Mane St. - Inspiring Champions
Transcription
Mane St. - Inspiring Champions
NOVEMBER 2010 volume 13 issue 11 Why does your company exist? By Simon Sinek A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ highlights 2 Lafayette Jones’ Multicultural Report 5 Keune: Dedicated to salon professionals 6 UBC brings back personalized distribution8 Int’l Congress of Esthetics/Spa Report 10 It’s all about family at Peel’s show 12 Modern Salon’s new distributor database 15 Don’t miss these first quarter shows 21 New Beauty comes to life at Fred Segal 22 Rumors say Regis, OPI for sale 24 Mane St. Watch list: Industry goes to Capitol Hill VISIT US ONLINE www.bironline.com & check out BIR’s 2010 BIG! Show Calendar This is your industry’s newsletter, and BIR welcomes your feedback! Mike Nave, editor 818-225-8353/mike@bironline.com I invite you to connect with me on Facebook and follow me on Twitter@MikeNave by Mike Nave EDITOR W ith Thanksgiving this month, it’s an ideal time to give thanks to the professional beauty industry. I feel blessed to have spent my entire career in our wonderful world of beauty. What could be better than making a living in a marketplace that’s about what’s new and is populated with wonderful people? This month’s feature interviews profile two companies on the move. Nancy Carroll, president, shares Keune HairCosmetics’ success story. At Ultimate Beauty Companies, owners Morad and Nancy Zahabian operate a distributorship that covers a large, diverse customer base. In addition, Beauty Industry Report travels to Council Bluffs, IA, to report from Peel’s Salon Services’ Creative Edge Show. We also include exclusive coverage of the International Congress of Esthetics and Spa Conference in Long Beach, CA. Regards, I n the 1970s, there were two choices of Colgate toothpaste. But as competition increased and more and more brands entered the market, Colgate kept adding line extensions. And as it added more choices, so did the competition. Today, Colgate has more than 30 line extensions. There are now hundreds of choices of toothpaste. The result is bad for everyone—buyers and sellers. Consumers bombarded with choices have trouble choosing what’s best for them, and show less loyalty to one brand than they used to. But sellers also struggle. One of their biggest challenges is how to differentiate themselves in a market they created. This race is not exclusive to dentifrice. Nearly every brand manager feels the pressure to make more choices available, and in so doing, have turned their products into commodities. In contrast, those who thrive in a cluttered marketplace exist outside of what they do and focus more on why they do it. It is too easy to say, “Simply offer fewer choices.” There has to be a reason to offer fewer choices. The decisions a company makes and the products it offers have to serve to deliver an experience beyond the purpose of the product or service being sold. For example, fine dining is not just about food for sustenance; it is about the experience and the company we keep. There is a reason we choose different restaurants to visit with good friends compared to casual acquaintances. A business, however, cannot just start reducing choices and decide on an arbitrarily chosen experience it wants to offer (such as the “best service”) as its reason for being. An authentic experience must be born out of the truth; it must be born out of the founder’s intent when he or she first started Why does your company exist?....cont. on p. 2 The Beauty Industry Report Visit www.bironline.com Why does your company exist?...cont. from p. 1 the business. That is what authenticity means—that the things you say and the things you do you ACTUALLY believe. Do that and the results are profound. The experience sold is perceived as genuine and honest, not contrived by a cocktail of trend data, market conditions or best practices. Starbucks, for example, became what it is today, not from selling coffee, but from offering people a place between work and home. Likewise, there is an opportunity to reinvent a salon to stand for something beyond the obvious hairstyling services. If the founder started the business because he or she used to love helping style friends’ hair, then it was more about the social aspect of the haircut and not the cut itself. Try adding a coffee bar (that is different from offering a free cup of coffee) and comfortable chairs right next to the salon chair so a group of friends can come get their hair done as a social outing and not just as something they need to do. Give people a reason to do business with you beyond the products you sell, the services you offer and the number of options you give them and they will come for that thing…everything else is just part of the total experience. _____________________________ Simon Sinek teaches leaders and companies how to inspire people. He is the author of the book, “Start With Why, how great leaders inspire everyone to take action.” Reach him at simon@startwithwhy.com or visit www.startwithwhy.com. BIR invites you to become a Guest Columnist. Send your thoughts in about 450 words, including a one-paragraph author bio, to mike@bironline.com in an MSWord document. We will edit your column for style and space. 