It Seems Beauty Shows Are Getting Ugly
Transcription
It Seems Beauty Shows Are Getting Ugly
JANUARY 2011 volume 14 issue 1 It seems beauty shows are getting ugly By Lew Widoff A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ highlights 2 Lafayette Jones’ Multicultural Report 5 Zotos: Not your grandmother’s perm co. 6 George Schaeffer enters hair color biz 8 GuestVision celebrates 10 years in beauty10 San Juan Beauty Show report 12 BIR duo tours Australia 15 Empire acquires Westmore Academy 21 Regis to continue on course 22 Kenra Pro supports Rapunzel Project 23 Mane St. Watch list: Straighteners under attack VISIT US ONLINE www.bironline.com & check out BIR’s 2011 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 T he professional beauty industry starts 2011 with keratin straightening systems, one of salons’ fastest growing service categories, coming under fire because of safety questions resulting from the use of formaldehyde. Watch for big changes in the category. In this issue, Bruce Selan and Liz Kenny share the story of the Zotos’ Core Brands division’s success. George Schaeffer tells how he plans to grow another color line— this time with his hair color company, Aloxxi. Ted Therriault, founder and president of GuestVision Technology Solutions, talks about reaching new milestones as the company celebrates its tenth anniversary. 2010 closed with L’Oréal acquiring Peel’s Salon Service, leaving us asking, “Who will be next?” You can count on BIR reporting the news as it happens! Regards, I remember the days when a beauty show had straight aisles and a family spirit of respect and equality on the show floor. There were three regional shows: the laidback Long Beach Hairdressers’ Guild on the West Coast, the staid-to-moderate Midwest Beauty Show in Chicago and the feisty, high anxiety International Beauty Show in New York City. Politics were reserved for the brotherhood of the Beauty & Barber Supply Institute’s (BBSI) annual convention. Now, it seems that if I read my email correctly, without any survey or proper dialogue, we have been told that it would be in our best interest to break tradition and abandon Cosmetologists Chicago, the salon association that began what is now called America’s Beauty Show (ABS), formerly the Chicago Midwest Beauty Show, and join a competing show, two weeks later, in the Chicago suburbs. The problems of the downtown Chicago ABS location, we are told, are cost and location. From ongoing discussions I’ve had with fellow exhibitors, most of us seemed to agree that we’d prefer to continue to participate at ABS at McCormick Place in downtown Chicago, rather than return to the confines of the Donald E. Stephens Convention Center in Rosemont, IL. In any event, there must be a much larger agenda, that if not properly addressed, might cause the most faithful manufacturers to become further lost and unheard in the future. In the past, PBA had the slogan “one roof.” Could this be the beginning of a hostile takeover of one of the major shows by a non-profit organization? Will “one roof” become one voice, limiting diversity and inhibiting our hopes of getting a better space at one show in preference to another? Beauty shows getting ugly....cont. on p. 2 The Beauty Industry Report Visit www.bironline.com Beauty shows getting ugly...cont. from p. 1 I might be frowned upon for my ideals, but over the past 35 years, I bear witness to what was and how it evolved. As a smaller exhibitor, I might be considered an outsider— one that borders on the fringe—but I have as much at stake as everyone else. Creating schisms within our association is definitely not the route to take to help the industry as a whole. Working together to ensure proper spacing of show dates, as well as exploiting each city for its potential to bring together its acclaimed artists from the tame to the avant garde, is a preferred solution. The political propaganda of doing “what is in our best interest” will only serve the larger companies. As we have all witnessed, the takeovers will continue, creativity will be compromised and more prime space will be assigned to the companies that will inevitably control the show management. The economy certainly does not warrant nor can Midwest beauty professionals be expected to attend two Chicago shows. Why not focus on expanding participation and bringing together salon owners and other beauty professionals who are seeking real value for their muchneeded attendance? I look forward to an open and transparent dialogue of what exactly is in our industry’s best long-term interest. _____________________________ Lew Widoff is president/founder of Aldan Intl. and a member of the Professional Beauty Association. Reach Lew at 800-536-8699 or [email protected]. To learn more, visit www.aldan.com. BIR invites you to become a Guest Columnist. Send your thoughts in about 450 words, including a one-paragraph author bio, to [email protected] in an MSWord document. We will edit your column for style and space. 2 JANUARY 2011 The wheels are quickly coming off the keratin straightening product express, as brands that have formaldehyde in their formulations will soon be forced to drastically reduce or, most likely, eliminate it from their products. Following are some recent developments: • The California Attorney General’s office joined the growing list of government organizations and legal firms representing groups of individual salon owners and stylists filing lawsuits alleging that the company that makes the Brazilian Blowout failed to warn consumers that its solution contains a cancercausing chemical, despite company claims that it is "formaldehyde-free." The suit filed by Attorney General Jerry Brown’s office alleges that the Brazilian Blowout company got an unfair edge by selling its solution based on false claims that it is safe and formaldehydefree. The suit also claims that the company violated Proposition 65, a law that calls for signs warning consumers about cancer-causing chemicals. The suit calls for fines of $2,500 for each violation of unfair business laws and up to $2,500 for each day that the company failed to warn consumers about the offending chemical. Tests by Oregon authorities have consistently shown that the solution is made up of about 8% formaldehyde, a level that is hundreds of times higher than accepted amounts. Monte Devin Semler, Brazilian Blowout’s president, told California Watch that the product is formaldehyde-free and added that he cannot control the contents of every bottle sold on eBay. Deputy Attorney General Claudia Polsky refuted the suggestion and said the investigation had included seizures from the company’s warehouse and product that salon owners bought directly from the company. • Attorney Laura Baughman, with the Dallas-based firm Baron and Budd, filed a suit in Los Angeles on behalf of hair stylists seeking to recoup the cost of the Brazilian Blowout product. She said. “Brazilian Blowout advertised this product as formaldehyde-free and safe, and it’s not. Any consumer that goes to a store and buys something based on representation that it doesn’t have carcinogens and it does should get their money back.” • Attorneys with the Girard Gibbs firm in San Francisco also filed a class action suit on behalf of a woman who was treated with the solution four times, costing her about $150 to $400 for each treatment. That woman “would not have purchased any of her Brazilian Blowout treatments had she known that [it] contained formaldehyde,” the lawsuit says. The deputy attorney general also said the lawsuit marks the first time the state has sued to enforce reporting requirements under its safe cosmetics law, a novel system requiring cosmetics makers to submit reports about harmful chemicals. The attorney general’s case also seeks to force the company to stop selling the product until adequate warnings are applied and the database report is filed. • Health Canada recently issued the following advisory: “As part of its ongoing work on hair smoothing products, Health Canada is warning Canadians that 10 additional professional hair smoothing solutions have been found to contain levels of formaldehyde above the limit set by Health Canada. An earlier advisory on Brazilian Blowout Solution was issued on October 26, 2010. These products are known to be available at salons across Canada but are not generally available directly to consumers. Health Canada has received complaints of burning eyes, nose and throat, breathing difficulties and one report of hair loss associated with use of professional hair straightening products. Health Canada is working with the Canadian distributors to address concerns regarding professional hair smoothing solutions and to stop sale of the products listed above at all levels of trade.” In Canada, formaldehyde is permitted as a preservative in cosmetics at levels of no more than 0.2%. Many products tested were found to have higher levels. The report advised that “stylists who use these professional hair smoothing solutions should immediately stop using the affected product. Health Canada has not tested all professional hair smoothing solutions. It is the responsibility of manufacturers, importers, distributors and sellers to ensure that their product is in compliance with the Food and Drugs Act.” To learn more or report problems, contact the Public Enquiries Line at 613-957-2991. • In response, Marc Speir, executive director of Canada’s Allied Beauty Association, said, “We were advised that Health Canada is accompanying the ‘stop sale’ notice with a Notice Requesting Recall on hair smoothing products. We encourage prompt compliance even if it is your (the distributor’s) or the manufacturer’s intention to dispute the test results and methods used by Health Canada...ABA fully supports safe products and a safe workplace but also believes that its members are entitled to the benefit of sound sciences and current testing methods. All we are asking is that Health Canada ensure that its testing methods are based upon sound science, and, if hazards truly exist, then cosmetologists and the public are entitled to full protection.” Reach Marc at 905-568-0158. • Mike Brady, an executive with Brazilian Blowout, sent BIR this update: “Brazilian Blowout has formally initiated legal proceedings in response to the Oregon Department of Consumer and Business Services and Occupational Safety and Health Division's (Oregon OSHA) inaccurate and unsupported conduct. Brazilian Blowout intends to seek an award of punitive damages to dissuade Oregon OSHA (OROSHA) from acting so recklessly again in the future. It is the company's intent to distribute all awarded proceeds to the salons and stylists who have supported Brazilian Blowout in the face of this adversity. Flaws were immediately found in the testing methods first used by Oregon OSHA. Upon this first set of tests conducted by OR-OSHA, the organization issued an alert to Oregon hair salons about Brazilian Blowout's products. Test results published in OR-OSHA's October 8 release are inaccurate. OR-OSHA claimed to have found levels of formaldehyde in Brazilian Blowout Professional Solution in ‘upwards of 10% or more in some samples.’ OR-OSHA and its officials failed to distinguish between formaldehyde and methylene glycol and published the percentage as formaldehyde only. The only method that accurately measures formaldehyde in water-based cosmetic products is called 13C-NMR. If OSHA had performed this test they would have discovered that only traces of formaldehyde are detected, in this case .0011%. On October 29, OR-OSHA released results of a comprehensive air monitoring study conducted across seven salons. Each case yielded exposure levels that are safely below OSHA's action level, permissible exposure limit (PEL) and short term exposure limit. Despite those findings, OR-OSHA continues to misrepresent the Brazilian Blowout product to the public and claim that it is unacceptable and dangerous. This misconduct and these misrepresentations have resulted in immeasurable damage to the tens of thousands of stylists who are providing Brazilian Blowout services.” Visit www.brazilianblowout.com. • Cosmetologists Chicago recently published a statement to the professional salon industry on Brazilian-style straightening systems on www.americasbeautyshow.com. To protect their own health, stylists and consumers should be aware of appropriate safety standards and make informed decisions when seeking hair care and related cosmetology services. “We believe it is vital to disclose client protection practices being observed in the salon that are proven to be safe for salon use,” says Paul Dykstra, CEO of Cosmetologists Chicago and America’s Beauty Show. “We urge salon teams to incorporate safety procedures into their daily and weekly schedules, especially when it comes to chemical services.” For safety guidelines for clients and professionals visit americasbeautyshow.com/straighteners or call 312-321-6809. • One of the most active discussion groups on the topic is the Professional Salon Network group on LinkedIn. News and updates are also posted on facebook.com/professionalconsultants, a group that was started by Cyrus Bulsara, president of Professional Consultants and Resources. In a recent Dow Jones Newswires report, Nicolas Hieronimus, head of L'Oréal SA professional salon products division, stated that the company expects its professional hair care division to grow faster than the overall market this year, as it reaps the benefit of a new marketing initiative. L'Oréal is marketing its professional hair care products directly to consumers for the first time, as it tries to boost sales. While the professional hair care market in the United States is starting to pick up and is currently growing at around 1%, it has yet to erase the drop of 2008 when it fell 5%. L'Oréal expects the global market to post flat to 1% growth this year. The professional division, which accounts for nearly 15% of group sales, posted a 4.5% rise in like-for-like sales, which strips out the effects of currency rates and acquisitions, in the first nine months of the year. INOA, the company's new ammonia-free hair dye, is a key growth driver for the division, and the company has already sold it to 75,000 hair salons, 20% of which hadn't bought L'Oréal products before. INOA’s sales have been partly driven by a new marketing strategy. For the first time, L'Oréal ran an advertising campaign targeting potential customers directly. The campaign was launched across newspapers, television, the Internet, blogs, films and through viral marketing techniques. Nicolas said that consumer spending hasn't dried up entirely but "people want want to make sure they've got the best value." With that in mind, L'Oréal has also increased the size of its Matrix hair color by 50% but raised the price by only 15%. Under Nicolas' direction, L'Oréal has also sought to drum up business by providing hair salon operators with new ideas and even operational support. The company recently coordinated a project to design futuristic hair salons, featuring furniture made from recycled materials and quiet hair dryers. L'Oréal is also setting up a website with services and advice for hairdressers, including accounting tips and music downloads. This month, Nicolas takes over L'Oréal's luxury products division, which accounts for a quarter of annual group sales. News continued on page 4 JANUARY 2011 3 The Beauty Industry Report Visit www.bironline.com News continued from page 3 Oligo Professionnel launches Alcove with micro-encapsulation technology. Active ingredients are enclosed in microscopic capsules, which collapse only when the hair dries to gradually release their contents to nourish the hair. The Alcove shampoos (Daily, Hydrating and Repair) are sulfate-free, salt-free and paraben-free (10 ounces/SRP $12.95) and the Alcove conditioners (Daily, Hydrating and Repair) are paraben-free (10 ounces/SRP $14.95). The line contains 15 products. Reach Ilan Cohen, vice president, at 877-837-6426 or [email protected]. Visit www.oligoprofessionnel.com. Scruples introduces Silk Control Blow Dry Elixir (5 ounces/SRP $15.00). Silk Control seals