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
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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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