2 NOVEMBER 2010 More than 700 key staffers and decisionmakers from Capitol Hill enjoyed haircuts, mini-manicures, makeup applications and hand and neck massages from 144 industry volunteers, as they learned about the professional beauty industry during the Professional Beauty Federation’s (PBF) 11th Annual Welcome to Our World. Welcome to Our World has become the most popular event on Capitol Hill because of the unique way it combines learning with a fun and rewarding event. In addition, many members of the professional beauty industry spent the day meeting with members of the House and Senate to discuss key issues and the industry at large. Two issues of immediate importance to the professional beauty industry are fairness in taxation and access to cosmetology education. S.3430/H.R. 3724, the Small Business Tax Equalization and Compliance Act, would make it possible for salon owners to claim a tax credit for the FICA taxes they must now pay on their employees’ tips, a benefit that restaurant owners already receive. The legislation will also improve income reporting within the industry, promote tax fairness and help small businesses—the backbone of the American economy. According to the U.S. Department of Commerce, every dollar spent in the salon industry generates an additional $1.77 of sales for other industries in the economy. To get involved, send a message to Congress asking for their support of the Small Business Tax Equalization and Compliance Act. In regard to education, the discussion this year centered on a set of proposed rules introduced by the Department of Education that will have a tremendously negative impact on the access to Title IV funds for those who choose to make their living as a licensed professional in the professional salon industry. Schools around the country would experience sanctions that could range from limitations on new enrollment to potential closure. In an industry that has virtually zero unemployment and is predicted to grow by 20% over the next seven years, this policy makes no sense. Contact your member of Congress and ask him or her to voice concern to the Department of Education over the Gainful Employment Regulations. “This important event brings an entire $60 billion industry to Capitol Hill in just one day,” explains Eric Schwartz, president of the PBF. “It provides the perfect forum for our legislators to learn about important smallbusiness and education issues that affect millions of their constituents, while they enjoy the services that are performed by 1.6 million licensed professionals hundreds of times a day in hundreds of salons in each of their districts.” Founded in 1999, the PBF represents the political interests of the professional beauty industry. Members include the American Association of Cosmetology Schools, the International Salon/Spa Business Network, the International Spa Association, the Professional Beauty Association, OPI Products, Inc. and JCPenney Salons. Visit www.probeautyfederation.org. The Professional Beauty Association’s MidYear Market Shipment Survey for salon hair care products based on actual factory shipments of reporting members shows a 2.45% increase for the first six months of 2010 over the same period in 2009. Hair coloring continues to lead the category with shipments of $377.9 million versus $352.8 million in 2009. Other subcategory comparisons of the two six-month periods include hair care at $319.2 million compared to $311.4 million; styling products show a slight decrease at $241.2 million compared to $255.8 million; texturizers also show a slight decrease at $28.8 million compared to $31.9 million and other hair care products report $19.1 million compared to $11.1 million. The total for hair care shipments for the first six months for 2010 is $986.3 million compared to $962.7 million for the like period in 2009. Visit www.probeauty.org. Stylists who are confused about keratin, chemistry and straightening systems can relax. Not only does Caribbean Dream Relaxer (CDR) allow four options in hair retexturizing results, it also uses ammonium hydroxide to swell the cuticle and cysteamine hydrochloride to restructure the hair’s bonds—a totally different science than hair-coating “Brazilian” systems. CDR, which is compatible with thio-based straightening systems, can be used to straighten hair, create soft wave, tame texture or reduce frizz. It is also an alternative for AfricanAmerican clients who “texlax” their hair: home buffer (with olive oil) and intentionally under-process the relaxer, which often creates uneven results that stylists must fix. Until November 19, CDR is offering 50% off of orders totaling $125 or more to help offset the cost of transitioning from other systems to CDR. Contact Jesse Briggs at 954-328-6993 or jessebriggs@bellsouth.net. Visit www.caribbeandreamrelaxer.com. De Fabulous introduces Amazon Secret, a natural smoothing line featuring the moisturizing and healing benefits from botanicals and extracts from açaí fruit and murumuru plants from the Amazon rainforest. “De Fabulous will donate proceeds to rainforest foundations and charities that help the people who harvest the fruits and plants used in the line,” says Rebecca Letizia, marketing director. The line includes Silk Açaí Botanical Hair Repair Therapy (16 ounces/SRP $50.00); Açaí Oil (2 ounces/SRP $24.00); Ker Açaí Restorative Leave-in Treatment (8.5 ounces/SRP $32.00); MuruMuru Anti-frizz Keratin Shampoo (8.5 ounces/SRP $19.00) and MuruMuru Anti-frizz Keratin Conditioner (8.5 ounces/SRP $20.00). Reach Jorge Freire, vice president of sales, at 888-920-6008 or jorge@defabulous.com. Visit www.defabulous.com. Allure recently named several professional beauty companies as winners in its 2010 Best of Beauty Awards. Spornette International’s G Series wooden porcupine rounder captured honors as best brush. The collection includes five brushes with SRPs ranging from $8.00 to $21.00. Reach Jeffrey Sporn, regional sales manager, at 800-323-6449 or jeff@spornette.com. Visit www.spornette.com. The magazine also selected Tweezerman’s Slant Tweezer as best tweezer for the 10th consecutive year. Reach Kathy Harvey, director of sales, at 800-645-3340, ext. 166, or kharvey@tweezerman.com. Visit www.tweezerman.com. Finally, Allure also named SalonTech’s Silicon 450 as the best flat iron. Reach Lee Ann McColl, SalonTech national sales manager, at 516-941-3462 or mccoll@salontech.com. Visit www.salontech.com. Robanda International snagged three Launchpad magazine Readers’ Choice Awards: best brush/comb category— Marilyn Brush Flatter Me Too; best dry shampoo—Batiste; best cosmetic blush— Bodyography Cosmetics. The San Diego Business Journal also awarded Robanda International with the 2010 Fast 100 Award, recognizing it as one of the fastest growing private companies in San Diego. The company’s growth is attributed to aggressive marketing, smart acquisitions and expansion