the cuticle and helps keep hair healthy with a blend of panthenol, vitamin E and Scruples’ protective barrier complex (PBX). It transforms hair for complete styling control. Use a little to create flexible hold or a lot to reign in excessively frizzy or unruly hair. Reach Tracy Liguori, co-president of marketing, at 800-457-0016 or [email protected]. Visit www.scrupleshaircare.com. Alexander Herzberg, global education leader, for P&G Salon Professional, was named Businessman of the Year at this year’s Hairworld event in Paris. This award is given once every four years on the final day of Hairworld by Salvatore Fodera, the world president of Organization Mondiale Coiffure. This year’s event had a recordbreaking 65,000 visitors and 800 competitors from around the world. Alexander accepted the award on behalf of P&G Salon Professional and in recognition of the group’s ongoing investment, contribution and dedication to the hairdressing industry. Alexander has almost 30 years of experience in the industry, during which time he has created partnerships with many high-profile customers and industry organizations around the globe. He is also responsible for overseeing the roll-out of P&G’s education and training programs, which offer a range of diverse tools from the newest techniques and product training to business education. Its 800 trainers, working at more than 170 training centers and studios worldwide, help facilitate more than 90,000 education activities annually, reaching more than 1.8 million stylists annually and equipping them with the skills, tools and inspiration they need to stay at the top of their trade. Eighty-one finalists from 53 countries came together to compete for the Young Talent and Color Awards at Wella Professionals´ International Trend Vision Awards, a competition that celebrates young hairdressing talent around the world. Last Tangle Salon from Australia won the Young Talent Award and Denis Osipov’s Studio from Russia scooped the Gold Award for Color at this year’s eighth annual competition. Eric Wennberg of Seattle’s Coupe Rokei Salon took home the bronze in the Color Category for his interpretation of Techno Poetry. The winners will receive a comprehensive, tailor-made education program and a trip to next year’s event. Each finalist competed at a national level in order to represent his/her country on the global stage, where they showcased their own interpretation of one of Wella Professional’s 2010 Trend Vision looks. Robert Jongstra, global president P&G salon professional, said, “The talent displayed at the 2010 International Trend Vision Awards in Paris this year demonstrates what our close partnership with the global hairdressing community can create. We are proud to award the contestants for their trend expertise and innovation shown at this year’s event.” Reach Reuben Carranza, CEO, P&G North America Salon Professional division, at 800-829-4422, ext. 4727, or [email protected]. Visit www.pg.com. Millennium, a software company, announces Brig Van Osten as its newest Be-Cause honoree. Cutting and coloring hair for 15 years, Brig is known for outrageous hair creations and hair styling for the everyday woman. After working at numerous salons and growing frustrated with the traditional salon model, Brig decided a change was in order. She opened p!ay hair lounge four years ago and noted, "I named it p!ay, because I don't consider this work." Brig is the season 3 winner of “Shear Genius.” Millennium is honoring Brig for her selflessness and desire to celebrate beauty. Reach Matt Martinelli, Harms Software public relations and market research specialist, at 888-813-2141 or [email protected]. Visit www.harms-software.com. Launchpad magazine named La-Tweeze the Tweezer of the Year in its December issue. Warren Peskin, president of WRP Business Development, which consults with the company, stated, “We have big plans for 2011. A new collection is coming your way, as well as something special for Valentine’s Day.” Reach Warren at 530-320-6633 or [email protected]. Product Club recently hosted a contest for its education team. It was judged by Patrick McIvor, Product Club’s artistic director, and Adrienne Rogers, national training director. Winners Melissa Johnson, Ruth Andolsen and Laurie Edwards helped create a new DVD that is part of the educational series “The Art of Highlighting.” This new collection will be available this month and featured at the International Salon & Spa Expo in Long Beach, CA. Reach Mary Albanese, vice president of marketing, at 800-308-3588 or [email protected]. Visit www.productclub.com. News continued on page 16 4 JANUARY 2011 The Multicultural Report G ary Gardner, the founder of Namasté Laboratories, has managed another Gardner family success story with his company’s acquisition by Dabur India LTD. His parents, Ed and Bettiann Gardner, founded SoftSheen in Chicago where his wife, Denise Gardner, was vice president of marketing. His sister, Terri Gardner, was president and CEO. The company evolved into Soft Sheen Carson and is now at home under the L’Oréal umbrella. Namasté, the maker of Organic Root Stimulator, has been acquired through Dabur’s U.S.-based wholly-owned subsidiary Dermoviva Skin Essentials Inc. The current management team, including Gary, will continue to run operations in Blue Island, IL. The company “believes the Dabur partnership will help Namasté become the hair care brand of choice for people of African descent worldwide.” Both Namasté and Dabur focus on healthful, holistic offerings. The latter is a leading consumer goods company with 125 years of experience in health care, hair care, oral care and skin care, and is active in Asia and Africa. In addition to its Organic Root line, Namasté also produces the Tea Tree Oil AntiBump system for men who experience razor bumps. Visit www.organicrootstimulator.com. See page 21 for more details. Dwight Eubanks, celebrity stylist of the hit reality TV show, “Atlanta Housewives,” did the hair and makeup for the talent attending the General Mills Feeding Dreams Grand Finale and Gospel Salute in Atlanta. His Purple Door salon was on the cultural immersion tour for General Mills executives organized by Segmented Marketing Services, Inc. prior to the event. The execs visited the Martin Luther King Jr. Historic Site, which is next door to the Historic Ebenezer Baptist Church where Martin Luther King Jr. was a co-pastor. The church served as the site of the Grand Finale, which honored black community champions from 10 southern cities. It was hosted by Susan L. Taylor, editor emeritus of Essence magazine and founder of the National Cares Mentoring Movement. Visit www.feedingdreams.com. The late Thomas Hayden (Mr. T.), an awardwinning national and international hair designer, by Lafayette Jones consultant and master platform artist, will be remembered for many accomplishments, including the Johnson Products History of Hair Styles tour that showcased black women’s hair from the 1900s to the 1980s. The show took 25 dancers through 10 cities promoting Precise, a conditioning relaxer. Visit www.johnsonproducts.com. Why is it important to know about the demographics and research on ethnic groups that are growing exponentially and promise to be at 50% of the U.S. population by 2050 or sooner? It is key to increased sales and market share, and contributes to building successful marketing and merchandising plans. Rieva Lesonsky, CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses, addresses the importance of the ethnic market in “The Changing Face of the American Consumer.” It is published on Business on Main, which describes itself as “A Community for Small Business Leaders.” Rieva notes five key points: 1. Pinpoint your target (learn where ethnic consumers live); 2. Understand the market (visit ethnic parades, festivals, chambers of commerce and read ethnic marketing books); 3. Understand channels that work, especially venues like churches, beauty and barber salons; 4. Speak the language (translation pays off) and 5. Commit to the long term (no silver bullets). Visit www.businessonmain.msn.com. Author Terry J. Soto says that Hispanic initiatives need to be integrated across an organization and that they should conform to the same corporate-wide performance expectations as others within the organization. For more, read Marketing to Hispanics: A Strategic Approach to Assessing and Planning Your Initiative (Kaplan Publishing available via Amazon.com.). Terry is president and CEO of About Marketing Solutions. Visit www.aboutmarketingsolutions.com. It’s Sweet Home Chicago for the American Health and Beauty Aids Industry’s (AHBAI) Proud Lady Beauty Show, as it returns March 26-28 to downtown Chicago at the Sheraton Chicago Hotels & Towers from its suburban location in Tinley Park, IL. Geri Duncan Jones is executive director of AHBAI; Clyde Hammond, Sr., president of Summit Labs in Harvey, IL, is chairman of the board. Contact Geri at 312-321-6824 or visit www.proudlady.org. It’s a product trend that can’t be denied. Celebrity sells and many multicultural stars are endorsing products. Beyoncé hosted a New York City launch party for the 2BHAPPY diamond collection of Lorraine Schwartz. Guests included Ashanti; Beyoncé’s mother, Tina Knowles; Kim Kardashian and Mary J. Blige. Schwartz designed the singer's $5 million diamond engagement ring from rapper Jay-Z. Beyoncé is one of the beautiful models behind L’Oréal’s Colour Riche lipsticks in 74 shades, priced at $8.95 at drugstore.com. Andre Walker, the hair stylist for TV’s queen of talk, Oprah Winfrey, offers the Andre Walker Ultimate Gift Set ($81), which includes a keratin shampoo, a keratin conditioner and Qoil (short for Quence-Essential Oil.) Made of virgin argan oil, it sells separately for $35.00. It makes the hair “easier to manage, stronger and smoother,” says Andre. “Just a little oil applied to the driest areas will do the trick.” Another Andre innovation is Hair Make-Up, a product that colors gray hair or new growth until the next salon appointment. It sells for $12.00 on his web site, www.andrewalker.com Halle Berry has the Halle line of perfumes in three fragrances: Halle, Halle Pure Orchid and Reveal (1.7 fluid ounces/$28.99). Kimora Lee Simmons’ clothing line lent its name to her perfume, Baby Phat Dare Me (1 ounce/SRP $29.99). Queen Latifah is the face of Cover Girl LashBlast Fusion Mascara and the CoverGirl Queen Collection Natural Hue Mineral Bronzer. The Queen models a gorgeous blue gown on the ads for her fragrance, Queen of Hearts (3.4 fluid ounces/$59.00). Lafayette Jones is CEO of SMSi-Urban Call Marketing, a promotion and marketing company, and publisher of Urban Call custom publications. Contact him with your multicultural news at 336-759-7477 or [email protected]. Visit www.smsiurbancallmarketing.com. JANUARY 2011 5 The Beauty Industry Report Visit www.bironline.com Zotos: Not your grandmother’s perm company Z otos International markets a number of hair care brands to the professional beauty industry. While the company’s exclusive brands, including Joico and Senscience, have a higher profile in the media, the open-line division, with brands such as Naturelle, Bain de Terre, Quantum and Zotos, quietly do big numbers. Bruce Selan, Bruce Selan, vice vice president of sales president of sales and education, and Liz and education Kenny, managing director of marketing and creative, provide the sales and marketing fire power that drives the Zotos core or open-line brands. Beauty Industry Report (BIR) recently had the opportunity to chat with both to learn about their recent successes, as well as their plans going forward for 2011. BIR: Please give BIR’s readers a brief history of the company and share how you got to where you are today. Bruce Selan (BS): Our company has a long history, starting in 1929 when Zotos International was incorporated in New York City, and we introduced our first revolutionary innovation: the machine-less permanent wave. Our innovations continued with the discovery of cold waving in the 1940s and exothermic and acid waves in the 1970s. In 1988, Zotos International became a wholly-owned subsidiary of the Shiseido Company, Ltd., one of the world’s largest cosmetics companies. Shiseido also owns NARS cosmetics; Decleor and many fine fragrances, like Issey Miyake, John Paul Gaultier and Narciso Rodriguez. Most recently, it acquired Bare Escentuals. Zotos is dedicated to working with distributors and salon professionals to drive traffic in both the distributor store and the salon. With innovative marketing and creative programs, leading formula technology developed by our research and development team and targeted education and training programs, Zotos remains one of the leading and fastest-growing professional beauty companies after 80 years in the industry with offices in the United States, Canada and Europe. 6 JANUARY 2011 BIR: How did you finish 2010? BS: We ended 2010 with record sales and profits and are extremely proud of this achievement in light of the current economy. BIR: What would BIR's readers be surprised to learn about your company? BS: Many stylists still think of Zotos as being primarily a perm manufacturer. Although we remain the leader in perms, your readers might be surprised to know that Zotos is also an innovator in hair care, hair color and skin care. One of our recent successes was the recordbreaking launch of Diamond Shine, affordable luxury hair and body care formulated with real diamond micro-particles. It not only provides stylists and consumers with a little luxury during the worst recession in decades, but also promises to build amazing shine and strength in even the driest or most damaged hair. In 2010, we launched Age Beautiful, the first liquicrème permanent hair color and comprehensive hair care line proven to fight all five signs of aging hair. Age Beautiful is the first color with melanin, keratin peptide and a patented conditioning technology with silk protein to replenish hair with the essential components that are lost with aging. Zotos also owns the widely recognized Bain de Terre brand, a salon-trusted, affordable hair care line that features botaniceuticals. The brand is distributed only by full-service distributors through distributor salon consultants (DSCs) and stores. The launch of Bain de Terre Day Lily shampoo, conditioner and root lift, which promise to deliver both color protection and volume, helped grow this 20-year-old brand at double-digit rates in 2010. Zotos Perms continue to be No. 1 in the industry. We have the most up-to-date formulas that lead each perm segment. Our most recent innovation is Quantum 5, an addition to our trusted Quantum franchise, which delivers superior texture in five ways. With a scientifically advanced Moisture Shield Interim Treatment, Quantum 5 enhances curl definition, adds shine, gives incredible conditioning, improves color retention and blocks odor with new aroma-fresh technology. Based on our track record, I can assure you that this year and beyond, Zotos will continue to bring exciting, cutting-edge innovations to the distributor and salon professional. BIR: In a crowded marketplace, what is your company’s point of difference? BS: Liz and I together manage the business with a lean team of 11 sales and education members and 18 marketing and creative members. We employ an entrepreneurial attitude and partner with our customers and distributors not only to launch exciting new items, but we also react swiftly with innovative programs that work. Because our team is comprised of industry veterans who have worked together for many years, we, unlike larger organizations, can react quickly when we want to try a new strategy. BIR: What type of educational/product knowledge programs do you provide? Liz Kenny (LK): We just re-launched our website (www.zotos.com) to provide comprehensive education for both professionals and consumers. It has everything you need to know about each of our products, including why it is different, who it is for and how to use it. The best new feature of our website is our “Got Tress Stress?