Will private label affect your brand?
Transcription
Will private label affect your brand?
MARCH 2011 volume 14 issue 3 Will private label affect your brand? By Donna C. Barson, MBA A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ highlights 5 FHI Heat in aggressive growth mode 6 Sara Jones discusses Joico/City of Hope 8 Cilea grows/strengthens lashes 10 Beauty Expo USA moves to the Rio 11 Western Buying Conf. marks 30 years 12 Education/sales strong at ISSE 16 Sexy Hair marks record 2010 19 ISBN honors Charles Penzone 21 Emiliani acquires BPI 24 Mane St. Lafayette Jones’ Multicultural Report 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/mike@bironline.com I invite you to connect with me on Facebook and follow me on Twitter@MikeNave by Mike Nave EDITOR I t’s show time in the professional beauty industry, and Beauty Industry Report is hot on the trail of the biggest scoops from the show floors. In this issue, we are delighted to report from the International Salon and Spa Expo in Long Beach, CA, and from the Western Beauty Rep Association’s Western Buying Conference and the Beauty Expo USA, both in Las Vegas. In between shows, we checked in with Sara Jones, the recipient of the 2011 Spirit of Life Award, to find out about her commitment to the City of Hope. David Kim shares the new marketing initiatives that are fueling FHI Heat’s growth. Byron Dennis tells us about Cilea eyelash growth stimulator. Finally, join Sexy Hair Concepts’ Karl-Heinz Pitsch at an exciting event for the company’s sales team and distributors. Regards, P rivate label personal care brands are becoming even more prevalent than in the past and are emerging as a major threat to national brands, even salon hair care brands. Consumers increased their usage of these products during the recent recession, and as the economy improves, that might continue. Retailers are using them to build customer loyalty, differentiate themselves and, of course, improve margins. Today, in every category from food to health care, retail outlets are aggressively stocking private label products next to national brands and are often using private labels to attract the customer into the store—instead of the better-known national brand. From packaging down to performance, private labels are giving the national brands increased competition, and in the hair care area, many have salon hair care positioning. What does that mean to the savvy marketer? Simply this: Private labels have emerged as a definite threat to sales, shelf positioning and even the decision of what products are carried. How have private labels become such a player in the retail marketplace? Obviously, a rise in quality has been a major consideration. Additionally, innovative packaging, advertising and various promotions help to attract consumers. Marketers understand that packaging is the place at which consumers interact with the product, and they’re not shy about putting their best foot forward at point-of-purchase. Who does this private label challenge affect the most? Major personal care products, despite some hiccups, are not going anywhere. However, what is going to occur is that the “in-betweens”—those products that don’t have major brand clout— Private label....cont. on p. 2 The Beauty Industry Report Visit www.bironline.com Private label...cont. from p. 1 are going to find themselves squeezed, perhaps right out of existence. There are so many new personal care items every year. Something’s got to give. Some estimate that private label brand growth for personal care will increase 25% in the next decade. There’s only one place for all those new private label products to go—your shelf space, if you’re not careful. So what’s a marketer to do? 1. Continually analyze and get intimate with your customers. Anticipate rather than react. If you offer something your customers want and private labels do not, you increase the likelihood of premium shelf space. 2. Start/improve on a loyalty program that rewards your customers for product use. Offer discounts for purchase of multiple products from your company. Work with salons to help them grow their retail business. 3. Market, market, market. Make certain that your customers know why they should buy your product over a private label. Make customers seek out your product. 4. Use more social media. Establish a sense of community via Facebook, Twitter, YouTube, hotlines, websites and anything else needed to give your customers instant access to you. Make them feel you’re right next door —or they might show you the door. _____________________________ Donna C. Barson, MBA, is a marketing consultant specializing in personal care, beauty retailing and salon hair care. To learn more about keeping your brand competitive in a changing marketplace, reach her at barson@barsonmarketing.com. BIR invites you to become a Guest Columnist. Send your thoughts in about 450 words, including a one-paragraph author bio, to mike@bironline.com in an MSWord document. We will edit your column for style and space. 2 MARCH 2011 Michael O’Rourke recently invited salon professionals to invest in his new company. An excerpt from the announcement follows: “Thank you so much to everyone for their love and support in 2010! 2011 is going to be an amazing year! I have made an incredible decision in my life after seeing the landscape of the professional beauty industry this year; I have decided that artists need a way to be safe as they get older. I am going to offer a limited number of shares of Michael O'Rourke Hair (The Institute of Courage LLC) to artists. I am going to enable artists to get in early on my amazing company and to have something they can support and that will support them back in the future. We don't need to sell our company that has been 50 years in the making to industry giants or private equity groups; we need to keep the business for ourselves, the artists! Every company that says they support the artist and creativity eventually sells out. I myself did it with Sexy Hair. I didn't have the money to run it, and I had to take partners that just pushed for numbers (of course they all made millions, as did I), and it lost the heart I wanted so much for it to have. I sold Sexy Hair five years ago as a debt-free, healthy company growing at 30% per year. Now I am in a totally different position. I will make my legacy line the best line in the industry, and more importantly, it will truly be a line for artists by an artist. We also want to support our sales people in the field and our distributors, so all of our friends in these supporting roles will be eligible to be shareholders. I have made a lot of money and made lots of other people money. It is time to give back to the artists and the people in this industry who work so hard to keep it all together! Shares will be sold in blocks of 100 at $2.00/per share. The minimum investment is $200.00, while the maximum is $1,000. For information, contact Nicole Pellsier at nicole@michaelorourkehair.com. I am beyond excited to take on my friends as partners and drive my legacy line in 2011! Love, Michael.” Visit www.michaelorourkehair.com. Driven by stronger service and retail sales in the fourth quarter, the Professional Beauty Association’s Salon/Spa Performance Index bounced back from its third quarter decline. The Salon/Spa Performance Index stood at 103.5 in the fourth quarter, up 0.2% from the third quarter and the second-highest level on record. Sixty-four percent of salon/spa owners reported an increase in same-store service sales between the fourth quarters of 2009 and 2010, and 47% of salon/spa owners reported higher retail sales between the fourth quarters of 2009 and 2010. Seventy-four percent of salon/spa owners said they expect to have higher service sales in six months and 56% of salon/spa owners plan to make a capital expenditure for equipment, expansion or remodeling in the next six months. Reach Myra Y. Irizarry, manager of government affairs, at 480-455-3451 or myra@probeauty.org. Visit www.probeauty.org. Zerran International introduces RealLisse, a vegan, semi-permanent hair smoothing system. RealLisse is formulated without keratin or other animal products and does not contain substances that produce formaldehyde gas upon heating with a flat iron. “With the formaldehyde issues arising from the European Union’s ban of certain keratin straightening products in the summer of 2010 and the investigations last fall, it was essential that we support the stylist community with a healthy alternative product for hair smoothing,” says Cindy Van Steelandt, marketing director. According to Steve Sauté, president, RealLisse is free of formaldehyde and is exclusively for use as an in-salon service. “Since 1986, we have held patents to the critical components of this product,” notes Cindy. “So we were able to react quickly and devote our resources to bringing this product to market. The RealLisse technique is similar to the keratin smoothing process, meaning that once training is complete, stylists will be able to carry out the treatments straight away. It takes about 90 minutes to complete for the average head of hair. Follow-up services will depend on how quickly the hair grows out and the degree of natural curl and frizziness present. Clients will likely return to the salon every two to four months for touch ups, just as they do now for Brazilian keratin-type treatments.” Reach Steve at 800-626-1921 or steves@zerranhaircare.com. Visit www.zerranhaircare.com. Repêchage introduces the Sea Spa Lifestyle Collection for home use. The four-product lineup features EcoCert seaweeds harvested from the Brittany Coast of France that are rich in vitamins, minerals, proteins, amino acids and trace elements, sea salts harvested from the Mediterranean and natural essential oils. The line includes soybean-based Sea Spa Massage Bath & Body Oil (8 ounces/SRP $25.00), sulfatefree Sea Spa Bubble Bath (8 ounces/SRP $25.00), soap-free Sea Spa Body Wash (8 ounces/SRP $27.00) and Sea Spa Mineral Bath Salts (17.6 ounces/SRP $32.50). Reach executive vice president, Shiri Sarfati, at 800-248-SKIN or shiri@repechage.com. Visit www.repechage.com. Several members of The Kirschner Group (TKG) were recognized by their partner manufacturers during TKG’s annual sales meeting before the Western Buying Conference. Mike Cevetillo was named Representative of the Year by Erica Peterson, vice president of sales from Onesta Hair Care. Greg Peterson, national sales manager with Oster Professional Products, recognized Todd Smith, Alan Aronson and Kevin Osterloh as the three sales executives with the highest percent sales increase for 2010. Product Club’s vice president of sales, Kevin Palmquist, named Todd Smith, Phil O’Toole and Irwin Hass as the highest sales generators for 2010. Mike Cevetillo and Alan Aronson were recognized by Tyler Oman, regional sales manager for HAI, as the top volume producers for the year. Reach Jane Caris, TKG vice president of sales and marketing, at 800-328-4353 or jane@kirschnergroup.com. Visit www.kirschnergroup.com. Number 4 High Performance Hair Care pampered Golden Globes attendees in the Golden Globes Style Lounge. Number 4 invited all attendees, including the Real Housewives of Orange County and Beverly Hills, to experience the products through hair styling with Ryan Thomas, owner of Ryan Thomas Salon, and Red Carpet consultations with top hair stylists, along with a personalized gift of Number 4 products to suit each person’s individual hair needs. Elite Number 4 salons, including Hyde Edwards, Crème Color Lounge, Salon Envie and Michel Beneroch, were invited through Number 4 and its California distributor, viaBeauté. “As a perk to our VIP salons, we gave them a sneak peek into the glamorous world of Hollywood beauties with a tour through the Golden Globes Style Lounge and rare, behind-the-scenes access to pre-Golden Globes festivities,” says Toni Wells, brand director. Reach her at 800-507-6250 or toni@number4hair.com. Visit www.number4hair.com. As reported last month in BIR’s Last Minute Blasts, Regis Corporation announced that Randy L. Pearce, senior executive vice president and chief financial and administrative officer, has replaced Paul D. Finkelstein as president. Paul will remain chairman of the board and CEO through 2011. In 2012, Paul will become executive chairman. “Having spent the last 23 years with Regis Corporation, I am proud of the growth and development of our exceptional national and regional brands, as well as the company’s portfolio of affordably priced salons located in prime retail locations,” says Paul. “Randy has been an integral part of the company since he joined Regis more than 25 years ago. I am confident that his extensive knowledge of Regis and the hair care business makes Randy the right choice to serve as the company’s president. This is an appropriate time in the company’s history to begin looking toward the future by taking the first step toward building out our bench and continuing the succession process.” Says Randy, “I am honored to succeed Paul as president, and I value the trust that Paul and the board have placed in me to assume this important operational role at the company. Under Paul’s leadership, Regis has experienced extraordinary growth and has expanded its position as the global leader in the hair care industry. I plan to leverage that strong foundation by sharpening our vision and strategy in the context of the current economy with increased focus on the consumer and our stylists. We plan to implement our current revenue enhancing initiatives with a sense of urgency and deliver long-term value to shareholders.” A corporate organization restructuring will improve the company’s ability to adapt to the dynamic marketplace and the current economy. David Bortnem, formerly head of operations of the MasterCuts brand, has been appointed to the new position of corporate chief operating officer. He will oversee all Regis brands in North America and report to Randy. Brent Moen, vice president of finance and corporate controller, has been appointed to senior vice president and chief financial officer. Reach Randy at 877-8572070 or randy.pierce@regiscorp.com. Visit www.regis corp.com. News continued on page 4 MARCH 2011 3 The Beauty Industry Report Visit www.bironline.com News continued from page 3 Farouk Shami, hairdresser, entrepreneur, philanthropist, founder and chairman of Farouk Systems, has been appointed to the 2011 Inaugural Committee by Texas governor Rick Perry. The committee arranges ceremonies for the inauguration of the governor and lieutenant governor and raises private donations to cover expenses. Reach Farouk at 800-237-9175 or fshami@farouksystems.com. Visit www.farouksystems.com. Tyler Feetham joins Pravana as regional sales manager. Tyler will be responsible for the SalonCentric West and MidWest region accounts. According to Steve Goddard, Pravana founder and president, “Tyler has been in and around the beauty industry his entire life, most recently with Kenra as regional manager, senior regional manager and director of business development. He graduated with a marketing degree from Texas Tech University and now resides in Dallas.” Reach Steve at 818-347-4705 or sgoddard@pravana.com. Visit www.pravana.com. Ben Im, chairman of Ben’s Beauty Supply, Inc., has named David Yoon as CEO. David has been the president since 2004. During his 21-year career with Ben’s Beauty, David has managed every aspect of the beauty supply business, ranging from operations to sales and marketing. Under his guidance, Ben’s Beauty has become one of the country’s largest multicultural beauty products distributors. With locations in Houston; Philadelphia; and Jessup, MD; Ben’s Beauty warehouse/showrooms encompass more than 500,000 square feet and offer more than 20,000 individual product skus. In 2010, Ben’s Beauty Supply established its flagship Beauty Design Group warehouse location. The Beauty Design Group provides OTC beauty retail store owners access to warehouse style shopping. Products range from fixtures to clothing, jewelry, bobby pins and everything in between. Beauty Design Group plans to launch an 80,000-squarefoot expansion into Maryland and Philadelphia in 2011. Reach David at 713-789-0025 or david@bensbeauty.com. Visit www.bensbeauty.com. Kevin Wada joins Jatai International as manager of operations, says Jatai president, Dean Wada, who is proud to bring his son, into the business. Kevin's responsibilities include overseeing accounting, purchasing, website