into new markets worldwide. This is the third time Robanda has been awarded this distinction within the past four years. “Our team is very proud that we have been able to maintain an annual growth in excess of 20% even in the difficult economic climate of the past two years. We are 100% service driven and are clearly focused on future growth,” says David Leib, president. Reach David at 619-276-7660 or david@robanda.com. Visit www.robanda.com. CND recently presented its annual awards to employees who honor CND's philosophy of providing exemplary service and creating a positive workplace. MaryAnn Garcia received the fourth annual Mary Nordstrom Memorial Award, which is presented to the employee who, during the year, has most embodied the true spirit of the matriarch of CND, Mary Nordstrom. Mary was responsible for creating a familial culture in the CND workplace. On top of managing her team, MaryAnn took on additional staffing during the exponential growth experience of the Shellac launch, while also lending a hand to distribution services and domestic sales teams. Karen Scheaffer received the Employee of the Second Quarter Award. Reach John Heffner, CND president/CEO, at 800-833-6245, ext. 277, or john.heffner@cnd.com. Visit www.cnd.com. Two members of The Kirschner Group were recognized recently by its manufacturer partners for exceptional performance. Fromm International named Mike Cevetillo, sales executive in the Northeast, as the top sales person of its Special Offers Incentive program. Burmax selected Brett Ury, sales executive in the Southeast, as the top sales person generating orders at Cosmoprof North America. “We are proud of the accomplishments of both Mike and Brett,” says Jane Caris, vice president of sales and marketing. Reach Jane at 800-328-4353 or jane@kirschnergroup.com. Visit www.kirschnergroup.com. Lori Silverstein is a double winner. Recently, her Peninsula Beauty Supply was voted the best beauty supply in Metro’s 25th annual Best of Silicon Valley edition. It was the eighth year in a row that Peninsula Beauty Supply topped the list. In addition, Peninsula Beauty Supply was listed in the San Francisco Business Times’ “Top 100 Women Owned Businesses in the Bay Area,” an annual listing sponsored by Wells Fargo Bank. Reach Lori at 650-348-1454, ext. 21, or loris@peninsulabeauty.com. Visit www.peninsula.com. News continued on page 4 NOVEMBER 2010 3 The Beauty Industry Report Visit www.bironline.com News continued from page 3 An Verhulst-Santos, president of the Professional Products Division (PPD) of L’Oréal USA, has been promoted to managing director of L’Oréal PPD Worldwide, effective January 1, 2011. Pat Parenty, formerly brand president of L’Oréal USA’s PPD, replaced An last month and reports to Frédéric Rozé, president/CEO of L’Oréal USA. An began her career nearly 20 years ago with L’Oréal Professional Products in Belgium as marketing director of L’Oréal Professionnel. She moved to Paris in 1998 to take the position of marketing director of the Europe zone and was then appointed general manager of the PPD in Holland in 2000. In 2004, she became the general manager of the PPD in Brazil, and four years later was promoted to her current position. Pat was appointed brand president of L’Oréal USA’s PPD in February 2009. He was responsible for overseeing all PPD brands, including L’Oréal Professionnel, Kérastase, Logics, Matrix, Mizani, Pureology, Redken, Shu Uemura Art of Hair and Essie. He joined L’Oréal USA in 1997 as vice president of sales for Redken and shortly thereafter was promoted to senior vice president/ general manager. Throughout his tenure at Redken, Pat demonstrated strategic leadership qualities and a strong understanding of the professional products industry. He succeeded in delivering Redken results ahead of the market with cuttingedge, added-value products and services. With his entrepreneurial approach, Redken became recognized for its top position in the industry. In 2007, Pat assumed additional responsibilities for Pureology and subsequently managed the integration of that brand into Redken, while achieving valuable chain distribution and developing the education and merchandising platform for future market share growth. “With her insight, expertise and ability to lead, An expanded the impact of PPD within the United States,” says Frédéric. “Additionally, under her guidance, the division has continued the strategic implementation of SalonCentric through distributor acquisitions which has further driven our success in the industry.” He adds, “Pat has fostered a customer and employee-centric culture within PPD that has resulted in the continued growth and success of our business, while contributing to the development and leadership of his team. That makes him an ideal successor for this important position, and I am confident that he will use his extensive knowledge to continue to build our professional salon brands in the United States.” L’Oréal also announced the appointment of a new managing director for its luxury products division and the creation of a new strategic marketing department. The Paris headquartered cosmetics giant has created a new department to help anticipate market movements and inform future decisions. Marc Menesguen will head up the new strategic marketing department and drive the group’s strategy in digital communication, distribution, advertising and consumer understanding. He has been with the company since 1985, most recently as managing director of the luxury products division. Replacing Marc will be Nicolas Hieronimus, who has spent 18 years within the consumer products division. Reach Frédéric at 800-543-3839 or frozé@us.loreal.com. Spilo Worldwide announces the retirement of Robert Steuer after 27 years with the company. He is moving to Florida to be closer to family and friends. Bob launched his career as a hairdresser. He joined Spilo in 1983 and built his territory into one of the most profitable in the company’s long history. “Through his impeccable work ethic and ability to make and sustain personal and professional