Swimming the sea of social media
Transcription
Swimming the sea of social media
JUNE 2010 volume 13 issue 6 Swimming the sea of social media By Steve Gomez A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ 2 Lafayette Jones’ Multicultural Report 5 IZUNAMI teams with Nick Arrojo 6 Nordic HairContrast enhances hair 8 Doing business with American Dawn 10 Day Spa Expo offers education/awards 11 America’s Beauty Show report 12 Students win at Empire’s Future Pro Expo 15 Cosmoprof erupts with new products 16 SalonCentric acquires CB Sullivan 24 Watch list: GigaBeauty 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 S ix months down and six to go in 2010, and the professional beauty marketplace continues to rebound slowly but steadily. Beauty Industry Report had a busy spring, reporting from America’s Beauty Show, Cosmoprof Bologna, Empire Education Group’s Future Professionals Expo and the International SalonSpa Business Network’s Annual Conference (which is covered in the July issue)—all hot events doing big business. Also, in exclusive BIR feature interviews, Mike Kim, president of IZUNAMI, talks about expanding his professional styling tools line. The exclusive importer and distributor of Nordic HairContrast tells you why he doesn’t want you calling his products “hair extensions.” Finally, Ron Kothari provides an update on American Dawn, one of the largest suppliers of salon towels. Regards, I f you build it, they will come!” A phrase that we all know and love from the movie, Field of Dreams, has stuck throughout the years and has often been used as a business building analogy. However, with so much competition today, it just isn’t true anymore. You have to build it and then tell everyone that you have built it! Building your business in the salon industry has been based on cultivating meaningful relationships, supporting salon and spa owners to build a brand identity that is closely aligned with your brand message. While it is important to continue to build direct, face-to-face relationships, the growing wave of social media gives your business another way to support your customers to build their brand and yours more efficiently than ever before. The statistics: • It took Facebook 9 months to reach 100 million users; 45% of them are women ages of 26-44. In fact, if Facebook were a nation, it would be the fourth largest! • YouTube is the second largest search engine. • 80% of employers use LinkedIn to find their next employee. • By the end of 2010, Gen Y will outnumber baby boomers, and 96% have joined a social network According to Michael A. Stelzner’s “Social Media Marketing Industry Report of 2009,” the top five most commonly-used social networks are Twitter 86%, Blogs 79%, LinkedIn 78%, Facebook 77% and YouTube 41%. Take into account that 78% of consumers trust peer recommendations over traditional advertising, and it becomes clear that as a business, your ability to utilize social networking strategically and successfully will drive your brand to greater heights. Social media....cont. on p. 2 The Beauty Industry Report Visit www.bironline.com Social media...cont. from p. 1 Many salons, distributors and manufacturers are already riding the wave brilliantly. For those of you who are and those who know you can take it to another level, here are some great tips to keep in mind: Be a resource. Connect your network with great information and education that will support its members to grow their businesses and sometimes, pepper in current specials and product information. If your consumers just see specials and deals, you could come across as one dimensional. Use your social networking platform to showcase your own resources, as well as resources outside of your company. For example, I often connect to Harvard Business Review on Twitter, and on a daily basis, I send great blogs and information out to my network. Maintain brand consistency. Your messages and posts should be directly related to your organization’s vision, mission and values. Create social networking policies and procedures. Be clear with your team about how the message is to be conveyed, and what they can and cannot do. Involve community. Guest artists, loyal customers, employees and industry experts are great resources that can provide blogs, articles, videos, etc. Be diligent and consistent. Post messages daily, biweekly or weekly, and follow through. This will build a loyal following! _____________________________ Steve Gomez is a senior business coach and trainer with Milady. Follow Milady on Twitter, Facebook and YouTube, visit www.milady.cengage.com and reach Steve at 714-970-2479 or [email protected]. 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 JUNE 2010 A new enterprise to open the exploding Chinese market is GigaBeauty, an American corporation that’s a consortium for American beauty manufacturers joined in solidarity to share a market that’s predicted to become the biggest in the world. Underlying premise: An army can win wars that single warriors cannot. GigaBeauty consolidation minimizes frustrations, risks, delays, expenses and manpower needed for this difficult market. GigaBeauty offers a comprehensive door-todoor master plan. All functions are micromanaged using a proprietary digital operating system that controls all phases of export, including sales. GigaBeauty will showcase and sell products. The program is modular, and members choose services on a pay-as-you-go basis. The benefits of solidarity are numerous. GigaBeauty will outsource with top American and Chinese agencies, so that the best resources, talent and capabilities, including legal, financial, marketing, e-commerce, governmental, sales, advertising, public relations, human resources, logistics and more, are available. Highlights include an Academy of Beauty: an all-year showcase visited by Chinese distributors; 24/7 online trade expo; a digital operating system that’s a comprehensive, seamless program from doorto-door; multi-lingual personnel for a full- and part-time staffing pool; counterfeiting safeguard; an optimized path to get product certified and registered through the Ministry of Health and the ability to have legal disputes inside China settled in American courts. This program is soliciting manufacturers who are willing to pledge support for a basic program. Manufacturers’ input is needed to mold this program, which can change the rules of commerce. Boost American jobs, your company’s fortunes and combat what former U.S. Treasury Secretary Lawrence Summers referred to as “the balance of financial terror” in describing the U.S. trade deficits with China. Reach Yuki at 310-217-4134 or [email protected]. Visit www.gigabeauty.com. Fueled by continued improvements in service and retail sales, along with higher customer traffic levels, The Professional Beauty Association (PBA)’s Salon/Spa Performance Index (SSPI) hit a record high in the first quarter of 2010. The SSPI, a quarterly composite index that tracks the health of, and outlook for, the U.S. salon/spa industry, stood at 103.1 in the first quarter, up 0.5% from its fourth quarter level. “Across-the-board improvements were reported in the first quarter, including an increase in service and retail sales, key barometers for the industry,” said Steve Sleeper, PBA’s executive director. “The salon/spa industry continues to remain resilient, and members and non-members alike remain highly optimistic for future growth.” The results of the Expectations Index, which measures salon/spa owners’ six-month outlook and comprises part of the SSPI, are particularly encouraging. Four out of five salon/spa owners expect to have higher service sales and retail sales in the months ahead. Optimism has prompted owners’ plans to hire more staff and increase capital expenditures. The SSPI is based on the responses to PBA’s Salon/Spa Industry Tracking Survey. The full SSPI report and the Salon/Spa Tracking Survey can be found at www.probeauty.org/businesstools/research. The newest entry into the Brazilian keratin segment is Keratin Express. Keratin Express offers a fast, easy and affordable treatment lasting 4 to 6 weeks. Positioning Keratin Express to traditional keratin treatments as semi-permanent color is to permanent color, the service is developed to appeal to a larger group of clients and stylists than most keratin treatments available. The complete service can be as brief as 35 minutes on clients with hair of average length and density. The brief service time is due in part to a quick bottle application and the single pass of a 450° iron as the final step. The result is up to 100% less frizz, reduced volume, shine and condition, along with smoother, straighter hair. A client can wash her hair after 24 hours and has the option to wear her hair straight or curly,. Blow-dry time is cut by 50% or more. The recommended charge is $50.00 to $75.00. Because Keratin Express lasts 4 to 6 weeks, it does not need formaldehyde. The result is no noxious fumes or odors and a safer experience for both the stylist and client. Two factors set Keratin Express apart—stylists can cut or color on the same day, and salons’ target market is more than just curly, unruly hair (4 ounces/list $30.00). Distributors include Total Image International (FL); Champion Beauty Supply (GA/AL/MS); Metro Salon Services (NC/SC); Deep South Beauty (LA); Mutual Beauty Supply (UT); Bassett Salon Solutions (CA); Kevin Ray (CO); In Style Professional Products (TX); PA Beauty Supply (PA); Salon Only Sales (MN/IA/WI); TNG Worldwide (MI/Chicago); DePasquale (NJ/CT/NYC/Long Island and Eastern PA). Says vice president Mike Bell. “This is a great opportunity for salons to get involved in this lucrative category overnight.” To learn more about this growing category, reach Mike at 330-321-2530 or [email protected]. Visit www.keratin-express.com. With Zotos International’s new Hair Rescue, nightmare hair doesn’t stand a chance. Hair Rescue features seven intense treatment products designed to address even the most serious of hair emergencies. The treatment kits contain simple step-by-step instructions guaranteed to improve the condition of clients’ hair in just one use. The lineup includes Split End Repair (.85 ounces), Strengthening Treatment (.85 ounces), Intense Clarifying Treatment (2 vials 1.7 ounces), Keratin Reconstructor Kit (2 vials .85 ounces), Severe Breakage Kit (3 vials .85 ounces), Dry Scalp Kit (3 vials .85 ounces) and Extreme Frizz Kit (3 vials .85 ounces). SRPs range from $2.49 to $9.99. Reach Bruce Selan, vice president, Zotos Core Brands, at 847-390-6299 or [email protected]. Visit www.zotosintl.com. Surface launches Smooth and Healthy Protein Smoothing Treatment, Trinity Protein Cream and PUSH Styling Powder. Smooth and Healthy Protein Smoothing Treatment smoothes, manages curls and eradicates frizz, while using organic ingredients, like amaranth protein and babassu penetrating oil. The Surface Smoothing Treatment consists of Surface Protein Cream, Smoothing Cream and Locking Lotion, which are free of formaldehyde, alternate aldehydes, sodium hydroxide, formalin, vanillin, parabens and animal protein. Smooth and Healthy Protein Treatment is an in-salon professional treatment only. Trinity Protein Cream repairs, calms and straightens hair of all textures. Made with amaranth protein and babassu oil, Surface Protein Cream repairs damaged hair cuticles, while also strengthening hair (list $12.50/SRP $24.96). PUSH Styling Powder creates volume and flow in the interior, providing root lift and volume for long hair. It also thickens fine hair by providing texture (list $14.50/SRP $28.95). Reach Nathan Grund at 866-944-7863 or [email protected]. Visit www.surfacehair.com. TIGI introduces the Catwalk Sleek Mystique Straight Collection, featuring the Catwalk Prep It/Perfect It style-building system to ensure a perfect finish every time. The six new products provide smooth, hydrated, shiny locks. Prep It, the first part of any regimen, features products that cleanse, condition, nourish and prepare hair for styling. They include Sleek Mystique Glossing Shampoo (10.14 ounces/300 ml/list $9.95/SRP $19.95); Sleek Mystique Calming Conditioner (8.45 ounces/250 ml/list $9.95/SRP $19.95 and; Sleek Mystique Fast Fixx (9.13 ounces/270 ml/list $9.95/SRP $19.95). Work It products are meant to be worked through wet hair and then styled to achieve the desired look. They include Sleek Mystique Blow Out Balm (3.04 ounces/90 ml/list $9.95/SRP $19.95), Sleek Mystique Haute Iron Spray for heat protection and shine (6 ounce/200 ml/list $9.95/SRP $19.95). Finally, Perfect It products offer the final embellishment to enhance a straight style. Sleek Mystique Look-Lock Hair Spray provides light, moveable hold (9.2 ounces/ 300 m/list $10.50/SRP $20.95). Reach Vince Davis, senior vice president of sales worldwide, at 800-259-8596 or [email protected]. Visit www.tigilinea.com. The grand prize winner of the first Millennium Perfect Match is David Salon, Costa Mesa, CA (www.thedavidsalon.com). David Salon will receive the Millennium Platinum Edition, implementation and setup; data conversion; up to $1,000 in hardware; the “What if” forecasting tool and one year of free support. Sophia Tedder, a stylist who also leads the David Salon marketing team, submitted an entry essay. “Sophia realized that Millennium will provide the tools she needs for continued growth and success. Sophia immediately saw what she was missing in her current software and decided to enter the contest just one day after visiting with us,” says president John Harms. Reach Matt Martinelli, public relations and market research manager, at 973-402-9500 or [email protected]. Visit www.harms-software.com. The Rep of the Year award was recently awarded to The Kirschner Group’s Steve Hass from Salon Centric for his outstanding support. Steve has received this award three years in a row and has serviced Beauty Alliance since their inception. “Steve’s presentation skills, follow-up and organizational abilities are second to none,” states Jane Caris, vice president/sales and marketing for The Kirschner Group, Inc. Reach Jane at 800-328-4353 or [email protected]. . News continued on page 4 JUNE 2010 3 The Beauty Industry Report Visit www.bironline.com News continued from page 3 Chuck Rabin has joined Ulta Salon, Cosmetics & Fragrance, Inc. as president/COO and as a member of the board of directors. Chuck joins Ulta from Office Depot, where he served as president, North American Retail. Following a transition period of up to four months, he will become CEO. Lyn Kirby will continue as CEO through the transition period and thereafter will provide guidance and counsel as a member of the board of directors through March 17, 2011. Chuck comes to Ulta with 30 years of retail experience. He joined Office Depot in 2004 as executive vice president and chief merchandise and marketing officer, rising to president, North American Retail in 2006. Prior to joining Office Depot, he spent six years at Accenture Consulting in senior leadership roles, including partner. Chuck is a member of the executive committee of the board of directors for the National Retail Federation and holds a B.A. degree from Brandeis University. Reach Lyn at 630-410-4800 or [email protected]. Visit www.ultainc.com. Casey Durkin, a fast-rising Hollywood celebrity model and actress and a red-carpet correspondent on NBC, is the first in a series of spokesmodels for SHE Hair Extensions by SO.CAP. USA. Formerly Miss Los Angeles USA and a Miss California finalist, she had leading roles in music videos for The Rolling Stones, Faith Hill, Tim McGraw and Christina Aguilera. Casey will be featured in upcoming movies and TV shows, including Cougar Town and Bad Date Betty. Recently, she participated in the SHE Hair Extensions Leather & Lace Fashion Event in Boston, with Joseph Accolla of SO.CAP. USA, New England, who gave Casey her hair extensions makeover. Contact the company at 877-855-4247 or [email protected]. Visit www.socapusa.com. Artistic creative director Rafe Hardy is the new “face” of Sexy Hair. Onstage demonstrating hairstyling, creating and teaching Sexy Hair’s signature haircut collections and overseeing the company’s creative team, Rafe has attracted a global following and touched the lives of stylists all over the world