management and warehouse-related maintenance operations. Reach Dean at 888-965-2824 or dwada@jatai.net. Visit www.jatai.net. Rex Blair, vice president of State Beauty Supply, is leaving his position as president to spend more time with his family, according to an announcement sent out by Gregg Wilkinson, executive vice president. Another development at State Beauty Supply is the appointment of Fred Harms as vice president of sub-distribution operations. Gregg stated, “Fred will be responsible for working with sub-distributor stores to lead marketing and territory development. Most significantly, Fred will partner with existing store owners on growth and expansion strategies and seek new opportunities for expansion of the sub-distributor network, as well as managing the sub-distributor sales objectives. Fred held a similar position for State Service Systems from 1988 until 2000. As a consultant since 2009, Fred has worked with SalonCentric to develop the strategic and operational plans to integrate additional acquisitions; expand the network of subdistributors nationally and identify operational support services and investment requirements to improve performance.” Reach Fred at 918-627-8000 or fredh@statebeauty.com. Visit www.statebeauty.com. Neil Sullivan has joined the sales force of Farouk Systems, Inc. as the director of Cosmoprof East. Neil will oversee all Cosmoprof and Beauty Systems Group business in the Southeast, increase brand awareness and launch new products, in addition to managing trade shows and education events. Neil is a licensed hairstylist and salon owner and has 18 years of sales management experience. For the last 10 years, he has held national and regional management positions for Wella and John Paul Mitchell Systems. Reach Neil at 800-237-9175 or nsullivan@farouk.com. Visit www.farouk.com. TPR Holdings has named Neil Katz as its special advisor. TPR is an investor and operator in the consumer products industry. TPR’s target investments include scalable mass and prestige opportunities in health, beauty and wellness categories. Neil will help create strategy across the entire TPR consumer portfolio and evaluate acquisitions and other new opportunities. Neil began his career in the beauty industry in 1977 at Revlon, where he progressed from director of market research and sales forecasting to president of the beauty care division. Most recently, Neil served as CEO/ chairman of the board of Parlux Fragrances. Reach Brian Robinson, TPR president, at 212-755-9300 or info@tprhholdings.com. Visit www.tprholdings.com. Robert “Bob” Crane knew only one career—the beauty industry. Bob was born in Chicago in 1929. In 1955, he began his career in the beauty industry as part of Crane Beauty and Barber Supply, a family-owned company with his father, Norman Sr., and brother, Norman Jr., where he was a salesman calling on salons and schools. From 1980-1986, Bob worked as a sales representative for Ben Payne and later on, Bobby Miller. In 1986, Bob created the sales rep group Crane Sales Associates with his brother, Norman, where he continued to work until his passing at 81 on November 18. Bob is survived by his wife, Elaine; son, Steven; daughter, Caroline, and grandchildren, Joshua and Meredith. News continued on page 20 4 MARCH 2011 The Multicultural Report T he American Health and Beauty Aids Institute (AHBAI) hosts the Proud Lady Beauty Show at the Sheraton Chicago Hotel and Towers on March 26-28. Five professionals will speak to their experiences. Marcus Davis worked on the films of actor and director Tyler Perry. Kevin Kirk was featured in the Chris Rock film, “Good Hair.” Tajuana Hughes has worked with the recording artist, “Nappy Roots.” Barber Craig Damon has Tyler Perry as a client and has worked on TV sitcoms. Tobby Leverette has styled gospel singers, including the Clark Sisters and Dottie Peoples. Dwight Eubanks has a whole cast of celebrity clients: “The Real Housewives of Atlanta.” Reach Clyde Hammond, AHBAI chairman, and Geri Jones, executive director, at 708-633-6328. Visit www.proudlady.org. Giorgi-O of Beverly Hills is no stranger to Hump The Grinder's Hair Wars. He was a hair stylist and entertainer at a Los Angeles show in the late ’90s. By 2001, Giorgi-O was the tour commentator and hosted shows in Los Angeles; San Diego; Oakland, CA; Las Vegas; Columbus, OH; and Chicago. It was in San Diego where producers and writers for “The Hair Show” movie spotted Giorgi-O and hired him to play commentator "Dark" Gable in the film. He will make his first trip to Detroit for the Hair Wars finals in April. “I’ve been trying to get to Detroit for 20 years,” he said. “! love Latoya Pearson (the announcer) and all the hair stars from Detroit who've made hair history,” he adds. The event is Sunday, April 17, at the Metropolitan Hotel in Troy. Reach David Humphreys at humpthegrinder@ameritech.net. Visit www.hairwarsustour.com. Ampro is a Hair Wars tour sponsor. Ampro Pro Style Protein Styling Gel is a protein enriched hair conditioning and styling gel with a non-greasy formula that won't flake or weigh hair down. Its light weight formula gives extra body and fullness to the hair while conditioning and adding shine (6 ounces/SRP $1.34). Reach Jack Sammons, president, at 901-527-5365. Visit www.amprogel.com. Want to find out how to succeed with multicultural consumers? Attend a multicultural conference to find out more about trends, the by Lafayette Jones latest in social media and marketing success stories. The Association of National Advertisers’ (ANA) Multicultural Marketing & Diversity Conference will open Sunday, November. 6, in Miami Beach, FL. Visit www.ana.net. Avlon’s KeraCare Moisturizing Shampoo for Color Treated Hair is a moisturizing conditioning shampoo formulated to enhance and preserve tone in color-treated hair. It gently and thoroughly cleanses the hair and scalp and contains Fiber Strengthening Complex (FSC). It helps shield hair from UV rays (8 ounces/SRP $6.39). William Stuart is executive vice president. Ali N. Syed is the founder. Call 800-332-8566. Visit www.avlon.com. Design Essentials Moisture Retention Conditioning Shampoo has a protective formula that is gentle enough to use every day. The non-stripping formula lathers quickly to detangle and smooth the cuticle (8 ounces/ SRP $9.00) Cornell McBride Jr. is president of McBride Laboratories. Call 770-981-8722. Visit www.designessentials.com. Dudley Products Deluxe Shampoo is a protein-enriched shampoo that conditions while it cleanses. Its acid-balanced formula improves the quality and texture of natural, relaxed, bleached and color-treated hair (8 ounces/SRP $10.00). Reach Ursula Dudley Oglesby, president of the Dudley cosmetic division, at 888-573-8210. Visit www.dudleyq.com. Organic Root Stimulator Olive Oil Sheen Spray provides a natural, healthy sheen to dry hair. Oil is rich in essential fatty acids that impart moisture directly into the scalp and hair shaft (15.4 ounces/SRP $4.79). Reach Gary Gardner, founder, at 708-824-1393. Visit www.organicrootstimulator.com. Crème of Nature Argan Oil Foaming Wrap Lotion is light and non-drying with a unique, shine-enhancing formula that nourishes the hair while giving it body, long-lasting hold and a soft, silky feel. Moisturizers are infused with certified organic argan oil from Morocco (7 ounces/SRP $4.99). The brand has been revived by Colomer USA. Reach Stuart Straus, vice president of sales, at 800-944-4247. Visit www.thecolomergroup.com or www.cremeofnature.com. Doo Gro Mega Thick Growth Oil helps thicken and strengthen weak, damaged hair. Its blend of oat protein, oat extract, meadowfoam seed oil, vitamins, pure herbs, shea butter and botanical thickeners provides nourishment for strong, healthy, growing hair. (4.5 ounces/SRP $5.99). Reach Scott Altman, president, at 877-436-6476. Visit www.doogro.com. Black consumers are heavy consumers of media—especially of television and all of its offshoots. When it comes to beauty products, companies like Johnson & Johnson, SoftsheenCarson and Procter & Gamble are learning the value of TV channels. like Black Entertainment Television (BET), a black marketing juggernaut. BET Networks is a subsidiary of Viacom Inc. and provides entertainment, music, news and public affairs television. The primary BET channel reaches more than 90 million households in the United States, Canada, the Caribbean, the United Kingdom and subSaharan Africa. Its business extensions include BET.com, which has black entertainment, music, culture and news, and CENTRIC, a 24hour entertainment network targeting the 25to 54-year-old African-American audience. The BET digital networks include BET Gospel, BET Hip Hop, BET Home Entertainment (DVDs and video-on-demand); BET Event Productions (event management and production for festivals and other live events); BET Mobile, (ringtones, games and video content for wireless devices); and BET International, which operates in the United Kingdom and oversees network distribution. To learn more about partnering with any of these entities, reach Debra Lee, BET president, at 212-258-6000. Visit www.bet.com. Lafayette Jones is CEO of SMSi-Urban Call Marketing, a promotion and marketing company, and publisher of Urban Call custom publications. Contact him with your multicultural news at 336-759-7477 or president@smsi-net.com. Visit www.smsiurbancallmarketing.com. MARCH 2011 5 The Beauty Industry Report Visit www.bironline.com FHI Heat returns to an aggressive growth mode F or several years, FHI Heat has been one of the hottest appliance companies in the professional beauty industry. With premium tools, the newest technology and a high-end brand imaging and marketing campaign, the company quickly penetrated the marketplace. Then, the industry’s distribution consolidation went into hyper speed, and its rapid changes resulted in a loss of national distribution for the company. After 12 months of regrouping behind the scenes, FHI Heat is back in an aggressive growth mode, stronger than ever, with new national distribution through SalonCentric, a new line of premium appliances that will include high-end shears, a visionary new marketing and advertising campaign and a strong, dynamic education program featuring some of the biggest names in the industry. Beauty Industry Report (BIR) recently sat down with David Kim, FHI Heat’s founder, chairman and CEO, to get the inside story and learn about all of the newest developments at the company. BIR: Welcome, David. Please give BIR’s readers an update on FHI Heat. David Kim (DK): Thanks, Mike. It’s an exciting time for FHI Heat. We’re ready to make some big noise after a quiet spell. FHI Heat has new distribution, a new line of tools, a new ad campaign and a new education platform—all focused on the heroes of our industry, the professional stylists. Wherever stylists reveal their creativity—whether it’s in the salon or behind the scenes of a fashion or entertainment event—FHI Heat will be empowering them to do their best work with premium blow dryers, flat irons, curling irons and other styling tools, and soon, shears. BIR: In a crowded marketplace, what is FHI Heat’s point of difference? DK: Many of our competitors offer some fine tools, but we believe that FHI Heat offers two things that set us apart. First, our approach is focused on the stylist. At FHI Heat, we make tools that empower stylists to reveal their creativity. We are focusing our research and development and marketing directly on the stylists, paying tribute to them as artists and the super heroes behind everyone who needs 6 MARCH 2011 available in more than 6,000 salons. We’ll be to look sensational. To that end, we’re not only adding new tools, including a blow dryer and a offering terrific tools with the newest curling rod, to the line this year. technology to maximize their creativity and In between, to accompany our highefficiency and minimize carpal tunnel performance EPS (Elite Professional Series) syndrome, but we’re also creating a multistyling iron and dryers, we’re launching the dimensional education program that provides revolutionary KORE line of professional tools, the cutting and styling techniques and tool which combines the newest technology in a selection know-how to take stylists from the student level to the top of their profession. We complete collection of tools in the multiple sizes stylists told us they need with a new are confident that we’ll over-deliver on our education program that’s just as cutting edge. promises to support the stylist. KORE stays true to our mission by delivering Second, we’re taking the approach of a innovative products and inspirational designer fashion house, offering lines at every education. KORE celebrates the creativity and price point to meet every need of stylists and passion that fuel stylists to pursue their craft. their clients. For example, we’ve improved and We’ll debut the KORE flat irons, and marcel and relaunched our Runway Iron as our “couture” spring curling irons in multiple sizes at product in a new premium package that America’s Beauty Show in Chicago, then includes our Hot Sauce, T-Rex Hair Clips, our launch the KORE oval brush, blow dryer and carbon combs, a full line of thermal mat and high-end carrying case. At Japanese-steel a $495 suggested shears and our retail price point, new education it’s the iron of program at choice for many Premiere session stylists Orlando in June. who love the fast We are entering heat up and deep the shear conditioning heat market in a very generated by six strategic way. layers of handFHI Heat will debut the KORE line of irons at America’s Beauty Show in Chicago this month. A blow dryer and Stylists are often made pure premium shear collection will launch at Premiere Orlando. confused by the ceramic plates diverse choices and styles of shears. With our that are treated with tourmaline to produce new KORE shears, it is our policy to make sure 20% more moisture-locking negative ions than that every stylist understands the benefits and competing irons and our proprietary Nano uses of each style and size. Using only the Fuzeion technology, which produces finest Japanese steel, our shears are prepared unmatched conditioning and shine. with the most intricate detail possible. Hand On our “Ready-to-Wear” side, we have our crafted and personalized by a unique identity GO Hairstyling Iron by FHI Heat. These are code, each shear will represent a world-class terrific ceramic tourmaline styling irons in fun tool in every aspect. Add to that a series of colors with a value-conscious $84.95 suggested excellent cutting courses and education, and retail price. We support GO Hairstyling with FHI Heat will show stylists that we have limited edition designs, compelling value adds, considered their every need and desire. Watch such as a free tote bag or travel iron, and very out for us! progressive marketing and public relations that Finally, our Platform line remains a solid speak directly to consumers. Since our July stylist staple and consumer favorite, so we’ll launch, our GO Hairstyling Irons are already continue to offer those as affordable, workhorse tools. BIR: Tell me about your new distribution. DK: We are delighted to be launching nationwide with the SalonCentric network. We have already achieved great success in our partnerships with SalonCentric MidwestCentral and SalonCentric Midwest-West, so rolling out through the entire network was a natural next step. We also recently aligned with several key distribution partners across Canada, including West Coast Beauty Supply in British Columbia, Star Bedard in Quebec, Venus in Toronto, IBS in Alberta and Salon Centre in Saskatchewan. At the end of 2010, we opened Mexico and will be opening Brazil and Argentina this year. BIR: FHI Heat has always been known for its groundbreaking imagery. Tell me about the new campaign that launches this month. DK: Our first “FHI was here” campaign was themed around the hottest looks in Hollywood, Music and Fashion. Our new campaign shifts the spotlight to the sensational stylists who create these trend-setting looks. With the tagline “Tools for Seriously Sensational,” these highly stylized ads profile accomplished stylists, whom we call our “VisionMakers,” in a very aspirational and heroic manner. We shot the ads with renowned British fashion photographer Rankin, and they look amazing. This campaign recognizes our VisionMakers for their amazing artistry and FHI Heat as creating the tools that allow them to reveal