relationships, Bob has become one of the most respected salespeople in the industry. We wish him all the best as he embarks on this new phase in his life,” said Marc Spilo, president of Spilo Worldwide. “He has earned the right to reap the rewards from all his hard work over the years.” Bob will remain with Spilo through the end of 2010 to help transition the territory to a new salesperson. Reach Marc at 800-347-7456 or marc@spilo.com. Visit www.spilo.com. GK Hair (previously Global Keratin) has hired Harold Leighton and John Benedetto. As creative director, Harold will lead GK Hair’s creative group and oversee advertising and branding efforts. As director of education, John will develop and drive growth within education, especially for GK Academy’s classes and curriculum. He will also build a team of educators and guest artists for the creation of seasonal collections and brand image. Reach Harold at 866-361-7366 or harold.leighton@globalkeratin.com. Reach John at 866-361-7366 or john.benedetto@globalkeratin.com. Visit www.gkhair.com. Bill Deliman has joined SureTint Systems, LLC as business development manager. In this new position, he will establish and cultivate direct, strategic partnerships with national cosmetology schools and multi-unit salons and spas in order to help them provide consistent color results through SureTint’s Complete Color Control. Bill will also work to refine the company’s educational and training methodology, establish criteria for SureTint certification and collaborate on product refinement. Bill has more than 25 years of cosmetic industry experience in sales, branding and target marketing for key manufacturers, distributors and retailers. Previously, he served as vice president of operations for Mirabella Beauty and prior to that he served as Mirabella's director of sales. Prior to joining Mirabella, Bill served as director of services for Maly’s West and also worked with Modern Organic Products, Goldwell, West Coast Beauty Supply and Sears Roebuck. Reach Bill at bdeliman@suretint.com. Visit www.suretint.com. News continued on page 16 4 NOVEMBER 2010 The Multicultural Report I t looks like some established multicultural brands will be on the move again with the announcement of the Unilever (www.unilever.com) buyout of Alberto Culver, (www.albertoculver.com) and its ethnic brands, including Soft and Beautiful, Just for Me and Motions. The Anglo-Dutch company is on the way to becoming a powerhouse in the black hair care category. It wasn’t too long ago that those famous brands were at home in the Texas company, Pro-Line, founded in 1970 by multi-millionaire black entrepreneur, philanthropist and author Comer Cottrell, who tells his story in “Comer Cottrell: A Story That will Inspire Future Entrepreneurs.” In 2000, Comer sold his operation to Leonard Lavin, founder of Alberto Culver. According to the Unilever press release, the purchase price was $3.7 billion. The Wall Street Journal said Alberto Culver was valued at $3.1 billion ("Unilever, Alberto Culver in Talks”). The Atlanta Post can be found on the Internet at www.moguldom.com and covers a variety of topics, including Caltha Crawford’s story on how the 2000 census gave cosmetic manufacturers a wake-up call (“Multicultural Approach Charts Future of the Beauty Business”). The Moguldom Media Group is moving to capitalize on high income AfricanAmericans between the ages of 25 and 55 with a household income of more than $75,000. They represent 17% of the African-American population and account for 45% of the community’s total buying power—which has been projected to exceed $1.1 trillion by 2012 (www.packagedfacts.com). Jet magazine reports online at www.myjet247.com on “The Wealth In Black America,” an online survey, conducted by the Northern Trust bank, tracking spending habits of wealthy blacks. The study looks at 361 affluent blacks ages 18 and older with a household income of more than $250,000 and those with $1 million or more in investable assets. For more information, contact Mark Welch, director of global diversity and inclusion for Northern Trust, at 312-557-9078. Visit www.northerntrust.com. Clyde Hammond Sr., president of Summit Laboratories, is the fourth term chairman of by Lafayette Jones the board for the American Health and Beauty Aids Institute (AHBAI). Other officers are vice chairman, Ursula Dudley Oglesby, who is president of Dudley Beauty Corp.; treasurer, Nathaniel Bronner, Jr., who is executive vice president for Bronner Brothers; secretary, Marty Joshua, who is president of M3 Cosmetic Labs; and parliamentarian, Dr. Milton Moore from Moore Unique Skin Care. AHBAI is a national trade association representing leading manufacturers of ethnic hair care and beauty-related products. Founded in Chicago in 1981, it works closely with all segments of the beauty industry, including cosmetologists, barbers, beauty and barber suppliers, retailers and distributors. For more information, visit www.proudlady.org or call executive director, Geri Jones, at 708-633-6328. According to the U.S. Census, about 44% of the nation’s Dominicans live in New York City and about half of the nation’s Cubans are in Florida in Miami-Dade County. “Thirty-eight percent of Mississippi’s population is black, the highest of any state. Blacks also make up more than a quarter of the population in Louisiana (32%), Georgia (31%), Maryland (30%), South Carolina (29%) and Alabama (27%). Black Americans are 56% of the District of Columbia.” The bureau notes that computer literacy is high in Asian households with 73% having Internet access. That is higher than any other race or ethnic group. Visit www.census.gov. Feeding Dreams is a General Mills multicultural platform to support black consumers; it recognizes and celebrates local heroes who have devoted their lives to helping others, nurturing their communities and charting a better future. Honorees will receive collectively more than $30,000 for their charitable organizations. The Feeding Dreams Grand Finale & Gospel Salute will take place at the historic Ebenezer Baptist Church, (Martin