—a hair tips and solutions guide that steers the user to the perfect products for her particular hair needs. We also have a group of talented and trusted educators who train store employees, DSCs, salons and stylists in perming techniques, hair color and product knowledge. BIR: How is Zotos addressing the desires of stylists to have more eco-friendly products? LK: Starting this year, we will begin manufacturing our products in one of the greener plants in professional beauty. We are implementing one of the largest private industrial sustainability programs in the nation and will create and utilize energy from a sustainable source—the wind. Our wind turbines are designed to generate enough clean, efficient energy to power most of our manufacturing needs. They also generate excess energy, which we will donate to our local community in Geneva, NY. Zotos is at the forefront of material production. In 2011, our bottles will contain as much as 70% post-consumer recycled plastic, and our cartons will use only 100% recycled paperboard. By printing directions and relevant information on the inside of many of our cartons, we have eliminated paper inserts, contributing to less waste and damage to our forests. At Zotos, we are creating a brighter and more efficient workplace for the environment, our customers and our employees. This ecoconscious philosophy is not only the way we work, but it is an integral part of who we are today. BIR: What’s new and/or hot in your line? LK: Zotos just partnered with “Shear Genius” winner, Anthony Morrison, to launch his signature Weightless Moisture line into prestige distribution. His line features floral hydrosols, the lightest form of essential oils, to give hair ultimate moisture without the weight. He launched his line on shopNBC in August, and we look forward to helping him expand distribution in the near future. BIR: What is your vision for your company? BS: Our goal has always been to offer the stylist and consumer the most technologicallyadvanced, high quality professional products at the most affordable price. We distinguish ourselves with our customers by being agile, quick to market and exceptionally responsive to their needs. BIR: What is your company’s greatest accomplishment in the past five years? LK: Our greatest accomplishment has been to enter the hair color market with the uniquely positioned and high-performing Age Beautiful brand that fights all five signs of aging hair. Launched in the second half of 2010, the brand has consistently exceeded sales expectations by addressing the key complaints faced by the mature client. BIR: Tell me about your background. How did you get to where you are today? BS: I grew up in the beauty industry where my family ran a large chain of cosmetology schools in Chicago, which is where I learned the business. In 1973, I began as a “detail salesperson” working with DSCs for Helene Curtis selling its line of professional perms to salons. I then quickly worked my way up the ladder in sales and was given the opportunity to manage and expand a Helene Curtis-owned professional beauty products distributor in Kansas City. From there, I worked with a talented team to build a 400 professional beauty store chain for Helene Curtis prior to management making the decision to exit the “Many stylists think of Zotos as a perm manufacturer. Although we remain the leader in perms, Zotos is also an innovator in hair care, hair color and skin care.” professional business. From there, I moved back into manufacturing sales and became vice president of sales for Helene Curtis. In 1996 Helene Curtis’ parent company, Unilever, decided to sell the professional business to Shiseido, which merged Zotos and Helene Curtis Professional. I, too, began my career with Zotos as vice president. LK: Just like Bruce, I have been in the beauty industry my entire career. I started at Unilever working on its hair care business and then spent 10 years at Clairol, managing many of its retail hair care and hair color lines and acting as director of marketing at Clairol Professional and Matrix in the late 1990s. In 2002, I left Clairol to be senior vice president of marketing at Revlon, where I rebuilt the Almay brand after a 5-year precipitous decline and created a 3-year pipeline of new products for all the cosmetic businesses. In 2005, I returned to the industry I love by joining Zotos as senior vice president of marketing and creative. BIR: What is the best business advice you ever received, and who was it from? BS: My father told me years ago, be fair to your customers, give them exactly what they need and want, and they will always come back to you. I have lived that way all my professional life and feel it was the best advice I ever received. LK: A boss once told me to do something I love and the job will never seem like work. It never ceases to amaze me that I get paid to stay abreast of fashion, current events and trends and that I am encouraged to feed my inner beauty junkie by constantly trying out new products. BIR: What inspires you? BS: I am inspired when a customer tells us (in person or in writing, via phone or via the web) that she was thrilled with the product she tried from Zotos. LK: I am inspired when I hear a stylist talk about her dream products, a chemist reveal an exciting new technology, our manufacturing group explain a new production capability or a member of our team come up with an exciting new idea. I love to figure out how we can make each of those a reality. BIR: If you weren't in the beauty business, what would be your dream job? LK: A plastic surgeon. I firmly believe that, particularly for a woman, when you feel you look your best, you are more confident and able to take on the world. Plastic surgery is often the only beauty enhancer for those who live under the shadow of disfigurement. I started out pre-med in college, but realized that my obsession with beauty products might make me better suited to a role in beauty marketing. BS: After spending 40 years in this fantastic business, I could never imagine being in any other industry. I do love being with people, and my wife and kids always tell me that when I retire, I will make the best WalMart greeter. Reach Bruce Selan at 847-390-6299 or [email protected]. Reach Liz Kenny at Liz Kenny, managing 203-656-7915 or director of [email protected]. Visit marketing and creative www.zotos.com. JANUARY 2011 7 The Beauty Industry Report Visit www.bironline.com Nail color icon George Schaeffer enters hair color business G available, I really got excited. I loved the name, eorge Schaeffer doesn’t need an I loved the core product (yes—I do a little introduction. As the founder and CEO of color enhancement myself) so much that, to OPI, the largest professional nail care brand in paraphrase Victor Kiam (who purchased the world, which he recently sold to Coty for Remington Shavers a few decades ago), “I liked almost $1 billion, he is actively involved in the the color so much, I bought the company!’ Professional Beauty Industry. Last year, he BIR: Color has been what OPI is all about. quietly acquired the professional hair color Are there some marketing strategies that brand, Aloxxi, from Alberto Culver. Beauty you can borrow from the nail color business Industry Report’s (BIR) editor/publisher Mike and apply to hair color? Nave is fortunate to have been friends with GS: Yes, yes and yes! George for a quarter of a century and to have BIR: Aloxxi is a brand that has been around been one of the first OPI distributors. It is with for years. In the past five years, when it was a special feeling that BIR shares George’s under the Alberto Culver ownership, it was thoughts on what’s next for him. not given much marketing and sales support. BIR: The Professional Beauty Industry, like What made you think it had the viability to every other, has changed dramatically over the past five years. Business has shifted away be resurrected? from a foundation of personal relationships. How are you planning to turn back the clock and bring back the importance of one-on-one personal relationships to business? George Schaeffer (GS): Today, so many corporations are more concerned about the bottom line than the people they touch and the importance of the one-on-one relationship. Fundamentally, the Beauty Industry is very personal. Every day, we touch customers. I look at everything I do from that perspective. I have dealt with the world’s largest companies, and yet I still show up to shake a hand, make that phone call or touch George Schaeffer joins the lovely models on the set of the Aloxxi 2011 photo shoot. someone to secure the business. Call it old GS: While the people in charge did a great fashioned, but I believe that email isn’t enough. job of keeping it alive with minimal funding, The personal visit makes the impact. A quite frankly, Aloxxi had no support in personal visit to the salon makes the sale and a consumer’s visit to a stylist makes a client. I still marketing, advertising, distribution or any other area. Yet in spite of that, the brand has had an operate on that premise. extremely loyal salon following. That’s what BIR: One of the questions I have heard in the made me take a close look at the company. marketplace is, “Why is George bothering to BIR: I understand that plans are under way start a new business, especially one in the to add a complete hair care line. competitive hair color segment?” GS: Before, Aloxxi was a brand under GS: I love color. I love the people in beauty. Nexxus. Today, Aloxxi is THE brand. Every And I love the industry that is professional product we introduce underneath the Aloxxi beauty. I see a tremendous opportunity to give banner is committed to enhancing, protecting something back to the industry that has given and maintaining hair color. Aloxxi will feature a me so much by helping the businesses of retail line for professionals to sell to their distributors and stylists grow. clients, so that they can take home a hair care When I first heard about Aloxxi being 8 JANUARY 2011 line that supports what the stylist has done. Every bottle will have a simple sentence that embodies the essence of Aloxxi’s philosophy, “YOUR hair colour IS OUR only business.” BIR: What steps have you taken to improve the hair color line? GS: We have completely repackaged the existing products from cap to bottle, added essential colors that were missing, developed a comprehensive support color care line and overhauled our image. However, we have not touched the basic color formula because it is second to none. BIR: Does your ownership of Aloxxi have any connection to OPI? GS: No—except for my personal dedication to the Professional Beauty industry. BIR: What is the message you are giving existing Aloxxi distributors who will continue to be part of the new network? GS: I want to thank them for their continued support, ask them to stay the course and tell them to hold onto their seats because the ride is just beginning! BIR: Why should a distributor consider taking on Aloxxi? GS: To have some fun again and to make a sh*&tload of money. BIR: You mentioned that you have a goal to bring back passion and fun to the marketplace with your involvement in building Aloxxi. Please share some of your ideas on how you are going to do this. GS: First of all, there is more than fun. There are three “F’s” at Aloxxi—fun, food and fashion. When I started in the nail industry, it was not a part of fashion. OPI changed that, making nails as important an accessory as a woman’s handbag or earrings. I want people to have fun with their hair. I want them to feel fashionable. And I want them to eat great meals with a great head of hair. BIR: Tell BIR’s readers about your management team. GS: Our managing director is Myriam Clifford, who comes out of the nail business with an understanding of the Professional Beauty Industry. She and I get along amazingly well. Together, we are building a strong team of The Aloxxi models show off gorgeous hair color and style. sales, marketing and industry professionals. BIR: What is your overall operating philosophy and how are you approaching each day with Aloxxi? GS: As I said before, at Aloxxi we live by the three “Fs”—food, fun and fashion. We want to add the “N” to the “FU” that is so prevalent in today’s marketplace. We don’t take ourselves too seriously. We simply want to share beautiful Aloxxi hair colour with the world. BIR: What is your vision for your company? GS: At least for the first few years, it is not about money. I see something much bigger in terms of a vision. I want to build a substantial company that remains 100% loyal to the Professional Beauty Industry and the distributors who support it. I know distributors will invest their time, money and efforts into building the Aloxxi brand, and we will never leave them high and dry. We are committed to NOT using quotas. They don’t belong. That has always been my philosophy. It is about building partnerships—with the distributors, the DSCs, the salons and ultimately the end consumers. Each is integral to building the Aloxxi brand. BIR: In a crowded marketplace, what is your brand’s point of difference? GS: There are many points of difference. At Aloxxi, our focus is on the end user. We are focused on bringing fashion and personality to hair color that doesn’t exist today. We are focused on demystifying hair color and giving it character. Ultimately, I want consumers to walk into a salon and ask for Aloxxi by name—the same way they do for OPI. BIR: Who is your brand for? And what’s in it for them? GS: As I said before, our company’s mission statement is “YOUR hair colour is OUR only business.” Everything we do is oriented to anyone who wears hair color and the professional stylist who colors it. What’s in it for the stylist? Added clients, the security of a quality product and the tools to grow their business. What’s in it for clients who wear hair color? Results that last. BIR: Describe your ideal distributor. What are the key success factors you look for in selecting a distributor partner? GS: Our ideal distributor is someone who is committed to the development of the Professional Beauty Industry and has experience in the professional hair color world. We want partners who will give Aloxxi the full attention it deserves, and who have the entrepreneurial spirit that can look to the future and see growth. BIR: As you start aggressively marketing “Every bottle will have a simple sentence that embodies the essence of Aloxxi’s philosophy: ‘YOUR hair colour is OUR only business.’” Aloxxi, what would you like to see accomplished by the end of 2011? GS: I want to see a strong distributor network both domestically and abroad. I want to ship product without backorders. I want to support the people who have come with us on this adventure. But most importantly, I want to see that the brand awareness of Aloxxi has grown. I want consumers and stylists to ask salons and distributors for Aloxxi by name. BIR: What is your long-term vision for Aloxxi education? GS: Our vision is to provide comprehensive training on a multitude of platforms to meet the needs of today’s salon professionals. And to provide education that is interactive, fun and focuses on skill development that is applicable to the salon environment. Aloxxi education will inspire salon clients to experience new color options through customized client focus events. BIR: Tell me about your online marketing initiatives, including social networking sites, such as Facebook, YouTube and LinkedIn. GS: Today, a company cannot engage with its customers without social media initiatives. We are building a comprehensive social media program for 2011. BIR: What’s your company’s biggest challenge in 2011? GS: Our biggest challenge will be to penetrate the market with our new products, continue to form our amazing team and for me personally, to start living the dream I have. BIR: Who are your mentors in the Professional Beauty Business? GS: Without question, they are Arnie Miller for his marketing genius and Jheri Redding for his product development and creativity. BIR: What is the best business advice you have ever received, and who was it from? GS: It was from my father. He told me, “If you tell the truth, you never have to