their creativity. Through our online vehicles, we follow our VisionMakers behind the scenes to take our audience on a unique journey into the lives of these VisionMakers. Our partnership with our VisionMakers extends beyond marketing and PR, as we draw upon their passion and talents to broaden our educational offerings and assist us in product development. Our ad campaign will break online just prior to America’s Beauty Show and in the April issues of leading trade magazines. As part of the VisionMakers campaign, FHI Heat will participate in high-profile events, arming the stylists behind the scenes with the tools they need to achieve amazing results. Last month, many top session stylists at New York Fashion Week used our tools, and we also sponsored a special styling/gifting suite for “Empowering stylists to create beautiful hair lies at the core of everything we do.” American Express’s top customers. Additionally, FHI Heat tools were used extensively to style the stars on the red carpet during awards season, including Anne Hathaway, who co-hosted the Oscars. This month, FHI Heat will be the official styling tool sponsor at Aspen Fashion Week, where our artists will be styling hair for 15 runway shows. In addition, we will also debut our new trade show booth this month at America’s Beauty Show in Chicago. The booth personifies the upscale, premium image of our brand and incorporates a complete shear section. BIR: Tell me about your education program. DK: Empowering stylists to create beautiful hair lies at the core of everything we do. That’s why we developed a three-tiered curriculum— VisionMakers, FreeForm and Team Heat—that follows the same path we take when creating our tools—a course must be new, unique and provide maximum benefit in minimum time. We’ve united a team of unique artists from Hollywood, music, fashion and beauty to share their experiences and challenge stylists’ thinking. Plus, we’re delivering our programs wherever stylists prefer to learn—at a show, in the classroom, in their own salon or online. VisionMakers invites stylists to grab a backstage pass to learn from and jam with the stylists who’ve created the hottest looks on the red carpets, runways and movie sets. We’re also proud to announce our partnership with RUSH London, an award-winning team from the United Kingdom. They will provide classroom education and appear with FHI Heat at tradeshows and distributor shows. Created by FHI Heat’s Global Creative Director Phillip Wilson, FreeForm Cutting and Styling turns the industry upside down with a fresh approach to haircutting that marries the organic style of cutting practiced by the European Grand Master stylists and the more geometric, linear style of cutting developed by Sassoon. It decreases the overall time stylists spend cutting, so they have more time to finish, style and educate their clients about using FHI Heat's tools to style their hair at home. Phillip has been our global creative director for several years and carried our education program, so we are now delighted to surround him with many established artists and educators and a much grander vision. Team Heat offers experienced educators and successful stylists who know what it takes to be a star—and they can’t wait to share their knowledge. BIR: With so much happening, you must be adding to your team? DK: We are aggressively expanding our education, sales and operations teams. We are in the process of transitioning Bryan Batstone from managing director of FHI Heat United Kingdom to executive vice president and general manager of FHI Heat. He joins me; Joseph Kim, executive vice president and chief marketing officer; and Dave Genes, our vice president of global sales, on our senior management team in Solon, OH. Dave’s topnotch sales team includes Les Haverty, channel director/full service; Michael Rob, channel director/SalonCentric; and Keri Schricker, national sales manager/chain accounts. We recently hired Michael Macklin and Leslie Strickland as regional sales managers, and Kate Everhard, as a salon development manager, who report to Michael Rob. We are currently looking for qualified candidates for the director of education position, as well as regional sales managers. To learn more about FHI Heat, reach Joseph David Kim Kim at 216-456-0400 or chairman/CEO visit www.fhiheat.com and www.gohairstyling.com. MARCH 2011 7 The Beauty Industry Report Visit www.bironline.com Joico celebrates hair color, tools and City of Hope B eauty Industry Report (BIR) recently had the opportunity to talk with Sara Jones, the recipient of the 2011 Spirit of Life Award. She will receive it at the annual Spirit of Life Award Dinner, which will take place in conjunction with the Professional Beauty Association’s Beauty Week 2011 in Las Vegas in July. Sara is being recognized for her outstanding philanthropic and business contribution to the City of Hope. From our conversation, you can easily appreciate her commitment and the actions that back it up. BIR: As this year’s City of Hope Honoree, what would you like to share with the professional salon industry? Sara Jones (SJ): City of Hope is an amazing facility. For more than 100 years, its team has been pioneers in treating illnesses. What makes City of Hope so special, besides the fact that it is a leading research and treatment hospital, is its philosophy that it’s as important to treat the soul and spirit as it is to treat the illness. It’s so similar to our industry—we make people feel good by looking their best. City of Hope and the beauty industry share many common philosophies. BIR: Our industry has been a major supporter of City Of Hope. How can we raise the bar going forward? SJ: For years, we have relied on the generosity of manufacturers and distributors as the main sources for funding, and although I expect that to continue, I also see tremendous opportunity in getting salons involved. Salons are perfectly positioned to hold local fundraising events, which benefit them in many ways. It’s good for business. It’s good for team motivation. It’s good PR and exposure, but, salons need help in this area…holding cut-athons and other fundraisers is not in their comfort zone. This is where manufacturers, distributors and industry associations can provide the tools and assistance for salons. BIR: How has your company, Joico, been an enthusiastic supporter of City of Hope? SJ: Together with our parent company, Zotos, we hold an annual company-wide fundraising event that includes a cut- and color-a-thon and a huge raffle. We also give an 8 MARCH 2011 annual donation to City of Hope that links to our Breast Cancer Awareness cause marketing campaigns. We always support the annual Spirit of Life Award Dinner in Las Vegas. The Joico employees participated as a team in the City of Hope Walk for Hope last November, where we raised more than $8,000. We plan to make it an annual event. And something I am truly proud of is the launch of Joico’s “Beauty for a Cure” website, which provides online tools to help salons develop their own fundraisers. It’s easy to use, it’s professional and it’s free! BIR: Share your ideas on how other companies can become more involved. SJ: We just produced a PSA video with some top hairdressers that highlights City of Hope and includes a call to action via a $10.00 text donation to City of Hope. It can be played at shows, on websites, on Facebook, etc. It’s available by contacting me at sjones@joico.com. BIR: Can you briefly highlight some of City of Hope’s major accomplishments? SJ: City of Hope participates in more than 800 collaborative projects with more than 200 institutions in 46 states and 20 countries. City of Hope scientists collaborate with colleagues throughout the world to develop treatments and continually strive to find solutions in their quest to cure cancer. Their patented research processes have led to the creation of the four top cancer fighting drugs—Herceptin for breast cancer, Rituxan for non-Hodgkin’s lymphoma, Avastin for colorectal cancer and Erbitux for colorectal cancer. City of Hope has also performed nearly 10,000 bone marrow and stem cell transplants and is testing a new gene therapy that may halt HIV while it treats cancer. BIR: What are your plans for this year’s gala? SJ: A major change in 2011 is that the Gala will take place on Saturday night instead of Monday night. We’re combining the City of Hope cocktail party with the Cosmoprof Get- Together Party. That will help kick-off Beauty Week with a wonderful event, and it will allow more people who would usually depart on Monday to attend. That also opens up Monday night for people to schedule other activities. The gala theme is “Celebrate Beauty. Celebrate Life.” I want everyone to have a great time, so we’re planning on making the event fun and entertaining. The event will have a party atmosphere with plenty of glitz and glamour. BIR: How can people and companies get involved? SJ: There are many levels of commitment, from being a major sponsor to purchasing individual dinner tickets. There are also advertising opportunities in the event journal. For complete information, contact Csynthia Savage at 213-241-7721 or csavage@coh.org. BIR: Is there anything else you would like to add regarding the City of Hope? SJ: I simply ask everyone to please join us on July 30 in Las Vegas. I promise you will have a wonderful time and, more importantly, you will be playing an important role in helping City of Hope continue its outstanding work. BIR: 2010 was an outstanding year for Joico. How about a brief review of some of the company’s major accomplishments? SJ: We focused on two major priorities in 2010. Those were our hair color business and our first entry into the appliance business. Our color business has been growing steadily for the past five years. Last year was a particularly strong year, driven by many factors but certainly influenced by the brand awareness we are getting with having Beth Minardi as the spokesperson for VeroKPAK color. Beth has a huge following of top colorists who follow her advice religiously, and now many of those salons are using Joico for the first time. In appliances, we launched the KPAK Reconstrux VaporIron. It was a huge success, far beyond our expectations. We are expanding the sales of the VaporIron internationally this year and launching our K-PAK Quadraion Pro Dryer. BIR: Joico’s K-Pak has been a top selling item in the line from the day it was introduced 34 years ago. What keeps this product current and continuing to be a winner? SJ: K-PAK Reconstructor was the first product to be formulated using human hair keratin protein as its protein source, which at the time was a scientific breakthrough. Over the years, as advancements in science were discovered, K-PAK was reformulated in order to continually deliver excellent performance. To this day, it is still the best performing hair reconstructor on the market. We make sure all of our products don’t become outdated. Our R&D department is always researching new technologies, and we incorporate them on a regular basis. We also are very conscious of keeping Joico products affordable to salons and their clients, so as we incorporate new ingredients, we also do it with accessibility in mind. BIR: The K-Pak ReconstRx VaporIron provides an innovative delivery system. Please share with BIR readers how it works. SJ: Our research showed that the biggest concern of hairdressers and consumers with flat irons was they were damaging the hair. High heat and frequent use were the obvious contributors. The ReconstRx VaporIron combats that problem by depositing protein and moisture into the hair while you use it. We developed a liquid treatment that is put into a chamber on the top of the VaporIron. When the iron is used, the liquid, which we call Vapor Fuel, is transformed into a very fine vapor that is deposited through holes in the iron’s plates onto the hair. Now for the first time, you can get the style you want by using a flat iron without sacrificing the hair’s condition. BIR: What else is new or hot in your line? SJ: We’re proud that several of our products have been hot for years! Industry staples, such as K-PAK Deep Penetrating Reconstructor and ISO Option Perms, continue to grow. They both have been Stylist Choice Award winners for each of the last 10 years. In terms of new product introductions, the K-PAK ReconstRx VaporIron is not only very successful, it was also named “Best New Launch” in Beauty Launchpad’s recent Reader’s Choice Awards. Our Vero K-PAK Color shade line, “Xtra Reds,” introduced last fall, is flying off the shelf! BIR: What is new in Joico’s education? Join Spirit of Life honoree Sara Jones at The City of Hope Gala Celebration on Saturday, July 30, to kick off Beauty Week 2011. SJ: We are introducing a full schedule of advanced training courses at the Artistic Institute in Darien, CT. These courses are taught by our International Artistic Directors, Damien Carney and Sue Pemberton. Seminars range from mastering perfect color placement to couture hairstyling. In addition, we have Beth Minardi conducting her very popular class, “Conversations in Color.” Complete information on these seminars and schedules can be found on www.artisticinstitute.com BIR: What gives your brand a sustainable competitive edge? SJ: We are very excited about Zotos’ initiatives related to Healthy Hair on a Healthy Planet. Thanks to advances in recycling technology, Zotos is launching new packaging to bottle its products in eco-friendlier packaging created from a hybrid bioplastic resin during the first quarter of 2011. The new material will be a composite of post-consumer recycled polyethylene and thermoplastic starch derived from plants. As a result, the company will reduce its packaging-related greenhouse gas emissions by more than 76%. The first brand to incorporate the new packaging will be the Joico line. Joico also prints only on 100% recycled paperboard. In 2011, Joico will be the only professional hair care company generating its own wind power on site with the construction of wind turbines at the manufacturing plant in Geneva, NY. That eco-upgrade will allow us to take our manufacturing process completely off the grid and generate enough clean, efficient energy to share with local residents and businesses. In 2010 we donated a portion of our Joico Earth Day Care Duos to “Keep America Beautiful,” the nation’s largest volunteer-based community action and education organization. BIR: What is Joico’s business culture and how does that enhance your business? SJ: Joico is a smaller company, but we have a very strong sense of who we are, how we work together and how we should best serve the global salon community. A couple of years ago, we brought everyone in the company together to record the principles we all felt and believed in. We were amazed to see the alignment and commonality of belief, from office to field staff and across all functions, in what we now call our “Core Values.” We defined our standards across identified values, such as partnership, purpose, respect, determination, integrity, quality and responsibility, spelling out what they mean to us in everyday language and action. Those values really are deeply held and actively lived by the Joico team—they stand written and described on a large mural in our office lobby as a daily reminder to us, our customers and our vendors—“All for the Love of Beauty!” Sara Jones Reach Sara Jones at 800-805-6426, ext. 107, or sjones@joico.com. Visit www.joico.com. MARCH 2011 9 The Beauty Industry Report Visit www.bironline.com Cilea grows/strengthens lashes at half the cost of Latisse T he eyelash growth category was started by the introduction of Latisse, a product developed by Allergan, a pharmaceutical leader with expertise in eye care products. Latisse is the only FDA-approved prescription treatment. However, many cosmetic companies have been marketing non-prescription alternatives with great success. PureSuasion recently started marketing Cilea eyelash growth stimulator in the professional beauty field. Beauty Industry Report (BIR) talked with Byron Dennis, who heads the company, to find out more. BIR: Hi, Byron. Please tell BIR’s readers about Cilea, your eyelash growth stimulator. Byron Dennis (BD): Cilea’s breakthrough formula helps grow and strengthen eyelashes at half the cost of Latisse. Unlike Latisse, no prescription is required. Also, no side effects have been reported. BIR: How have you tested Cilea? BD: We conducted extensive product and ingredient testing. Independent research done by AMA Laboratories demonstrates that participants had up to an 82% increase in eyelash fullness and eyelash density in just four weeks. We also utilized outside testing facilities to conduct a number of safety tests to ensure that Cilea produces no harmful side effects. That is the only way we believe we can guarantee that the consumer is getting the very best product available. BIR: What separates Cilea from other eyelash growth products? BD: Many companies are marketing eyelash growth products, but only two are scientifically proven to grow and thicken eyelashes. Unlike the other product, Cilea is made with allnatural ingredients, has no reported risk of harmful side effects, works in less time and retails for less than half the price! BIR: What is Cilea’s “magic bullet”? BD: Cilea’s unique blend of natural ingredients—proteins, B vitamins, including biotin, and natural extracts of pumpkin and pomegranate—works to nourish and strength the junction where eyelash growth occurs, providing the nutrition needed for new lash growth and reinforcing the existing lashes. 