Luther King’s home church and the site where he and Coretta Scott King are buried) on Saturday, December 11. Susan L. Taylor, editorin-chief emeritus of Essence magazine and founder of the National Cares Mentoring Movement (www.caresmentoring.com), will host the free event open to the public with special gospel performances from the Sounds Of Blackness and Dorinda Clark-Cole. In its third year, Feeding Dreams, tapped SMSi (www.segmentedmarketing.com), a minorityowned national marketing company, to deliver free product samples and a 34-page custom publication, “Feeding Dreams: A Magazine to Celebrate the African American Family and Community” in beauty salons and churches in Atlanta and in Columbia, SC; Jackson, MS; Jacksonville, FL; New Orleans; Miami; Norfolk, VA; Memphis, TN; Birmingham, AL and Charlotte, NC. Visit www.feedingdreams.com. Liquid Keratin Bold is for dark, coarse, frizzy and curly hair and suitable for chemically treated hair. The $69 kit includes Liquid Keratin 30 day Bold Treatment (4 ounces); a de-frizzing shampoo (1.7 ounces); a de-frizzing conditioner (1.7 ounces) and a leave-in conditioner (1.7 ounces). Not a relaxer, it offers the choice to wear hair wavy or curly without frizz (or straight with very little styling or product required). Visit www.esmemarketspecialists.com. Ampro products offers a 15-ounce Berry Ice Ultra Hold Gel plus oil sheens and hair polishers in three varieties, including Organic Olive, Mango Marmalade and Lavish Limon. Visit www.amprogel.com. Dr. Miracle introduces the Follicle Healer Energizing System, which includes Deep Conditioning Treatment (SRP $1.59), Hydrating Oil (SRP $4.99), Pomade (SRP $4.99) and Creme (SRP $3.99). Ingredients include shea butter; vitamins A, E, C and B3; a variety of oils: castor, almond, coconut, safflower, tea tree and jojoba oils; soy protein and aloe vera gel. The introduction is supported with nationwide television on BET cable, free product samples, point of sale materials and a public relations campaign. Visit www.drmiracles.com. Lafayette Jones is CEO of SMSi-Urban Call Marketing, a promotion and marketing company, and publisher of Urban Call custom publications. Contact him with your multicultural news at 336-759-7477 or president@smsi-net.com. Visit www.smsiurbancallmarketing.com. NOVEMBER 2010 5 The Beauty Industry Report Visit www.bironline.com Keune is dedicated to the salon professional K eune Haircosmetics is an independent, family-owned Dutch manufacturer of hair care products that has been marketing to the professional hairstylist for more than 88 years and doing business in America since 1997. In recent years, the brand has grown rapidly under the leadership of Nancy Nancy Carroll, Carroll, president of president Keune Haircosmetics USA, Inc. Beauty Industry Report (BIR) recently had the opportunity to chat with Nancy to find out more about her keys to success in supercharging the company’s growth. BIR: Nancy, please tell BIR’s readers about Keune Haircosmetics. Nancy Carroll (NC): The company has been family owned for 88 years and has stayed true to its mission statement, “Lifetime of dedication to the salon professional.” It truly is a business with integrity, working to give the industry back to the salon professional where it belongs. BIR: Working with a company with such a long heritage must be very satisfying. What are some of the benefits from Keune that have allowed you to double its U.S. salon market business in the last two years? NC: The benefits are numerous. The mere fact of financial success for 88 years gives stability to the building of a brand in a new market and the security that the company will not “go out of business due to cash flow” during that building process. BIR: What does your mission statement, “Lifetime of dedication to the salon professional,” mean to you, and how does it show up in Keune’s marketing activities? NC: Dedication to the salon professional means that everything we do as a company must serve to benefit the salon professional. It starts with products made with only the finest ingredients and attractive commercial packaging. It means support programs, such as Keune Point, our salon reward program, and an ongoing color conversion program; high quality education from the beginning intro class to advanced level offerings, such as color theory, 6 NOVEMBER 2010 owner. One salon became two, two became chemistry, cutting and business; annual fashion four and then I became involved doing collections from the international design team education with a manufacturer. I also spent and training offered in the international facility, some time working with Michael Cole and and in early 2011, in the new academy in facilitating his boot camp program in its early Atlanta. Most importantly, it is a mission years. I had been associated for several years statement supported by never offering Keune with another manufacturer when Keune came products for sale in any drug, discount, to the United States and established Keune department or grocery store. BIR: What have you done differently that has Haircosmetics, USA, Inc. as a subsidiary of the parent company. In 1999, I accepted an resulted in business doubling in spite of the education position with the company and left challenging economy? Chicago for Atlanta. Soon after, I became the NC: When the economy changed, we knew education manager. During the company’s we needed to change the way we did business. formative years, there were several individual If you continue to do business the way you did and management changes, as is typical of any before the economy went askew and expect foreign company finding its way. During that different results, you will fall short. Doing time, there were few employees; therefore, it business the way we always have, the way the was a good way to learn every aspect of the competition does or based on the news does not work in today’s economic environment. The company. It wasn’t unusual for me to pack an order or a show pallet, prepare bimost important question to ask is, monthly promotions, launch