results reflect
improvements in gross profit margin, the
accretive impact of recent acquisitions and
continued growth in our Housewares
segment year over year. In the third quarter,
we expect flat to declining gross profit
margin as compared to the same period last
year as a result of increasing inbound freight
and commodity costs. In the third quarter,
we also expect to incur approximately
$4,500,000 of incremental advertising
expense year over year in support of our
newly acquired brands. Due to those factors
we expect a decline in earnings per fully
diluted share for the third quarter of fiscal
2011 as compared to the same period last
year. However, we anticipate year over year
net sales revenue and net earnings growth in
the fourth quarter of fiscal 2011 and expect
earnings per fully diluted share for the fiscal
year ending February 28, 2011 to be in the
range of $2.70 to $2.80.”
Jerry further commented, “As of August
31, 2010, Helen of Troy’s balance sheet
remains strong with cash and cash
equivalents of $49,069,000 and a
shareholders equity of $627,391,000. Our
inventory level at August 31 was
$167,500,000. During the second quarter, the
company repurchased 80,000 shares of its
common stock at an average purchase price
per share of $22.49. The book value of our
common stock as of August 31 was $20.09
per fully diluted share. We believe the
company’s core strengths remain strong, and
we continue to execute our business plan
for fiscal year 2011 as detailed in our fiscal
year 2010 annual report. Our business plan
includes introducing new product offerings,
striving for increased market share through
channel expansion and providing product
innovation. We also continue to pursue
further process efficiencies and related
selling, general and administrative expense
reductions. We believe we are well
positioned as we move into the fall selling
season.” Reach Jerry at 800-480-8832 or
[email protected]. Visit www.hotus.com.
Zerran International’s director of
education, Debbie Padgett, led a team in
the recent Avon Walk for Breast Cancer.
Debbie’s team, which included her daughter
and was organized in honor of Debbie’s
mother, a cancer survivor, raised $11,000
through private donations and a fundraising
“Save the Tatas” party. Reach Debbie at 800626-1921 or [email protected].
Visit www.zerranhaircare.com.
Make-Up Designory (MUD) raised $25,000
through sales of its limited edition NextAid
makeup palette to help build a home for
orphaned children in Kenya. 100% of the
proceeds were donated to Red Rhino,
whose goal is to help create safe and
sustainable communities for children—many
of whom were orphaned as a result of the
HIV/AIDS pandemic. Through MUD’s
donation, Red Rhino was able to build a
home in Kenya to house 16 orphaned
children. Reach Tate Holland, CEO, at
818-557-7619 or [email protected]. Visit
www.mud.edu.
NOVEMBER 2010 23
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The Beauty Industry Report A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ
Newspapers, including the Wall
Street Journal and New York
Times, report that OPI is in
advanced talks to sell itself to a
beauty care company or private
equity firm for as much as
$1 billion. Coty is thought to be
the front-runner, while private
equity firms Bain Capital
and Advent International are
also among those that made firstround bids. BIR asked OPI
CEO/president George
Schaeffer, who said, “There have
been rumors for 10 years that OPI
has been bought and sold
numerous times. The bottom line
is a bird in hand is better than
one in the bush. Our bird is still
running around in the bush. Do
you believe everything that you
read in the Wall Street Journal, a
Rupert Murdoch newspaper?”
Recently reported by Reuters
business and financial news
service: According to three
sources, several bidders are
interested in Regis Corp. Regis
announced in August that it was
looking at strategic options and
had retained investment bank
J. Solomon Co. as its financial
adviser. Regis, which owns or
franchises 12,700 hair salons, is
the world’s largest consolidator
of salons and has a market
capitalization of around
$1.1 billion. The report says several
private equity firms, including
Clayton, Dubilier & Rice, have
interest in the company. CD&R
has an investment in Sally
Beauty Holdings, which owns
Sally Beauty Supply and Beauty
Systems Group. The private
equity firms and Regis declined to
comment.
Gerry Udell Inc. has agreed to
represent the Head Organics
line. Reach Gary Udell, president,
at 973-338-3100, ext. 16, or
[email protected].
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