10 MARCH 2011 results. With so much clutter online, we BIR: I understand that Vicki Gunvalson, star communicate real value through straightof Bravo TV’s “The Real Housewives of forward information, real testimonials and Orange County,” is your vice president of promotions our customers love. We also love product development. What is her role? interacting with our fans and customers BD: Vicki is an unbelievable businesswoman and a staunch believer in Cilea. Having used the directly, and social media provides a dynamic, real-time channel through which we can do product and seen amazing results, she is that. Cilea has a growing following on Twitter passionate about spreading the word. Through and Facebook, and we actively update our blog promotional appearances, Vicki raves about and YouTube accounts with interesting articles Cilea on the Real Housewives of Orange and video we think our audience will enjoy. As County (Season 6 premieres March 6) and her a beauty company, we have impressive social media found that the best feedback following. Vicki empowers we have received is from our women to feel confident in loyal customers, and we are who they are and lets her proud of the personal fans know that looking relationship we maintain with glamorous doesn’t have to them. be expensive. BIR: What is your target BIR: What would you like market? to share with both BD: Women ages 25-55, domestic and international who are intelligent, distributors to encourage sophisticated, well-read, them to do business with ambitious, fashionable, your company? cosmopolitan, indulgent and BD: With a passion for social. developing new products BIR: What is your approach that deliver excellent results Vicki Gunvalson to participating in trade in a healthy fashion, we vice president, product development shows? stand out in a hot category. BD: We participated in Premiere Orlando We operate in-house with an external product last year. Shows offer an incredible platform to innovations team, and we have chosen pricing communicate with a large number of industry that is reasonable for all levels of the industry. professionals on a personal level. We are BIR: Describe your ideal distributor. What looking to add IBS Las Vegas in June and are the key success factors you look for in Cosmoprof North America in July to our selecting a distributor partner? calendar. Since we are based in the South BD: The three elements that make up a Florida area, the Miami Beauty Show will great distributor are a passion for beauty, a afford us an occasion where we can take our significant footprint in its relevant marketplace entire team to interact with customers. and a strong education team with marketing BIR: What would BIR’s readers be surprised savvy. Potential distributors who have tried our to learn about your company? product have become as enthused about it as BD: Everyone in our organization must test we are. We are entrepreneurs at heart and all of our products so that we can share the really enjoy working with organizations that are same experiences as our customers. Yes, I have hungry to grow and succeed. tried Cilea with outstanding results. In fact, I BIR: Tell me about your organization’s online had to trim my eyelashes as a result of using it. marketing initiatives on your website, as Reach Byron Dennis at 954-514-7429 or well as social media sites, including byron@mypuresuasion.com. Visit Facebook, Twitter and YouTube. www.try.cilealash.com. BD: Our website has produced tremendous Beauty Expo USA’s move to The Rio applauded T he 14th annual Beauty Expo USA took place for the first time at the Rio Suites Hotel and Casino—a big step up from its former venue. Exhibitors increased from 81 in 2010 to 94 this year. However, the number of attendees dropped significantly from last year’s count of 2,000 to 1,500 at this year’s show. Hair goods manufacturers dominated the floor, with the largest exhibitors including Hair Zone Inc., Midway International, New Jigu Trading Inc., Royal Imex Inc., Shake-N-Go, Model Model Hair Fashion Inc. and Sun Taiyana Co. Ltd. Beauty Industry Report (BIR) attended the Shake-N-Go dinner and seminar, along with 250 beauty store owners, who came to hear vice president, Mike Kim, predict, “Where Premium Human Hair is Headed in 2011 and How to Grow Sales.” He said, “In 2010, the buyers were speculating and cautiously optimistic. This year, they will be generally more hopeful and confident, and we are focusing more on high value products, such as Remy Hair.” After the show, BIR checked back with Mike, who said, “We wrote a significant amount of orders, especially with the expensive XQ line. The new venue played a significant role, as attendees were very unhappy with the accommodations at the previous venue. The highlight of this year’s event was the dinner concert hosted by our sister company, Model Model, with a legendary Korean diva, Patti Kim. More than 900 beauty store owners attended.” Reach Mike at 888-392-0777 or mikekim@snghair.com. Visit www.snghair.com. Monday morning kicked off with a Namaste Labs sponsored breakfast/seminar with Venetta Coley, vice president of marketing. Her seminar addressed the question, “Do you want to increase sales?” The purpose of the presentation was to educate beauty supply store owners on the importance of understanding how to keep consumers coming back to their stores and that deep discounting is not necessary to keep this consumer. Venetta shared that the No. 1 reason consumers shop at beauty supply stores is for the specific products carried and the variety of products offered. Even though low prices are the last reason consumers shop at beauty supply stores, many promotions are price driven. While mass market retailers are making more money on ethnic hair care, prices are up 4.5% versus last year. Many beauty supply store owners are making less because of discounting. Reach Venetta at 708-824-1393 or vmcoley@aol.com. Visit www.organicrootstimulator.com. Fisk Industries has a strong presence in the multicultural beauty store area. At the show, the company introduced the Collagen Age Defying Skin Care line. Merchandised in a 20piece pre-pack consisting of Collagen Filler Facial Wrinkle Reducer, Collagen Filler for Eyes, Collagen Essence Mask, Collagen Gel Patches and Collagen Serum, all products have an SRP of $5.00 each (deal #0401PKDR/ SRP $100.00.) Reach Steve Adler, president/ founder at 845-398-3340, ext. 314, or shadler111@aol.com. Visit www.fiskgroup.com. Mike Kim, vice president, Shake-N-Go Clay Campbell, founder and president of Innovative Beauty Products, offered Touch Ups, a 10-minute permanent hair color. The slogan, “Big color in a small capsule!” refers to the fact that the color comes in a capsule that is used with any 10 volume developer. For men, it’s perfect for use on beards, moustaches, sideburns and temples. For women, it’s ideal for root touch-ups and spot coloring and can be used on chemically treated or relaxed hair. It’s available in an 18-piece counter display (#80018/6 each of three shades: jet black, natural black, dark brown/SRP $4.95 each). Reach Clay at 800-854-9809 or clayibp@sbcglobal.net. Visit www.godefroybeauty.com. NYX Cosmetics introduced Grow Brow Serum, a prescription-free natural formulation to produce stronger, thicker, fuller brows in 4 to 8 weeks (#GBS-01/SRP $25.00). Liquid Liner with Grow Lash Serum helps lashes grow stronger while instantly providing precise, longlasting definition to the eye (GLLL 01/SRP $13.00). Mascara with Grow Lash Serum helps lashes grow stronger while adding volume and length (GLM 01/SRP $13.00). For more information, reach Paul Kam, senior sales manager, at 866-NYX-1004, ext. 4632, or paul@nyxcosmetics.com. Visit www.nyxcosmetics.com. Ted Fishman, president of Ted Fishman & Associates and the elder statesman of the multicultural market with more than 50 years of experience representing manufacturers, stated, “Rio Suites was a big improvement, both in rooms and exhibit hall. However, the food service was limited, and non-hair exhibitors were spread out throughout the hall, rather than grouped together by category. An alphabetical listing of exhibitors, as well as categories, would have been helpful. Beauty Times, the principal show sponsor, could have done more in its coverage of the show. It made no mention of new items presented by exhibitors other than hair goods suppliers. Show badges gave little information as to categories of attendees, such as single store or multiple stores and direct buying and/or wholesaler. The scheduling of the show a couple of days after the Western Buying Conference was counter productive, since most attendees, distributors in particular, chose not to stay over. If show management wants to continue to attract non-hair suppliers, it must showcase those exhibitors to a much greater extent and find ways to make their show much more beneficial.” Ted was exhibiting a number of his lines, including Fantasia, Keystone Lab, Ecoco Inc., Imperial DAX and others. Reach Ted at 800-323-5320 or tfish90469@aol.com. Visit www.tedfishman.net. Next year’s Expo takes place January 9-10. For more information, contact Ann Park, show manager, at 314-426-6333 or visit www.beautytimes.com. MARCH 2011 11 The Beauty Industry Report Visit www.bironline.com WBRA’s Western Buying Conf. celebrates 30 years T he Western Buying Conference, the trade show owned and produced by the Western Beauty Rep Association (WBRA), has kicked off the professional beauty industry show schedule for more than 30 years. There are other industry trade shows that have been operating longer, but none have had the trip this show has taken. It began in Los Angeles in 1979 when Dave Green, the president of the rep organization, who was assisted by Joe Notaro, an equipment provider and the firm that everyone used for its equipment repair and tool sharpening services, created the first Western Buying Conference in a downtown Los Angeles hotel. That show had just eight large booths. Each was hosted by one of the association’s member rep groups, who displayed the lines they represented. From that modest beginning, the show has grown as it has moved every couple of years through a number of hotels and back and forth between Southern California and Las Vegas. Next year, the show moves again, however, this time not to another hotel but from exhibiting in Bally’s Event Center to the hotel’s Grand Ballroom. Beauty Industry Report (BIR) has been a “passenger” on the Western Buying Conference’s trip as a distributor, consultant and member of the media, and from BIR’s perspective, the present venue is definitely the winner. Bally’s is located right in the middle of The Strip; it’s big, but not gigantic; the rooms are more than adequate with reasonable rates, and best of all, it doesn’t take a 20-minute hike to get to the exhibit hall. The basic premise of the show is unchanged. The Western Beauty Rep Association’s member rep groups invite both the manufacturers and marketers they represent and the customers they call on to come together in a tradeshow setting made up, for the most part, of 10- x 10foot pipe and draped booths. There are no fancy booths dominating the floor, which makes it a fairly level playing field. This year, there were six full rows with exhibits on both sides of the aisle that used a total of 189 10- x 10-foot booths. According to Patty Paletto, who handles the WBRA show management, 12 MARCH 2011 that represented a modest 5% increase from the prior year’s 180 booths. This year’s exhibitor totals were bolstered somewhat by the WBRA admitting for the first time exhibitors that were not affiliated with a WBRA member rep group—17 companies took advantage of the opportunity. Patty said the decision was made in order to give a number of new companies who had not had time to select a rep organization the opportunity to showcase their brands. According to Marc Spilo, president of Spilo Worldwide, who runs the show with Peter Mazziliano and Harlan “The Western Buying Conference is no longer drawing customers just from the Western states, but more and more customers from all parts of the country.” Kirschner, “We have regular requests by nonrepped lines to be invited to attend. This year, to promote attendance and help increase revenue in order to continue to pay for customer hotels/airfare, we invited select manufacturers without a rep organization. Additionally, if the new exhibitors did well, this gave them the opportunity to meet and partner with a rep group, further increasing their opportunities.” Peter Mazziliano added that the main impetus to permitting non-WBRA-represented companies on the floor was the result of initial exhibitor show commitments lagging from companies represented by WBRA members. “As it turned out, the signed commitments did start coming in and as a result, we were oversold, with a waiting list of 8 to 10 firms! It did accomplish the results we had hoped to achieve and most likely, we will look at it again for next year. It turned out that lifting the restriction provided the opportunity for some companies that were new to the professional beauty field to get the opportunity to meet potential customers and to interview rep organizations.” Reach Peter at 800-533-8535 or peterv@gmassociates.net. Kristin Almond, president of Lucky 11, a first-time exhibitor without a rep firm, told BIR, “It would have been ideal to have a rep prior to the show. However, we were able to meet faceto-face with three different groups and decided to go with Jay Halaby. Our East Coast reps were at the show as well, and they brought in several new customers that had never seen our product in person.” As mentioned previously, as an enticement to attend the show, the WBRA picks up two days of travel expenses for buyers, including hotel costs. However, even with that perk, buyer attendance has not grown substantially. Also contributing to this year’s soft attendance was the adverse weather in the East and Southeast. The attendance numbers reflect a marginal 3% increase in registered attendees, 488 at this year’s event compared with 475 in 2010. The economic downturn has played a large role in depressing attendance. In the last five years, a key factor has been the loss of beauty supply stores who have gone out of business. For years, those stores had a monopoly on selling salon hair care brands to the public. With widespread product diversion, that advantage has been wiped out by the mass retailers who stock large sections of professional hair care. The smart beauty store operators who saw that trend coming have diversified their product selection to become destination beauty stores and continue to be viable retailers. New products kick off the new year Dennis Bernard Campanaro, president/CEO of Dennis Bernard, Inc., introduced Grey Oxidizing Drops (1 ounce/list $9.99; 1/4 ounce/list $5.49). According to Dennis, Grey Oxidizing Drops can be added to any manufacturer’s permanent, demi- or semipermanent color to completely cover gray hair. Maximum color absorption with a shortened processing time is achieved by mixing Grey Oxidizing Drops and The Color Accelerator (TCA) into the color mixture. Reach Dennis at 800-541-5456 or info@dennisbernard.com. Visit www.dennisbernard.com. Kristin Almond, who previously worked for TIGI and is now president of Lucky 11, has created salon quality hair and body products