a new “What does my customer want?” distributor, conduct sales meetings and Consumers are spending money; they train educators. As the company grew, so are just spending it differently. They are grew the team. In 2002, my goal was to looking for better results from their establish an infrastructure of programs, investment and better value. We make policies, department functions and it a point to find out what they want anything that would allow the company and help our distributors deliver. to rapidly expand distribution when the BIR: How is “Keune giving the opportunity was there. I have had industry back to salon many titles, including national professionals”? education manager, vice president of NC: We align ourselves with likeeducation and marketing, chief minded distributors who actually operating officer and now president. service and listen to stylists. We involve them in conversation to find The new Design While the titles have changed, my out what they want. We encourage Style line offers focus has always remained on planning extra care for hair. ahead 5 to 10 years for a successful them to voice their opinions and and continually growing company. thoughts, and then we act on them. BIR: Please give me a brief description of the BIR: You have said that Keune can provide organization’s structure. Who are the key salon professionals with what the members of your management team? conglomerates took away. Please explain NC: We have full-time and contractual what that means. employees. The sales department has two NC: By working solely with independent arms—distributor sales, headed by Eddie Gwin, distributors, we can be assured that stylists get and chain sales, headed by Christian Faircloth. the personal service they deserve, the The field sales educators report to the sales education they crave and the exclusivity of the department and are responsible for daily Keune brand. activities in their assigned distributor. The BIR: Tell me about your career. marketing department executes activities with NC: I started my career in the beauty the help of an outsourced public relations firm industry in my early 20s as a cosmetologist in New York City and is coordinated by Donna behind the chair and quickly became a salon DiNapoli. Operations are headed by the financial manager, Karen Tobey. BIR: In the crowded salon products marketplace, what is your brand’s point of difference to both beauty professionals and consumers? NC: The point of difference to beauty professionals is, of course, the quality performance, but most importantly, our products are sold only to the salon—no compromises. To the consumer, it is also exclusive. Brands that can only be purchased through a salon have increased perceived value. BIR: What is your flagship product? NC: Tinta Color, our permanent color, is our core product. Tinta Color’s success is associated with its superb performance and unsurpassed durability. It is easy to use and always has dependable results. The product has a unique formulation of Triple Color Protection: a combination of silk proteins, LP300 and solamer. BIR: Tell me about your distributor network. NC: We currently have 27 independent distributors covering the continental United States and Hawaii. We are specifically looking for distributors for New York City, Wyoming, Montana, New Mexico and Arizona. Our distributors are independent owners who do business with integrity and whose main focus is the salon professional. They offer easy access to great education and partner with salon owners to help maximize their retail business through inventory control, marketing and training. They encourage the stylists to increase their service revenue through the promotion of on- or off-site education. Service and attention is their main focus. They still care about relationships. Many of these are secondand third-generation owners who are planning growth for the future generations. BIR: Describe your ideal distributor. NC: The ideal distributor is independently owned and operated and isn’t “line heavy.” That allows sales consultants to know everything about and believe in the products they sell. They understand how to build the territory and that they must invest in building the territory, along with the manufacturer. They do business with the same integrity as Keune. BIR: What’s new in your line? NC: We recently launched Design Style. It is a complete concept that distinguishes itself through recognizable professional products and “The most important question to ask is, ‘What does my customer want?’ Consumers are spending money; they are just spending it differently.” extra care for the hair. It has DLP2, a double layer protection of grape seed extract and Vitamin E that reinforce each other for protection against external influences. BIR: How does Keune partner with salons? NC: We are structuring several activities that relate directly to the salon professional, including information that can be accessed via iPhone and similar devices, hands-on business training that launched this fall, trips to the international headquarters and the launch of the new academy facility. BIR: Tell me about your education program. NC: We have an explicit format of classes offered to stylists through every distributor, as well as in Atlanta, that encompass product knowledge, beginning-to-advanced color training, sculpting, texture, finishing and application classes. Those are facilitated by a vast group of educators of all levels. Christian Faircloth oversees those programs. We also offer a business/training program for sales consultants headed by Roy Peters. BIR: What role do salon and distributor shows have at Keune? NC: Since the daily connection is that of the distributor sales consultant, shows are an important vehicle for Keune management to connect directly with the salon professional. BIR: Product diversion continues to plague the professional beauty industry. What steps have you taken to ensure that Keune products are sold only through licensed salon professionals, not in drug, discount, department or grocery