remember two things.” I do the best that I can every day to be honest with people and treat them with respect. So far, that has worked very well. BIR: What inspires you? GS: Life, work, family, friends, food, fun, fashion, and, of course, Aloxxi. Not necessarily in that order! Reach George Schaeffer at 877-512-7131 or [email protected]. Visit www.aloxxi.com. JANUARY 2011 9 The Beauty Industry Report Visit www.bironline.com GuestVision celebrates 10 years in beauty T his month, Beauty Industry Report (BIR) catches up with Ted Therriault, president of GuestVision Technology Solutions. GuestVision is celebrating its 10th year in business with many exciting milestones, including more than 1,500 installations and a dominant role as a market leader in software for franchise and high-volume salons, multi-unit beauty retail stores and cosmetology schools. BIR: Ted, what does GuestVision Technology Solutions deliver to its clients? Ted Therriault (TT): GuestVision delivers software, hardware and service solutions encompassing every area of the beauty businesses it serves, from point-of-sale to inventory management, guest marketing to employee scheduling, all backed by comprehensive reporting. GuestVision’s unique centralization technology keeps multi-location businesses and franchises in sync with central data across the enterprise. GuestVision also has pioneered a level of flexibility and customization that stands alone, allowing us to maintain consistency across a franchise while providing options to individual business owners to tailor GuestVision, manage their business and analyze their information in their own unique way. BIR: How long ago did you know you wanted to start GuestVision? TT: As crazy as it sounds, I started my first company when I was 12, helping people learn to use the Apple IIe computer. After internships at Microsoft and an educational software arm of IBM in high school and college, I graduated with an undergraduate degree in computer science. An algorithm I wrote became a dream job offer: chief information officer (CIO) for a budding information services company in Seattle, which grew to more than 50 offices around the country. In building the technology as the company itself was built, I learned much of what I leverage every day at GuestVision and also learned how important the right tool is to get the most out of information. BIR: Did you always know you would be in the beauty business? TT: When I started, I did not know the beauty industry would become the home of 10 JANUARY 2011 our success. While I was in business school, I founded GuestVision in 2001, with a single, but incredibly broad goal: to build technology that helped improve businesses by making it easier to collect quality data and turn it into actionable information. Joining nine chambers of commerce, I met with every type of business from insurance salesmen to locksmiths to real estate agents. At one fortuitous meeting, I met our first beauty client, who owned two Fantastic Sams franchise salons and was dissatisfied with his software and the options he had. He remarked that we should look at building software for his salons that could ultimately become the preference franchise wide. When we examined his alternatives, we had to agree that there was a real opportunity. Building with not just his input but the input of many other franchisees, we built our first system designed specifically for franchise salons and the first fitted to their chain in more than 20 years. From the version we first released in 2003 to the version we are now releasing in January 2011, we have always built GuestVision to be more than just another one-size-fits-all beauty software product. Instead, we build flexible, capacious, customized software and solutions to meet the highly specialized needs of multi-location, high-volume beauty businesses. That specificity was the key to all the opportunities since. BIR: How did you expand beyond one chain? TT: While we knew GuestVision had the opportunity to reach many different kinds of beauty businesses, it also had to grow slowly. Growing slowly meant being both patient and aggressive: patient to allow GuestVision to become great at delivering software and even better at delivering service to our customers, but also aggressive enough to recognize and prepare for future opportunities. We’ve held onto that philosophy throughout. Opportunity fortunately knocked loudly every two years, allowing us to establish a leadership position before embarking on the next segment of the industry. We built a retail beauty system for Northwest Beauty in Spokane in 2004 and launched into that segment. Now we have numerous retail beauty locations, with as many as 50,000 skus. Two years later, Marinello Schools encouraged us to build a school specific system for their 10 schools, and now they use GuestVision for their student salon and attendance management in nearly 50 schools. Most recently, in 2008, we began building a system that is rolling out to hundreds of military locations for its largest beauty and barber concessionaire. Each new market segment has added new functionality and new capacity—both in software and service—that we then can deliver to our existing clients. BIR: How did specializing GuestVision to each market segment help you grow? TT: By focusing on chains, franchises, multilocation retailers and high volume schools, we fill a need that had gone unmet. For an individual owner or the franchisor, these large scale businesses were spread over too many locations, were too distributed geographically and generated too much data to be managed effectively with the software available. Most beauty industry software had been designed before the Internet made communication between locations easy and affordable, and before an enterprise-grade database could reliably run on a standard PC. While existing software served the mom and pop salon owner well, the ability to scale to many locations, remotely access your information and manage your business centrally was simply absent. Each segment we serve also needed specialized software to manage its very different business. Examples abound: Stylists might work in more than one location of a chain salon, but their pay needs to be calculated centrally. Retail locations need to centrally manage one product list, but be able to charge different prices in different markets to stay competitive. Schools capture information not only about the transactions across their counter, but the services performed in the classroom and on the student salon floor. Each segment could not use generic salon management software. By listening to all the reasons why, GuestVision designed and delivered software that uniquely fulfilled their needs. BIR: How has the recession affected your business? TT: While the past couple of years have been a trying time for so many businesses, GuestVision has had great fortune in the form of incredible growth, more than doubling its revenues, client base and profits. Our success in the downturn is a testament to our clients and the market needs they serve. Our clients primarily provide either a budget-conscious beauty service menu, retail products that stay in fashion or a new career opportunity in beauty. Coupled with the consolidation that has happened market wide and the need that business owners have seen to reduce costs through technology, we have been both the beneficiary and the solution. BIR: What was 2010 like for your business? What’s new this year? TT: Our growth was even more fruitful in 2010 than 2009. Seven years after our first install in Fantastic Sams, when Fantastic Sams purchased its first corporate locations last summer, the franchise converted those stores to GuestVision. We were also named Fantastic Sams Best in Class Supplier. In September, JKon software, a legacy product in Supercuts, joined the GuestVision family, and with it brought one third of Supercuts franchises. More than our growth, what I truly believe will change our business and the businesses we serve, is our infrastructure investment. We have spent more than half a million dollars to upgrade how we help our users learn, use and maintain GuestVision. We are opening our new state-ofthe-art training center in Seattle this month at the same time as the new version launches. We are also deploying three major infrastructure enhancements. Our network is enhanced with an even higher level of security and compliance driven in part by our industry-leading PCI/PADSS validation. A new customer service delivery platform called “GVServe” will limit hold times, respond to every call with a live person 24/7 and survey our users about their satisfaction. But the most important “GVProtect monitors, mitigates or eliminates every major risk or error.” development is also an industry first: complete network management for every GuestVision location, a product we call “GVProtect.” BIR: How is GVProtect an industry first? TT: With thousands of PCs now running GuestVision nationwide every day, and most of them left on 24/7, the risk is many times greater, and the management is many times harder. We are asked continually by our clients to help them manage the IT part of their business. GVProtect does just that. GVProtect combines four technologies: a complete computer and network management tool to analyze events and errors, diagnose and resolve problems and deploy software remotely; a “white-listing” suite to block all web traffic except specifically allowed traffic and protect the computers from viruses; a managed anti-virus suite to eliminate the need to remember to update; and an off-site backup solution that continually protects and archives the mission-critical GuestVision data for easy recovery. Together, GVProtect monitors, mitigates or eliminates every major risk or error and in many cases, allows us to proactively diagnose and fix issues before our clients even know they occurred. BIR: You mention your PCI/PA-DSS validation. What is PCI and what does it mean to our readers? TT: PCI is the outgrowth of the major credit card companies’ security strategy to protect customer data. Visa, MasterCard, American Express and Discover joined forces to deliver one unified security specification that applies to the entire credit card ecosystem, from the processor to the software company to the merchant. The requirements they put in place for software companies mean that their software must meet rigorous standards if it provides integrated credit card processing. Those standards are called PA-DSS Validation and set GuestVision and other validated solutions apart as ultimately the only solutions that will be allowed to process credit cards. Business owners also have to become compliant. If a business owner is found to be non-compliant and credit card data is stolen, the downsides can be catastrophic. On the flip side, by following the standards, the risk that any data theft is possible can be mitigated. BIR: What will your users notice about GuestVision 2011? TT: We want every user to feel like it is the same, only faster and easier with more features. We have achieved that: GuestVision 2011 combines more than 400 new features into a PA-DSS validated codebase that is only one quarter the size of GuestVision 2009. BIR: Where is GuestVision going next? TT: GuestVision continues to grow in the product it delivers, the services it provides and the customers we reach every year. This coming year will be no different. But I always return to our first guiding principle: I want to make the data we help our users collect and analyze even more actionable. Delivering comprehensive consulting and training from our new training center dovetails with new means of tracking and encouraging customer behavior, preferences and retention, as well as expanding the number of ways that the user, and the guest, interacts with GuestVision daily. Through each of these enhancements, we can increase the value we have to the business owner and increase every opportunity we both have before us. To learn more, reach Ted Therriault at 800-967-0249 or Ted Therriault, [email protected]. president of Visit the GuestVision GuestVision website at Technology Solutions www.guestvision.net. JANUARY 2011 11 The Beauty Industry Report Visit www.bironline.com BIR reports from San Juan Beauty Show R oberto Paniagua’s 14th annual San Juan Beauty Show, Puerto Rico’s largest salon products trade show, attracted attendees from both Puerto Rico and all of the nearby Caribbean countries. In Puerto Rico alone, which has a total population of about 4 million, 250,000 people are connected to the professional beauty field. That includes 130 beauty schools (and that’s not even counting the public schools vocational programs). Many hair stylists work out of their homes. This annual show provides an ideal opportunity for everyone in the industry to have a one-stop shopping experience, while learning about new techniques and trends. Beauty Industry Report (BIR) again returned to cover the show and provide this exclusive report. This show has a number of significant differences from shows on the mainland that new exhibitors need to know. First, all of the demonstrations and classes are presented in Spanish. As an exhibitor, if you do not speak the language, you need a translator working at your booth. A large number of beauty school students attend the show—primarily on Monday—and they provide both an opportunity and challenge. Many come with money and are potential buyers; however, many are not, and they can take up space in front of your exhibit. Theft is also a problem. First-time exhibitors have greater success selling to salons throughout the island and to adjacent Caribbean markets if they make a distribution deal with one of the local distributors before attending the show. The market and the show are dominated by a number of major exhibitors, including Exotique Salon Essentials, Inc., Bravo Del Rio Trading and Beauty Systems Group (BSG). Exotique’s Jose Santiago Jr. reported, “We had one of the largest areas of the show floor, officially launched Farouk Systems in the Puerto Rican market and brought onboard Macadamia Oil. The addition of those two major brands, combined with our strong Matrix sales and successful CND business, generated large attendance in our area. We gave our manufacturers access to the Puerto Rican market by making the exhibit area an 12 JANUARY 2011 opportunity for interaction, and our clients were very pleased with what we brought in terms of education and showmanship. We have also generated more leads than at any other show. Exotique will keep bringing new products and the best lines to the Puerto Rican market, including our first order from OPI, while making our current lines top brands in their respective field in our territories.” Reach Jose at 787-725-2728 or [email protected]. Visit www.exotiquepr.com. Bravo also had a large exhibit, which occupied the equivalent space of 36 booths. Josefina (Josie) Bravo, owner, said, “Because visual appearance and beauty are very important for Puerto Ricans, beauty products are a high priority. We estimated that close to 50,000 people visited our area. In addition to product displays, we offered educational support to our exhibiting brands, including Moroccanoil, Keratin Complex, Bio Ionic, Metropolis Technology, Essie, Pravana, Brocato and Amoresse. Moroccanoil generated the largest product sales during the show, due to its professionalism and demand for the brand. Keratin Complex also generated strong show sales, along with styling irons and dryers.” Josie also noted, “This year, we saw an improved economy, and the show purchases reflected that. Many of the area distributors invested more in their spaces for expanded product exposure. For example, we took the space just outside the main show floor with a 60-foot long booth as a preview area/preintroduction of all our products being displayed at our booth on the show floor, and it facilitated much more education, sales and contributed to an outstanding show for us.” Josie added that buyers were also seeking keratin hair straighteners without formalin and Pravana’s Beach Wave, a gentle formula that contains no thio and utilizes natural cysteamine, a natural amino acid, to realign the hair’s internal bonds to give a soft, sensuous wave. Reach Josie at 787-758-6177 or [email protected]. At last year’s San Juan Beauty Show, BSG had recently completed the acquisition of Beleza, a local distributor. BIR checked in with Mike Williams, BSG Unit 3’s vice president, who is responsible for the organization’s Puerto Rican distribution, to get a one-year update. Mike told BIR, “We have integrated the acquisition of the Wella/Sebastian group into BSG/ CosmoProf with two distinct sales forces. Currently, we have eight DSCs selling and servicing salons on Paul Mitchell, Rusk, Schwarzkopf, It’s a 10 and American Crew, and seven DSCs selling the Wella and Sebastian brands. Business is growing, and we continue to take market share in PR with the combined effort of our vendor partners, management team and our well trained sales force.” He added, “The show was very interesting and extremely busy. It’s hard to determine how many were hairdressers and how many were general public. It would be nice to see this show become more of a professional-only event at some point. Our big seller this year was Awapuhi Wild Ginger from John Paul Mitchell Systems. This was our second year with a VIP room off the main show floor. Offering our customers and DSCs an environment to meet in a quiet, comfortable setting produced more appointments and sales than we experienced last year. Salon professionals were looking for a personal relationship supported with service, education and quality products to build their business.” Reach Mike at 270-415-3123 or [email protected]. Visit www.beautysystemsgroup.com. Ryan Kayser of All Step Sales, a sales agency that provides representation to manufacturers throughout the Caribbean and Central America, spent time selling Conair, one of the companies All Step represents, and in the large Del Rio Trading exhibit. Ryan said, “Del Rio Trading launched the new BaByliss Volare hair dryers with the Ferrari motor. We had several stylists come by telling us ‘I want the Ferrari motor.’ Del Rio sold through half of their entire stock in the two days of the show, in spite of the $200.00 price tag, which is a challenge for the Puerto Rican market. The BaByliss Nano Titanium continues to be among the best sellers, thanks to its effectiveness with the Brazilian Keratin service.” Ryan also noted, “In the nail category, Del Rio Trading demonstrated the IBD Gelac 14-day UV nail polish. In the OTC category, Conair’s One ‘n Only Argan Oil treatment did well. The success from Moroccanoil has trickled down, and consumers and beauty supplies are enthusiastically entering the category. On Sunday, overall sales were down, but a strong student day on Monday brought them back to sales achieved in previous years.” Reach Ryan at 954-747-7170 or [email protected]. Visit www.allstep.com. At Pibbs Industries, Turbo Power’s Damiano Petruccelli Jr., manager of product development and sales, stated, “I was exceptionally pleased at the turnout and sales we generated. What was really encouraging was attendees’ professional caliber and enthusiasm. Salon professionals were specifically asking for truly professional styling tools, making Turbo Power’s Twin Turbo 3200 hair dryer our biggest draw. Violet was the color of choice. The Twin Turbo is available in five colors.” Damiano added, “Stylists were veering toward the European and American brands, The Twin Turbo iron features triple ceramic plates and ionic and infra-red technology. It’s available in 1-inch (#TP502) and 1 3/8-inch (#TP503) widths at a list price of $149.00. The Twin Turbo 3500 Ceramic Ionic Hair Dryer (#329A) packs a walloping 2100 watts of power. True professionals recognized the sheer energy created by this hairdryer with a salon list price of $205.00 and came to the show specifically requesting Turbo Power's best.” Added Damiano, “I was quite impressed with the show, as we almost sold out of everything. Show management was helpful when needed and kept all its promises. We will attend next Puerto Rico’s largest show attracts attendees from throughout the Caribbean. year’s show, and based on this year’s results, we will bring more products to sell.” Reach Damiano at 800-551-5020 or [email protected]. Visit www.turbopowerinc.com. Golden Supreme/Cinderella Hair was a returning exhibitor. Fernando Fishbach, vice president, said, “Roberto and his team do an excellent job of bringing people to the show. They are always helpful. Our sales this year were up slightly from last year. We all know the state of the economy—it affects everyone. We did notice that sale increases were partly due to our offering some lowerpriced options for attendees who were looking for some options to accommodate their budgets. As we look forward to next year’s show, we are betting the economy will stay the same for at least 12 months or more, and we will continue to offer and price products as competitively with the goal of giving customers what they want.” Reach Fernando at 800-3329246 or [email protected]. Visit www.cinderellahair.com. At Bling Strands, Joanne Richardson, cofounder, said “This was our second visit to the San Juan Beauty Show, and this year we had the opportunity to have our local distributor, Vincent Huynh with Modern Beauty Supply, representing us. Overall, we did better at this year’s show. Last year at our first San Juan Show, we learned that Puerto Rico brings a different customer to the floor. They pay cash for everything. They love anything that is free. They do not buy things that they have never seen before or from people they have not worked with previously. Last year, our booth was huge, it was packed the entire show and we had Spanish speaking sales people to overcome the language barrier, but our sales were so low that we lost money for the first time ever! We were shocked. Not knowing how the culture works, we had not prepared ourselves appropriately, and we learned the hard way. Being new to the scene and doing free tie-ins were a couple of our mistakes. This year, we booked our one small standard booth and were preparing to attend with our newly acquired intelligence and keep the momentum going. Then, we learned our distributor was exhibiting, as well. He moved his booth next to ours, and the mix was magic. Our second time at the show was a charm, and we plan to continue to participate.” Reach Joanne at 801-791-4399 or [email protected]. Visit [email protected]. Jeff Schwartz, Cricket Company’s vice president of sales, was a first-time exhibitor. He shared with BIR, “I think the show was fairly well attended; however, the Puerto Rican economy is where we were about two years ago. The big ticket items moved very slowly. It was, for the most part, the opposite of a U.S. salon market show where Monday was much busier than Sunday. I think show management puts a high price on the admission ticket and that takes away from the sales, especially in this economy. I do not think that for us, the San Juan Beauty Show continued on page 14 JANUARY 2011 13 The Beauty Industry Report Visit www.bironline.com San Juan Beauty Show continued from page 13 show is a worthwhile investment. However, if our distributor decides to exhibit our product, we will help with pricing on product. Stylists were mostly bargaining for price deals well below our already discounted show prices. I did walk the floor, but did not see anything that struck me as new. It seems that a huge percentage of the young girls and guys all have aspirations to be models, as I noticed several modeling school booths at the show.” Reach Jeff at 415-475-4150 or [email protected]. Visit www.cricketco.com. Rondell Fletcher and George Huerta, principals for KollagenX Rejuvenating Gold Masks, were first-time exhibitors. Rondell stated, “We were able to meet potential decision makers, such as distributors and wholesalers, and at the same time introduce students to our brand. We are eager to attend the next show. We are always learning and incorporating new ideas. With the knowledge gained from exhibiting at this year’s show, we will plan to give students more general skin care information by setting up a Q & A area in our exhibit.” Reach Rondell at 800-8418004 or [email protected]. Visit www.kollagenx.com. Keratin straightening systems continue to be exhibited by a number of companies, including the big three—Keratin Complex, Brazilian Blowout and Brazilian Keratin Treatment. Brazilian Keratin Treatment was exhibiting for the fourth consecutive year and is the original keratin treatment to participate at this show. According to Marcelo Teixeira, CEO of Brazilian Keratin Treatment, nearly 200 stylists were educated and certified, and sales were up 30% more than the previous year. The Chocolate Extreme De-Frizzing Treatment continues to be the brand’s biggest seller in the humid Caribbean market. Reach Marcelo at 561-272-8443 or [email protected]. Visit www.braziliankeratin.com. With all the negative publicity surrounding formaldehyde straighteners, it was no surprise that the two exhibiting brands of nonformaldehyde formula straightening products had busy exhibits. KeraGreen is the creation of Diana Tirado and her partner, Magda Marcelo-Robaina. According to Diana, eight years ago, she had a keratin straightening 14 JANUARY 2011 treatment done on her hair and got very ill from the effects of formaldehyde. She decided to go on a personal crusade to create an organic product line that features a nonformaldehyde formula. Diana added, “People are looking for a safe and effective alternative to treatments with formaldehyde that delivers true results, and we've been successful at establishing credibility with KeraGreen. Stylists are ready for innovative products and techniques. They want to feel that manufacturers have their best interests in mind by providing not just a great product, but also by providing the education, which is highly important. KeraGreen’s main goal is to continue to offer new innovative products that would make a difference in the beauty industry, as well as offering training and educational seminars. By Christmas, we will be ready to launch three great new products that are going to impact the industry.” Reach Diana at 305-897-1363 or [email protected]. Visit www.keragreen.com. BioNaza Cosmetics Inc., founded in 2001 by Maria Nazare Nunes, also featured a nonformaldehyde formula straightening system. As a child, Maria spent time in Brazil with her grandparents who belonged to an indigenous tribe. There she learned first hand the benefits of plant ingredients in their natural habitat. As she grew up, Maria became passionate about sharing those benefits with the world and began learning about extracting natural ingredients and using their benefits for hair and beauty products. Today, Maria is part of a conservation movement to save the Amazon, which has given her a platform to speak on behalf of her tribe to the United Nations. BIR talked with director of sales, Gleison Oliveria, who said, “The San Juan Beauty show is one of our most profitable shows. We have been making natural products for more than 20 years. Our goal is to make products that will benefit not only the consumer, but the stylists, which spend their life exposed to potentially hazardous material. For that reason, we have opened our doors to the professional world.” Reach Gleison at 888-298-8890 or [email protected]. Visit www.bionaza.com. Mike Nave, publisher/editor of the BIR, was honored to be one of the recipients of the annual Latin American Beauty Awards, which are given to individuals who promote and support the beauty business in Latin America. The award ceremony included a red carpet walk, photos, wine, hors d'oeuvres and a beautiful engraved statue. After the show, BIR checked back with Roberto, who said, “The San Juan Beauty Show was successful, in part, due to more proactive involvement on the part of exhibitors in capturing the interest of the potential attendees. In addition, we strengthened the educational department with artists, such as Scott Cole, Linda Yodice, Irene Toledo, Nadine Lajam, Mike Karg, Alejandro Loccoco, Allan Keville, Maggie Betances, and the international artist, Vargas, among others. We celebrated more successful competitions and increased the number of trophies awarded. In addition, we experienced a significant increase in Latin American and other international companies exhibiting and attending this year’s show, which established a new trend of growth for the event. In fact, we expect to have a more significant presence of international exhibitors and visitors in 2011.” He added, “In 2011, we will be celebrating our 15th anniversary and will extend our show to two and a half days. The show will start on November 5 at noon and will continue for two full days. After the San Juan Beauty Show, we will be supporting the World Cup of Corporal Art (Body Art) from November 9-12 by providing $25,000 in trophies.” For more information on next year’s event, reach Maria Peterson, assistant to Roberto Paniagua, at 787-756-8019 or [email protected]. Visit www.sanjuanbeautyshow.com. BIR duo tours Australia by Mike Nave T here was no turkey for Mr. and Mrs. BIR over Thanksgiving, as we went on a threecity tour of Australia. We spent our first three days in the breathtakingly beautiful Sydney. We were met by Brad Gauvin, one of the three sons who work at Hair Care Australia, along with their father and mother, Geoff and Jan, the founders of the large exclusive importer and master distributor for Australia and New Zealand of a number of major salon hair care brands, including Lakmé, Moroccanoil, Alterna, Brazilian Blowout, New<id cosmetics, My Curl, Valera and its own product lines—Evo, Eco.kid, Colourpro and Fusion. The Fusion brand is being used to market the company’s own brand of styling tools, including hair dryers, flat and curling irons, hair brushes, combs and other sundries, including capes. In addition to showing us the city, Brad arranged for me to work with Phil Taylor, the Evo brand manager. We made sales calls to a couple of salons. The Australian salon market is comprised of approximately 13,500 salons. Consider that the land mass of Australia is approximately 80% of the United States and the salon base is less that 50% of the number of salons in California alone. Jamie Carroll and his wife, Viktoria, have owned a hair salon and medi-spa for 20 years. Jamie has also developed a learning platform with hairdressing content that works on an interactive online environment that delivers content via a Web-based platform. He shared with us that he started another company called GLearning approximately 10 years ago, named after his daughter, Georgia, a six-yearold with special needs. His goal is to create a learning environment for all special needs people and schools and give it away for free! In the past couple of years as a platform hairdresser in a number of countries, Jamie developed a relationship with Modern Salon Media, who asked him to be its partner in creating and maintaining innovative content for the development of a learning platform for the salon industry in the American market. For now, visit www.modernsalonlearning.com and sign up for their newsletter on education. At the International Salon and Spa Expo in Long Beach, CA, he and Salon Today editor, Stacy Soble, will present a program for salon owners on how to grow their businesses using media and information technology. If you attend this show, introduce yourself. Reach Jamie at 310-683-0406 or [email protected]. Hair Care Australia is a distributor, importer and manufacturer. I also met with hair stylist Dario Cotroneo, who has spent the past 21 years styling highfashion editorial, building a loyal celebrity and media clientele and educating hairdressers internationally along the way. As the founder of DCI Education and its mobile learning division, www.dcieducation.com, Dario has established a learning system that features step-by-step hairdressing techniques using both L'Oréal and Matrix products to assist generation Y hairdressers to learn via online videos. Dario is also creator of styling