for cheerleaders, cheer moms and all girls who love the sport. Lucky 11’s new five-product Diva Chics line is the big sister to the original Cheer Chics line of hair and body products. Kristin stated, “Even if our packaging is fun and flirty, the gentle and rejuvenating formulas are geared to promote hair health and good personal care at any age. In Lucky 11, our exotic superfruit complex (acai, pomegranate and dragonberry extracts) helps protect against environmental stress. The line includes Be Fabulous Moisture-Rich Shampoo (8 ounces/SRP $10.95), Be Fabulous Moisture-Rich Conditioner (8 ounces/SRP $11.95), Be Fierce Hydrating Detangler (8 ounces/SRP $12.95), Be Perfect Hair Pudding/Styling Cream (8.5 ounces/SRP $13.95) and Be Glitzy Hair and Body Glitter (5.2 ounces/SRP $9.95). Reach Kristin at 888-992-4337 or kristin@lucky11products.com. Visit www.lucky11products.com. Nadine Jones, Ojaván Products director of marketing and PR, showed a new skin care line made from America’s Dead Sea, the Great Salt Lake. She noted, “Our products have Native American names and contain more than 70 trace minerals. In fact, the company name is Navajo spelled backward!” The products include Npató Mineral Mud Face & Body Mask (2 ounces/SRP $25.00; 6 ounces/SRP $58.00), Maka Ashih Mineral Mud Salt Scrub (4 ounces/SRP $44.00; 6 ounces/SRP $64.00), Pamea Poan 88% Certified Organic Facial Moisturizer (1 ounce/SRP $35.00), Pamea Poan 80% Certified Organic Hand & Body Cream (6 ounces/SRP $34,00) and Aromatherapy Bath Salts matched with a holistic healing crystal (7.5 ounce/SRP $16.00; 16 ounces/SRP $22.00; 1.3 lbs/SRP $26.00). Reach Nadine at 801-392-5896 or nadine@ojavanproducts.com. Visit www.ojavanproducts.com. The Western Buying Conference Show floor Another new exhibitor was Windmill Health Products. The company has been in business for more than 35 years and is a manufacturer and marketer of lifestyle nutritional products and nutritionally enhanced cosmetics, creams and lotions. Windmill is manufacturing and marketing the Quick Trim line of diet products endorsed by Kim Kardashian and her sisters, along with the Kardashian Glamour Tan and Rejuvicare Inner Beauty product line. Windmill will be introducing value-added multicultural skin lightening formulas and a line of nutritionally enhanced cosmetics, creams and skin moisturizing lotions over the next several months. Reach Rich Lauritano, vice president of special market sales, at 800-822-4320, ext. 316, or rlauritano@windmillvitamins.com. Visit www.windmillvitamins.com. Free Your Mane is a new multicultural hair care line featuring baobab oil from Africa. Baobab oil holds and delivers eight times its weight in moisture to the hair. The product line contains no sulfates, phthalates, parabens or petrochemicals and features Hydrating Shampoo and Daily Detangling Conditioner (10.14 ounces/SRP $15.95); Intensive Hydrating Hair Masque (8.45 ounces/SRP $19.95); Conditioning Pomade (4 ounces/SRP $15.95); Reviving Spray (4 ounces/SRP $14.95) and Restorative Hair Oil (4.1 ounces/SRP $24.95). Reach Israel Segal, president, at 818-434-0115 or israel@freeyourmane.com. Visit www.freeyourmane.com. Alleghany’s new management team has been revitalizing its brands with updated packaging, line extensions and salon-inspired ingredients. Jhirmack Distinctions Silver Plus now offers a complete hair care regimen enriched with natural anti-aging properties from vitamins, botanicals and antioxidants. Pure Shine features six products designed to create shiny, curly or straight hair. New slimline, space-saving Hask displays offer increased shelf productivity for beauty store retailers. Vigorol Mousse has a new, sleek design with enriched formulas, including Maximum Shine & Wave Mousse (12 ounces/340 g/ SRP $3.99); Olive Oil Mega Moisture Mousse (12 ounces/340 g/SRP $3.99); Curls Mousse (12 ounces/340 g/SRP $3.99); and Relaxed Hair Mousse (12 ounces/ 340 g/SRP $3.99). New Vigorol products include a Liquid Hair Relaxer Kit (2 applications/ SRP $4.99); Moisture & Strength Defense Crème Hairdress (5 ounces/145mL/SRP $3.99); Temple & Scalp Defense Crème Hairdress (5 ounces/145mL/SRP $3.99); High Gloss Spray (5 ounces/145mL/SRP $4.99); and High Gloss Serum (5 ounces/145mL/SRP $4.99). To learn more, reach Yvonne Chavez-Sein, director of sales, at 800-645-6190 or ycsein@alleghanycorp.com. Visit www.alleghanypharmacal.com BIR visited with Peter Von Berg, president of Nutra Luxe MD, who was exhibiting a lowlevel cold laser light to treat thinning hair. Laser light therapy has been used for years by hair loss clinics to treat hair loss. Nutra Luxe MD is introducing the same technology to be used at home. The company’s Nutra-Laser system contains a low-level cold laser hair brush with WBRA continued on page 14 MARCH 2011 13 The Beauty Industry Report Visit www.bironline.com WBRA continued from page 13 With a $199.00 list price, its price point has not 18 laser diodes, hair serum (1-ounce) and a 4been a factor. The black model, which is ounce shampoo and conditioner (SRP $345.00, usually the most popular styling tool color, is a $428.00 value). The individual items available surprisingly being out sold by the Ferrari red separately are a laser hair brush with charger model. Reach Joe at 518-330-4924 or (SRP $199.00), the Hair Active serum joejdlc@aol.com. Visit www.conair.com. (SRP $186.00) and shampoo and conditioner Scott Hagstrom, Helen of Troy’s vice (4 ounces each/SRP $21.50 each). Reach Peter at 239-561-9699 or info@nutraluxemd.com. Visit president of sales, said, “Curls and waves are back in style. Hot Tools is the No. 1 curling iron www.naturaluxemd.com. in the salon industry, with sales up more than Ernie Brauchli’s Creative Beauty Concepts 30% in the last year alone. Specialty irons are is the exclusive master distributor of Swiss also a major growth segment for Hot Tools.” made Valera products. At the WBC, he Scott pointed out the newest models that introduced Valera’s new Colour Care system, were on display, including the Curly-Q tapered which preserves hair color, shine and natural moisture. The line includes appliances that lock irons. These irons are available in three finishes, including gold, nano-ceramic and titanium and in hair color to create healthy, beautiful styles. in ¾-inch and 1-inch sizes, as well as a special The Swiss Nano Dryer with Colour Care is powerful and compact (available in metallic red 1¼-inch size available in nano-ceramic (list range $44.00 to $56.00). Also new is the Hot or black/SRP $159.00). The Swiss’X Brush & Tools Safari Collection with zebra, Shine Iron with Colour cheetah and Bengal tiger patterns on Care has digital dryers and flat irons (list $65.00), due temperature controls to out this spring. Reach Scott at 915-225450°F (available with brush 5805 or shagstrom@hotus.com. Visit attachment and heat www.hotus.com. proof cap/SRP $139.00). At Dashing Diva, Nancy Waspi, Reach Katy Cannell, who recently joined the company as director of sales and from left: PJ Mazziliano, GM & Associates; Kevin vice president of sales, said, “Dashing marketing, at 847-676-1950 Osterloh, The Kirschner Diva is starting to put more focus on or email Group; Jay Templeton, GM & nail polish because of OPI and Essie cbcchicago@rcn.com. Visit Associates; Sasha-san Vinokur, www.valerausa.com. principal at FootsieBath of being acquired and, in fact, we will be introducing Dashing Diva’s At the Belson exhibit, Beverly Hills Spring/Summer collection Urban Denise Russell, regional Bloom, featuring a compact display of six sales manager, showed the new range of colors inspired by runway trends ($24.00 specialty irons. The collection includes the salon).” She added that one of Dashing Diva’s Jumbo Ceramic Triple Barrel Waver (GH3011), goals is to provide ways for nail technicians to Tourmaline Ceramic ¾ inch Spiral Iron increase their income by giving them new (GH3012) and 1-inch Ceramic Crimping Iron products that are reinventing nail salon (GH3010). The line has traditionally been services. Nancy said, “Dashing Diva’s patented focused on the multicultural market. Today, French Wrap Manicure provides long lasting that’s changing to target anyone with textured French manicures without using polish. The hair. As a result, the packaging has been French Wrap Manicure provides flawless French redesigned to appeal to a wider range of color that lasts on natural nails up to two customers and the company is widening its weeks. There’s no chipping, smudging or brush marketing to full-service distributors. Reach lines, because now every technician can Tom Gebhart, general manager and vice provide perfect smile lines, every time” (salon president, at 915-225-4899 or kit $45.00). Reach Nancy at 262-215-8791 or tgebhart@belsonus.com. Visit nancy@dashingdiva.com. Visit www.belsonproducts.com. www.dashingdiva.com. Joe De La Cruz, Conair’s national sales Gary Warner showed Color Club’s newest manager, shared the success the Ferrari collection, Alter Ego, of 12 formaldehyde-, designed Volare Hair Dryer is experiencing. 14 MARCH 2011 toluene- and DPB-free shades—six lights and six darks (two collections). The Alter Ego Lights that Reveal your Mystery Collection includes Milky White Base Coat and the Alter Ego Darks that Keep it Under Cover Collection includes Vivid Top Coat. Each collection ships in a 7-piece salon pack, or polish only in a 27piece or 54-piece display (0.5 fluid ounces/SRP $6.50 per bottle). Reach Gary, national sales manager, at 800-221-8080 or gary@cosmeticgroup.com. Visit www.cosmeticgroup.com. Creative Nail’s success with Shellac has opened up the category for a number of other professional nail care companies. Le Chat’s president and founder, Newton Luu, showed the Perfect Match, which combines the gel and the matching shade of nail polish (list $15.95/SRP up to $35.00). Also from Le Chat is Double Agent, a bottle of basecoat and one of topcoat in a single package. These duos are displayed in a small counter unit of eight pieces (deal #DA2PD/SRP $11.20). Reach Aaron Hill, national sales manager, at 510-741-9998 or ahill@lechatnails.com. Visit www.lechatnails.com. Lori Silverstein, who owns Peninsula Beauty Supply in Burlingame, CA, brought Christine Booker, senior buyer, and Gina Antone, buyer, to the show. Lori said, “We came to the show looking for some hot new trends and items. The nail category had lots of glitz...what is old is always new. Our group was impressed with Bling Nails from Nail Bliss, a division of Dashing Diva. It’s an appliqué for nails in different patterns. We have seen a lot of press on this type of item and we’re looking forward to carrying it in our stores.” Reach Nancy Waspi at 262-374-4505 or nancy@dashingdiva.com or visit www.dashingdiva.com. Lori continued, “We visited with Hair Tinsel by Hair Flairs. It’s a strand of Hair Tinsel to add sparkle to the hair. You tie it in, and it’s 100% heat resistant. It’s a great way for the stylist to make extra profit as an add-on service and is ideal for retail-focused beauty store operations, like ourselves, to offer the consumer to do at home and save money. We placed an order for this fun item.” For details, reach Hair Flairs at 855-776-4247 or info@hairflairs.com. Visit www.hairflairs.com. “I was impressed with the makeover of a polish line, created by none other than the Nail Diva, Donna Louis,” said Lori. Prolana/ Prolocks is a nail care line definitely worth consideration, because we know it will remain professional. With Essie sold to L'Oréal and OPI to Coty, I think it may be time to focus on building another brand.” Reach Donna at 661-993-0232 or nayldiva@aol.com. Visit www.prolanausa.com. Lori added, “At the end of the day, when we are all so tired, we found Shotz, the energy shot, for added energy to keep us going throughout the end of the day and into the evening’s festivities. They come in great flavors and they have a great point-of-purchase display.” Reach Jamie Gill, CEO of Shotz Nutrition, at 972-661-5133 or jamie@shotzenergy.com. Visit www.shotzenergy.com. Milestones, celebrations and farewells The Wahl Corporation with Bo Langley, director of sales and marketing, hosted a surprise retirement party for Dottie Reiner, who sold her Kayline brand to Wahl a couple of years ago. Dottie’s husband, Ken, started Kaynar Company in 1948, manufacturing Lady Ellen Klippies. In 1974, Dottie and Ken renamed the company Kayline, as they started manufacturing salon station carts referred to as rollabouts and cart accessories. At the William Marvy Company booth, Robert Marvy, president, shared with BIR that 2011 marks the barber supply company’s 75th year. Bob noted, “Our business was founded by my father, William Marvy, in 1936 as a barber supply dealer, serving barbers in Southern and Western Minnesota. The company expanded its operations in 1950 by adding the manufacture of the now world famous Marvy Barber Poles. In the 1960s, we added a complete line of Steril-Ray Electric Sanitizers, Mar-V-Cide Liquid Disinfectant and Disinfectant Jars. The company continues to be family-owned and operated, and I am delighted to have my sons Scott, Dan and Brad, the third generation, also actively involved in the business.” Reach Robert at 800-874-2651 or bob@wmmarvyco.com. Visit www.wmmarvyco.com. Rick DiMarzio, president of family-owned Krest Combs, was working the show with his son, Dean, who is the third generation working for the company, which is celebrating its 53rd year in business. The two top selling comb styles, according to Rick, are what stylists are taught on in beauty school—styling and tail combs. Reach Rick at 978-537-1244 or rick@krestcombs.com. Visit www.krestcombs.com. Kimberly Nelsen, national sales manager for Marianna, told BIR that the company is celebrating its 42nd year in business. Marianna is a combination manufacturer, importer and master distributor and also operates a large beauty school supply business. Reach Kimberly at 800-228-9060 or knelsen@mariannaind.com. Jeffrey Sporn, representing the third generation of the Sporn family, shared, “Spornette is celebrating 60 years in the professional beauty industry! That's 60 years of providing stylists, your grandmas, your mama and yourself with the most necessary and trustworthy hairbrushes. Spornette's founder, Walter Sporn, a German refugee who came to America with nothing in his pocket, would be so happy today if he could see the success of his offspring.” The company featured the new Big Wonder Brush, a bigger version of Spornette's top seller, the Little Wonder. The Big Wonder (SRP $8.75) is ideal for creating volume, back brushing and teasing larger or longer hair sections. Reach Jeffery, sales and marketing manager, at 800-323-6449. Visit www.spornette.com. Gary Warner, who was a sales associate for Van Nest Coleman in the Northeast, is now the national sales manager for the Forsythe Cosmetic Group. Reach vice president, Michael Rose, at 800-221-8080 or support@cosmeticgroup.com. Visit www.cosmeticgroup.com. Simpson Tolero is working with Gary Louis & Associates. He previously worked for Jason Freeman’s sales agency, United Beauty Group. At the show, Gary Louis, owner, received the Andis rep salesperson of the year award. Reach Gary at 800-494-2171 or louisllc@aol.com. Peter Carroll, Andis western regional manager, is now managing Southwest Asia. Reach Peter at 714-960-3942 or petecarroll@andisco.com. Visit www.andisco.com. Paul Lande sales associate, Kenny Baum, was recognized by the William Marvy Company as its 2010 top sales producer. Reach Kenny at 281-531-9661 or kbaum50182@aol.com. Kenny Rogers, a sales associate for The Kirschner Group (TKG), was named TKG sales executive of the year for 2010. Kenny is a member of TKG’s Southwest region. He was presented with the TKG “World of Difference” trophy and a cash bonus. Unfortunately, BIR is hearing more and more reports of industry people passing away. Mark Zusser, president of Beauty Dynamics, reported that Frank Jones, a sales rep who worked for Don Childers and Associates and Chris Christensen and also as a distributor salesman for Helene Curtis Empress Beauty Supply, has passed away. See others under “Obits” in this issue on page 4. Marc Spilo, president of Spilo Worldwide, said, “The Western Buying Conference is no longer drawing customers just from the Western states, but more and more small, medium and large customers from other parts of the country. Spilo Worldwide saw customers who represented the OTC segment—single and multi-store chains, as well as small and large