with his innovative hair artistry and motivational skills. Joining Sexy Hair in 1999, Rafe rose through the ranks as a master artist and educator. He then became director of Sexy Hair’s premier educational facility, Michael O’Rourke’s Institute of Courage, before reaching his current position as artistic creative director in 2007. Reach Rafe at 800-848-3383 or [email protected]. Visit www.sexyhair.com. Max Wexler, president of Beauty Craft Supply & Equipment, became a grandfather for the first time, as his son, Adam, and his daughter-in-law, Sarah, are the proud parents of their new baby girl, Ava Marie, born April 3. Reach Adam at 800-238-5010 or [email protected]. Margie Wagner-Clews has been promoted to vice president of educator development at Empire Education Group. Margie previously held the position of director of education, helping to oversee the expansion of campus locations from 21 to 38, enhancing instructional classroom impact within each location She is now responsible for directing the high-quality development of instructors and educators in all 96 school locations nationwide. She began her industry experience at Empire in 1977 when she enrolled as a student educator at the Lewistown, PA school. She then moved on to work at the Empire Beauty School in State College, PA. Margie then transferred back to Lewistown and eventually became the school director. She was promoted and moved to Pottsville in 1985, and since then has been in several positions, from operations to education. Reach Margie at 570-429-4321 or [email protected]. Visit www.empire.edu. Luxury hair extension brand, Hairdreams, taps The Doves to promote its line. From media spokespeople to platform artists, The Doves will be promoting Hairdreams as their choice for hair extensions to both trade and consumer outlets. “It was a natural decision for us to move into hair extensions,” explain Christopher and Sonya Dove. “Hairdreams offers an extensive lineup of products and services. With our expertise in cut, color and stylist education, hair extensions were the next salon service to tackle, bringing our stylist experience and offerings full circle.” The Doves will be featured in trade advertisements, editorial and nationwide conferences, and The Doves Studio in Santa Monica, CA, will be used for educational trainings and photo shoots. Reach Robert Heim, Hairdreams managing director, at 888-434-2471 or [email protected]. Visit www.hairdreams.com. Nathan Vo is the new associate interactive communications/marketing manager at Joico. Nathan has a strong background in project management, systems development and program analysis. He worked for Mattel for seven years and holds a Master of Business Administration degree from Keller Graduate School of Management and a Bachelor of Science from DeVry University. He will be responsible for digital strategy and execution as it relates to website content, emails, SEO and social media. For more information, reach Patrick O’Keefe, Joico director of communications, at 626961-1682 or [email protected]. Visit www.joico.com. Troy Doherty, who has been employed by Emiliani Enterprises for 24 years, has been promoted from director of sales to director of operations for the Union, NJheadquartered company. He will work for Emiliani’s outside divisions: Elchim USA & Canada, EBD: Italy Distribution Center, as well as for Emiliani’s sub-distributor, A&A Beauty Supply, based in Buffalo, NY. To learn more, reach Troy at 908-378-2569 or [email protected]. Visit www.emiliani.com. News continued on page 19 4 JUNE 2010 The Multicultural Report P rocter & Gamble’s “My Black Is Beautiful,” an interactive and informative television series that celebrates the unique and dynamic qualities of African-American women, will return to the BET Network for a second season. The show is an extension of P&G’s “My Black Is Beautiful” campaign to celebrate black beauty and uplift the images of African-American women. Hosted by actress Tasha Smith, singer Leela James, actress/comedian Kim Coles and television personality Alesha Renee, this sixepisode, half-hour show will present a national forum for black women to talk about their most important beauty, health and quality-oflife issues. It also will provide advice and tips on fitness, health and wellness, as well as fashion and pop culture trends. Kisha Mitchell Williams, P&G Multicultural brand manager, says, "My Black Is Beautiful is bigger, bolder and packed with more information designed to inspire black women and promote healthy self images. The inaugural episode will pay homage to fashion and style icons, as well as honor the 30th anniversary of the black Barbie doll. Later in the season, the show teams with AfricanAncestry.com to help a new mother trace her roots to Africa and provides a makeover based on her ancestry results. In addition, “Project Runway” finalist Kara Saun helps an aspiring designer realize her fashion dream; fitness expert Jeanette Jenkins demonstrates five easy exercises viewers can do at home or when traveling; and Cookie Johnson showcases her CJ by Cookie Johnson Jeans line. Audiences can look forward to a line-up of beauty experts, celebrities and style icons, who speak candidly and straight from the heart on a variety of issues that concern women of color. Segments of the six shows were taped on location during My Black Is Beautiful live stops in Atlanta; Washington, DC and Los Angeles. During the 2010 campaign, attendees were treated to makeovers, seminars, panel discussions and contests that provided the opportunity to express “Why My Black Is Beautiful.” The campaign, created by a group of AfricanAmerican women at P&G in 2006, aims to ignite and support a sustained national conversation by, for and about black women. It was also by Lafayette Jones created to celebrate African-American beauty and to encourage black women and young girls to define and promote their own beauty standard. One of the goals of the initiative is to inspire and encourage future generations to adopt a new mindset for viewing themselves and uplift the way African-Americans are portrayed in society. The integrated, multibrand initiative is supported by Crest Pro-Health, Pantene Pro-V Relaxed & Natural, Cover Girl Queen Collection, Olay Definity, Always, Tampax and Beautiful Collection. Visit www.bet.com. “The Ethnic Hair, Beauty and Cosmetics Products in the U.S.,” 7th Edition, provides a comprehensive overview of the ins and outs of the ethnic HBC business. Most importantly, the report anchors ethnic HBC in the broader general-market HBC and societal contexts, as well as in the rapidly transforming retail scene. If your company is already an established player in ethnic HBC, this report will freshen and strengthen your marketing plan. If your company is newly targeting the ethnic consumer, then this report provides an intro to the ethnic HBC business. Ethnic hair care, makeup and skin care products are a vibrant $2.7 billion business that, according to Packaged Facts, reflects the upscaling of the parent HBC market. In 2010, African-Americans, Asians, Hispanics and other folks of color already account for more than one third of the U.S. population; as of 2013, their spending power will have surpassed $4.2 trillion. Marketers have thus ventured beyond the usual hair relaxers, the few darker tints of makeup and heavy moisturizers, to offer premium-to-high-end beauty and grooming regimens sold through pop-prestige outlets, such as Sephora, as well as through TV home shopping networks HSN, QVC and others. Organic formulations are driving ethnic HBC sales, too, because Americans of color may actually skew more green-minded than caucasians. Yet ethnic HBC’s sell-through in the prestige, natural, grocery and TV home shopping channels is still small in relation to its potential. As for the effect of the struggling U.S. economy, this market achieved mid-single-digit increases during the global recession of 2008-2009, and is expected to return to double-digit progress as the recovery proceeds. Packaged Facts’ sales estimates for ethnic-specific hair relaxers, styling products, facial makeup, moisturizers, fade creams and other products are presented in the newest edition of “Ethnic Beauty Products,” together with estimates of multicultural consumers’ spending on mainstream versions of the same items. Sales drivers are analyzed in depth. Experian Simmons demographic data and IRI brand shares are detailed and examined, too, as are the competitive behaviors of AlbertoCulver, Dudley Beauty, Johnson & Johnson, Johnson Products, Johnson Publishing, L’Oréal, and Procter & Gamble. Ethnic Hair, Beauty and Cosmetics Products in the U.S., 7th Edition, is based on information gathered from primary, secondary, and syndicated sources. Visit www.packagedfacts.com. Following up on the successful debut of the “Texture! Supplement” and online collaboration between Modern Salon and NaturallyCurly.com, the two companies will continue the conversation about cutting, coloring, styling and retexturizing curly hair. Texture! 2.0 will launch this August, with Texture! 3.0 scheduled to return in February 2011. Sponsors will have the opportunity to connect directly with clients through special exposure on NaturallyCurly.com, a specialized “curl community” that guides consumers to the best salon experts and products for their hair. As part of the Texture! celebration, Modern Salon and NaturallyCurly.com hosted a Texture! live event during America’s Beauty Show in Chicago. For Online Texture versions and updates, comments from the expert panel and a video interview between Modern Salon editor Laurel Nelson and NaturallyCurly.com founder Michelle Breyer, visit www.modernsalon.com/texture. Lafayette Jones is CEO of SMSi-Urban Call Marketing, a promotion and marketing company, and publisher of Urban Call custom publications. To learn more about his company, visit www.SMSiUrbanCallMarketing.com. Contact him with your multicultural news at 336-759-7477 or [email protected]. JUNE 2010 5 The Beauty Industry Report Visit www.bironline.com IZUNAMI and ARROJO: New technology, new team W hen Mike Kim introduced his salon styling tool appliance line a couple of years ago, there were already more than 80 suppliers providing hair dryers and flat irons to salons. Not a problem for Mike and his IZUNAMI line. The parent company (Shake N Go, the largest supplier of hair goods to the multicultural market with $200 million in sales), owned by Mike and his brother, provides the financial firepower. In addition, Mike’s vision and goal of creating a line of styling tools that reduces or eliminates heat damage while making top quality flat irons is being achieved quickly. Beauty Industry Report (BIR) recently caught up with Mike to check in on his progress. BIR: In a crowded salon styling tool marketplace, what is IZUNAMI’s point of difference? Mike Kim (MK): It is a crowded market. Everyone says, “We are better.” So how do we differentiate our company from others? By continuing to introduce new technology, most recently, our Independent Temperature Control. Today’s stylists are knowledgeable and have high expectations. As technology advances, we implement the new technology as soon as it becomes available. Then, we present the product in our famous leather packaging. Presentation is very important. And last but not least, we follow up with unmatched customer service. Our distributors are extremely happy with our service. BIR: When you started IZUNAMI, what was your initial marketing plan and how did you begin to gain market share? MK: Initially, we tried to make sales immediately without laying the necessary groundwork. We thought sales would happen instantly simply because we had great products. But we learned that you have to create brand awareness first. We have done extensive advertising and publicity. Our focus continues to be strengthening our position as an elite professional tool manufacturer through advertising, public relations and education. We also learned that it’s important to form alliances with the right people. We came to form partnerships with some great industry people, including you, Joni Rae Russell and Bill Decker. Now, we are represented by two great 6 JUNE 2010 Mike Kim and celebrity stylist Nick Arrojo show off the new Arrojo by IZUNAMI iron. companies—The Kirschner Group in the Northeast and Van Nest Coleman & Associates in other territories. I must admit, whom you know is very important in this industry. BIR: Now, after being in the market for a couple of years, what is your vision for IZUNAMI? MK: IZUNAMI’s vision continues to be manufacturing the top performing tools dedicated to the full-service, exclusively professional market. I see a much greater opportunity than I originally did. I think the biggest opportunity comes from the fact that stylists have high expectations of quality and performance. Stylists get it. They can immediately see and feel the difference when they use a top quality tool—another good reason to pay attention to details. Second, companies tend to establish a brand name and then quickly divert it to the general market, leaving us some more room for expansion. BIR: Tell me about your successful trade advertising initiative, “IZUNAMI: It’s Love at First Glide.” What is behind the message and what’s the strategy in terms of marketing message and call to action? MK: Most appliance lines make the same claims. They are all fastest, hottest, smoothest, etc. So who is the best? The only way to find out is to try their tools. The reaction from our users is immediate—IZUNAMI’s frictionless gliding ability and fast heat recovery are instantly noticeable. Try it, and you will fall in love with our iron at first glide. It’s also called our “We Know You Will Love It” guarantee. You can return our product to the point of purchase within 30 days for any reason whatsoever. The distributor can either refund or give store credit, depending on its policy. At the end of each month, we pick up any returned merchandise by call tag. As for our warranty services, I will let a quote from a satisfied customer speak: “I would like to take the time to thank you so much for the quick response with my IZUNAMI replacement. I just love the Iron and the reliability of the customer service. I will be an IZUNAMI customer for life. Your products are awesome! Thanks again, Traci B. Davidson.” BIR: Tell me about the exciting news that IZUNAMI is teaming up with Nick Arrojo, one of the salon industry’s most recognized and successful stylists. MK: It's a collaboration between a most recognized educator and stylist, Nick Arrojo, and IZUNAMI, a manufacturer with the reputation of utilizing the most advanced technology and craftsmanship. After our irons were introduced to his salon, our mutual friend, Bill Decker, arranged a meeting. We will be formally launching The ARROJO by IZUNAMI flat iron and The ARROJO by IZUNAMI dryer in July. The development process for these state-of-the-art styling tools was exciting, as well as challenging. Nick has high requirements for performance and quality. They will be the best styling tools available. BIR: Share with BIR readers how IZUNAMI and Arrojo are working together. MK: We have a licensing agreement. IZUNAMI develops tools according to his specifications, and Nick is the centerpiece of PR, ads and education. We like his emphasis on education. Education is the key to success, and he is the top educator in the country. He was involved with the whole process of developing design and functions. His requirements are stringent, specific and often demanding, and we expect him to continue to raise the bar. His high expectations not only improve the product, but also improve our company. BIR: How do Arrojo tools differ from the core IZUNAMI line? MK: Arrojo tools have a lot of new features. We’ve incorporated our new Independent Temperature Control and used wider and longer plates for more efficient straightening— the plate size is 1 ¼ inch by 4 inches. It’s designed to safely get closer to the roots. And we added more cushion to the plates to increase the ability of the iron to self-adjust to the uneven thickness of hair. We rounded the plate edges 5 mm to prevent any creases when straightening or curling and added the cool tip for convenient, two-hand