stores? NC: It is pretty simple. We don’t sell to the mass retailers. We do not sell to beauty outlets or marts who sell directly to the consumer. BIR: What are the major marketing initiatives you have planned for 2011? NC: At our recent North American distributor meeting in Atlanta, George Keune and I unveiled the plan for the new Keune USA headquarters, training center and flagship salon in the heart of Buckhead here in Atlanta. We project an early 2011 grand opening. This will be a “mother ship” for our clients, educators and distributors’ sales staff to experience all levels of training and education, as well as the Keune story. We will bring in guest artists and visitors from all corners of the world. BIR: What is your company’s biggest challenge for 2011? NC: Finding qualified field staff to support our network of distributors. BIR: What is the best business advice you ever received, and who was it from? NC: My dad, a business owner, always told me, “Nancy, if you are always honest, tell only the truth and do the right thing, you will be successful and respected!” BIR: What would BIR's readers be surprised to learn about your company? NC: It is independently owned, operated by the second and third generation, George Keune Sr. and George Keune, Jr., and continually growing. Keune products are sold in more than 60 countries. The company has five subsidiaries, along with 60 export distributors. Its state-of-the-art research and development department and manufacturing facility is in The Netherlands. Reach Nancy Carroll at 800-330-9302, ext. 256, or ncarroll@keuneusa.com. Visit www.keune.com. NOVEMBER 2010 7 The Beauty Industry Report Visit www.bironline.com UBC brings back personalized distribution U ltimate Beauty Companies (UBC) is an umbrella company with four divisions that service all areas of the beauty industry and provide stylists, salon and spa owners, estheticians and students with service and products they can count on. Beauty Industry Report (BIR) recently interviewed Morad Zahabian, Morad Zahabian, CEO/founder CEO/founder, and Cynthia Heisser, senior vice president, about the benefits of partnering with a distributor that carries a large variety of products and proves that trust and excellent customer service are key components of success. BIR: Morad, please share your organization’s story with BIR’s readers. Morad Zahabian (MZ): What differentiates Ultimate Beauty Companies from other distributors is our commitment to providing high-quality products that we truly believe in; annual giveaway campaigns centered around giving back to beauty industry professionals, such as the Ultimate Rewards Program for 2010-11; a web of top-notch education initiatives; the capability to serve as a onestop-shop for stylists, salon and beauty supply owners, estheticians, spa directors, nail techs and students and our mission to grow UBC through a dedicated and focused approach to finding new business avenues while remaining consistent and loyal to our customers. BIR: Tell me about your four divisions. MZ: Over the past decade, we saw an opportunity to maximize our distribution channels by creating four segmented divisions built to service the different segments of the professional beauty industry. We run each division as its own company. Consequently, many of our customers are surprised when they learn that Nancy’s Beauty Warehouse, Bella Spa & Salon Distributor, Exclusive Salon Distributor and viaBeauté, a distributor of fine beauty brands, are all under the UBC umbrella. Nancy’s is a nationwide open-line distributor of salon and beauty supply products. Nancy’s was the first division of UBC 8 NOVEMBER 2010 and is the backbone of the company. It was the sustained success of Nancy’s that inspired us to diversify ourselves. Bella is a nationwide openline distributor focusing on spa products. Exclusive Salon Distributor carries professional, salon-exclusive lines in California and caters to mid to high level salons. viaBeauté, the first luxury distributor, offers elite brands whose target demographic is top tier salons. BIR: Who are the key members of your management team? MZ: Our UBC team includes more than 60 people. Our strong infrastructure has enabled us to achieve 18 consecutive years of profitable growth. With strong leadership and strategic planning from senior vice president, Cynthia Heisser, we have attracted talent and placed the right players in the right positions to maximize our effectiveness. We have all of the pieces in place to continue to grow in 2011 and beyond with Angelica Montoya, division sales manager, managing the outside sales force for Exclusive Salon Distributor/viaBeauté; James Perkins, director of sales, responsible for Nancy’s salon and beauty supply sales; and Richie Lugo, division sales manager, responsible for Bella sales and managing all marketing communications. BIR: What is your company’s philosophy? MZ: Each employee, no matter what his or her role in the company, understands that we are on a mission to be a $100-million company. Each employee takes ownership of his or her job and comes to work every day prepared to do whatever it takes with integrity to reach our ultimate goal. Personally, I approach each day with a hunger to outwork our competition and consistently strive to demand exceptional results from each employee and myself. BIR: What makes UBC different from other distributors? MZ: Our execution of our many initiatives, programs, promotions and top brands sets us apart. We focus on what our customers’ customers need. When our customers and manufacturers work with UBC, they are doing business with a dedicated organization focused on customer success and exceptional results. BIR: What is UBC’s greatest accomplishment in the past five years? MZ: Exclusive Salon Distributor and viaBeauté have enabled UBC to enter another segment of the beauty industry successfully. With those additional divisions, we are able to service our customers to an even higher degree with a broad spectrum of product offerings. BIR: What is the salon industry’s biggest distribution