full-service distributors. Most importantly, many customers and exhibitors with whom I spoke were more upbeat about the economy and are starting to see business trend up— something we are all pleased to see!” Reach Marc at 800-347-7456 or marc@spilo.com. Visit www.spilo.com. Harlan Kirschner, president of The Kirschner Group, added, “The show is growing again and both customers and manufacturers came prepared to do business. There was a more positive attitude about 2011 and the business climate ahead. Manufacturers were more aggressive with deals and promotions than last year and distributors are certainly more receptive. OTC stores are looking for new categories to expand into and looking for new items that are innovative or different. We are very optimistic about this new year as all indications from show participants indicate the economy is on a rebound.” Reach Harlan at 800-527-8645 or harlan@kirschnergroup.com. Visit www.kirschnergroup.com. Next year’s show takes place January 16-17. Contact Patty Paletto, Western Beauty Rep Association show manager, at 661-257-6260 or aperfectshow@verizon.net. MARCH 2011 15 The Beauty Industry Report Visit www.bironline.com Education/sales strong at ISSE Long Beach T presented in both Spanish and English. he Professional Beauty Association (PBA), The lineup of complimentary education producer of the International Salon & Spa included 73 hair classes, 35 nail classes, 22 skin Expo (ISSE) in Long Beach, CA, has a problem that other show producers dream about—a sold-out show with an exhibitor waiting list. In spite of show management having to contend with an old, poorly designed convention center, Eric Horn, show director, and his team are masters at using every possible square foot of exhibit space. In spite of a decrease in the total number of exhibitors (363 companies exhibiting compared with 391 in 2010), the same amount of exhibit space (approximately 124,000 square feet) was used, as many exhibitors took more space The ISSE floor was crowded throughout the show. this year and the classes and 37 business classes. An additional 11 EstheticsAmerica and Wellness Education hands-on classes were available for a fee. joined the show floor The arena area was designated as the This year’s show offered extensive EstheticsAmerica & Wellness Pavilion with educational opportunities. The International the entire area dedicated to skin care, wellness Fashion Theater’s lineup included Mark Hayes and education, including CIDESCO (the and the Sassoon Creative Team; Kim Vō international esthetician training organization). presented by Ultimate Beauty Companies; Did it work? BIR asked a number of exhibitors Nick Arrojo and the Arrojo Artistic Team; in the arena. Lydia Sarfati, founder of Sandra Yu; Mike Karg and Jo BlackwellRepêchage, said, “The ISSE’s decision to create Preston from the Karg + Blackwell Academy; a special area for skin care education and highDanny Lapointe and Anita Gutierrez for end professional skin care manufacturers was Clairol Professional; Martin Parsons; Rusk right on the money. We at Repêchage hesitated Creative Team; Lisa Yamasaki from J’s Hair to return to the Long Beach show, as we felt it Studio & Academy, NAHA master stylist was so hair care driven that there was no focus Charlie Price and Michael O’Rourke for on professional skin care. We are glad we have Michael O’Rourke Haircare. ISSE also given it a second chance. By creating this presented the Technical Theater featuring special focus area, we saw a better qualified return appearances by Nick Arrojo, Kim Vo-, buyer and our sales were up 40%! In addition, Mike Karg and Jo Blackwell- Preston joined we have great follow up business.” Reach Lydia by Yosh Toya, Beth Minardi presented by at 201-549-4200 or lydia@repechage.com. Visit Joico, Marco Pelusi, FI Hair’s Dewey Fanone, www.repechage.com. John Simpson sponsored by Goldwell and A number of local distributors supported John Alanouf and Josef McCasland from The the show. Ultimate Beauty Companies (UBC) Network Academy. In the Latino Fashion with its three divisions (Nancy’s Beauty Theater, Raul Matez, Robert Curiel, Marcel Warehouse, Bella Salon & Spa Distributor Munoz, Martin Parsons and the National and Exclusive Salon Distributor/viaBeauté) Latina Cosmetology Association were 16 MARCH 2011 brought 60 employees. One of Exclusive Salon Distributor’s lines, Kim Vō Hair Care, sponsored Kim’s Best of Blonding class in the Technical Theater. Following Kim’s class, the four winners of Ultimate Beauty Companies’ $5,000 Ultimate Rewards Giveaway were randomly selected by Kim, who was joined on stage by UBC senior vice president, Cynthia Heisser, and UBC marketing communications manager, Richie Lugo. Winners were Jack White, owner, The Beauty Source, (Pacheco, CA); Norman Villas, owner, Quality Beauty Supply, (Orange, CA.); Shauna Racel, stylist, JCPenney Salon (Yuma, AZ) and Mr. and Mrs. Simon Kim, owners, Beauty One Supplies, Inc., (Los Angeles). “We wanted to reward three of our UBC Ultimate Rewards members with a grand prize rather than only one winner as we did the last two years,” Cynthia said. “In addition, Morad Zahabian (CEO/president of UBC) and I wanted to create more excitement at the show by rewarding an ISSE attendee who completed a UBC passport card and enrolled in our UBC Ultimate Rewards program with a $5,000 prize.” Following the giveaway, UBC sponsored the official ISSE Night Out Party at the Cohiba Nightclub and Lounge. More than 600 stylists and beauty professionals attended. UBC capped off ISSE with Cynthia’s “Selling Luxury to the Recessionista” class, which had a standing-room-only audience. “Luxury is for everyone, and there are key concepts that must be understood,” Cynthia explained. “Don’t lower your standards or your bar. Instead, create value-added options. Sell hope within your products and services—The self-help industry grew to $11 billion in 2009 with books, audios and DVD sales promoting personal coaching and hope to your end-users, sales reps, salons and beauty supplies. Merchandise luxury brands utilizing textures, such as wood, glass and ceramics. They instantly become more attractive for the consumer to purchase. And most importantly, treat every customer as if she is your grandma, mentor or role model.” Reach Richie at 800-888-4055 or richie.ubc@hotmail.com. Karl Sweis, president of Sweis Inc., did not have an exhibit; however, his sales forces and a number of employees worked with the firm’s key lines. Karl noted, “Our emphasis was to support Moroccanoil and Keratin Complex. Keratin Complex had a classroom and stage area. At Moroccanoil, people were six deep trying to buy merchandise. The attendance on the show floor on Sunday was amazing! It was the busiest Sunday I can recall. Stylists were hungry for education, open to trying new products and not as concerned about what they were spending compared with the last couple of years.” For more information, reach Karl at 877-633-1717 or karl@sweisinc.com. Visit www.sweisinc.com. Alfred Hakim’s Beauty Sales, a full-service, Beverly Hills distributor, was a first-time exhibitor. Sara Gliebe, operations manager, said, “We had excellent sales from the Marilyn Hair Brush line and the ELC Dao of Hair RD (Repair and Damage), which uses natural botanicals and multivitamins, had good reception from stylists who were looking for a more natural hair care brand.” Reach Sara at 310-274-6666 or sarag@beautysales.com. Visit www.beautysales.com. Beauty Systems Group’s West Coast Beauty System hosted a large VIP room. Patty Cadena, director of marketing, reported, “Each of our two key areas of focus achieved its sales goals and initiatives. Our VIP room was a benefit for our key customers as a place to visit off the crowded show floor and also to see new brands. Our salon consultants were busy throughout all three days with decision makers from all of California. We even had some BSG salon consultants join us from our Eastern Division with some of their VIP accounts. Our show floor area was the other key focus, and it was extremely busy. Overall, we noticed that customers are spending more money—a key driver being innovation. We believe that the ISSE is a precursor to what we should expect from 2011—that it’s going to be a very strong year for color, skin care and for brands that posture themselves as being different.” Reach Patty at 708-748-4752 or pcadena@beautysystemsgroup.com. Enzo Milano’s founder and president, Renzo Stickers were also a big hit. It appears that women always want to be pretty and are Composto, said, “The show for us was up willing to pay for that privilege.” Reach Mia at nearly 150% over last year. We launched the 925-275-9000 or mia@tonytail.com. Visit Forte line, which consists of temperature www.tonytail.com. control curling irons (14 mm, 20 mm, 26 mm Long-time exhibitor Ivan Bonk, co-owner of and 32 mm/salon list $169.99), Doppio silicone SalonWear, said, “Stylists were excited and hair brush sets (salon list $79.99) and the Estrotto crimping iron, which comes with three buying better than last year. New salon openings were up, as we sold lots of branded plates—Enzo’s signature square plates and the products—capes, aprons and robes—with salon classic triangle and waver plates (salon list names, with sales exceeding last year’s $179.99). All products are available at numbers. Salon owners were investing in www.enzomilano.com. Reach Natalie quality garments to make the salon look better, Composto, national sales manager, at 714-227and stylists and booth renters were buying 3030 or to spruce up their wardrobe and image. natalie@enzomilano.com. New was the Two Tone Cape, with a Reach Renzo at 714-429-1405 waterproof polyurethane top and or renzo@enzomilano.com. iridescent fabric bottom for shampoo, Lauren Austin, sales color and chemicals. It is available in manager for Michael black, brown, copper and leopard (show O’Rourke Hair, said, price $22.00).” Reach Ivan at 800-635-3323 “Michael rocked the crowd. or sales@salonwear.com. Visit It has been a frantic and www.salonwear.com. fabulous first year, and At Ego Professional, Peter Mazziliano March marks our one-year introduced the Ego Kompressor dryer. It anniversary. Our 3Way Enzo Milano caused a Hairspray and our Tower of buzz with stilt walkers features high volume air flow, six heat and speed settings and is lightweight at only Power generated a buzz! on the show floor. Sweis Inc. and Independent Photos: Caught in the 13.5 ounces (#23000/salon list $199.99). The Moment Ego line consists of three hair dryers, two Salon Services introduced flat irons and one curling iron. Reach Peter clients to our line and made at 800-533-8535 or peterv@gmassociates.net. sure they walked away with our show deal Visit www.egoprofessional.com. ($50.00 for one each of every product).” Reach Denise Mason, American International Lauren at 310-770-0222 or Industries’ show manager, said, “Our IBD and lauren@michaelorourkehair.com. Visit EzFlow gel polishes were in great demand. At www.michaelorourkehair.com. the China Glaze booth, the Crackle Glaze At Simply Organic, the marketer of plantcollection sold out in 90 minutes.” Reach based hair and skin care, bath and body Denise at 323-728-2999 or products, Gino Martignetti, general manager, d-mason@aiibeauty.com. Visit introduced Simply Organic Oil Emulsion www.aiibeauty.com. Haircolor. It’s formulated without waxes, In spite of all the adverse publicity that artificial gelling agents, cream thickeners, keratin hair straightening/smoothing systems ammonia or artificial fragrance. It comes in 27 have received due to the debate over the shades. Reach Gino at 866-512-4247 or safety of key ingredients, the show floor was gino@simplyorganicbeauty.com. Visit crowded with these brands, including Keratin www.simplyorganicbeauty.com/hair-color Complex, Brazilian Keratin Treatment, Mia Kaminski operates The Tonytail Brazilian Blowout, GK International Company and markets practical hair (formally Global Keratin) and Cadiveu. accessories and styling tools. She said, “We Marcelo Teixeira, co-owner of Marcia sold out of every hair accessory we brought, Brazilian Keratin Treatment, reported, “We including our samples and demo items! The introduced two products that can be used interest and attention on our hologram Bling both in the salon and at home. The Marcia String was incredibly high. Our new Hair ISSE continued on page 18 MARCH 2011 17 The Beauty Industry Report Visit www.bironline.com ISSE continued from page 17 Teixeira Keratin Intensive Masque conditions, moisturizes, strengthens and enhances shine on all hair types (4 ounces/SRP $28.00). The Marcia Teixeira Keratin Leave-In Spray detangles, prevents split ends and protects from UV rays, leaving hair soft, shiny and manageable (2 ounces/SRP $10.00; 4 ounces/SRP $18.00). Contact Marcelo at 561-272-8443 or tracyk@braziliankeratin.com. Visit www.braziliankeratin.com. Keratin Complex debuted Straight Day (SRP $32.00) and Dry Shampoo (SRP $24.00)— to help keep locks looking fresh and smooth every day. Reach Lindsay Solomon, vice president of marketing, at 888-409-4445 or lbsolomon@keratincomplex.com. Visit www.keratincomplex.com. Offering an alternative was Zerran International, which debuted its 100% vegan semi-permanent hair smoothing system— RealLisse. Marketing director Cindy Van Steelandt, said, “As evidence mounts regarding the toxic dangers of Brazilian keratin-type hair smoothing systems, it is clear consumers are clamoring for change. At the same time, stylists are gaining awareness and are actively searching for a healthy alternative for hair smoothing.” RealLisse joins Reform, Zerran’s patented method for permanent hair straightening, which is also free of formaldehyde and other harmful substances. The RealLisse single-use trial kit contains 4 ounces of RealLisse Catalyst, 2 ounces of RealLisse Smoothing Moisture Masque, 2 ounces of RealLisse Leave In or Rinse Conditioning Serum, 2 ounces of RealLisse Smoothing Shampoo and 2 ounces of Absolution Shampoo (List $40.00). Reach Cindy at 800-626-1921 or cindyv@zerranhaircare.com. Visit www.zerran.com. Farouk Systems introduced its CHI Enviro American Smoothing Treatment, a professional in-salon treatment designed with pearl and silk complex to transform frizzy, unruly hair into sleek, polished tresses. The 100% formaldehyde free formulas work with 410 degree heat to realign bonds and infuse pearl and silk molecules into weak spots in the hair, creating a smoother cuticle layer, locking out humidity and frizz. Results last up to 4 months. Reach Gregg Emery, vice president of sales, at 800-237-9175 or gemery@farouk.com. 18 MARCH 2011 Visit www.farouk.com. BIR attended a breakfast introducing the new Miss Clairol. Clairol Professional has reinvented Miss Clairol as new liquicolor permanente. It infuses the iconic Miss Clairol brand with the power of soy with the new SOY4PLEX technology to provide the rich, natural-looking shade results that have made it an industry favorite. The new formula features the same shade results as Miss Clairol with 100% gray coverage. Clairol Professional also introduced seven new shades (2 ounces/SRP $3.99-$4.49). Reach John Perry, director of sales, at 818-999-5112 or perry.ja@pg.com. Visit www.clairolpro.com. According to Dan Shorts, vice president of sales for Orly International, Orly’s seasonal collections and Orly Pro were the big sellers at ISSE. Orly’s spring 2011 six-shade collection, Precious, is available in an 18-piece display, 6pack and as open stock (SRP $7.50). Orly Pro is a new addition that features the aroma of Italian mandarin—Purifying Soak for Hands and Feet (1 gallon/list $49.95; 33.8 ounces/list $19.95), Moisturizing Exfoliator for Hands and Feet (1 gallon/list $72.50; 33.8 ounces/list $25.95), Detoxifying Mask for Hands and Feet (33 ounces/list $29.95) and Moisturizing Lotion for Hands and Feet (33 ounces/list $17.50; 8.58 ounces/list $5.95). Reach Dan at 818-994-1001, ext. 125, or dshorts@orlybeauty.com. Visit www.orlybeauty.com. From Australia, Just Been Funked introduced the JBF 230ion+ Styler. It straightens the hair and gives a long-lasting, shiny, professional finish. A super-charged heating system infuses ions into the hair, temporarily changing the physical bond. Visit www.justbeenfunked.com.au. Keralyze, a professional corrective hair care line with styling, finishing and conditioning products, debuted at ISSE. The line features Prokesil Complex, a blend of conditioning, smoothing and delivery agents