maneuvering. The dryer is probably the fastest hair dryer ever. Ounce for ounce, it’s very light but dries extremely fast. The dryer excites me as much as the iron does. They are an awesome pair! BIR: How does the independent temperature control protect the hair? MK: In most irons, the temperature is controlled by one plate. Heat kicks in when the controlling plate cools. The heat of the other plate depends completely on the controlling plate. When the condition of the hair is uneven, whether it is because the hair is only partially dry or because sprays have been applied unevenly, the dependent plate gets either too hot or too cold. Some irons reach beyond 500°F, which will undoubtedly damage the hair. Independent temperature control is a new technology that allows each plate to maintain the preset temperature independently to ensure more consistent styling while greatly reducing the possibility of heat-damage. BIR: What are your marketing and your distribution strategies for the Arrojo tool line? MK: We have tons of co-marketing plans, including trade shows, PR, ads, education programs and more. We’ll be looking for representations from full-service distributors who meet a few criteria. They must maintain a certain number of full-time DSCs. The stores, if any, must be professional-only. Also, they must be able to host educational events and have quality customer service. BIR: Mike, in your sales literature it states that IZUNAMI tools embody REQD—Rapid Engagement, Quick Disengagement. Please explain what that means to a stylist. MK: REQD resets the temperature five times per second. When there is a drop in “Stylists get it. They can immediately see and feel the difference when they use a top quality tool—another reason to pay attention to details.” temperature, it immediately kicks in the heat, ensuring fast heat recovery. Fast heat recovery is very important for consistent styling, top to bottom. The iron cools as you slide it down the hair. In some irons, the temperature drops by as much as 150 degrees. (It starts at 400°, but it drops down to 250°.) Thanks to the highperformance heater and REQD technology, IZUNAMI boasts the fastest heat recovery. And fast heat recovery means fewer reps and consistent styling. BIR: IZUNAMI recently launched a 450°F flat iron to compete in the keratin treatment market. Please tell me more. MK: The IZUNAMI 450° flat iron has the same great features and benefits that our original had. Due to the popularity of keratin treatments, we added an option to click the dial over to 450°F. The new model has continuous settings from 200° to 400°, and between 400° and 450° a “click” has been added to indicate that the temperature is being set at 450°. 450°F is recommended only when an application, such as a keratin treatment calls for it. Providing this option definitely had a big positive impact on our sales. Our sales popped up almost instantly after we added the feature. BIR: What’s next? MK: Within this year, we will be launching the Arrojo by IZUNAMI Iron and the Arrojo by IZUNAMI Dryer, a new iron named KTX, a curling iron and a hybrid iron that straightens and curls perfectly. BIR: Tell me about your sales structure. MK: We work with The Kirschner Group in the Northeast and Van Ness Coleman in other regions. They make our job so easy. Led by Peter Lim, our sales team’s main job is to provide them with educational support, sales materials, promotional products and great after-service. Peter and his team respond to any request with immediate follow-up. BIR: What type of education programs do you provide? MK: Education is very important to IZUNAMI. Whether it be a distributor show or sales meeting, our team likes to fly in and conduct educational sessions. We find that face-to-face sessions are much more effective. When such meetings are not possible, we send all the materials and samples in advance and have online meetings. We like distributors that ask for help. Shows and meetings are also an opportunity for us to learn what our customers’ needs are, what new technologies are available and what our competitors are doing that we can learn from. We would like to have our full-time educators deployed all over the country to continually visit distributors and salons with new information and techniques. BIR: What are some of your goals and challenges for the balance of 2010? MK: My goal for 2010 is, has been since the beginning of our company and will continue to be to build a brand that lasts. If we build a brand, they will come. We have lots of challenges, because there are a lot of things we want to accomplish. Some of our challenges are introducing new skus on time, establishing a stronger company identity and building a stronger education team. I am confident we will be able to accomplish them all. To learn more, reach Mike Kim at 866-455-0777 or [email protected] and visit www.izunami.com. JUNE 2010 7 The Beauty Industry Report Visit www.bironline.com Nordic HairContrast puts ‘fashion’ into extensions H air extensions are a hot business category and can generate significant new service revenues for salons. Plus, because maintenance is required, hair extensions result in an ongoing revenue stream. The Nordic Hair Fashion System, an imported line from Denmark, is a relatively new player that is quietly making inroads into the salon marketplace. Nordic HairContrast U.S., the exclusive importer and distributor of Nordic Hair, is headquartered in Los Angeles. Recently, Beauty Industry Report (BIR) met with Rich Ginsburg, company president, to learn more. BIR: What are your vision and mission for Nordic HairContrast US? Rich Ginsburg (RG): The mission of Nordic HairContrast is simple, but certainly not modest. We want to reinvent the art of hair enhancement throughout the professional salon industry, and we intend to do that by teaching stylists and their clients that Nordic Hair is not a “hair extension” at all, but a creative tool that stylists can use to make their clients’ desires a reality. By educating professional stylists about the high-level, Scandinavian quality and artistic flexibility offered by the Nordic Hair Fashion System, stylists will truly understand that Nordic Hair is fashion care for hair. BIR: I understand that your Danish parent company launched its product line many years ago. Give me a brief history. RG: Nordic HairContrast was founded in Denmark by Michael and Peter Andersen in 1999 as a distributor of several wet products, as well as the Pivot Point education system. Soon after, the company started developing new systems of hair extensions, because traditional methods of attaching hair—bonding, sewing and weaving—tended to damage the fine hair commonly found throughout Scandinavia. Seven years after inventing Nordic Hair, Nordic HairContrast is proud to be one of the market leaders throughout Europe in the hair extension category and, with more than 30 8 JUNE 2010 sales offices throughout the world, we expect to be in more than 50 countries in 2010. BIR: With a multitude of hair extension companies and product lines, what separates Nordic Hair from the rest? RG: We consider Nordic Hair an alternative to traditional hair extensions for several reasons. First, our proprietary adhesive system allows a stylist to attach a full set of Nordic Hair in less than an hour; hair extensions usually require 3 to 5 hours to install. So right away, our system provides a huge financial benefit to stylists, since they can service three or four Nordic Hair clients in the same amount of time it would take them to complete one traditional hair extension service. Also, Nordic Hair will never damage the client’s hair (a common occurrence with hair extensions), because we evenly distribute the weight of the Nordic Hair onto the client’s hair. Finally, we developed our own line of care products to maintain the health and beauty of Nordic Hair, so we have many clients who have re-used the same hair for more than a year. BIR: In an earlier conversation, you mentioned four key attributes of Nordic HairContrast: innovation, dedication to quality, education and product distinction. Please elaborate. RG: We strive to be innovators. For instance, we did not enter the market by re-branding the same product sold by a dozen other companies with a fancy marketing plan or celebrity spokesperson. Instead, we invented a new system that’s so unique, you can’t refer to Nordic Hair as a "hair extension;” it's a fashion tool that stylists can use to create new styles or add color, texture and volume (and, yes, length) in less than one hour. We’ve heard from stylists that some companies are not providing the same quality of hair from order to order. We do. And to prove it, every shipment of Nordic Hair is randomly tested by the Danish Technological Institute to assure our stylists and their clients that the quality of Nordic Hair will not change. Education is also critical to us. In order to maintain the integrity of our product, only stylists who have completed a Nordic Hair Certification Class may purchase Nordic Hair. We have turned away dozens of stylists who refused to take our Certification Class because they insisted that they have worked with "hair extensions" for years. Nordic Hair, however, is not a hair extension, and we believe that education is the key to unlocking its potential. With regard to product distinction, we need to educate the industry as to why Nordic Hair is not a "hair extension" but an alternative to hair extensions. Nordic Hair is available in 40 colors, as well as a variety of lengths (8”, 18” and 24”) and textures, including naturally straight and the pre-permed Body Wave for an energetic and sexy style! BIR: Speaking of innovation, I understand Nordic Hair will be introducing its Wedding Collection at Cosmoprof North America. Please give BIR readers a preview. RG: This is a great example of the innovation I was speaking about earlier. For years now, stylists have been forced to shop for hairpieces, jewelry and accents at various hair shops and stores to find the products they need to create updos for their bridal clients. Our new Wedding Collection will be a one-stop resource for beautiful clip-in hairpieces stylists can use to create bridal updos, accented by hand-designed hair jewelry, to give the entire wedding party an elegant and cohesive look. Each collection will include clip-in hairpieces in a variety of shades and colors, as well as a selection of gorgeous hair jewelry designed specifically for Nordic HairContrast by renowned Danish designer Joakim Roos. BIR: Rich, you stressed that education is one of the key success factors in your line. Tell me more about your program. RG: We are blessed to have one of the most talented stylists in the country as our artistic director. Malin Miramontes is a brilliant hairstylist and makeup artist from Sweden and since arriving in the United States, she has been the subject of feature articles back home in top fashion magazines, such as Swedish Elle and Swedish Vogue. Prior to arriving here 10 years ago, Malin was a member of Schwarzkopf’s artistic team and traveled the world performing at hair shows and other fashion-related events. As mentioned, we consider product education vital to future success. For that reason, every stylist must attend one 5-hour certification class at no charge, prior to using Nordic Hair. Despite the occasional objection, most stylists understand that we are protecting both the Nordic Hair brand, as well as their own professional reputation, by treating all stylists equally. BIR: What is your long-term vision for education? RG: Actually, Malin and I were just discussing that. With more than 150 certified stylists around the country and more being certified each month, our next challenge is to implement a strategy that will allow us both to reconnect with our current stylists and continue to inspire them. One of the concepts under consideration is the creation of a master stylist certificate program, where our certified stylists can come to Los Angeles and attend advanced Nordic Hair classes on color, cutting, blending and fashion styling. Stay tuned. BIR: Who is your target market? RG: You just asked my favorite question! One of the limitations of traditional hair extensions is that most consumers have at least medium-length hair and simply want longer hair, hence the term “extensions.” In addition, hair extensions traditionally take 3 to 5 hours to attach. As a result, stylists and their customers understandably have a narrow view of when hair extensions are appropriate. Nordic Hair, on the other hand, is appropriate for almost anyone and that is why we have taken on the challenge of educating stylists that it is a fashion tool, not a hair extension. For example, our 8-inch length “Nordic Hair is not a ‘hair extension’ at all, but a creative tool that stylists can use to make their clients’ desires a reality.” product is perfect for clients with short hair who want to alter their hairstyle or add some volume or color. We also offer a standard 18inch length that can be used for adding volume, highlights/lowlights and—of course—length in less than an hour. And for clients who desire nothing less than dramatic and gorgeous long hair, Nordic Hair can be purchased in an extralong, 24-inch length. BIR: I understand you are using a classic distributor model marketing strategy. What are the key success factors you look for in selecting a distributor partner? RG: Independent regional distributors will always understand their local market better than we do, so we believe they will play a vital role in the growth of our company. Their DSCs are in the field every day and can therefore make more accurate assessments of the current trends and buying tendencies in their area. A great distributor partner for us will be one with a proven track record, who appreciates the enormous potential created by our products. BIR: Please describe your product ranges. RG: We have three basic lines: Nordic Hair Professional, Nordic Hair Economy Class and Flex Extension. Nordic Hair Professional is our most popular line and features 100% Grade A all-natural Remy Hair that can be re-used for up to 18 months. Nordic Hair Economy Class is something we developed in 2009—it’s the same system as Nordic Hair but the cost is 30% less, since we use 50% Remy hair and 50% highheat fiber, which will take the heat of a flat iron or curling iron (up to 356°F). Both the Nordic Hair Professional and Economy Class lines require certification. The Nordic HairContrast Flex Extension system, however, does not require certification and also is about one-third less than the cost of the Nordic Hair Professional line. Although the Flex Extension line consists of 100% human Remy hair, it is not made to be reusable and is usually replaced after about 12 weeks of normal wear. BIR: What role do shows play in your marketing strategy? RG: The importance of brand recognition cannot be overstated, and shows are terrific vehicles for introducing new products to both distributors and stylists. When used in conjunction with other marketing efforts and with realistic objectives, trade shows are a great way to advance your brand. BIR: What fashion trends can you predict will have a favorable impact on the hair extension category? RG: Like all mediums that both inform and reflect popular culture, the evolution of fashion requires hairstylists to continuously stretch their skills both creatively and technically in order to stay relevant. With few limitations, stylists can use Nordic Hair to create nearly any hairstyle in less than an hour, regardless of their client’s hair length, color or cut. For that reason, no matter what fashion trends emerge, stylists who use Nordic Hair will always be able to keep their clients ahead of the fashion curve. As a result, they will always stay relevant. To learn more about Nordic HairContrast, reach Rich Ginsburg at 310-292-8848 or [email protected], and visit www.nordichaircontrast.com. JUNE 2010 9 The Beauty Industry Report Visit www.bironline.com It’s easy to do business with American Dawn T owels and linens, while not as flashy and sexy as blow dryers and styling irons, are core supplies that are needed by all salons and spas large and small. American Dawn, Inc. is one of the industry’s