tool MYCURL (www.mycurl.me), designed to address the change in trend from a decadelong addiction to straightening irons. According to Dario, hair is loosening up, with everything from soft waves to tight curls appearing in the pages of fashion magazines and on celebrities. Dario saw first-hand the difficulty his clients, and even professionals, were having trying to curl or wave hair using irons and traditional styling tools, like hot rollers and curling tongs. As a result, his team embarked on a two-year mission to design a unique styling iron accessory that creates gorgeous curls, volume and movement in minutes. The result is MYCURL. The design patent is registered and trademarked in more than 35 countries. We discussed the opportunity of bringing MYCURL to the U.S. salon market. Stay tuned. Reach Dario at +02 9380 2217 or [email protected]. After spending another delightful three days in Melbourne, we flew to Adelaide in South Australia, the home of Haircare Australia and the Gauvin families. In addition to being a distributor, Haircare Australia is also an importer and manufacturer of professional hairdressing products and equipment and covers Australia and New Zealand with its sales force of 20 and using four sub-distributors. The family business was established in 1975 by Geoff and Jan Gauvin, who remain the executive directors and principals. Primary management is shared with three of their sons, Brad (business development and legal), Garth (importing/product development) and Ward (sales/education). Haircare Australia employs 120 team members across Australia. In addition to its direct sales team, product technicians cover each state and territory. The 230,000square-foot headquarters complex includes a training facility, cash-and-carry outlet and a distribution center. Haircare Australia operates six professional wholesale cash-and-carry outlets (four in Adelaide and two in Melbourne), with plans to open in Brisbane and Sydney. The active account base is more than 6,500 salons and hairdressers. One of the fun parts of the trip was going with Geoff, Jan and Brad to the wine country. Adelaide’s wine area is much like Northern California’s Napa/Sonoma area—only larger. We also joined the Gauvin crew, including Garth, who with his wife, Lucy, invited us to their combination new house warming and first birthday of their son, Charlie. In a blink of the eye, Mr. & Mrs. BIR were back on United’s friendly skies for our 14-hour flight home. As a former distributor, it was a real treat to be exposed to the Gauvin organization. BIR’s tip to any salon brand marketer who is considering doing business in the Australian market is to contact Brad at +61 417 800 764 or [email protected]. Visit www.haircareaustralia.com. JANUARY 2011 15 The Beauty Industry Report Visit www.bironline.com News continued from page 4 Deb Teolis, Nufree/Equibal Labs national sales director, recently married Robert Swan, Euclid Chemical research analyst and account manager, at the home of Robert Yates (vice president of John Paul Mitchell Systems and formerly with Matrix and CND) and his partner, Vincent Cappa. The ceremony was performed by former disco star, Monti Rock III. The newlyweds left immediately for a 10-day honeymoon in Hawaii. Mr. and Mrs. Swan are now residing in Las Vegas. Reach Deb at [email protected]. Visit www.nufree.com. Jeremy Lurie is the new marketing specialist for M & M International/Brazilian Keratin Treatment. Jeremy will be responsible for the company’s marketing and communications efforts. He brings more than 15 years of marketing experience to the position, including senior roles at several public relations and advertising agencies. Reach Tracy Kollmer, distributor liaison, at 561-272-8443, ext. 102, or [email protected]. Visit www.braziliankeratin.com. Tricia Spellman is the new associate executive director of marketing and communication for the Professional Beauty Association. Tricia brings more than 20 years of strategic marketing, market research, business development and public relations experience in both the for-profit and nonprofit industries. Reach Tricia at 800-468-2274 or [email protected]. Visit www.probeauty.com. Bosley Pro announces the promotion of LeAnn Price to regional sales and education manager and the hiring of Kandee JacksonSmith as brand sales and education manager. Both LeAnn and Kandee will work with their assigned distributors to help drive 16 JANUARY 2011 sales and maximize educational opportunities. Formerly a contract educator at Bosley Pro, LeAnn brings more than 35 years of experience as a cosmetologist and cosmetology teacher to her new role. She will work with SalonCentric’s Marshall’s Salon Services, Mid City Salon Resources, Spectrum Salon Services and Maly’s Midwest, as well as Emiliani Enterprises and Masello Salon Services. Kandee previously served as regional sales manager at Sexy Hair and prior to that was a distributor sales consultant at Wynn Salon Services. She will work directly with SalonCentric’s mid-atlantic division. Reach Dev Rice, director of marketing and communications, at 800-267-5391 or [email protected]. Visit www.bosleypro.com. Vince Davis, general manager at TIGI Americas, announced some recent changes to the Americas marketing team at its Dallas headquarters and worldwide distribution facility. Andy Rah will be the new marketing manager, replacing Lynne (Gueniot) McNelis, who relocates to London in a new product development role. Andy joined TIGI in early 2009 as the S-Factor brand manager and began directing and managing other developments and marketing projects that will be surfacing in 2011. Prior to TIGI, he worked for L’Oréal USA for three years as a marketing manager. Andy holds two master’s degrees—one in management information systems from the University of Virginia and the other in business administration from Georgetown University. In his new position, Andy will be responsible for North and South America marketing efforts, including advertising, promotions, public relations, customer loyalty programs, brand strategies and activation of new brand innovations. He will lead three separate groups for customer channel marketing to improve the customization and activation offerings to distributor, field and store customers, national salon chain accounts and direct-tosalon customers. Reach Andy at 800-259-8596 or [email protected]. Maralee Iavello, who worked for the Beauty Industry Report for the past three years compiling our yearly show calendar, passed away suddenly of a heart attack on December 19. She was the mother-in-law of one of our other team members, Lisa Iavello. She also leaves behind her son, Tom and grandsons, Spencer and Vincent. She was an incredibly fun, smarty pants who kept us smiling. We will all miss her terribly. Z-one USA is looking for a national sales manager to support its growth in the United States. Candidate must have a minimum of 10 years experience in a related position within the beauty industry. Must have excellent communication skills, deep knowledge of the distribution business and be willing to spend 60% of their time travelling. The candidate must live in New Jersey or be prepared to move to New Jersey close to the corporate office. Send resumes to Roy Hurley, president/CEO, at [email protected]. Redken introduces Nature’s Rescue, a collection of paraben-free, sulfate-free and silicone-free hair care products. The formulation is enriched with plant and marine extracts. Nature’s Rescue cleanses to remove impurities and buildup, while nourishing and refining hair. The collection includes Nature’s Rescue Refreshing Detox Shampoo (6.8 ounces/$16.00); Refining Sea Polish (3.4 ounces/$19.00); Cooling Deep Conditioner (4.2 ounces/$17.00) and Radiant Sea Spray (3.4 ounces/$17.00). Reach John Woloshyn, senior vice president of sales, at 212-984-4779 or [email protected]. Visit www.redken.com. New from Evo is Builder’s Paradise Working Spray, a light-weight, fast-drying, strong-hold spray that is 100% water soluble. Builder’s Paradise allows you to twist and style hair and dries to a non-sticky finish. Hair can be reworked into numerous styles after application—just reheat with a blow dryer and restyle. To learn more, reach Jim Fogg, Evo U.S. sales, at 720-273-0901 or [email protected]. Visit www.evohairproducts.com. Pravana Naturceuticals introduces Intense Therapy Leave-In Treatment, a product that protects and nourishes hair in 12 ways. Immediately after application, Intense Therapy Leave-In Treatment’s botanical extract blend and moisturizers get to work detangling and providing deep hydration to hair. As you start to style, Intense Therapy, ensures hair can withstand heat, pre-treats hair for coloring and protects and preserves color once it’s been applied. This treatment keeps on working all day long by maintaining shine, repairing split ends, eliminating static and equalizing hair’s porosity, resulting in a smoother, healthier look. Intense Therapy also protects hair from the green of chlorine, while cooling and soothing irritated skin on the scalp. and also works as a cutting lotion. (10.1 ounces/SRP $17.00/4 ounces/ SRP $9.99). Reach Steve Goddard, president/founder, at 818-347-4705 or [email protected]. Visit www.pravana.com. Nutress Hair Products announces a new strategic partnership with Deaundra Metzger, stylist for celebrities, including Fantasia Barrino, CeCe Winans and the stars of the Tyler Perry Studio. "We are committed to improving the health and well-being of women, and hair care plays a large part in that," says Reggie Brown, Nutress Hair president/owner. Nutress and Deaundra launched The Nutress Hair Stop Breakage Tour last month in select cities in the Southeast with plans of ultimately spreading throughout the country. The tour will include live demonstrations and personal advice on how to prevent breakage and handle other hair care issues. Nutress Hair includes styling aids, shampoos and conditioners for damaged hair, color treated hair and healthy hair of all types and textures. Reach Reggie at 877-9HAIR, ext. 77, or [email protected]. Visit www.nutresshair.com. Ecru New York Acacia Protein Mask restores and renews dry, damaged hair with acacia collagen, sunflower oil, grape seed oil and shea butter (8 ounces/SRP $25.00). Reach Mark DePasquale, global market manager, at 888-ecru-nyc, ext. 360, or [email protected]. Visit www.ecrunewyork.com. Spornette International debuts the Ultra Lite Thermal Rounder Collection. This new collection features brushes with hollow centers for a lighter brush and a styling pick at the base, which doubles as a tool and brush cleaner. This collection is available in three sizes 2-1/4-inch (#973/SRP $19.00), 3inch (#975/SRP $22.00) and 3-1/2-inch (#977/SRP $26.00). Reach Alan Sporn, president, at 800-323-6449 or [email protected]. Visit www.spornette.com. Andis introduces its SuperLiner Trimmer in red. The trimmer features a close cutting TBlade in a lightweight size. Its T-Blade is ideal for trimming necks, beards, mustaches, edging around the ears and dry shaving. The SuperLiner is quiet, features a soft grip insert and ergonomic design for a comfortable fit and is made in the United States (#04815/SRP $77.00). The company adds a cord/cordless clipper to its e.logica line of professional tools. It comes with a dual voltage charger for worldwide use and has a one-hour battery life. It features an adjustable stainless steel blade, is lightweight and easily cuts through wet or dry hair. A portion of the sales from each tool is donated to nonprofit organizations that help preserve rainforests worldwide. (#24515/SRP $80.00). Reach Fred Koeller, vice president of marketing, at 800-558-9441 or [email protected]. Visit www.andisco.com. The new Solano SmoothCurl 450 Marcel Curling Iron gets hot and stays hot up to 450°F. It includes a marcel wand that adjusts for easy styling, digital controls for precise temperature setting and an indicator light that turns on when the iron has reached its desired temperature. Infused with ceramic, ionic, tourmaline and far infrared heat technologies, irons feature a smooth glide barrel that won’t pull or snag hair. Safety features include auto shut-off after six hours, a perfectly balanced non-slip stand and a smooth touch handle for maximum control and ease while styling (model #540/ SRP $79.00). Reach Rodney Feltner, national sales manager, at 770-418-7326 or [email protected]. Visit www.solanopower.com. Izunami’s Arrojo PX3 dryer features a tourmaline infused ceramic heater, an 18blade motor and a cool shot button for style setting (#ArrojoPX3/SRP $180.00). Also available is the Arrojo S125 flat iron (SRP $250.00), which heats to 450ºF in less than 30 seconds and employs rapid engagement and quick disengagement technology that accurately senses and resets the iron’s temperature five times per second. Reach Peter Lim, senior sales manager, at 866-455-0777 or [email protected]. Visit www.izunami.com. News continued on page 18 JANUARY 2011 17 The Beauty Industry Report Visit www.bironline.com News continued from page 17 OPI is partnering with tennis superstar Serena Williams to launch the Glam Slam collection. “Serena Williams is an amazingly talented tennis champion and true fashion icon who is constantly raising the bar on and off the court,” says Suzi Weiss-Fischmann, OPI executive vice president/artistic director. The collection will launch in pairs of two complementary hues that coincide with the four major tennis tournaments, beginning with the Australian Open this month, continuing in May 2011 for the French Open, June 2011 for Wimbledon and August 2011 for the U.S. Open. As with all OPI Nail Lacquers, the Glam Slam collection contains no DBP, toluene or formaldehyde, and each includes OPI’s ProWide Brush. The first shades will include Simply Smashing, a glowing green nail lacquer, paired with a new product, Black Shatter. Once applied to the dried nail lacquer, the product begins to disappear, leaving behind a leopard printstyle pattern on each nail. The Glam Slam! Australia Promotion 6-pack display includes six Glam Slam Australia duo packs, each containing one Simply Smash-ing!, one Black Shatter, one chipboard counter display and a tip color palette with chain and label. Reach Bill Halfacre, executive vice president of sales, at 615-599-1815 or [email protected]. Visit www.opi.com. NSI's new Polish Pro is a fusion of raw materials that results in a resilient natural nail manicure or pedicure. It is cured in a UV or LED light, which eliminates long drying times and lasts for two weeks, yet can be removed with acetone in 10 minutes. Polish Pro’s color dispersion offers little to no separation or evaporation. It is available in 24 beautiful shades (15 ml/list $16.95). Reach Jessie Burkhardt, director of marketing and communications, at 610-825-1524 or [email protected]. Visit www.nsinails.com. 18 JANUARY 2011 BIR recently visited Jeff Pink, president/ CEO of Orly International Inc., and John Galea, communications manager, at the company’s 70,000-square-foot headquarters in Van Nuys, CA. John gave me a personal tour of the facilities where the complete product lines for both Orly and SpaRituals are manufactured. Other than nail polish, which is purchased in large quantities by shade and then refilled into consumer sizes, every other product in both brands is produced in the building. In fact, even some of the SpaRituals’ sustainable packaging that is 100% biodegradable is made in the plant. There is also a complete in-house lab with a full-time chemist where quality control and R&D projects are continually worked on. Jeff also shared that his business has been growing at an annual rate of 20% for the past couple of years. The company is now doing business in 77 countries and continues to expand its global reach. Reach Jeff at 818-998-1111 or [email protected]. Visit www.orlybeauty.com. Paul Mitchell the School and Repêchage are partnering to provide a new esthetics program at the Paul Mitchell the School in Costa Mesa, CA. At the school’s grand reopening, John Paul DeJoria, Paul Mitchell Systems CEO, and Winn Claybaugh, dean of Paul Mitchell the School, welcomed owners, staff