that seal hair cuticles damaged through coloring, bleaching or thermal straightening to restore dry, dull, chemically damaged hair to its natural shine and luster. Chelactive Complex is the first line of defense against the weathering and chemicals that reduce hair health, neutralizing harmful impurities such as chlorine, minerals and heavy metals found in tap water (including iron, copper, magnesium, lead and zinc). Roseblowout is an anti frizz heat styling lotion (6 ounces/SRP $11.00). Roseoil features optical brighteners and color pigments to enhance color vibrancy, shine and body (4 ounces/SRP $13.00). Contact Loretta Ecker, director of salon marketing, at 800-960-7861, ext. 102, or lecker@lysiumlabs.com. Visit www.keralyze.com Be Gorgeous Hair Extensions feature a patented installation system that makes them easy to install, take out and reinstall (creating consistent revenue) without damage. They’re available in a range of shades in 18-inch lengths. All the extensions are made of Remy hair, which can be colored and treated like natural hair. Visit www.begorgeousextensions.com. Famous Names’ new Lumos Top and Bottom Coats allow clients to walk out of the salon after 10 to 12 minutes with dry nail polish on hands and their toes. Products are packaged in a ½-ounce/$5.95 each; 2.4-ounces/$10.95 and in duo packs/one each of the ½ ounce Top and Bottom Coats/$8.95. Reach Linda Nordstrom, CEO/president, at 877-235-1141 or linda@famousnamesproducts.com. Visit www.famousnamesproducts.com. BIR checked in with Steve Sleeper, executive director of the PBA, who said, "I was very pleased with the response exhibitors and attendees alike had toward PBA's new initiatives, such as the EstheticsAmerica & Wellness pavilion and the expanded array of education. The industry continues to value being a part of ISSE Long Beach, and we intend to provide an amazing experience that the industry will also find of value with our new ISSE Midwest in March." Reach Steve at 800468-2274 or steve@probeauty.org. Eric Horn, show manager and PBA’s associate director of business development, added, “ISSE continues to attract an incredibly high caliber of exhibitors and professionally licensed attendees. Record education sales and outstanding attendance continues to exceed all expectations. The 40,000 attendees duplicated last year’s show numbers. However from all the exhibitor reports, this year’s buyers were spending more. We look forward to another outstanding ISSE Long Beach on January 28-30, 2012.” Reach Eric at 800-468-2274 or eric@probeauty.org. Visit www.probeauty.org. Sexy Hair celebration marks 2010 as a record year M In 2010, Sexy Hair also saw a string of ore than 450 “sexy” people, representing 25 countries, convened at the Universally profitable single product launches with most making the company’s top 25 performing skus Sexy: 2011 Sexy Hair International Sales (Dry Shampoo, Spray & Stay, Soy Renewal Conference in Los Angeles for the annual sales and Powder Play), in addition to its re-launch and education conference. of the Healthy and Short Sexy Hair lines. The Karl-Heinz Pitsch, president/CEO, welcomed the educators, distributors, national Beauty Launchpad's Readers Choice Awards in accounts, international partners and employees December honored Sexy Hair in seven and commended them for their great work, categories, including Best Education Academy: which led to a record year. Karl-Heinz said that Institute of Courage. Sexy Hair experienced a sales increase of 18%+ The company also unveiled the results of a and a profit increase of market research and 48%+ in 2010. The key to branding study that its success was its strong has become the focus on education. platform for its new In fact, Sexy Hair overall brand experienced growth in all strategy. Under the three sales divisions new headline (distributors, national “What’s your Sexy accounts and Style?” its new international) even communication though the company from left: Alexander Lindbeck, business manager concept focuses on of Frends A/S Norway; Pål R. Graham, Daglig diversity of style reduced its sku count by leder/CEO of Frends A/S Norway; Tracey Silva, and reaches out to 45% in the last 18 vice president of sales of Salon Direct; Janice months. Sales out the the multi-faceted LaRochelle, director of finance of Salon Direct; door were up by 14.7%+ woman who is bold Jeff Geisinger, regional sales manager of Sexy after an already strong enough to live out Hair; Louanne Roark, executive director of Personal Care Products Council Foundation; Karl- her personality. 2009, as shown by its Heinz Pitsch; president and CEO of Sexy Hair major national accounts, The Sexy Rocks: Concept; and Boyd Relac, divisional vice which represent close to On Tour reached president of sales of SalonCentric. 10,000 salons. out to more than Karl-Heinz clarified the company’s Chapter 11 6,000 stylists. With approximately 160 filing at the end of 2010. He explained that the educators scheduled to perform 4,000 days of company had two different positions—the in field education, the company hopes to reach operation side, which has strong sales even more attendees and potential Sexy Hair performance, is highly profitable and produces stylists in 2011. With its expanded education healthy cash flows, and the financial side, team, Sexy Rocks: On Tour is now slated to which has struggled with investors with no visit 70 cities in North America and Europe. knowledge of the salon industry who bought it In addition, Sexy Hair will continue its for too much money at the height of the outreach to stylists and consumers via public financial bubble and had the wrong relations and social media efforts. Under the expectations. “In other words, someone bought umbrella “Caring is Sexy,” the company will a cool, sexy sports car, forgot that 30 days later launch its second edition of the “Sexiest Stylist” a lease bill would be due and underestimated contest, in addition to two new contests aimed the need for money to buy gas to make the car at designers and sororities. The purpose of drive fast,” Karl-Heinz said. these contests is to create community and In 2010, Sexy Hair doubled its investments raise money to support the company’s charity into marketing and education, added to its partner, Look Good…Feel Better, a national roster of freelance educators and increased its public service program that assists patients permanent staff by 15%. struggling with the appearance-related challenges of cancer treatment. The Sexy Hair senior management team acknowledged customers and top educators with awards. They include: • Excellence in Education: National Account Distribution—Ulta Beauty; Domestic Distribution—Maly's Midwest; International Distribution—ID Hair (Denmark) • Best “Caring is Sexy” Account: National Account Distribution—JCPenney; Domestic Distribution—Salon Direct; International Distribution—Frends A/S (Norway). • Greatest Productivity: National Account Distribution—Chatters; Domestic Distribution—Peerless Beauty; International Distribution—Oversight (Peru). • Best Brand Representation: National Account Distribution—Beauty Brands; Domestic Distribution—Aerial Company and SalonCentric Store Division; International Distribution—Hairconcepts (Germany). • Greatest Increase in Sell-Out: National Account Distribution—Regis; International Distribution—Seeley & Seeley (Australia). • Most Improved Sell-Out Increase: Domestic Distribution—SalonCentric, MidAtlantic Region. • Best Overall Performance: National Account Distribution—Salon Innovations; Domestic Distribution—Maly's Midwest; International Distribution—Hairium (Finland). Following the general session, attendees were invited to Drai’s Hollywood at the W Hotel for the company’s exclusive Red Party. During the party, Karl-Heinz and several of the company’s distributors presented Look Good…Feel Better with four checks totaling more than $115,000, raised through the Caring is Sexy campaign. “Our global community of stylists and distribution partners is truly our greatest asset, and we are extremely grateful for their commitment and support,” said Karl-Heinz. “We could not accomplish what we do without their ongoing support; so for all of us to meet and share our expertise, experience and knowledge is truly remarkable.” Reach Karl-Heinz at 818-435-0804 or karlheinzp@sexyhair.com. Visit www.sexyhair.com. MARCH 2011 19 The Beauty Industry Report Visit www.bironline.com News continued from page 4 Robert Redding sent BIR the following information on Stephen John Redding, his brother, who passed away suddenly on January 11 at the age of 64. Stephen John Redding was an extraordinary man who left an amazing mark on the world and made a deep impression on those who knew him. Stephen was born in Burbank, CA, and moved to Santa Barbara as a teenager. He attended Cal State Northridge, earning a Bachelor of Arts degree in marketing. In 1979, Stephen joined forces with his brother, Bill, and father, Jheri, "the Shampoo Guru," and started Nexxus Products Company, with Stephen at the helm as president/CEO. Stephen surrounded himself with family, friends and dedicated colleagues and cultivated a world-renowned hair care company. Stephen retired from the beauty industry in 2002 and spent the past several years traveling the globe with his wife, Angie, daughters, Elisa and Stephanie, and son, Jheri. In addition to his immediate family, Stephen is survived by his brother, Bill. Reach Robert at 818-523-9077 or robert@reddinghaircare.com. Joseph (Joe) Simon passed away on January 21 of heart failure. He was 96. Joe was president of Buty Wave Products Co., a company started by his father more than 50 years ago. Joe was the loving husband to deceased wife, Vera, and father to his sons Melvyn and Bruce. BIR’s history can be traced back to Joe, who mentored my father when he was a distributor. Under Joe’s leadership, the company transformed into a full-time, high-end manufacturer of health and beauty items. Its brand, Restor, is still a viable brand and currently the company also markets Remedee Hair Care treatment, shampoo and conditioner. Sons Mel and Bruce operate the business. Reach Mel at 323-936-2191 or butywave@sbcglobal.net. Jeff Christal passed away January 11. He was 88. His son, Dean Christal, provided this information, “My father worked for Helene Curtis during the 1950s and was national sales manager of its professional division 20 MARCH 2011 before starting his own distributorship, Payless Beauty Supply, in Moline, IL, in the early 1960s. He operated 20-plus stores throughout the Midwest and sold his operation in 1985 to Alberto Culver. Dad partnered with my brother, Don, in 1987 with California Tan and later, Alterna. In the last few years, he mentored me with my new hair care line, Liqwd. He loved traveling and collecting antiques with his wife, Aynn. The beauty business was his life.” Reach Dean at 805-969-9430 or dean@liqwd.com. Fromm International is seeking candidates for the new position of internal sales manager. If interested, visit www.newhire.com/jobs/availablejobs.asp?job=3750. Please, no direct responses to the company. The Professional Beauty Association (PBA) and National Cosmetology Association (NCA) announced steady membership retention and growth in 2010. Comparing 2009 to 2010 year-end results, PBA's manufacturer and distributor sections experienced positive results with doubledigit growth at 19% and 20%, respectively. PBA’s salon/spa section reported a 2% increase. Members continue to report satisfaction with PBA|NCA’s efforts on behalf of the industry and view membership as a resource for education, career advancement, government advocacy, networking and access to premiere industry events. Reach Elizabeth Fantetti, director of membership, at 800-468-2274, ext. 3430, or elizabeth@probeauty.org. Visit www.probeauty.org. “2011 is an exciting year in the salon and spa industry! When you look at where the industry has come in the last decade, and even century, it is remarkable and we should all stand together to take note and be proud of our industry,” says Mark Goodman, NCA Council President, PBA Leadership Council Member and owner of The Hair-Designers in Hilton Head Island, SC. “I am excited that this year, one of the world’s most iconic hair stylists, Vidal Sassoon, released a much anticipated movie about his life and his climb to the top. Vidal Sassoon’s career is a true testament to how much a beauty professional can achieve through passion, talent, dedication, education and focus. And I think the movie title encapsulates just how impactful he has been to our industry: ‘One Man Who Changed the World with a Pair of Scissors.’ “PBA|NCA’s mission is to help advance the beauty industry and the career of its professionals, and it takes that charge very seriously. Like Vidal, we truly believe in developing and offering top-notch education, business tools, government advocacy and events. “To help professionals achieve optimal success, PBA|NCA’s leadership is extremely proud to stand with the industry and offer another educational and tradeshow event: The International Salon and Spa Expo Midwest (ISSE Midwest), March 26-28, in Rosemont, IL. This event was the result of demand from the industry for another event in the Midwest. But most importantly, this event is part of the PBA|NCA legacy of supporting the prosperity of its members, the industry and all beauty professionals. All revenue generated at ISSE Midwest goes right back into the industry through PBA| NCA efforts to raise the bar on education, research, government advocacy and community outreach efforts. “But for that to happen, we need all professionals to stand together and support this new endeavor. I encourage you to be part of the future of the industry and the success of ISSE Midwest and come join us!” Reach Mark at markwg2000@aol.com. Owners and key managers from North America’s top salon and spa companies will be “Building Connections” at the International SalonSpa Business Network’s (ISBN) 2011 Conference, May 15-17, at the Ritz Carlton Resort in Amelia Island, FL, The event will feature a fascinating keynote, two powerful panels, three essential interactive breakouts, Speed Meetings with vendors, plus plenty of time for the ISBN’s signature networking. Formerly known as the International Chain Salon Association, the group represents leaders and senior executives from companies owning and managing from two to more than 12,000 salons and/or day spas. “Our membership and attendees at our conference are some of the most successful multi-unit salon and spa operators in North America, and the amazing thing is how everyone is so open and willing to share their secrets to success,” says Gordon Logan, ISBN president. Keynoter Sally Hogshead will reveal why fascination is your new weapon in the battle for your customers’ attention. She’ll lead attendees on a riveting journey through the decision-making process and reveal how companies can tap into the brain’s hardwired triggers to influence opinions and behavior. What happens when a leader or organization effectively activates the right trigger? Client loyalty increases, profitability improves and the most talented employees never want to leave. As a bonus, all conference attendees will receive a complimentary copy of her book, Fascinate: Your 7 Triggers to Persuasion and Captivation. ISBN offers three interactive breakouts on topics that give attendees a new point of view. In How to Create Fascinating Social Media Messages, Sally Hogshead will take attendees on a fast and furious journey through business, behavior, culture and trends, showing how to create irresistibly effective social media messages. In “Extreme Sales @ The Front Desk,” Kristi Valenzuela, the president of Crystal Focus Salon Coaching and co-owner of Summit Salon Business Center, talks about how to generate thousands of additional dollars per month with the clients you already have. Finally, in “The 2 to 10 Project: Financial Benchmarks and Best Practices,” Qnity’s Tom Kuhn and Scott Schneiderman reveal key findings from their study of financial benchmarks and best practices for salons and spas with 2 to 10 locations. Two discussion panels will focus on the State of the Industry and State-Level Activism. ISBN is proud to present the 2011 Lifetime Achievement Award to Charles Penzone, the chairman and founder of The Charles Penzone Salons based in Columbus, OH. Charles, an industry icon and former ISBN board member and officer, also owns and operates a professional