major suppliers. Beauty Industry Report (BIR) recently asked Ron Kothari, director of Ron Kothari, sales and marketing for director of sales American Dawn’s salon and marketing for American Dawn, division, to share what sets his company apart as Inc.’s salon division a primary supplier of these salon basics. BIR: Please tell me about American Dawn. Ron Kothari (RK): American Dawn is a privately-owned corporation with a rich history dating back to 1933. Through successive acquisitions, we have become a leader in textiles and linens in many industries. We are headquartered in Compton, CA, with multiple shipping locations in Chicago; Bridgeport, NJ; Atlanta and Houston. We offer customers easy ordering and consistent products. Plus, all of our packages are bar-coded for virtual receiving, inventory control and point of sale. BIR: Tell me about your background. How did you get involved with American Dawn? RK: In late 1983, I arrived in the United States from India to expand and grow our family’s textile business. I brought the company into the salon industry, which our family had not covered previously. I quickly established a name, built strong relationships in the market and have never looked back. In the summer of 1992, in order to grow further and continue to meet my customers’ expectations, I decided to merge with American Dawn, which allowed me to have additional resources that further benefited my customers. I now serve as the sales director of the salon division for American Dawn. BIR: What is American Dawn’s mission? RK: American Dawn is an innovative leader in consistent supply of quality products to all trade classes. We offer simplified order processing and complete shipments for distributors to sell our products continuously 10 JUNE 2010 and ensure the highest quality products at competitive prices. BIR: What strategies are you following to accomplish your mission? RK: Our marketing consists of special offers and semi-annual and quarterly price breaks. We also work with our distributors to understand their market needs and plan special deals accordingly. BIR: With a number of companies supplying towels and linens to salons and spas, what are some points of difference that have made American Dawn one of the leading suppliers? RK: We have the largest variety of products available for our distributors, and we ship from multiple locations across the country to ensure timely deliveries. We have strong working relationships with our distributors to ensure that their customers’ needs are met. BIR: Please describe your distribution model. RK: American Dawn is an open line; we work with small to large distributors nationwide specializing in the salon, nail and spa business. We also use a sales team of independent rep organizations, including the Gerry Udell Group in the Northeast, Southeastern Rep Services in the Southeast, Paul Lande & Co. in the Southwest and Ted Fishman & Associates in the Midwest and ethnic market. In Puerto Rico, Canada, Mexico and other markets, we work with individuals who provide support locally. BIR: Ron, what are the primary reasons that the buyer for a large distributor, salon or spa chain would want to do business with you? RK: My main goal is to build strong relationships with my customers to ensure that we are offering them the best products at competitive prices with on-time deliveries. BIR: What are some of your most popular products and why? RK: Basic salon towels and our vintage poly/cotton barber jackets. Our towels are bleach- and chemical-resistant and are long lasting. The barber jackets are made from the best quality fabrics, stitched to the highest standards and come in a large variety of colors and sizes. Plus, they are always in stock. BIR: What’s new and/or hot in your line? RK: This year, popular colors are returning as favorites. Out of the 14 colors we offer, chocolate brown and navy blue are hot. BIR: Ron, I understand that American Dawn uses the latest technology for managing inventory and communicating with customers. Give me a brief overview of some of your systems. RK: American Dawn has been e-ready with EDI (electronic data interchange), which includes paperless ordering and invoicing. We also offer online ordering. All of our products are bar coded for virtual receiving, inventory control and point of sale. “My goal is to ensure that we are offering the best products at competitive prices with ontime delivery.” BIR: What would BIR's readers be surprised to learn about your company? RK: We own and operate more than half a million square feet of distribution centers all over the United States, Canada and Mexico. BIR: Any final thoughts? RK: Mike, we have known each other for 20+ years and have seen a lot of changes in this industry. I forge ahead by building strong, lasting relationships with all my customers and sales reps. Reach Ron Rajesh Kothari at 800-627-5839, (800-MARKTEX), 310-922-8383 (cell) or [email protected] and visit www.americandawn.com/ADI/salon.html. Day Spa Expo offers education, presents awards B eauty Industry Report (BIR) thanks Larry Oskin for the following recap of the 5th annual Day Spa Expo & Business Forum facilitated by Bentley International Group in Las Vegas on March 13-15, 2010. The event attracted exhibitors and attendees from North America, the Caribbean, South America, Asia, the Middle East and Europe. Guest speakers covered start up, management, marketing and business growth strategies, as well as updates on day spas, medical spas and wellness industry trends. On the exhibit floor, attendees could view new technologies, equipment, treatment products and support services. Exhibitors included the Day Spa Association (DSA), the International Medical Spa Association (IMSA), CaerVision Networks, Preston Martin, V.I.P. Cosmetics, Canfield Imaging Systems, The SoapCreek Company, Da.U.De, Edge Systems, Eminence Organic Skincare, Eye Kandy Cosmetics, The Gourmet Company, HerbaSway, ISO Beauty, J. Bella Natural, Milady, Chado-En Tea Docents, MindBody, New Life Systems, Resources & Development and NuSkin Enterprises. Hannelore Leavy, executive director of the DSA and the IMSA, announced that the recent educational component for Bentley International Group’s Day Spa Expo & Business Forum was a huge success. Skip Williams, DSA chairperson of education and trade shows, noted, “The Business Forum theme this year was ‘TurningPoint,’ as the organization is all about taking business seriously, while we all recover from the challenging and recessionary economy.” John C. Gray, CEO of Glen Ivy Hot Springs Spa, CA, was the keynote speaker. Guest speakers included Patti Biro, Mark Romero, Dan Chandre, Celeste Hilling, Skip Williams, Brian Cunningham, Rebecca M. Jones, Eric Light, Felicia Brown, Gregory Alch, Ken Cassidy, Suzanne Garcia, Audry Brown, Larry Oskin, Heather Elrod, Heather Lemere, Ana Loiselle and Stacey Hall. Another first was the offering of 99% of the sessions carrying continuing education credits. Videos of all sessions will be available from DSA-IMSA [email protected]. Attendees who attended the Day Spa Expo will have free access to the videos for one year. DSA-IMSA members will be able to download these sessions at a nominal fee, while nonmembers’ rates will be just a bit higher. “The Business Forum theme was ‘Turning Point,’ as the organization is all about taking business seriously.” Annual DSA Awards were sponsored by Universal Companies, Milady Publishing and Wellness Capital Management. The 2010 Distinguished Day Spa Award was presented to the Blu Water Day Spa, owned by Julie Nguyen of Kensington, MD. Hannelore noted, “Last year, Julie earned the Day Spa Association’s Spa Philanthropist Award for her charitable work. This day spa has demonstrated excellence in total quality, performance and service standards while working with its community in charitable initiatives and has been accredited according to the DSA’s standards since 2009.” The 2010 Spa Person Of The Year Award honored Allan Share, president of New Life Systems in Minnesota. The Day Spa Association selects a Spa Person of the Month six times each year. The Spa Person Of The Year Award winner was selected from the previous year’s Spa Persons Of The Month—Brian Cunningham of SpaClique and SpaiUniversity, Seth Gardenswartz of SpaBoom, Sheila Brody of The Green Spa & Wellness Center, Allan Share of New Life Systems, Sharon Parris-Chambers of Positive Tourism and Patti Biro of Patti Biro & Associates were the honored Spa Persons for 2009. These individuals were all recognized for having made a significant contribution to the professional day spa industry, while remaining influential contributors in their own local communities. The Spa Philanthropist Award was presented to Mona Sappenfield of the Mona Spa & Laser Center in Memphis, TN. The Healing Hearts Award was presented to Brian Cunningham, president of SpaClique.com, to honor his efforts to support the day spa community nationally and internationally with his webbased educational programs, daily SpaiNews email blasts and the SpaiExpo virtual trade show, while professionally enhancing both image and awareness for all day spas and medical spas. The DSA Leadership Award was presented to John C. Gray, CEO of Glen Ivy Hot Springs Spa in Corona, CA. The IMSA Leadership Award was presented to Jim Larkey, director of product management of Canfield Imaging Systems by the International Medical Spa Association. Jim was honored for his lifetime contribution to the field of tele-medicine and photo skin analysis. Sponsored by Milady and the Day Spa Association, a Lunch & Learn Seminar was presented by Ana Loiselle and Felicia Brown, where more than 50 attendees were awarded with a special first-year membership to the Day Spa Association. For more information about Day Spa Association membership, call 201-865-2065 or email [email protected]. To learn more about attending and/or exhibiting at the 2011 Day Spa Expo, contact Wendy Witherspoon, executive director, and Stephanie Harper, exhibitor services manager, at 800-859-9247 or [email protected] and visit www.dayspaexpo.com. JUNE 2010 11 The Beauty Industry Report Visit www.bironline.com America’s Beauty Show plays to the heartland R eturning to the mammoth McCormick Place Convention Center in Chicago for the third year, America’s Beauty Show (ABS) and the companion Face and Body event (presented by Skin Inc. magazine) attracted more than 57,000 attendees, according to show management. Paul Dykstra, executive director of Cosmetologist Chicago (CC), added that ABS 2010 occupied 30,000 net square feet more than last year’s show. ABS is organized by salon and spa professional members of America’s Beauty Network of associations, which incorporates CC, the International Nail Technicians Association, Cosmetologos Latinos and the American Association of Esthetics. At ABS, attendees get their money’s worth. The show offers an amazing amount of activities besides the large show floor. The main stage “On The Runway @ ABS” featured four solid show headliners, including Sexy Hair Concepts’ Rafe Hardy, Nick Arrojo, TIGI’s Anthony Mascolo and Tabatha Coffey of Bravo’s “Tabatha’s Salon Takeover” with special guest emcee, Mary Rector-Gable, founder of BehindTheChair.com. Kim Vō hung out in the ABS Lounge on Sunday and Monday to meet fans and spoke at the ABS Student Assembly early Monday morning. Over the three days, there were more than 140 classroom opportunities that covered master classes and hair, hair color, skin and nail workshops. In addition, 40 hands-on workshops covered hair, nails and skin. BIR caught part of the P&G Salon Professional/Salon Today-sponsored Salon Business Success, a salon owner management forum that featured Reuben Carranza, CEO of P&G Salon Professional, as the keynote speaker. His message was that the professional salon industry needs to take back its clients. P&G data show that the customer—the “Beauty Enthusiast”—is predisposed to spend the highest proportion of her beauty dollars in the salon. “This customer is being courted by everyone from mass merchandisers to Payless Shoes because of her high beauty spend,” Reuben said. “The salon must be intentional, focused and goal-oriented in recapturing her business and rewarding her loyalty.” John 12 JUNE 2010 Moroney, P&G Salon Professional’s business development leader, did his usual outstanding performance as moderator. Other special events that were free to show attendees included “The Art of Color Cutting,” by Paul Mitchell’s Scott Cole and Linda Yodice; “Conversation in Color,” by Beth Minardi for Joico; “Relaxing and Coloring and Hair Cutting and Finishing,” by James Harris; “Le Graphique,” by Joico’s Damien Carney and Sue Pemberton; and “Sexy Hair Structure in Motion,” by Sexy Hair Concepts Rafe Hardy. PureOlogy sponsored the SalonSpa Sustainability Summit, which was highlighted by a virtual keynote presentation from environmental philanthropist John Paul DeJoria, chairman/CEO/co-founder of John Paul Mitchell Systems, that kicked off the event. According to JP, “Giving Back Is The New Black.” African-American Hair 2010, sponsored by Mizani, featured workshops by Toni Love, James Harris, Major League Barbers, Kim Whitehurst and the Mizani styling team. Celebrate Texture!, a panel discussion and Q&A led by moderators Laurel Smoke, Modern Salon editor, and Michelle Breyer, founder of NaturallyCurly.com, provided additional information about cutting, coloring and styling textured hair. On Sunday, Pivot Point International presented its third annual L.E.O. Awards for outstanding alumni and recognized Ann Bray, Gretta Monahan, Diana Schmidtke, Robert Aubin and Rahni Michael Flowers on their leadership and excellence. The annual BehindTheChair.com Stylist Choice awards drew 2,500 attendees. Founder Mary Rector-Gable was the emcee. Close to 40 top stylists and colorists joined her as presenters at this 10th annual event. The show featured the return of the L’Oréal Professional Products Division, featuring Matrix, PureOlogy and Redken pavilions and the show debut of INOA, the company’s new hair color. Pat Parenty, president, U.S. Brands, L’Oréal Professional Products Division, stated, “For the first time, L’Oréal Professional Products Division strategically planned a common space with our distribution arm, SalonCentric, at ABS. It was a great opportunity to showcase each brand’s unique position and points of difference, while simultaneously showing the depth and breadth of the overall L’Oréal Professional Products Division in the U.S market.” L’Oréal Professionnel used ABS to launch its non-ammonia hair color, INOA. The large pavilion hosted five colorists giving their perspectives on using INOA color and creating beautiful hairstyles. BIR talked with L’Oréal Professionnel portfolio artist and owner of Perfect 5th Salon, Suzie Bond, who said, “The true revolution that allows for an ammoniafree permanent hair color is INOA’s oil delivery system (ODS) technology. ODS uses oil to drive color deep into the hair cortex, where color becomes more true and durable. MEA (monoethanolamine) at a very low level replaces ammonia in INOA, slightly opening the cuticle for color penetration. With all this, INOA provides uncompromised comfort and supreme respect for the hair—it respects the essential amino acids and lipid balance of natural hair—and infinite color power, a true high-performance revolution!” Andrew Bartfield, L’Oréal Professionnel’s vice president of education, added, “We are so proud of the INOA launch. We are very excited to be at ABS and Premiere Orlando to expose our fellow hairdressers to this innovation that could change the way they color hair.” Reach Andrew at 212-984-4296 or [email protected]. Visit www.lorealprofessionnel.com. Other exhibitors with large areas included American Crew, Aquage, Arrojo, BehindTheChair, Cricket, Farouk Systems, Moroccanoil, Sexy Hair Concept and Pibbs Industries, In addition, both Beauty Systems Group (BSG) and Salon Centric used large amounts of floor space for their vendors. BSG vendors occupied 40 booths of varying sizes, while on the opposite side of the exhibit hall, Salon Centric-owned distributors’ (Maly’s Midwest, Mid City, Spectrum and Marshall’s Salon Services) vendors occupied 34 booths. Paul Sharnsky, president of