and students to the celebration. Jennifer Matuga, Repêchage’s west coast regional manager, joined in the celebration. This is the second Paul Mitchell the School location to incorporate Repêchage Professional Skincare into the curriculum. Repêchage will also offer advanced ongoing education for alumni. “We are so excited to raise the standards for the next generation of graduating estheticians at Paul Mitchell the School in Costa Mesa!” says Lydia Sarfati, Repêchage CEO and founder. “This new endeavor will create a hybrid new graduate with the knowledge and skills to serve a much broader client base.” Reach Shiri Sarfati, Repêchage vice president of sales and marketing, at 201-549-4200, ext. 244, or [email protected]. Visit www.repechage.com. New York Streets presents Ink Shield, a tattoo balm that moisturizes, protects and revives tattoos. It combines jojoba oil, avocado oil, vitamin C, mica and UV inhibitors to wake up dull tattoos. The counter display comes with 24 units of Ink Shield, a $159.00 value for $138.00 (.39 ounce/SRP $12.00). Reach Mark DePasquale, Ecru New York global market manager, at 888-ecru-nyc, ext. 360, or [email protected]. Visit www.newyork-streets.com. Distributors from across the globe recently converged in Houston for Farouk Systems’ distributor meeting. The meeting outlined new programs and debuted the Exposed collection from the Global Artistic Board. In 2011, the company will celebrate 25 years of pioneering ammonia-free color. Wisam Ghuneim, general counsel, updated the legal proceedings against various retail outlets and internet sites selling counterfeit CHI products, segueing into the new security hologram campaign—Farouk Systems will affix trackable holograms to popular tools and raise consumer awareness that genuine CHI tools are available only through authorized salons and beauty retailers. Following a media presentation of national television exposure, including Farouk’s interview on Extra! and sponsoring the Miss Universe Pageant, vice president Jason Yates outlined 2011 marketing initiatives, promotions and product focuses. Reach Gregg Emery, vice president of sales, at 800-237-9175 or [email protected]. HedLux Premium School Products debuted its HedLux Lux Lounge at the American Association of Cosmetology Schools Annual Convention and Expo in Orlando. Attendees were treated to a South Beach nightclub atmosphere featuring a Grey Goose martini bar, large flat screens featuring high fashion events and luxury gift bags valued at more than $1,000. HedLux’s lineup of select brands, including Keratin Complex, Babe Hair Extensions, Martin Parsons, Hair Art, Kasho Shears, Fusion Tools, Brazilian Heat, Ego Professional, T3, Oster, Robanda, The Marilyn Brush, Pro Rituals, Hot Pants Cosmetics and Bodyography, provided makeup and hair education. Brooke Boles, president, stated, “HedLux is the cosmetology school industry's partner in creating new, competent beauty professionals by supplying schools with advanced educational programs, as well as branded custom kits. Our goal is to help schools increase enrollment, prepare students with advanced skills to achieve higher earnings upon graduation and position each school as a premium education provider." Reach Jeff Swartman at 954-281-8617 or [email protected]. Visit www.hedlux.com. Bosley Pro has tapped Island Beauty Supply, LLC, headquartered in Honolulu, to service all of the islands in Hawaii. It also has distributor stores in Honolulu, Kona, Maui and Hawaii. Reach Dev Rice, director of marketing and communications, at 800-267-5391 or [email protected]. Visit www.bosleypro.com. H.O.P.E. for Beauty rolled out the red carpet in celebration of its grand opening as a premier professional beauty education destination. Party guests included 250 salon owners and stylists from Pennsylvania, New Jersey and Delaware, as well as beauty companies OPI, Blow Hair Care, Escuhen, Keratin Complex by Coppola, Bodyography, Spornette and PureOlogy Serious Colour Care founders Cheryl and Jim Markham. H.O.P.E. (Home of Professional Education) founders, Denise and John Philipp, received a special award for their industry vision and achievement from the Markhams. “My wish for H.O.P.E. is that it will inspire beauty professionals to dream bigger and raise standards of excellence,” says John. “There are so many talented and passionate people who are looking for a place where they can share their gifts with others. H.O.P.E. for Beauty welcomes them all.” Reach John at 888-3715040 or [email protected]. Visit www.trubeautyconcepts.com. Uspa’s North American division, a division of Uspa Global Pty, Ltd. of Melbourne, Australia, has appointed Pennsylvania Beauty Supply as its Pennsylvania distributor for the Uspa Supernatural and Uhaircare brands. “Pennsylvania Beauty is a dedicated and focused distributor that is truly committed to servicing the professional salon industry,” says Jay Morris, senior vice president/general manager for Uspa North America. “It is an independentlyowned company with a talented sales and support team, which we are very fortunate to be aligned with.” Reach Jay at 214-219-9899 or [email protected]. Visit www.uspa-usa.com. Fine fragrances are a major category in the world of beauty. However, due to high retail price points and profit margins that are below standard beauty store levels, the category is almost nonexistent in the professional beauty store marketplace. But there is a way for beauty stores to get their piece of the business—alternative designer fragrances. For more than 40 years, Belcam Inc. has produced alternative designer fragrances. Its PB ParfumsBelcam brand features low-priced versions of the most popular designer and celebrity fragrances for men and women. Belcam works closely with top perfume houses to create scents inspired by the newest fragrance releases. Products offered include eau de toilette sprays, roll-ons and perfumed body sprays. The PB ParfumsBelcam line of value-priced, quality fragrances provides consumers with an option to sample the latest fragrances without blowing their beauty budgets. The line is available in space-conscious displays that introduce the fragrances and grab consumer attention. Free fragrance testers are included. Reach Gail Hekkema, vice president/general manager of Belcam’s Ultra Denco division, at 800-948-9281, ext. 2740, or [email protected]. Visit www.belcamshop.com. Phoenix-area beauty salon professionals who came to Empire Education Group’s Masters of Beauty Tour of Beauty to learn from celebrity hair stylist and two-time platform artist of the year Nick Arrojo, walked away with much more than the latest trends. The Arizona Coalition Against Domestic Violence offered free “Cut it Out” training to the entire audience. “Cut it Out” is an anti-domestic violence training program designed to prepare stylists on how to handle visible signs of abuse, and what to say should a client confide in a stylist while getting services done. Empire has already incorporated the “Cut it Out” training program into its curriculum in all 100 of its beauty schools nationwide for more than 20,000 students. “Empire truly is an industry leader when it comes to providing students with the best education possible,” says Nick. Empire Beauty Schools have adopted Arizona women’s shelters Emerge! Center Against Domestic Abuse in Tucson, Hope Cottage in Flagstaff, My Sister's Place in Prescott Valley and Chrysalis in Phoenix. Visit www.empiregivesback.com or www.mastersofbeauty.com. News continued on page 20 JANUARY 2011 19 The Beauty Industry Report Visit www.bironline.com News continued from page 19 Expect to see a large number of companies displaying hair products, wigs, hair extensions and a wide range of merchandise at Beauty Expo USA’s 14th annual trade show. Beauty Expo USA caters to the needs of wig/hair replacement salons and beauty supply stores. This year’s Expo takes place at the Rio All-Suites Hotel and Casino in Las Vegas on January 17-18. Reach Ann Park, marketing director and show manager, at 314-426-6333 or [email protected]. Visit www.beautyexpousa.com/beautyexpo.html. The Professional Beauty Association (PBA) will bring its International Salon & Spa Expo (ISSE) to Rosemont, IL, March 26–28. This new show, called ISSE Midwest, will feature a licensed professional-only cashand-carry show floor, more than 250 educational opportunities, the Legends and Icons Charity Gala and the new EstheticsAmerica + Wellness pavilion devoted to skin care products and training. ISSE Midwest is offering free drayage. PBA’s proceeds from the show will be reinvested in the industry through the PBA’s educational events, webinars, government affairs and member benefits. Admission to all ISSE events is free to PBA and National Cosmetology Association (NCA) members. Visit www.probeauty.org. Cosmoprof Asia, the international event second only to Cosmoprof Worldwide Bologna, took place at the Hong Kong Convention and Exhibition Centre in November. Cosmoprof Asia celebrated its 15th year and posted strong statistics, including 57,400 square meters of exhibition area (10% more than in 2009) that hosted 1,633 exhibitors (16% more than in 2009); an attendance of 45,100 visitors (a 10% increase over the 2009 show), which set a new record in international attendance with more 20 JANUARY 2011 than 26,100 visitors (up 11% from 2009), mainly from Australia, China, France, Germany, Italy, Japan, Korea, Turkey, Brazil and the United States and more than 200 media members and journalists. “The response to this year’s show has really been tremendous. Cosmoprof Asia has again confirmed its place as the definitive show in the region for the international cosmetic and beauty business. It’s the reference point for new trends, so that visitors come away with new ideas and new business contacts,” says Michael Duck, director of Cosmoprof Asia Ltd. Eighteen country and group pavilions participated in Cosmoprof Asia 2010, including Australia, Belgium, Mainland China, France, Germany, Hong Kong, Israel, Italy, Japan, Korea, Poland, Singapore, Spain, Switzerland, Taiwan, Thailand, the United Kingdom and the United States. For the first time, JETRO (Japan External Trade Organization) organized a collective exhibition of 15 brands seeking trade partners and new opportunities. To learn more about all of the Cosmoprof events, reach Eva Bardanzellu, PR and communications manager for SoGeCos S.p.a., at +39 02 454708247. Check out BIR’s online 2011 show calendar for future dates of all Cosmoprof shows and other important professional beauty industry trade shows at www.bironline.com. It’s updated all year long so you have the most current information available. The Virtual World of Beauty is open 24/7, no crowds, no waiting and more education. It will be combined with Stylists411. The Virtual World of Beauty and Stylists411 will connect the consumer to the stylist, the stylists to the salons, the salons to the distributors and the distributors to the manufacturers. This new information source will be available January 15. Visit www.marketplace365.com/stylists411 and log in with [email protected] as the email and the password Bree1234! (case sensitive). Reach Rick Bissmotte, co-founder, at 941-258-2949 or [email protected]. Visit www.stylist411.com. L’Oréal USA, a subsidiary of L’Oréal S.A, announced on December 13 the acquisition of the operations of Peel’s Salon Services. Peel’s, headquartered in Omaha, NE, will become part of SalonCentric, the professional products distribution operation of L’Oréal USA. Peel’s is a fourth generation business founded as a small barber-only supply store in Hutchinson, KS in 1937 by Bob Peel. Sr., and it has grown to revenues of more than $100 million, 57 professionalonly stores, more than 90 salon consultants and more than 500 employees. In addition to warehouse and office operations in Kansas, Colorado and Nebraska, Peel’s also has a distribution center in Nebraska, which will provide a logistical hub for SalonCentric in the United States. “We are very pleased to welcome Peel’s to SalonCentric,” says Paul Sharnsky, president of SalonCentric. “There is a sharing of common values in both our businesses, including a passion for hairdressers and the salon industry, as well as a longstanding commitment to this business. This acquisition will provide SalonCentric with the opportunity to fully serve professional hairdressers in the mid-United States, as Peel’s territory includes North and South Dakota, Wyoming, Oklahoma, Montana, Colorado, Nebraska, Kansas, Iowa, New Mexico, Minnesota and Missouri.” This development provides SalonCentric with a territory covering most of the United States. “The decision to sell to L’Oréal was a natural one for the family,” adds Bill Peel, president of Peel’s. “Our two companies have been linked for a very long time. Our father, Bob Peel Sr., was one of the first Redken distributors in the United States back in the ‘60s. About 10 years later, our company also became the first Matrix distributor in the United States. Both Redken and Matrix are now L’Oréal brands. We’ve built our success on one simple philosophy: help the salon customer to be a better business person and you will earn all their business. That’s a philosophy we share with SalonCentric.” The Peel family has been working in the salon business since it was founded in 1937. Bob Peel, Sr., is still an active participant and his sons, Bill and Bob, manage the business day-to-day with Bill serving as president. All three will stay on following the acquisition. Bob’s and Bill’s children and their spouses are also involved in Peel’s Salon Services. On November 30, Coty Inc. and OPI Products Inc. announced that Coty has entered into an agreement to acquire OPI. "We view the acquisition of OPI as complementary to Coty and a natural extension of our strategy to offer a unique portfolio of brands that produce some of the best known consumer products around the world," said Bernd Beetz, Coty Inc. CEO. "OPI is both dynamic and high quality and has earned its place as a leading provider to professional nail care salons. This acquisition will allow Coty to expand our presence in the nail care category via an important new channel of distribution, professional salons, and more importantly will offer an even greater selection of products and choice to consumers." "OPI has gained a place in consumer's minds in the United States and internationally," said Renato Semerari, Coty Beauty president. "It is one of THE fashion brands in nail color for salons, and that is a very unique position. OPI's success is the result of a very focused and high quality effort by the OPI team. We are very excited to join forces with such a talented team to strengthen OPI even further in the future." "It's time for a new era at OPI and together with Coty we can begin this new journey," said George Schaeffer, president/ CEO of OPI Products Inc. "For almost 30 years, we have built a solid foundation of innovation and excellence. We are confident that by joining Coty, this legacy will continue and be strengthened. Our management team will continue on with the company and OPI's business strategy will remain focused on the salon professional." "OPI has a reputation for creating fashionforward products that make women feel beautiful, and Coty is a well-established trend setter in the beauty industry," said Suzi Weiss-Fischmann, executive vice president and artistic director of OPI Products, Inc. "Together we will continue to push the envelope in beauty, color and trends." Dabur India, a consumer goods company, has acquired Namasté Laboratories and its three subsidiary companies for $100m, marking Dabur’s entry into the ethnic hair care market in the United States, Europe and Africa. The New Delhi-based firm will gain control of Namasté’s Hair Rejuvenation and Revitalization Nigeria Limited, Healing Hair Laboratories International and Urban Laboratories International, along with its South African arm. “This acquisition is in line with our strategy to build a global presence in the international FMCG market,” said Dabur’s Chairman Dr. Anand Burman. “The Namasté Group has a complementary product mix that can be easily