products distributorship that provides products to salons in five states, a consulting company and a real estate management company. Attendees will learn about the newest products and programs for multi-unit salon and spa companies from industry partners during ISBN’s signature Speed Meetings. Platinum sponsors so far include John Paul Mitchell Systems and the L’Oréal Professional Products Division (Redken, Matrix, Mizani). Equibal Labs is a Gold Sponsor. Silver sponsors include Alterna Professional Haircare, GKHair and Sexy Hair. Bronze Sponsors are AG Cosmetics, Beauty Systems Group, Direct Beauty Express, GoLoyal, HairUWear, La-Tweez Professional Tweezers, Millennium by HARMS Software, Modern Salon Media, P&G Salon Professional, Paul Brown Hawaii, ShortCuts Salon & Spa Software, SureTint and Takara Belmont. Members will also have plenty of time to catch up with friends, share ideas and challenges during the President’s Welcome Reception, New Member Reception, Farewell Party, optional tours of St. Augustine and the Arts & Culture of the Historic District and the annual ISBN Golf Outing. For hotel reservations, call the RitzCarlton, Amelia Island, at 800-241-3333 and visit www.ritzcarlton.com. To learn more and register for the conference, visit www.salonspanetwork.org. At the end of January, Robanda International acquired Omega Labs USA. The company’s nail care products, including Fungus Treatment, Ultimate Growth 2, Nail Art and Nail Glitters, will be merged with Robanda’s Mr. Pumice and Tropical Shine File brands. “There is ample opportunity to develop the Omega Lab brands in the OTC marketplace internationally and drive business in the nail category where Robanda already has a strong presence with Mr. Pumice and Tropical Shine brands,” says David Leib, Robanda International president. Bill Homaidan, the previous owner, will remain with the company, taking the lead with product development. Reach David at 800-783-9969 or david@robanda.com. Visit www.robanda.com. Fisk Industries, a marketer of niche oriented cosmetics and health and beauty aid products, announced the acquisition of the Barielle line of nail, skin and foot care solutions. The Barielle story began 30 years ago when its original nail strengthening cream was developed for the hooves of million dollar race horses. When even the jockeys who applied the cream saw improved nails, the product was reformulated for women and men. The Barielle line has expanded to include a wide range of creams and lacquers to help prevent damage to hands and feet. Product solutions target weak, discolored, splitting and hard-to-grow nails. None of the Barielle products contains formaldehyde, toluene or dibutyl phthalate, which are considered harmful. Instead keratin, protein, vitamins, oil and plant extracts have been used. In addition, the Shades Barielle polish collection has established the company as a fashion source. Reach Stephen Adler, president, at 845-398-3340 or shadler111@aol.com. News continued on page 22 MARCH 2011 21 The Beauty Industry Report Visit www.bironline.com News continued from page 21 At the end of January, Zvi Ryzman’s American International Industries (AII) acquired Gloria and Al Abraskin’s It’s So Easy Nails, a line of nail art accessories, products and tools. It’s So Easy will join the AII family of beauty and personal care offerings, including 5 Second Nail, Checi, China Glaze, Duo, EzFlow, Gena, IBD, Prolinc, Seche and Super-Nail. Reach Zvi at 323-728-2999 or z-ryzman@aiibeauty.com. Visit www.aiibeauty.com. Sally Beauty Holdings, Inc. announced strong financial results for the fiscal 2011 first quarter. "Fiscal year 2011 is off to a great start with strong performance in the first quarter from each of our business segments," stated Gary Winterhalter, president and chief executive officer. "We delivered a doubledigit sales growth of 13% with same store sales up 6.8% and gross profit margin expansion of 50 basis points. We achieved SG&A leverage in the quarter, which contributed to our 57% net earnings growth. I believe Sally Beauty Holdings is in a strong position to execute on our strategic objectives and deliver another year of strong financial performance." Consolidated net sales were $793.6 million for the fiscal 2011 first quarter, an increase of 12.6% from the fiscal 2010 first quarter. This fiscal 2011 first quarter sales increase is attributed to same-store sales growth, acquisitions and the addition of new stores. The unfavorable impact from changes in foreign currency exchange rates in the fiscal 2011 first quarter was $2.0 million or 0.3% of sales on a consolidated basis. Consolidated same-store sales growth in the fiscal 2011 first quarter was 6.8%. Net earnings in the fiscal 2011 first quarter were $40.9 million; a growth of 56.7% over GAAP net earnings of $26.1 million in the fiscal 2010 first quarter and a growth of 65.9% over adjusted net earnings of $24.7 million in the 22 MARCH 2011 fiscal 2010 first quarter. Diluted earnings per share in the fiscal 2011 first quarter were $0.22; a growth of 57.1% over GAAP diluted earnings per share of $0.14 and a growth of 69.2% over adjusted diluted earnings per share of $0.13 in the fiscal 2010 first quarter. Reach Gary at 800-777-5706, ext. 4444, or gwinterhalter@sallybeauty.com. Visit www.sallybeauty.com. Fiscal 2011 First Quarter Results for Sally Beauty Supply: Sales of $481.0 million, up 9.7% from $438.3 million in the fiscal 2010 first quarter. The negative impact of unfavorable foreign currency exchange on net sales was $3.2 million or 0.7% of sales; same store sales growth of 6.4% versus 3.7% in the fiscal 2010 first quarter; gross margin of 53.2%, a 70 basis point improvement from 52.5% in the fiscal 2010 first quarter; segment earnings of $83.6 million, up 17.5% from $71.1 million in the fiscal 2010 first quarter; segment operating margins increased 120 basis points to 17.4% of sales from 16.2% in the fiscal 2010 first quarter; net store base increased by 29 over the fiscal 2010 fourth quarter for a total store count of 3,061. This increase is principally from organic store growth. Sales growth in the fiscal 2011 first quarter was driven by same-store sales, acquisitions and new store openings; growth was partially offset by unfavorable foreign currency exchange. Gross profit margin expansion of 70 basis points resulted from a shift in product and customer mix and lowcost sourcing initiatives. Segment operating earnings and margin were positively impacted by improvement in gross profit and SG&A leverage in the International businesses. Reach Mike Spinozzi, president—U.S. and Canada, at 800-7775706, ext. 4446, or mspinozzi@sallybeauty.com. Visit www.sallybeauty.com. Fiscal 2011 First Quarter Results for Beauty Systems Group: Sales of $312.6 million, up 17.3% from $266.5 million in the fiscal 2010 first quarter. The positive impact of favorable foreign currency exchange on net sales was $1.1 million or 0.4% of sales. Growth from acquisition-related revenue was 10.5%; same-store sales growth of 7.8% versus 4.3% in the fiscal 2010 first quarter; gross margin of 39.5%, up 90 basis points from 38.6% in the fiscal 2010 first quarter. Segment earnings of $35.1 million, up 37.3% from $25.6 million in the fiscal 2010 first quarter; segment operating margins increased by 160 basis points to 11.2% of sales from 9.6% in the fiscal 2010 first quarter; net store base increased by 90 stores or 8.8% over the fiscal 2010 fourth quarter. Total store count for the fiscal 2011 first quarter was 1,117, including 158 franchised locations and 82 companyowned stores acquired through the acquisition of Aerial Company, Inc. on October 1. Total BSG distributor sales consultants at the end of the fiscal 2011 first quarter were 1,141 versus 1,051 at the end of the fiscal 2010 fourth quarter. This includes approximately 70 distributor sales consultants from the acquisition of Aerial Company, Inc. Sales growth for the Beauty Systems Group was primarily driven by growth in same store sales, acquisitions and new store openings. Segment earnings growth is primarily due to improvement in gross profit, cost reductions, and synergies realized from prior acquisitions. Procter & Gamble announced steady gains for its third quarter sales ending in December, but profits are down on lower retail pricing and negative currency exchange rates. The company reported that net sales increased 2% to $21.3bn during the quarter, driven by a 6% increase in volumes, which was partially offset by the negative impact of currency exchange rates. Organic sales grew by 3%. The growth in sales volumes reflected the fact that the company has been heavily discounting retail prices in an effort to remain competitive in the more depressed markets. P&G said the combination of lower pricing and product mix impacted net sales for the quarter by approximately 2%. This inevitably impacted net profit for the period, with the figure falling from $4.66bn to $3.33bn, a decrease of 28%. Referring to the company’s market expansion during the quarter, which was mainly driven by sales gains in developing markets, P&G CEO Bob McDonald said, “This is driving strong volume and sales growth ahead of market levels…we are on track to deliver 7-9% [EPS] growth for the year.” Sales for the company’s beauty segment increased by 1% to $5.3bn, representing organic growth of 3%, while the volume growth of 5% was attributed to double-digit gains in the developing regions. The company also said that lower pricing and unfavorable currency exchange negatively impacted the beauty division by approximately 1%. Gains in the developing markets were increased by distribution expansion in Asia and Latin America, while category volume gains in retail hair care and female beauty also helped to drive net sales. Grooming sales increased by 3% to $2.2bn, representing an organic sales increase of 6%, while sales volumes for the division were up by 5%. Volume increases were driven by the developing markets, as well as the men’s grooming category. Foreign exchange rates negatively impacted the division by 3%, while this hit was counterbalanced to a degree by price increases adding 1% to the net sales figure. Looking ahead to 2011, the company said it expects sales to grow by 3 to 5%, while organic sales should see increases of between 4 to 6%. Negative currency translations are forecast to impact sales by 1 to 2%. Reach Bob at 800-742-6253 or mcdonald.b@pg.com. Visit www.pg.com. Regis Corporation announced that its board of directors has declared a regular quarterly dividend of six cents per share, an increase of two cents or 50% over the previous quarter's dividend. The dividend was payable on February 24 to shareholders of record as of February 10. There are 57,617,211 shares outstanding. Visit www.regiscorp.com Regis Corporation also announced that it has agreed to increase its ownership stake in Provalliance, the largest hair salon company in Europe. Under the terms of the agreement, Regis will pay approximately $56.0 million to secure an additional 17% ownership interest, bringing its total equity position in Provalliance to 46%. The transaction is expected to close prior to June 30, and is projected to add approximately six cents to earnings per share on a full-year basis. The transaction results from Regis' acceptance of a previously disclosed equity put right held by one of the other investors in Provalliance. Provalliance, which operates salons primarily under the brands of Jean Louis David, Franck Provost and Saint Algue, is led by Franck Provost, founder and chairman, and Marc Aublet, president. Founded in 1975, Provalliance owns or franchises approximately 2,500 hair salons in 33 countries with annual revenues of more than $275 million and system-wide sales exceeding $1 billion. When the transaction is complete, Regis expects to recognize a non-cash, non-operational gain of approximately $1.0 to $3.0 million representing the settlement of an existing equity put liability related to Provalliance. Additionally, Regis will continue to account for the investment in Provalliance under the equity method of accounting. Visit www.regiscorp.com. e.l.f. Cosmetics (www.eyeslipsface.com), a brand of cost-conscious, quality cosmetics, has taken on a minority investment from TSG Consumer Partners, LLC, (TSG), a private equity firm focused exclusively on the branded consumer sector. Joey Shamah, founder and CEO of e.l.f., says, “We are proud of the brand we have built, and we’re excited about the significant growth opportunities ahead. e.l.f. offers a broad and innovative product line at affordable price points that allows our consumer to experiment with new products and colors without breaking her budget, which is more important than ever. We are excited to have TSG as our partner given their strong track record and high success rate, and we believe our partnership with TSG and their experiential guidance will help accelerate our growth going forward.” Founded in 2004 by father and son team Alan and Joey Shamah, New York Citybased e.l.f. achieved initial success online with its quality cosmetics with $1.00-$5.00 price points. In addition to growing its online business, e.l.f. is deepening its retail presence with distribution at large retailers and is broadening its international business. The company also continues to build out its product line, including e.l.f. studio, e.l.f. minerals and e.l.f. bath and body. Reach John Kenney, TSG managing director, at 212-2654113 or jkenney@tsgconsumer.com. Visit www.tsgconsumer.com. Philip Pelusi, stylist, photographer and product artist, is hosting the first Be-Cause charity event at his Tela Design Studio, home of Tela Beauty Organics, in New York City, March 5. The Be-Cause, founded by Millennium Salon Software, is a movement to unite those who are drivers in the industry. Robert Maconi, vice president of business solutions for Millennium Software, reflects, "Our intent was to give back to the beauty industry in the form of inspiration. In return, we were inspired by hundreds of beauty professionals." This initiative has transformed into a huge celebration not only for Beauty Changes Lives, but the beauty industry, as well. In addition to Philip, stylists, such as Robert Cromeans, John Paul Dejoria, Warren Tricomi and Rita Hazan, are standing behind Be-Cause. Brigg Van Osten, winner of Shear Genius Season 3, and Ted Gibson have also committed to the event. The gala will include a preview of Fashion Week inspired looks created by Philip, a word from Be-Cause founder John Harms and gift bags. Contact Jennifer Danilchick at 212-463-8213 or jennifer@telanyc.com. Visit www.telanyc.com and www.telabeautyorganics.com. MARCH 2011 23 Presorted Standard U.S. Postage PAID San Dimas, CA Permit No. 410 PMB #403 22287 MULHOLLAND HIGHWAY CALABASAS, CA 91302-5157 ADDRESS SERVICE REQUESTED The Beauty Industry Report A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ Professional Consultants & Resources, a leading strategic consultants and industry data source in the beauty salon industry, just released its new, updated 2010 Professional Salon Industry Study. It reports overall salon industry growth at 4.5%. Salon hair care grew by 4%. “This is an excellent recovery from the deep economic recession,” says Cyrus Bulsara, president. “Increased salon visit frequencies resulted in good service and product sales. Haircolor, Brazilian straightening and basic cutting and styling were major growthdrivers. For purchasing information and to learn more, contact Cyrus at cbulsara@augustmail.com or visit www.proconsultants.us. More details in next month’s BIR. EXIT LTD. has acquired the exclusive importer rights of GAMMAPIU, a major manufacturer of Italian made hair dryers and irons. EXIT LTD is establishing a network of exclusive distributors with protected territories. GAMMAPIU and EXIT LTD will be launching the Active Oxygen System at the International Beauty Show in New York on March 6-8. Reach Marco Enfiomusi at 908-474-5229 or exitint@aol.com. Union, NJ-based full-service distributor Emiliani Enterprises has acquired Rye, NY-based Beauty Products International, the exclusive distributor of John Paul Mitchell Systems, in the five boroughs of New York City, Suffolk and Nassau counties, Long Island, and Westchester and Rockland counties. For more information, reach Don Emiliani, CEO, at 800-624-0405 or don@emiliani.com. Visit www.emiliani.com. More details in the April BIR. 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