SalonCentric, stated, “ABS provided an opportunity for SalonCentric to connect in a unified manner with all of our stakeholders: salon owners, stylists, brands we represent and our employees. Overall, it was a great show and a platform to bring our Midwest team together. This was particularly important, given our recent acquisitions of Maly’s Midwest and Marshall’s Salon Services.” Reach Paul at 727561-0622, ext. 233, or [email protected]. Visit loreal-usas-salon-centric-division.com. Beauty Systems Group (BSG) vice president, Frank Fulco, said, “March is great time of the year for our industry to come together as one. Our customers—salon professionals—were excited to learn about new products, meet our guest artists and network with each other during BSG Experience Events in our VIP Room. Every time we meet with our customers, so much positive energy is created. It was a great experience for our customers and our team.” Reach Frank at 800-362-3186 or [email protected]. Visit www.beautysystemsgroup.com. Michael O’Rourke’s new hair care line, branded simply as "Michael O’Rourke," used ABS as its coming out party and did it in a firstclass way. Working non-stop from the show opening to after close each day, Michael drew SRO crowds. His team sold completely out of the intro four-piece salon bag deals, which contained one of each of the line’s four styling products, led by 3-Way Hairspray. The line’s hero product features three nozzle settings that allow the stylist to use one hair spray that can deliver a light, medium or firm hold. The other three skus are Get a Lift (volumizing spray that can be used on wet or dry hair), Fix it Up (light weight leave-in styling conditioner) and Work it Out (detailing paste). BIR talked with COO Nicole Pelissier, who said, “This is truly an incredible launch for us. We couldn't be more pleased with how everything is going. We knew we would make an impression, but this was more than we expected. The distributors who committed to our line at the show have been amazing. We all just feel so blessed to be here supporting Michael and his vision." Reach Nicole at 310-908-0786 or [email protected]. Visit www.michaelorourkehair.com. CND (Creative Nail Design) also used ABS to showcase its new product launch, creating a serious buzz with a soft launch of Shellac, which CND calls the world's first hybrid nail “March is a great time of year for our industry to come together as one. Salon professionals were excited to learn about new products, meet our guest artists and network with each other.” color. Nail technicians applied Shellac to distributors, salon professionals and the media, resulting in coverage by NBC, ABC and key Chicago print media. “This game-changing product applies like polish, wears flawlessly for 14 days of high gloss shine, dries instantly and is removed in 10 minutes,” states Kimberley Natale, CND vice president of marketing. “The formula is thin and flexible like polish, so it looks natural, but provides strong natural nail protection with a resilient mirror finish that resists dullness and chipping, even during the most rigorous activities. As amazing as Shellac is on, removal is just as satisfying. No soaking, drilling or filing is necessary. Shellac is a professional service launching in salons globally this month.” Reach Kim at 760-599-2900 or [email protected]. Visit www.cnd.com. Zerran Absolution Professional Clarifying Shampoo made its Midwest debut. This patentpending 100% vegan clarifying shampoo works within a neutral pH range, formulated with botanical essential oils, natural extracts to soothe and condition and natural chelators from citrus fruit. The key feature of Absolution is its ability to remove stubborn silicones without stripping the hair. By design, reactive metal ions, like cupric oxide, oils, styling polymers, residues from medication, salts and cosmetic contaminants are also eliminated. “That way,” says Zerran marketing director, Cindy Van Steelandt, “stylists can be confident that their artistry and application of color, perms, straightening solutions and other professional hair services present superbly in perfectly prepped hair.” Absolution is available in 2-ounce, 8-ounce and 32-ounce bottles. Reach Cindy at 800-626-1921 or [email protected]. Visit www.zerranhaircare.com. At Sexy Hair Concepts, BIR chatted with President Karl Heinz Pitsch, who said, “We had a very successful show underlining our increased dedication to education. On Sunday, our artistic team presented our first main stage presentation, and our artistic director, Rafe Hardy, had a sold-out classroom followed by a hands-on session on Monday. We presented our new Healthy line and the texturizing powder Powder Play. We definitely plan to be back next year. ABS show management was great to work with, and I don’t see a need to fix anything that isn’t broken.” Reach Karl Heinz at 818-435-0801 or [email protected]. Visit www.sexyhair.com. At Farouk Systems, Leonel Rodgriguez from Mexico teamed with Canadian Rocco Vitelli to create avant-garde styles with the use of hair forms, pins and styling techniques combined with CHI aerosol hairsprays. From Holland, Patrick Kalle and Richard Jordan recreated styles from the new Contradiction collection. America’s Beauty Show continued on page 14 JUNE 2010 13 The Beauty Industry Report Visit www.bironline.com America’s Beauty Show continued from page 13 They demonstrated the versatility of CHI Ceramic Styling Irons and styling products. The team of Tommy Tusa and Marco Passaniti energized the audience with asymmetrical cuts, and George Cooper performed stylistic cuts and channeled Michael Jackson by marrying cutting with signature Michael moves. Reach Gregg Emery, Farouk Systems vice president of sales and marketing, at 800-237-9175 or [email protected]. Visit www.farouk.com. Kim Etheredge, co-founder of Mixed Chicks hair care, told BIR, “ABS was a great experience for the Mixed Chicks crew. This was our first time and the timing couldn't have been better. In an industry where hair is segregated by race and texture, Mixed Chicks was able to bring all worlds together and break the color lines. The Midwest is a market full of many biracial and multicultural people with combination hair who feel unrepresented and unguided in their search for their specific hair needs. Mixed Chicks was there to save the day and include everyone with a curly texture under one brand, instead of separating by color and race.” Reach Kim at 818-461-8160 or [email protected]. Visit www.mixedchicks.com. Sales of basic salon tools are always solid at every salon show and at ABS, dozens of suppliers of appliances, shears and hair brushes were doing brisk business. At FHI Heat, Les Haverty, vice president of international sales and key accounts, told BIR that sales of the company’s styling irons, including the popular Runway iron, workhorse Technique and Platform irons and the new entry-level GO iron; the new Elite Professional Series iron and dryer; and the company’s array of super-light, high-tech blow dryers added up to capture honors for top sales in the Salon Centric/Marshall’s area. “Salon professionals have been saving their money for the last 18 months, so our deals were designed to help them take home the irons and dryers they need for their daily work at the salon,” he explained. “We sold 600 of our new fashion totes with tools by noon on Sunday. Our retail displays, which help salons build a new profit center, were also a big hit.” Reach Les at [email protected] and visit www.fhiheat.com. At ABS, BIR visited with two very different hair brush exhibitors—one a brand new supplier 14 JUNE 2010 and the other a company that has been supplying the salon industry for decades. At Spornette International, one of the salon industry’s major hair brush suppliers for more “ABS 2010 occupied 30,000 net square feet more than last year’s show, according to show management.” than 50 years, Jeffry Sporn, a second generation family member, stated, “One of our top-selling items was our Square Styler brushes. Everybody loved our pitch: ‘Square is the new round!’ Spornette’s Square Stylers feature an aerated square barrel instead of the standard round barrel. The square barrels allow for great waves and curls and are also perfect for straightening. The barrel and nylon bristles are treated with both tourmaline, which conditions and adds shine to the hair, and nano-silver additives, which keep the brush clean. The nylon bristles are also crimped to penetrate the hair better. They’re available in four sizes. Reach Jeffery at 800-323-6449 or [email protected]. Visit www.spornette.com. A new supplier of hair brushes, Brush Lab, a division of IBP, was exhibiting its new line of Fresh hair tools and accessories in vibrant colors, including lime green, tangerine, bubblegum pink and fuchsia. “The colors are wonderful, but the stylists were equally impressed with the performance of our professional brushes,” said marketing manager Thiago Santos. Reach Thiago at 888-427-8455 or [email protected]. Timing is everything in marketing, and Bosley Scientific Hair Research introduced its product line at the right time. With P&G Professional acquiring Nioxin, the market leader in the thinning hair aids category and then making major distribution changes, it opened an opportunity. In stepped Bosley and offered those distributors who lost Nioxin a viable replacement. As a result, the company has gained national distribution almost overnight. Bosley Professional Strength Hair Regrowth Treatment is available in two strengths, a Women’s 2% and a Men’s 5% formula. Each kit includes two 2-ounce bottles, which is a two month supply (list $21.30/SRP $34.95). Eric McLemore, Bosley Professional Strength president, told BIR, “I was glad to see the show so crowded, with enthusiastic attendees. I think it bodes well for the immediate future of our industry. I have to admit, I’m a fan of the downtown venue. It allows for people to get out and experience Chicago, if they can squeeze in the time, of course.” Reach Eric at 800-Bosley1 or [email protected]. Visit www.bosleypro.com. It’s ironic with the furor about next year’s Chicago area shows that BIR received this announcement from ABS: America’s Beauty Show was named among the Top 100 Events in Chicago by BizBash magazine. Also, after just three years, ABS placed fifth in size, attendance, exhibitors and importance to Chicago, just behind the Restaurant and the Housewares Shows, events that have been at McCormick Place for decades. “These types of results and rankings don’t happen by accident. They require a great commitment to our industry,” said Frank Gironda, president of Cosmetologists Chicago. The next ABS will take place March 12-14, 2011 at McCormick Place West. Call 312-321-6809 or email Paul Dykstra at [email protected]. Also, visit www.americasbeautyshow.com for continuous updates. Students win at Empire’s Future Pro Expo E mpire Education Group’s top students were honored on May 17 at this year’s Future Professionals Expo & Competition. More than 1,900 students from Empire’s 96 schools across the nation attended the 6th annual event in Hershey, PA, where students from each school competed for valuable prizes, including Masters of Beauty Classes with celebrity stylist Nick Arrojo, a NY Fashion Week backstage experience with Creative Nail Design, educational trips to Paris, Las Vegas, Baltimore and Orlando and thousands of dollars worth of professional tools and products. The event also featured classrooms with advanced training; an Expo where attendees learned about top professional salon and spa products, tools and advanced educational programs; and a Networking Café, where students met and interviewed with salon owners and other potential employers to explore the many exciting career opportunities available to them. Nick Arrojo and his team presented a 90minute show to kick off the Masters of Beauty (MOB) Skills Certification Program, a national advanced education platform presented in partnership by Empire Education Group and Arrojo to help beauty professionals build profitable, rewarding and sustainable careers. “In the six years we have been holding this competition, this was by far the most competitive year,” says Franklin K. Schoeneman, chairman and CEO, Empire Education Group. “There is no question that these students have the talent and dedication necessary to succeed in their chosen fields, and we expect all of them to have their pick of fabulous job opportunities when they graduate.” Here are the winners: 1st Place Trend Cut & Style with Color: Milagros Rodrigues, Northeastern Philadelphia. Milagros’ prizes include an all-expenses-paid trip for an exclusive educational event to the KPSS Goldwell/KMS Baltimore Global Academy, Finger Blade Shears and a trophy. Judges included Brig Von Osten, the winner of Shear Genius 2010; Shannon Lamm, Goldwell Guest Artist; John O’Neil from Outlooks for Hair; Adrienne Lamanno from Goldwell/KPSS and Laura Kenney, senior beauty editor of StyleList.com. 1st Place Long Hair Evening Design: Lindsay Krug, Hanover, PA. Her prizes include an allexpenses-paid trip to the KPSS Goldwell/KMS Baltimore Global Academy and a trophy. Judges included Jane Shin Park, beauty editor at Teen Vogue; Randy Rick, vice president/ creative for Empire Education Group; Denise Thompson from the DiJulius Group; Francie Sorem, ISO Artistic Creative Team Member; and Mark Woolley, international creative director, Empire Education Group. 1st Place Men’s Cut, Color & Style Storyboard: Bobbie Jo Lorenzetti, Lehigh Valley, PA. Prizes include an all-expenses-paid trip to the KPSS Goldwell/KMS Baltimore Global Academy and a trophy. Judges included Mark Woolley, Sal McKinzie, field education manager for Goldwell/KPSS; and Martin Dale, vice president of education for Matrix. 1st Place Artistic Braided Design: Crystal Grate, Pottsville, PA. Her prizes include an allexpenses-paid trip for an exclusive educational event to the Goldwell/KMS Baltimore Global Academy and a trophy. Judges included Vivian Elam, Empire graduate and master educator; Sal McKinzie; Rob Willis, director of education and creative services, African American Concepts/JF Labs; and Elsie Cardell, president and owner of Results and Sales Marketing, LLC. 1st Place Nail Art Display: Tiffany Manning, Gwinnette, GA. Her prizes include an Odyssey Nails educational event, a Creative Nail Design gift set, backstage experience at NY Fashion Week with the Creative Nail Design team and a trophy. Judges included Jan Arnold, co-founder of Creative Nail Design; Jan Zanettini, national school account manager of Creative Nail Design; Trang Nguygen, owner of Odyssey Nail Systems; Catherine Wong, trainer for Odyssey Nail Systems; and Maggie Mulhern, beauty and fashion director for Modern Salon Media. 1st Place Make-Up Artistry Storyboard: Bao Thao, Milwaukee. Her prize is a Bodyography Professional Artistry Kit, valued at $699. Judges included Lydia Sarfati, founder and CEO of Repêchage Skin Care; Seda Azarian, director of education at Repêchage; Anita MorelloZappacosta, national director of sales and marketing for Robanda International; Karie Frost, fashion editor for Beauty Launchpad; and Julie Nostrand, founder of South Seas Skin Care, LLC. National Future Professional of the Year: Tiffany Powell, Bloomington, MN. Prizes include an all-expenses-paid trip to the Goldwell Trend Zoom in Paris, a MOB Tour Class, an educational event sponsored by McBride Research Laboratories, Inc., a laptop computer, Diamond Shears and a trophy. National Educator of the Year: Michaele Schaeffer, an educator at Empire Beauty School in Exton, PA. Michaele’s prizes include an allexpenses-paid trip to Las Vegas for the Masters of Beauty (MOB) Tour Class, as well as a class at the KPSS Goldwell/KMS Global Academy. Michaele was also gifted with a laptop computer from Fromm International and Diamond Shears. 