integrated with Dabur and will also serve as a gateway to the U.S. market for our consumer products.” Namasté was founded in 1996 to fulfill the needs of health-conscious consumers of African descent with a range of products developed with natural ingredients. The company controls a 12% market share in the United States and enjoys significant market positions in many countries in Africa, the Middle East, Europe and the Caribbean region of North America. Founder/CEO of Namasté, Gary Gardner, will continue to run the business, along with the current management team, as a wholly-owned subsidiary of Dermoviva Skin Essentials, a subsidiary of Dabur India. Gary said, “In Dabur, we have found a strategic partner who will help realize our vision of becoming the hair care brand of choice for people of color worldwide. With their presence in Africa, and with our knowledge of the consumer of African descent, we look forward to building a global presence rooted firmly on the African continent.” Namasté’s North American sales team will also remain in place, and its existing relationships with retailers, wholesalers, distributors and suppliers will not change as a result of this transaction. Reach Gary at 708-824-1393, ext. 231, or [email protected]. Visit www.namaste.com. Empire Education Group, the largest provider of cosmetology education in North America, has acquired The M.G. Westmore Academy of Cosmetics Arts, the first name in makeup education, from its founder and owner, Marvin G. Westmore. Empire plans to rebrand the Burbank, CA school and continue its tradition as an advanced makeup academy for salon, spa, television, motion picture, theatre, runway and session makeup artists at its current location. Marvin G. Westmore, who founded the Westmore Academy in 1981, will remain as a consultant to Empire for the academy. Marvin is a six-time-Emmy-nominated, thirdgeneration professional Hollywood makeup artist with more than 45 years in consumer makeup and in the motion picture and television industries. He will also offer consultation on Empire’s makeup program at its New York City campus. Marvin will continue to be the curator of the George Westmore Research Library and Museum. Empire will incorporate some of the museum’s artifacts and historical collections into its curriculum. “The Westmore family is truly the first family of makeup in every sense of the word—they even have a star on the Hollywood Walk of Fame as a tribute to four generations’ contributions to their art and craft,” says Franklin K. Schoeneman, chairman and CEO of Empire Education Group. “Together, the Empire family and the Westmore family will provide working makeup artists, as well as Empire’s cosmetology students, with a new level of excellence and experience in makeup education, increasing their career options after graduation.” To learn more, visit www.empire.edu. News continued on page 22 JANUARY 2011 21 The Beauty Industry Report Visit www.bironline.com News continued from page 21 Regis Corporation recently announced that its board of directors has concluded its review of strategic alternatives, and after a thorough and robust process, the board has determined that the most appropriate course of action for maximizing shareholder value is for Regis to continue to execute upon its existing business plan as an independent public company. Regis previously announced in August that its board had authorized the exploration of strategic alternatives. Says Paul D. Finkelstein, chairman and CEO, “The pricing was not acceptable for our board, so we decided to implement our own initiatives for both enhancing a better customer experience, as well as implementing a CRM marketing program in order to generate new and additional trial. We are confident with the strength of our brands and locations. We explored all the possibilities and decided that the best outcome is to be on our own, as a public company.” He added, “Regis is a great business that provides consumers an affordable necessity. We have exceptional national and regional brands, and our portfolio consists of affordably priced salons located in prime retail locations. With a 4% market share in North America and a 2% share worldwide, we see no ceiling with respect to our growth opportunities. We believe that customer visits will stabilize and in the meantime, we remain focused on executing our business plan and on positioning the company for future growth. We are very confident in Regis' future prospects and in our ability to generate significant long-term value for our shareholders." Reach Paul at 952-947-7910 or [email protected]. Visit www.regiscorp.com. Sally Beauty Holdings, Inc. announced strong financial results for the fourth quarter 22 JANUARY 2011 and fiscal year that ended September 30. “Sally Beauty Holdings delivered outstanding results across the businesses in fiscal year 2010,” stated Gary Winterhalter, president/ CEO. "For the fiscal year, consolidated sales were up 10.6%, with same-store sales growth of 4.6%. Net earnings grew by 45% over the prior year and adjusted EBITDA reached $405 million. We executed on all of our strategic objectives, including the addition of 145 stores, gross margin expansion of 100 basis points and a reduction in our long-term debt by $125 million. Looking ahead to fiscal year 2011, we anticipate another year of growth and strong performance." Net sales: For the fiscal 2010 fourth quarter, consolidated net sales were $747.8 million, an increase of 10.6% from the fiscal 2009 fourth quarter. This increase is attributed to same-store sales growth, acquisitions and the addition of new stores. Consolidated net sales for fiscal year 2010 were $2.9 billion, an increase of 10.6% from fiscal year 2009. Fiscal 2010 sales increased primarily due to same-store sales growth, acquisitions and the addition of new stores. Consolidated same-store sales growth in fiscal year 2010 was 4.6% compared to 1.8% in fiscal year 2009. Gross profit: Consolidated gross profit for the fiscal 2010 fourth quarter was $366.0 million, an increase of 14.4% over gross profit of $319.8 million for the fiscal 2009 fourth quarter. Gross profit as a percentage of sales was 48.9%, a 160 basis point improvement from the fiscal 2009 fourth quarter. For fiscal 2010, consolidated gross profit was $1.4 billion, an increase of 13.0% over fiscal 2009 gross profit. Gross profit as a percentage of sales was 48.2%, a 100 basis point improvement from fiscal year 2009. Gross profit margin improved in the fiscal 2010 fourth quarter and full year due to gross profit margin expansion in both business segments driven by improved product and customer mix, low cost sourcing and improvement in Sally Beauty Supply's International businesses. Net earnings in the fiscal 2010 fourth quarter were $42.0 million; a growth of 55.8% over GAAP net earnings of $27.0 million in the fiscal 2009 fourth quarter and a growth of 69.3% over adjusted net earnings of $24.8 million in the fiscal 2009 fourth quarter. For the 2009 fiscal year, adjusted net earnings were $95.9 million, or $0.52 per share, and exclude a $3.2 million after-tax non-cash interest credit related to the interest rate swaps. Adjusted EBITDA for the fiscal 2010 fourth quarter was $110.5 million, an increase of 22.5% from $90.1 million for the fiscal 2009 fourth quarter. The adjusted EBITDA for fiscal 2010 was $404.9 million, an increase of 14.9% from $352.5 million in fiscal 2009. Business segment results for Sally Beauty Supply for fiscal 2010: Sales of $475.3 million, up 8.5% from $438.0 million in the fiscal 2009 fourth quarter. The negative impact of unfavorable foreign currency exchange on net sales was $5.1 million, or 1.2% of sales; same-store sales growth of 4.7% vs 3.1% in the fiscal 2009 fourth quarter; gross margin of 53.8%, a 210 basis point improvement from 51.7% in the fiscal 2009 fourth quarter; segment earnings of $84.7 million, up 18.5% from $71.5 million in the fiscal 2009 fourth quarter; segment operating margins increased to 17.8% of sales from 16.3% in the fiscal 2009 fourth quarter. Sales growth in the fiscal 2010 fourth quarter was driven by same-store sales, acquisitions, new store openings and favorable foreign currency exchange. Gross profit margin was positively impacted by a shift in product and customer mix, low-cost sourcing initiatives and improvement in the international businesses. Business segment results for Beauty Systems Group (BSG): Sales of $272.5 million, up 14.5% from $238.1 million in fiscal 2009 fourth quarter. The positive impact of favorable foreign currency exchange on net sales was $1.1 million or 0.5% of sales. Growth from acquisition-related revenue was 8.3%; same store sales growth of 6.9% vs 0.4% in the fiscal 2009 fourth quarter; a gross margin of 40.5%, up 120 basis points from 39.3% in the fiscal 2009 fourth quarter; segment earnings of $30.8 million, up 21.3% from $25.4 million in the fiscal 2009 fourth quarter; segment operating margins increased by 60 basis points to 11.3% of sales from 10.7% in the fiscal 2009 fourth quarter; sales for BSG were positively impacted by growth in same store sales, improvement in the BSG sales consultant business, acquisitions, and new store openings. Segment earnings growth is primarily due to improvement in gross profit and synergies realized from the Schoeneman acquisition. Fiscal 2010 Results for BSG: Sales of $1,081.5 million, up 14.9% from $940.9 million in fiscal 2009. The positive impact of favorable foreign currency exchange on net sales was $12.7 million, or 1.3% of sales. Growth from acquisition-related revenue was 9.0%; same-store sales growth of 6.2% vs 1.0% in fiscal 2009; gross margin of 39.6%, up from 38.7% in fiscal 2009, a 90 basis point improvement; segment earnings of $112.5 million, up 22.8% from $91.6 million in fiscal 2009; segment operating margins increased to 10.4% of sales from 9.7% in fiscal 2009, a 70 basis point improvement; net store base increased by 36 or 3.6% for total store count of 1,027 including 159 franchised locations; total BSG distributor sales consultants at the end of fiscal 2010 were 1,051 vs 1,022 at the end of fiscal 2009. Reach Gary at 940-297-4444 or [email protected]. Visit www.sallybeauty.com. Kenra Professional has adopted The Rapunzel Project, a non-profit organization dedicated to helping cancer patients keep their hair during chemotherapy, as its company charity and donated $50,000 to support the organization’s efforts to help cancer patients keep their hair during chemotherapy via a unique cold cap approach. Commonly used overseas, it has been shown to prevent hair loss associated with chemotherapy. “Keeping your hair while undergoing chemotherapy is not about vanity—It’s about identity,” explains Nancy Marshall, co-founder of The Rapunzel Project. “Knowing she can keep her hair can help liberate a patient emotionally and physically from the ‘cancer patient’ label and improve self-image, dignity and morale— vital, yet often overlooked, elements of overall wellness. Cold caps are not a cure for cancer, but they are an enormously powerful game changer for patients. We are delighted to partner with Kenra Professional to bring that important message to the professional beauty industry, which is critical to spreading our story.” The Rapunzel Project is very personal to its founders, Shirley Billigmeier and Nancy Marshall—both breast cancer survivors. When Shirley needed to undergo chemotherapy, she immediately set out to purchase a wig— anticipating the loss of her hair. In the process, she inadvertently heard about the cold cap therapy. She began to investigate and connected with Frank Fronda, the scientist who invented a cold cap that has been widely used in Europe for 15 years. Shirley learned that it would be possible to rent the cold caps, and she approached her oncologist, who was extremely supportive, about the possibility The biggest obstacle was that the caps have to be used at -30° centigrade (-22° F), a temperature that normal freezers do not reach. Nancy started fundraising to purchase a suitable freezer for the caps. Shirley wore the caps during her chemotherapy and did not lose her hair! She and Nancy decided that they needed to make more cancer patients, their physicians and hair stylists aware of this new technology. The Rapunzel Project was born. Says Tim McMeekan, CEO of Kenra Professional. “Kenra Professional supports The Rapunzel Project’s goals to raise awareness of the existence and efficacy of cold caps for preserving hair during chemotherapy and to raise funds to purchase biomedical freezers for oncology facilities. We are proud to donate $50,000 and committed to raising an additional $250,000 for The Rapunzel Project on behalf of the Kenra Professional company team, distributors, vendors, salons and consumers. As a company and in conjunction with Shirley and Nancy, we are setting audacious goals to eradicate hair loss for chemotherapy patients by helping hospitals obtain the freezers and support systems. We will be engaging our customers, distributors and partners to support this important cause.” To learn more, get involved or make a donation, visit www.rapunzelproject.org. The Beauty Bus Foundation, a non-profit organization dedicated to enhancing the quality of life for terminally- or chronicallyill individuals and their caregivers with free in-home beauty treatments, received the support of Bosley Pro for breast cancer awareness month. Bosley created custom shampoo and conditioner packages and gave a portion of the proceeds to the Beauty Bus Foundation, which will earmark those dollars for services for individuals affected by breast cancer. Beauty Bus provides a lift to breast cancer patients and other people dealing with illness, helping them feel beautiful inside and out. Reach Alicia Liotta, founder, at 310-287-1272 or [email protected]. Visit www.beautybus.org. Beauty Brands Salon Spa Superstore locations completed their annual “It Takes Guts” campaign and raised a record $113,426 in donations to support 24 domestic violence shelters in 11 states. During the fall, the Beauty Brands locations donated 100% of sales from Redken’s Guts volumeboosting spray foam to the shelters. Customers were also invited to make a donation. Redken donated 100% of the Guts product that was sold. The fundraiser was part of Beauty Brands’ annual END ABUSE program to support victims of domestic violence. Since its inception in 2001, the program has raised more than $670,000 for domestic violence shelters. Reach Kristy Lewis, director of marketing, at 816-531-2266 or [email protected]. Visit www.beautybrands.com. JANUARY 2011 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 Dermalogica has named Dan Ginsburg as its new CEO. Previously Dan, whose specialty is branding, led the stratospheric growth of Red Bull North America for five years. Jerry Wenker is chief operating officer and Raymond Wurwand is chairman of Dermalogica. Reach Dan at 800-831-5150 or [email protected]. Visit www.dermalogica.com. Sexy Hair Concepts, LLC has filed for Chapter 11. The petition back! Paris is counter-suing the hair extension company, which previously sued her for $35 million for breach of contract. Paris claims she was defrauded and is asking for $2.1 million. Stay tuned. lists $78 million in assets and approximately $91.1 million in liabilities. The company is expected to emerge shortly. Latest legal update between Hair Tech International and Paris Hilton, as the heiress strikes BIR was sad to learn of the passing of renowned educator, Donald Scoleri, from his dear friend and colleague, Raylon’s Howard Hafetz. Details in the February issue. BIR invites you to share your thoughts/memories. Roy Hurley, who has been general manager with Z-One Hair Care, is leaving the company, effective March 1, to run his XZellent Distribution LLC, based in Peoria, AZ. For the past 18 months, XZellent has been distributing Z-One and will continue to do so. “Currently, Laura Chapman is running the distributorship with me in the background, but of course, that will change as of March 1,” says Roy. Reach Roy at 632-344-0000 or [email protected]. 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