1st Place Total Team: Pottsville, PA. Plans are under way for the 7th annual event, scheduled for May 15-16, 2011. Says John Mascarini, show director and vice president of curriculum and methodology development for Empire, “Empire’s 2011 Future Professionals Expo will set new milestones for the largest studentonly event of its kind in North America by bringing more than 2,500 future professionals to Hershey, PA for a life-changing event. It will include six educational theater classes; 100 professional beauty companies showcasing their products and services; and 300 students competing ‘head-to-head’ in a live national competition. Add on opportunities to explore careers and meet potential employers in the Network Café and then end with a big awards presentation featuring a national beauty industry superstar, and we’ll have another big winner. This year, exhibit space sold out very early, and we already have a waiting list for 2011, so companies interested in participating should reserve their space immediately.” For more information, reach John at [email protected] and visit www.empire.edu. JUNE 2010 15 The Beauty Industry Report Visit www.bironline.com Cosmoprof Bologna erupts with new products T he eruption of a volcano on Iceland had far-reaching consequences for air travelers lasting almost a week—a week that included Cosmoprof Bologna 2010. Because of the travel disruption, a significant number of buyers never made it to the show. David Leib, president of Robanda International and a regular Cosmoprof exhibitor, describes the impact: “The Bologna show was for us (and everyone else we spoke with) a big disappointment, because so many buyers were unable to make it to Bologna due to the volcanic ash. Roughly 40% of our international distributors never made it.” Beauty Industry Report (BIR) was fortunate, because we arrived a day early; however, we were forced to stay in Bologna for two extra days before catching our flight out. Being “stuck” in Bologna isn’t the worst problem— more pasta, more wine and more cannoli. Cosmoprof is much more than a showcase for products. In fact, if you work in the world of beauty and specifically in the salon marketplace, no matter what your job function—from manufacturer to distributor to salon professional—you owe it to yourself to visit Cosmoprof at least once. It puts the entire business of beauty in perspective. In reflecting upon coming to Cosmoprof for the 8th time, I realize if I had made that trip 30 years earlier, it would have altered my career—I would have chosen to be a manufacturer/marketer instead of a distributor. In spite of the negative impact from the volcano, the 43rd edition of Cosmoprof was a success. This year’s exhibition boasted 2,254 total exhibitors, which represented a 2.6% increase over 2009. Foreign exhibitors represented 59% of the total, a 1.5% increase over the prior year. The remaining 41% were Italian exhibitors that represented a 4% increase over the prior year. The total net exhibition space was 185,000 square meters, a 2% increase over 2009. The four-day exhibition attracted 146,331 visitors—an increase of 4.8%. Cosmoprof Bologna covers 1.85 million square feet. It is physically impossible to cover every pavilion during the show days. After attending for a number of years, BIR now limits 16 JUNE 2010 its coverage to the following pavilions: Beauty & Spa, Hair and Nails. Over the four days, a full schedule of events and seminars started with Cosmopack, a oneday program that kicks off Cosmoprof. The theme was “How Can the Cosmetic Industry Re-invent its Process?—Helping the Final Customer To Be More Environment Oriented.” The package program and display areas are meaningful not only for new resources, but they provide a preview of future trends. The night life is also part of the experience. Between parties and great restaurants, aftershow hours fly by. On Friday night, the Independent Cosmetics, Manufacturers and Distributors Association (ICMAD) hosts its annual cocktail and dinner party at the five-star Carlton Hotel, where many U.S. beauty business members stay. Penni Jones, the executive director of ICMAD, and her team do a great job. ICMAD also supports its exhibiting members on site. If you are a marketer of beauty products, BIR recommends that you take a serious look at joining this organization. Reach Penni at 800-334-2623 or [email protected]. Visit www.icmad.org. Every year, Nikos Mouyiaris, the founder and president of Mana Products, one of the largest contract manufacturers of beauty products, including cosmetics and skin care, takes over Palazzo Isolani, a historical palazzo that is stunning as a representation of the Italian Renaissance, where food and wine do not stop. Another big event was hosted by OPI cofounder and president, George Schaeffer. It was the company’s fifth annual Cosmoprof celebration at the Garganelli Restaurant in the beautiful Savoia Regency Hotel. BIR knew it was going to be something special when we opened our electronic invitation and were serenaded by Dean Martin singing “That’s Amore!” George told the guests that this year marks OPI’s 29th anniversary and that OPI’s export business is up a whopping 58%. With the music, the dancing and the food, the party was a blast. BIR carefully scoped out the food table, which featured almost 40 running feet of food platters. At the show, the DePasquale Companies were in full force. Founder Carmen DePasquale; President Joe Mastalia; vice president of Avancé Skin Care, Dee DeLuca-Mattos; and national sales manager of ECRU New York, Mark DePasquale, were all working the exhibit. BIR talked with Mark, who stated, “DePasquale Companies unveiled our new booth that featured our four lifestyle collections: ECRU New York, New York Streets, Beauty Addicts and Cures by Avancé. We were extremely busy with appointments all three days. We launched our Village Collection of four finishing products (Paste, Tar, Wax, Xtreme Gel) in the New York Streets Collections.” For distribution opportunities, contact Mark at 800-724-4247 or [email protected]. Visit www.ecrunewyork.com. The American Pavilion was in Hall 30, and BIR had the opportunity to chat with a number of industry friends. Palladio Cosmetics’ president, Phil Solomon, whose father, Richie, attended the first Cosmoprof Show 43 years ago, said, “The show traffic was light, but it seems the people who made it were there and serious.” Phil showed BIR his new U.S.-made Shadow Liner Crayons. These long-lasting, gelbased formulas come in 12 shades. They are priced, like all Palladio products, at $5.99 SRP. A wall unit and a counter display are available. Both contain six pieces per shade and a tester provided at no charge. Contact Lorraine Guzzo, director of sales, at 917-373-2677 or [email protected]. Visit www.palladiobeauty.com. Manic Panic unveiled an alternative cosmetics line, commencing with Creature of the Night, a limited-edition collection of bold palettes designed to create specific nontraditional looks. Kits feature one-of-a-kind instructions direct from Tish and Snooky, the queens of Manic Panic, offering a progression of looks, ranging innocently from PG-13 to Rated X. Palettes include dramatic and seductive eye statements, deathly luscious lip lacquers and complete looks for the ultimate decadent outing. The line boasts cruelty-free formulas with staying power (SRPs range from $3.00 to $20.00). Co-founder Tish Bellomo told BIR that she and her sister, Snooky, who were back-up singers for the rock group Blondie, are still doing singing gigs. Reach Alexander Lebedev, president, at 206-313-4678 or [email protected]. Visit www.manicpanic.com. Chris Chon, president of Mirage Cosmetics, introduced an expanded range of nail color to the European market. Chris noted, “Our line’s vast and unique color range, proprietary packaging and value-price-point positioning proved attractive to a long list of new markets. Having successfully launched the brand in France in the first quarter of 2010, Cosmoprof provided us the platform to secure distribution partnerships for Italy, Holland, Spain, Portugal and Poland, as well as some key Middle Eastern markets.” He said that Mirage has experienced year-over-year growth in excess of 35% for the past two years, and that the brand is now the No. 1 U.S. nail color brand at retail, according to A.E. Nielsen, as of December 26, 2009. Mirage extended its nail offerings at the show with the introduction of Sinful Colors Nail Art Paint. The specially-designed ultra wispy brush facilitates fine designs and details on the nail. Formulated specifically for nail art, the extra viscous formula is available in 40 shades. Reach Chris at 800-448-0763 or [email protected]. Visit www.sinfulcolors.com. Another US Pavilion exhibitor was Make Up Designory (MUD). Tate Holland has parlayed the popularity of makeup artistry as a viable growing profession and has used his Make-up Designory School to provide outstanding education for people pursuing a career in this fast-growing field. Tate has developed a full color cosmetics line, which of course, is used in his two schools and also sold to makeup professionals and consumers. Recently, the MUD cosmetics line has been re-branded with every package containing the following information: The Basics, Quick Study and Tool School. The Basics tell what the product is. Quick Study tells how to use the product to achieve the best results. Tool School tells which tools work best. The line is also colorcoded, dividing the products into easy-tofollow sections that can be found on the packaging, in the product catalog and at the on-line store. To see the line, visit www.mudshop.com or stop by the stores in Burbank CA, and New York City. Reach Tate at 818-729-9420 or [email protected]. Visit www.mud.edu. Cosmoprof Bologna puts the entire beauty business into perspective. Conair, always a big exhibitor at Cosmoprof, and Lee Rizzuto Jr., the company’s vice president of global business, had an exciting show with BaByliss ratcheting up the Italy experience to a whole new level. Lee told BIR, “The day prior to the start of Cosmoprof, BaByliss, together with Ferrari (Ferrari, as in Motor Cars), hosted approximately 50 countries for a VIP meeting at the Ferrari Factory in Maranello, Italy to unveil the new BaByliss Volare hair dryers powered by Ferrari engines. Massimilo Ferrari attended the reception and shared his personal excitement about this venture. Following the reception, the VIP Guests were brought out to Ferrari's test track, where several of them were given 200 mph rides of a lifetime. The Ferrari Challenger Series Cars also sported the BaByliss logos, along with a large picture of the new Ferrari dryer engines on the roof of the cars.” Lee added, “Rusk had its own free-standing pavilion, where it continued to introduce cutting-edge global trends together with its Deep Shine Italian Cream Color and Argan Oil. Satin Smooth debuted Organic Soy Wax, Pure Indulgence Citrus Mojito and Titanium Blue Waxes.” Reach Lee at 800-726-6247 or [email protected]. Visit www.conair.com. At Pavilion 35, I ran into Frankie Cacciato, Katherine Frank Creative (KFC) CEO, who told me that his show management firm has expanded its international business. He noted, “This was our second year working with clients at Cosmoprof, and we have been invited and recommended to throw our hat in the ring for international services full time. Our company has brought a new flair of exhibit design to the table with competitive pricing and service, as well. A big deal is that we handle all the communication for our clients exhibiting in other countries, which can be quite the task. We worked with a number of clients at the show, including Keratin Complex. Their booth business was insane. We also did KMG/Dashing Diva. Next stop for them is the United Kingdom! We are especially proud of the work we did for Sexy Hair Concepts. Their exhibit was more than 1,600 square feet, with a main stage, prep room and full retail selling area enclosed in the booth itself. On average, there were four to five stylists on stage at all times, including their top hairdressers from Italy, and their top hair team from the United States, with a full-time interpreter for that team, as well. The new exhibit was designed and built through KFC with our exhibit partners from France and Portugal.” Reach Frankie at 630-620-7720, ext. 21, or [email protected]. Visit www.katherinefrank.com Karl Heinz Pitsch, Sexy Hair Concepts president/CEO, said, “The Sexy Hair Artistic teams from the United States and Europe wowed their audience with outstanding hair and energy with their nonstop performance. The booth was packed at all times. The audience enjoyed the education and product information, especially the preview of the Healthy Hair line extension, Reinvent Color Extend, sulfate-free repairing products that extend the life of hair color. The products will launch in the United States in July.” Reach Karl Heinz at 818-435-0801 or [email protected]. Visit www.sexyhair.com. At Keratin Complex, Larry Solomon, president, told BIR, “On Friday and Saturday, we were busy with appointments and walk-ins all Cosmoprof Bologna continued on page 18 JUNE 2010 17 The Beauty Industry Report Visit www.bironline.com Cosmoprof Bologna continued from page 17 day without breaks. However it was a different story on Sunday and Monday. The show was filled with local stylists and all the exhibitors were only concerned about volcanic ash and cancellations of their flights home. People were scrambling for any kind of rental car or train to anywhere because Bologna airport was closed. Our group of eight was cancelled Tuesday, but we managed to book home on Friday and take an extra three days in Florence.” Reach Larry at 888-409-4445 or [email protected]. Visit www.keratincomplex.com. Michael O’Rourke was introducing his new styling line to Europe, and his show was jampacked with distributors from all over the world, including a significant number of U.S. distributors. Michael, known as one of the hardest-working artists in the industry, was on his stage before a packed crowd on Friday when many other booths weren’t even open. Reach COO Nicole Pelissier at 310-908-0786 or [email protected]. Visit www.orourkehaircare.com Daniel Silverter, vice president of sales, introduced Origenere, a hair care system developed by Dr. Antonio Armani to tackle common ailments, such as hair loss and damage by environmental and chemical issues. Daniel stated, “Each product utilizes problemspecific Organonutrients—our blend of natural botanicals—which works in conjunction with the body to achieve results without any synthetic alternatives found in other cosmetics that can adversely affect the condition of the skin and hair. It’s the best of medical science applied to cosmetic innovation.” BIR comment: This is a line with big potential for the U.S. salon market due to the large number of young men affected by thinning hair and premature baldness. The company has offices in Los Angeles and Toronto and is seeking distributors for the U.S. salon market. Reach Daniel at 416-848-8466 or [email protected]. Visit www.origenere.com. BIR visited with Brad and Garth Gauvin, friends from Australia. Along with their father and other brother, they operate Haircare Australia, a large professional salon products distribution enterprise. In addition to their distribution business, the company has two branded lines, Eco Kid children’s hair care and evo, an Australian professional hair care range 18 JUNE 2010 distributed exclusively through better salons. Evo is presented in a humorous, unorthodox way and provides a medium for hairdressers to communicate professionally with their clients about hair care in an original way. Highlighting the evo launch is haze styling powder. “If you’ve just washed your hair and you’re dreading the next three days of babyhairedmopville, then a little of this styling powder will go a long way,” said stylist Leonard Volcano or not, Cosmoprof Bologna lived up to its reputation as the premiere beauty event in the world. Newton. “It gives hair instant bulky texture when it’s suffering from the ‘flop’—think voluminous bird’s nest, but in a good way!” The powder can be applied to dry hair anytime, without the need for heat (50ml/list $11.75/SRP $23.50). The official evo launch for the U.S. is scheduled for July 1 and following that, evo will be exhibited at Cosmoprof Las Vegas. Reach Jim Fogg (U.S. sales) at 720-273-0901 or [email protected] or Brad Gauvin (Australia) at +61 417 800 764 or [email protected]. Visit www.evohairproducts.com. The nail pavilion was dominated by large nail care distributors that handled a number of professional companies. Robert Krusin, president of Care Beauty and a partner with his father, Bob Krusin, at BK & Associates, shared his show experience, “This year, retail sales were up from 2009, as well as distributor interest and orders. Color Club, a manufacturer we represent, had an outstanding show.” Reach Robert at 877-227-3439 or [email protected]. At Spongeables, another American company, Elaine Binder-Popovsky, president, said, ”In our 6-year history, we have found that each trade show experience is better than the last. Cosmoprof makes it very easy for us to accomplish a tremendous amount of business in a very brief period of time. However, trade shows today are not as crucial to business as they might have been prior to electronic communication. With email and a telephone, I’m in touch regularly with buyers all over the world, day in and day out. All business is local in this day and age. Having said that, nothing beats the personal touch, particularly with a product like Spongeables and Spongellé body buffers. We have a very sensual product that appeals to the senses. You have to feel it, pick it up, look at the color and experience the fragrance to really understand the product.” Reach Elaine at 866-753-8324 or [email protected]. Visit www.spongeables.com. Earthly Body offered its Marrakesh Oil and the extended Marrakesh line—Marrakesh Light for fine hair (2 ounces/list $11.50/ SRP $23.00), Marrakesh Shampoo (8 ounces/list $7.00/SRP $14.00) and Conditioner (8 ounces/list $8.00/SRP $16.00). In addition, the company’s new Italian beauty distributor, EBD, offered the line. Reach Georgene Smith, national sales manager, at 877-EB4-HEMP or [email protected]. Visit www.earthlybody.com. Volcano or not, Cosmoprof Bologna lived up to its reputation as the premiere beauty event in the world. Take a tip from BIR: Reserve your hotel room now for the 2011 edition. Cosmoprof 2011 dates are April 16-19, 2011. You owe it to your company and to yourself to make the trip and expand your view of the global beauty industry. Of course, while you’re in Bologna, you can take in the Italian culture, shopping and food. BIR recommends these wonderful Bologna restaurants as a few of our favorites: Diana, Bati Becco, Osteria dei Poeti, Da Fabio and Benso. News continued from page 4 Connie Boltinghouse has been named vice president of operations for Sport Clips, the nation’s leading franchise dedicated to men’s and boys’ haircuts. She has focused 25 years of her career on franchising, with the last 18 in the cosmetology industry. “Connie brings a great deal of knowledge and insight to our strong and growing management team,” says Sport Clips founder/CEO, Gordon Logan. “As we continue to open stores each week across the country, Connie will enable us to accelerate our growth, while continuing to increase our same-store sales.” Connie served as vice president of franchise product sales and, more recently, vice president of franchise services for a Fortune 1000 company, opening businesses throughout the United States and Europe. Connie has been a consultant and convention speaker for both corporations and church leaders in the areas of leadership, change and transition, mergers, conflict management and resolution, high growth opportunity, needs assessment and communication. Previously, she was an author/trainer of business development strategies and interpersonal skills for The Barbers, franchisor of the Cost Cutters and City Looks concepts. Reach Connie at 512-869-1201 or [email protected]. Visit www.sportclips.com. “For the past 13 years, I've been the director of education for Nexxus Products Company. I've had the pleasure of working with and meeting wonderful people while representing the brand. My position has been eliminated as a result of the consolidation and restructuring of the Nexxus Professional operation and the sale of the Aloxxi Hair Color brand, so I'm exploring new opportunities. Reach me at [email protected] or 805-895-7660.” 30-year veteran of the professional beauty business, with experience in everything from factory operations to international marketing and direct sales, seeks a general manager position. Contact [email protected] or 917-428-7087 for a resume. Company is looking for successful businesses in the professional beauty market. No business is too small or too big. “We pay top dollar, and if you want to continue to run your business after the sale, that’s even better.” Send details to BIR box 6-1. Aroma Naturals is looking for sales reps in all territories. The Irvine, CA-based company has recently been purchased by Jeffrey Light, the founder of Jason Natural Cosmetics. Jeffrey is back in business with his son, Eric, and many of the former Jason sales and marketing people. Aroma Naturals is a 20year-old company that is a leading private label supplier and marketer of its own boutique brand of Soy-Aromatherapy-Pure Essential Oil handmade candles. Jeffrey is offering family and friends discounts to his old Industry friends to say, “Thank you for all the good things the industry has provided in the past.” Reach Jeffrey at 949-263-1400, ext. 227, or [email protected]. Visit www.aromanaturals.com. Soma Leave-In Conditioner helps to undo the damage caused by coloring, hot tools and UV rays. It’s made with organic keratin protein, a natural-binding protein that replaces lost amino acids in the cuticle, and is an alcohol-free detangler (8 ounces/list $7.00/SRP $14.00). Wahl Professional Products’ Soma Organics line is dedicated to naturally and organically improve the health and quality of the hair. Reach Lance Wahl, general manager, at 815-548-8456 or [email protected]. Visit www.somaorganics.com. Number 4 High Performance Hair Care introduces Firm Hold Gel. It adds shine, resists humidity and gently molds the hair fibers into the desired shape. Think sleek ponytails, chic chignons, defined curls and finger waves (5.1 ounces/list $17.00/SRP $34.00). Reach Toni Wells, brand director, at 800-507-6250 or [email protected]. Visit www.number4hair.com. Scruples Platinum Shine Brightening Shampoo neutralizes unwanted yellow tones to keep blonde and gray hair looking cool, bright and healthy. Its sulfate-free formula is enriched with chamomile extract to restore shine and enhance light hair. It also contains sea kelp extract, which is rich in vitamin A and B-complex vitamins. Its Protective Barrier Complex conditions and protects hair (8.5 ounces/ list $7.50/SRP $15.00). Reach Tracey Liguori, office of president-marketing, at 800-457-0016 or [email protected]. Visit www.scrupleshaircare.com. Rusk launches Deepshine Oil, a marine mineral-enriched argan oil treatment that smoothes the cuticle, eliminates frizz and improves elasticity and hydration, leaving hair soft, silky and manageable with condition and shine. Used as a styling or finishing product, Deepshine Oil is color-safe and helps protect hair from heat and environmental damage (4 ounces/list $15.00/SRP $30.00). Reach Joe De La Cruz, Conair sales manager, at 518-330-4924 or [email protected]. Visit www.rusk1.com. Rashell Cosmetics Masc-A-Gray/Hair Color Mascara covers gray roots instantly and makes color look salon-perfect. It is water resistant and stays on till shampooed out. It is temporary color with a mascara brush for easy hairline application. A free display is available in 12 shades with free testers and free shipping (list $3.75/SRP $7.50/dealer cost $270.00). Reach Mehrdad Mobassery, president/CEO, at 800-984-7600 or [email protected]. Visit www.rashellcosmetics.com. News continued on page 20 JUNE 2010 19 The Beauty Industry Report Visit www.bironline.com News continued from page 19 Pravana introduces Fresh! Volumizing Dry Shampoo. Fresh! works by “dry” cleaning hair with natural antibacterial ingredients that target, attack and eliminate odor-causing germs. Natural absorbents trap and remove oils, leaving hair fresh and replete with volume. This dual-action formula is dry and weightless and works without the use of water. Simply spray it on and brush it through (3.4 ounces/list $9.00/SRP $18.00). Reach Steve Goddard, president, at 818-347-4705 or [email protected]. Visit www.pravana.com. Eufora’s Color Locking System—Illuminate Shine Mist (4 ounces/list $10.00/SRP $20.00) and Sculpture Styling Glaze (10.1 ounces/list $11.50/SRP $23.00)—helps keep hair color bright on sunny summer days. Certified organic aloe vera gel and squalene from the skin of the olive combine for weightless shine. Simply combine both products and work through damp hair. Reach Mia West, director of public relations, at 619-920-4101 or [email protected]. Visit www.eufora.net. Achieving full, beautiful hair goes beyond topical treatments with the launch of Healthy Hair Vitality Supplement from Bosley Professional Strength. “What we put inside our bodies is just as important as what we do on the outside, which is why we are adding ingestible supplements to our hair preservation regimen,” says Eric McLemore, president. The men’s formula vitalizes fine or thinning hair, weak hairlines or areas of low hair density. The women’s formula vitalizes fine or thinning hair, and promotes fuller-looking, shiny hair, healthylooking skin and stronger nails (60 tablets/list $17.50/SRP $34.95). Reach Dev Rice at 800- 267-5391 or [email protected]. Visit www.bosleypro.com. 20 JUNE 2010 Men’s grooming brand Lucky Tiger, which turned 75 this year, has branched out from the shaving and facial skin care business into body care with a line called Head to Tail. As part of a move to enter the natural products retail space, Stacey Rosen, vice president and co-owner of At Last Naturals Inc., Lucky Tiger’s parent, says Head to Tail is rolling out to about 2,000 doors, including Whole Foods, The Vitamin Shoppe and Pharmaca Integrative Pharmacy and Dillard’s. Head to Tail includes a 2-in-1 shampoo and body wash, a 2-in-1 deodorant and body spray and an anti-acne and blemish soap. The parabenfree products are infused with organic ingredients and antioxidants, and a lip balm accompanies the trio. Products are formulated with botanical ingredients grown in upstate New York at an organic farm that is a certified Quality Assurance International processor. Head to Tail Shampoo and Body Wash is infused with mint and citrus and uses peppermint oil to prevent irritation and rosemary extract to nourish the skin (8 ounces/list $9.00/SRP $18.00). The deodorant and body spray features vitamins A, C and E, employs vetiver to moisturize, rosewood for its antioxidant qualities and grapefruit-seed extract to fight free radicals (3.4 ounces/list $9.00/SRP $18.00). The acne and blemish soap is designed to control oil buildup and has aloe vera to heal the skin (3 ounces/list $9.75/SRP $19.50). Peppermint lip balm contains sunflower, peppermint and jojoba oils, beeswax, vitamin E, rosemary extract and calendula (0.15 ounce/list $3.00/SRP $6.00). At Last Naturals had total revenues of $4.3 million in 2009, according to industry sources, who added that the Head to Tail range could boost that figure by $500,000 in its first year on the market. Lucky Tiger accounts for about 40% of At Last Naturals’ total business, which also includes premenopausal and menopausal products and women’s skin care products. At Last Naturals also markets a line of about 20 Lucky Tiger products found in about 1,000 barbershops. The assortment for barbershops, where the brand got its start in 1935, includes hair tonic, aftershave cream, styling wax and moustache wax. The specialty- and natural-products storepositioned Lucky Tiger assortment now numbers 10 products, including Head to Tail and the existing shaving and facial skin care items. Also, getluckytiger.com is being relaunched with links to Facebook, Twitter and Foursquare. To learn more, reach Fred Rosen, president and co-owner, at 914-747-3599 or [email protected]. Visit www.luckytiger.net. H2pro introduces the Presto Flat Iron. It features turbo power technology with a turbo trigger to cut styling time and simultaneously seal in moisture. Every time the Presto Flat Iron is clamped, this turbo trigger is released, turning stubborn and dry hair into sleek, vibrant and healthy tresses (1- or 1 ¼-inch/list $120.00/SRP $180.00). For more information about the new iron, reach David Junior, marketing director, at 800-896-7728 or [email protected]. Visit www.h2probeautylife.com. Taking advantage of the performance of its flat iron with keratin straightening systems that require high heat to maximize the results, IZUNAMI has teamed up with the Marcia Teixeira Brazilian Keratin Treatment. As it turns out, it is a match made in hair heaven. Brazilian Keratin Treatment captures the purest form of keratin, which strengthens and revitalizes the hair's capillary fibers, making it sleek and healthy longer. The IZUNAMI 450 flat iron makes the job easy. Its high temperature and hair-friendly ceramic plates self-adjust to the thickness of the hair, requiring fewer strokes through the hair during the straightening and smoothing process. To learn more, reach Peter Lim, senior sales manager for IZUNAMI, at 516883-6666 or [email protected]. Visit www.Izunami.com. Hairart Products introduces the H3000 Handmade Ceramic Carbon Comb made from a lightweight carbon. The comb features an ionic coating that leaves hair smooth and shiny. And because it’s 100% static-free, it helps prevent flyaways and frizz with just one swipe. The comb is also heat-resistant, making it safe to use during heat-styling. Recently featured as the editor’s pick at Essence.com, the comb collection is available in black, pink and red (#H30013/ list $7.50/SRP $14.95). Reach Jackie Yu, president, at 888-424-7278 or [email protected]. Visit www.hairartproducts.com. Joico, the company known for its hair reconstructing formulas, has applied its healing power to a new thermal iron. The result is the K-PAK ReconstRx VaporIron, a styling iron system that reconstructs, repairs and protects hair as it smoothes and straightens. The K-PAK ReconstRx VaporIron features a built-in, refillable liquid reservoir that delivers ReconstRx VaporFuel deep inside the hair as it styles. The VaporFuel is a blend of K-PAK’s signature Quadramine Complex, which includes proteins, antioxidants, essential fatty acids and botanical moisturizers to seal the cuticle and repair hair from the inside out, while protecting hair from further damage. The introductory system comes with the iron, a 3.4-ounce VaporFuel, a consumer brochure and a how-to DVD (SRP $159.95). Reach Sara Jones, senior vice president of sales and general manager, at 800-805-6426, ext. 109, or [email protected]. Visit www.joico.com. Lakme USA launches California & Northern Nevada distributor, Beauty Solutions of Santa Cruz, CA. Lakme, imported from Barcelona, Spain, is a high-end color line and hair care support line. “We feel fortunate to partner with Wes and Laurie Brown, Minda Ghio and Gary Heath—true beauty professionals with a track record of success— making this new alliance a natural,” says Lakme USA president, Joseph Mastalia. Reach Joe at 800-724-4247, ext. 252, or www.depasqualeco.com. Visit www.lakmeusa.com. Bosley Professional Strength adds Cranston, RI-headquartered Masello Salon Services as its distributor for the New England area. Masello Salon Services will service Maine, New Hampshire, Vermont, Massachusetts, Rhode Island and parts of Connecticut. “Masello Salon Services’ commitment to customer service and hands-on approach will help launch Bosley Professional Strength to even higher levels of success,” says Bosley president, Eric McLemore. Reach Eric at 800-Bosley1 or [email protected]. Visit www.bosleypro.com. Salon Services & Supplies recently relocated and expanded its Spokane showroom to a new 3,600-square-foot space at 611 E. 2nd Avenue. “We are excited to have expanded our showroom to a great new location that is more convenient and accessible to our clients,” says Londa Vaughn, showroom supervisor. All eight Salon Services & Supplies showrooms celebrated the grand opening of the Spokane showroom on June 14, with a customer appreciation event sale. Reach Sydney Berry, president and owner, at 800-251-4247 or [email protected]. Visit www.salonservicesnw.com. Alberto-Culver reported a double-digit rise in group sales, despite the fact that sales in the U.S. market fell during its second period. Sales were up 11.8% to $384.8m, compared to $344.3m in the corresponding period last year. However, in organic terms, the sales rose by only 1.2%, underlining the major gains from positive currency translations. Net earnings were up by 7.3% to $30.14m, compared to a figure of $28.07m last year, a figure that underlined healthy sales gains in its overseas markets. CEO James Marino said that the strong sales had been driven by the strength of its leading brands and gave a special mention to TRESemme, which has been helping to drive sales both in the United States and the international markets. However, despite the positive impact of the brand on U.S. sales, overall sales in this market were down 1.7%, which the company said was largely due to lower than normal customer service levels, partly caused by supply chain and systems disruptions. However, with international sales increasing by 38.7%, with currency gains as well as acquisitions and divestures accounting for 31.7% of that figure, the group sales results looked strong. On a six-month basis, net sales increased by 7.3% to $747.8m, up from $697.2m in the corresponding period last year. The figure represented an organic increase of 0.6%, underlining the positive effect of acquisition and divestures. Net profits for the six month period were up 11.7% to $66.7m, from $59.7m in the same period last year. Reach Jim at 708-450-3000, ext. 3598, or [email protected]. Visit www.alberto.com. Proctor & Gamble’s first quarter profits were down for the global consumer products company, as it was hit by price discounting and added promotional expenses to support new product launches. The fall in profits came despite the fact that sales for the period were up by 7% to $19.8bn, which represented a rise of 4% in organic terms, factoring in the negative impact of currency exchanges. This figure was slightly below analysts’ expectations. In a poll conducted by FactSet Research, a number of analysts had on average predicted sales to increase to $19.5bn. Net profits were down 1% to $2.59bn, compared to $2.61bn in the first quarter of 2009. The company attributed the slip to the added expense of a raft of new product launches and price discounting—all aimed at winning back consumers. During the tough retail climate experienced in late News continued on page 22 JUNE 2010 21 The Beauty Industry Report Visit www.bironline.com News continued from page 21 2008 and throughout 2009, many consumers abandoned P&G branded products in favor of cheaper priced brands, particularly private label. In an attempt to win back consumers, the company had a major drive toward new launches. supported by media campaigns, that helped to boost sales volume growth across all regions, as well as five of its six business divisions. As a result, the company’s mainstay beauty and grooming division saw sales increase by 6% during the quarter, to $4.6bn, on volume growth of 4% and organic sales growth of 2%. Lower pricing of personal care products impacted the organic sales figure by approximately 1%. Sally Beauty Holdings, Inc. announced strong financial results for the fiscal 2010 second quarter. Consolidated net sales for the fiscal 2010 second quarter were $720.5 million, an increase of 12.3% from the fiscal 2009 second quarter, and include a positive impact from foreign currency exchange of $11.6 million, or 1.8% of sales. Same-store sales in the fiscal 2010 second quarter grew 4.8% compared to 2.1% in the fiscal 2009 second quarter. Net earnings in the fiscal 2010 second quarter were $34.6 million; growth of 40.5% over GAAP net earnings of $24.6 million in the fiscal 2009 second quarter and growth of 48.5% over adjusted net earnings of $23.3 million in the fiscal 2009 second quarter. Diluted earnings per share in the fiscal 2010 second quarter were $0.19; growth of 46.2% compared to GAAP and adjusted diluted earnings per share of $0.13 in the fiscal 2009 second quarter. Adjusted EBITDA increased 16.3% in the fiscal 2010 second quarter to $99.2 million versus $85.3 million in the fiscal 2009 second quarter. Total store count at the end of the fiscal 2010 second quarter was 3,953, an increase of 146 stores or growth of 3.8% over the fiscal 2009 second quarter. "We had an exceptional second quarter and strong year-to-date results across both business segments and paid down $50 million of debt,” stated Gary Winterhalter, president/CEO. “Consolidated same-store sales grew 4.8% during the quarter— 22 JUNE 2010 demonstrating strong growth over positive comps of 2.1% in the second quarter last year. Consolidated gross profit and operating margins expanded 70 and 40 basis points, respectively, while GAAP net earnings grew 41%. As we head into the second half of the fiscal year, we believe the key drivers of our strong performance will continue.” For the fiscal 2010 second quarter, consolidated net sales were $720.5 million, an increase of 12.3% from the fiscal 2009 second quarter, and include a positive impact from foreign currency exchange of $11.6 million, or 1.8% of sales. The fiscal 2010 second quarter sales increase is attributed to consolidated same-store sales growth of 4.8%, non-store sales from acquisitions and the addition of new stores through both organic growth and acquisitions. Consolidated gross profit for the fiscal 2010 second quarter was $344.3 million, an increase of 14.0% over gross profit of $302.1 million for the fiscal 2009 second quarter. Gross profit as a percentage of sales was 47.8%, a 70 basis point improvement from the fiscal 2009 second quarter. Gross margin expansion was primarily due to improved sales and product mix in business segments, low cost sourcing and improvement in the U.K. business at Sally Beauty Supply. For the fiscal 2010 second quarter, consolidated selling, general and administrative (SG&A) expenses, including unallocated corporate expenses and sharebased compensation, were $247.5 million, or 34.4% of sales, a 40 basis point increase from the fiscal 2009 second quarter metric of 34.0% of sales and total SG&A expenses of $218.4 million. Fiscal 2010 second quarter SG&A expenses increased $29.1 million, or 13.3%. That increase is primarily due to additional rent, occupancy and payroll expenses associated with the opening of new stores and acquisitions. In addition, advertising expenses associated with Sally Beauty's Customer Relations Management (CRM) campaign were up over fiscal 2009 second quarter. Sales for the Sally Beauty Supply business in the fiscal 2010 second quarter were positively impacted by same-store sales growth, new store openings, acquisitions and improvement in the international business. Gross profit margin was positively impacted by a shift in product and customer mix, lowcost sourcing initiatives and improvement in the U.K. business. Segment operating earnings increased over the fiscal 2009 second quarter primarily due to higher gross profit. Sally Beauty Supply second quarter results: Sales of $453.6 million, up 10.0% from $412.3 million in the fiscal 2009 second quarter. Significant components of growth included same store sales growth of 4.3%; sales growth from net new store openings of 1.4% and from acquisitions of 2.9%; and a favorable impact from foreign currency exchange of 1.6%; gross margin of 53.1%, a 100 basis point improvement from 52.1% in the fiscal 2009 second quarter. Segment operating earnings of $79.5 million were up 13.0% from $70.4 million in the fiscal 2009 second quarter. Segment operating margins increased 40 basis points to 17.5% of sales from 17.1% of sales in the fiscal 2009 second quarter. Sales improvement for Beauty Systems Group was primarily driven by sales growth from new and existing stores, acquisitions, improved performance in the direct consulting business and favorable foreign currency exchange. Gross margin expansion was primarily due to improved sales and product mix, expansion in new and existing territories, and improved performance in the franchise business. Segment earnings improvement is primarily due to improvement in gross profit, ongoing cost reduction initiatives and savings realized from the warehouse optimization project. Beauty Systems Group 2nd quarter results: Sales of $266.8 million, up 16.4% from $229.2 million in the fiscal 2009 second quarter. Significant components of growth include: same-store sales growth of 6.1% and growth from acquisitions of 9.0%. Sales growth was also positively impacted by new store openings, improved performance in the direct sales consulting business and a favorable impact from foreign currency exchange of 2.1%. Gross margin of 38.7% was up 60 basis points from 38.1% in the fiscal 2009 second quarter. Segment earnings of $26.0 million were up 27.8% from $20.4 million in the fiscal 2009 second quarter. Segment operating margins increased by 90 basis points to 9.8% of sales from 8.9% of sales in the fiscal 2009 second quarter. Reach Gary at 940-297-4444 or [email protected]. Visit www.sallybeauty.com. Helen of Troy Limited (Nasdaq: HELE), designer, developer and worldwide marketer of brand-name household and personal care consumer products, reported record fourth quarter net sales revenue and record net income and improved net sales revenue and improved net income for the fiscal year ended February 28, 2010. Fourth quarter net sales revenue increased 9.8% to $152,161,000 from $138,580,000 in the same period of the prior year. Fourth quarter net sales revenue in the housewares segment increased 12.2% to $50,028,000 compared to $44,594,000 for the same period last year, demonstrating the continued strength of the OXO brands. Net sales revenue in the personal care segment increased 8.7% to $102,133,000 in the fourth quarter compared to $93,986,000 for the same period last year, reflecting the acquisition of the Infusium 23 hair care business on March 31, partially offset by a still challenging retail environment. Net income for the fourth quarter was $16,664,000 or $0.54 per fully diluted share compared to a net loss of $88,039,000 or $2.93 per fully diluted share in the prior year fourth quarter. The net loss for the prior year fourth quarter includes $99,061,000 of non-cash after-tax impairment charges to goodwill and intangibles. Income in the prior year's fourth quarter, excluding the impairment charges, was $11,022,000 or $0.36 per fully diluted share. Net income increased 51.2% in the fourth quarter of fiscal 2010 when compared to income in the fourth quarter of the prior year, after excluding impairment charges in the prior year fourth quarter. Fiscal year net sales revenue increased 4.0% to $647,626,000 from $622,745,000 in the prior fiscal year. Net sales revenue in the housewares segment for the full year increased 13.1% to $198,475,000 compared to $175,501,000 for the same period last year. Net sales revenue in the personal care segment for the full year increased 0.4% to $449,151,000 compared to $447,244,000 for the same period last year. Net income for the year was $71,817,000 or $2.32 per fully diluted share, compared to a net loss of $56,793,000 or $1.88 per fully diluted share in the prior fiscal year. On a non-GAAP basis, income in the previous fiscal year excluding significant items was $49,293,000, or $1.59 per fully diluted share. Fiscal 2010 net income increased 45.7% compared to the prior fiscal year, after excluding significant items from the prior fiscal year. Fourth quarter gross profit as a percentage of net sales revenue increased to 44.8% compared to 38.7% in the same period last year. Fiscal year gross profit, as a percentage of net sales revenue, increased to 43.1% in fiscal 2010 from 41.0% in fiscal 2009. The gross profit improvement is primarily due to lower sourcing overhead as a result of the streamlining of Far East sourcing operations; customer price increases and product mix improvements in the housewares segment; the impact of the Infusium 23 and Ogilvie acquisitions, which have comparatively higher margins than the core business; commodity price decreases, early in fiscal 2010 that began to cycle through cost of goods sold in the second half of the fiscal year; and a decrease in inbound freight costs. Jerry. Rubin, chairman/CEO and president, stated, “We are very pleased with our fourth quarter results. We continue to make progress in achieving our strategic business objectives initiated during the past year. At fiscal year-end, our cash, cash equivalents and trading securities balance was $110,208,000. On March 31, we utilized $69,000,000 of our available cash to acquire the Pert Plus and Sure brands from Innovative Brands, LLC. We anticipate that our Pert Plus and Sure brands will be immediately accretive to earnings. Our ongoing efforts to improve our gross profit margin and reduce expenses as a percent of sales are reflected in our results for the full year.” Reach Jerry at 800-480-8832 [email protected] Kristi Metrick, Fromm marketing manager, sent this invitation: Stop by the Fromm booth at Cosmoprof to see the limited time only Fromm Paws Shear & Thinner promotion that is priced to sell and includes a free Paws razor, a holster and three professional combs. Proceeds will benefit animal rescue efforts in more than 150 countries, ranging from caring for farm animals in the aftermath of natural disasters and supporting awareness campaigns to ending unnecessary acts of animal cruelty (SRP $99.99). Reach Kevin Barrett, vice president, at 800-323-4252 or [email protected]. Visit www.frommonline.com. In April, BIR omitted the contact information for Affinage hair color. Reach Michael Ifergan, managing director, at 877-597-2929 or [email protected]. Visit www.affinage.com. In May, John Harms, founder and president of Millennium by Harms Software, Inc. contributed our Guest Column. Reach Matt Martinelli, public relations and market research manager, at 973-402-9500 or [email protected]. Visit www.harms-software.com. JUNE 2010 23 Presorted Standard U.S. Postage PAID San Dimas, CA Permit No. 410 PMB #403 22287 MULHOLLAND HIGHWAY CALABASAS, CA 91302-5157 ADDRESS SERVICE REQUESTED The Beauty Industry Report A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ As BIR went to press, L’Oréal USA’s SalonCentric Division announced the acquisition of C.B. Sullivan Company, a New Hampshire-based distributor with net sales of approximately $50 million in fiscal 2009. C.B. Sullivan has 29 professional sales consultants and 31 professional stores. January 2011. The corporate emphasis is, of course, on Sebastian and Wella. P&G Professional is pulling the plug on Graham Webb and gradually winding it down until it’s discontinued completely in American International Industries (AII) has acquired certain assets from Thermal Spa Products Inc., a line of professional beauty 1 year ................$96 ............12 issues of the BIR ........................................ 6 months..........$50 ............6 issues of the BIR International Subscriptions 1 year...............$120 ............Outside the U.S. (including .....................................................eBIR emailed monthly FREE!) Bio Ionic has hired Ian Murphy as senior vice president of marketing and sales, where he’ll lead the sales, education, marketing and advertising departments. After stints as vice president of marketing at Wella and at L’Oréal, Ian ran his own consulting firm for the last two and half years. He also worked for Redken and Image Labs. Reach Jay Jacobs, Bio Ionic’s executive vice president, at 323-626-3001 or [email protected]. Visit www.bioionic.com. BIR Special Deals Traditional Subscription Offer: All regular subscriptions include the eBIR monthly FREE. 2 years .............$192 ............28 issues, 4 free issues for a .....................................................savings of $32 products and accessories used in spas and salons. They include depilatory waxes and accessories; paraffin equipment and supplies; and manicure and pedicure items. “We are happy to welcome Thermal Spa to AII,” says Mark Moesta, vice president of professional sales. “The addition of these fine tools to the AII brand assortment complements our existing lines beautifully.” Reach Mark at 323-728-2999 or [email protected]. Visit www.aiibeauty.com. 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