challenge in 2011? MZ: Salons want to be serviced by educated sales reps and are looking for brands that perform. Many times when we open new accounts, stylists and owners are skeptical of bringing in new lines or working with another distributor because of past challenges. Too often distributors over-promise and underdeliver, which results in a lack of trust. UBC is committed to bringing back personalized service and trust. BIR: What trends are having a positive effect on the salon industry? Cynthia Heisser (CH): Whether through Google, beauty trade magazines or television, salons are getting educated on the products they’re using on themselves and their clients. Traditionally, an appealing design and good scent were all it took to get a brand on a salon shelf. Now, customers also examine the ingredients. There is a heightened awareness about parabens and sulfates and a movement toward organic and green lines. Educated stylists demand safe products that perform and ask about ingredients and formulas. BIR: What would BIR's readers be surprised to learn about your company? CH: They would be surprised by the volume of business we do and the number of beauty professionals we reach. Like Morad stated earlier, many customers are surprised that all our divisions operate under the UBC umbrella. Beauty professionals are pleasantly surprised when they learn that we are essentially a onestop-shop for all of their needs. We offer nearly every category of product found in most hair salons, nail salons, spas, beauty suppliers, beauty schools and barber shops. BIR: What is your 2011 marketing campaign? CH: UBC continues to partner with the Professional Beauty Association (PBA) and top companies, such as Helen of Troy, Clairol Professional, Wella, BaByliss PRO and L’Oréal, to spoil beauty professionals with dynamic giveaways. Our UBC Ultimate Rewards program gives incentives to all of our customers for shopping with us. As an added benefit, all new and existing customers are automatically entered to win one of four $5,000 cash giveaways at the 2011 International Salon & Spa Expo (ISSE) in Long Beach, CA. We incorporate various promotional tools, such as e-blasts and Facebook and Twitter posts, along with text messages and ads in American Salon and Beauty Store Business, to educate our customers about the program. Ultimate Rewards is our way of indulging customers. Ultimate Rewards members receive up to a 2% return on all purchases in the form of a UBC Dollar voucher when they shop with any of our four divisions. BIR: How were you involved with the North American Hairstyling Awards (NAHA)? CH: As a major sponsor of NAHA, we launched our UBC Ultimate Rewards program at the event. Our goal was to reach top tier stylists, salon owners and students. NAHA attendees had an opportunity to enter to win the Ultimate Stylist Session Giveaway, which included tickets to Juan Carlos Obando at New York Fashion Week, compliments of Number 4 High Performance Hair Care. We also participated in Beacon, Symposium and sponsored the NAHA After Party. BIR: What new lines are you distributing? CH: Our most recent additions include Kim Vo, Simply Organic and OPI. Blending ancient Vietnamese botanicals with French - offers luxury hair care nanotechnology, Kim Vo mfor color-treated hair. Simply Organic is a plant-based hair and skin care, bath and body and lifestyle accessories brand. With OPI, we are hoping to reach more salons and expand on our existing business. All three brands are sold through our Exclusive Salon Distributor division and featured in our catalog. BIR: Why should a manufacturer select UBC as its distributor? CH: Manufacturers want a distributor who will focus on their brand, share the passion they have for their products and make it their personal mission to grow the line as if it were “When our customers and manufacturers work with UBC, they are doing business with a dedicated organization focused on customer success and exceptional results.” their own and their future depended on it. We promise that to our manufacturers and only bring in brands we absolutely love. BIR: What are some of your most popular products/lines and why? CH: In Exclusive Salon Distributor, we are having a great deal of success with Kim Vō. For Bella, Satin Smooth has been key to our business. Two of Nancy’s most consistent performers are BaBylissPRO and Hot Tools. In regard to viaBeauté, all of our brands (Philip B, Number 4 High Performance Hair Care, Orofluido and Salontech) are thriving. What makes a brand successful is its involvement in our sales trainings, focus weeks, detail days and participation in our annual campaigns. BIR: What do you have planned for 2011? CH: In addition to our annual campaign and more advertising and viral marketing, we have big plans for growth and expansion. Having weathered the economic challenges of the past two years, we will build on our success, carry momentum into 2011 and grow our sales team in both new and existing markets. All interested sales professionals can email me their resume. This month, we are launching our blog, Diary of a Beauty Exec (www.diaryofabeautyexec.com), to establish another means of communication by which we can reach beauty professionals on a personal level to share advice, along with the exciting challenges and triumphs that come with being an executive in the beauty industry. BIR: Tell me about your online initiatives. CH: We have been actively promoting each division and marketing our brands through social networking for nearly two years. We have more than 1,500 friends and followers via Twitter and Facebook (stylists, salon owners, beauty suppliers, estheticians, spa directors and manufacturers). We do promotions, education announcements, product launches, sales training pictures and shout outs. While the purpose is to generate business, we understand that our social networking communications need to have a human feel. Our tweets and posts must be informative and engaging. BIR: What is the best business advice you ever received, and who was it from? CH: Jim Markham told me, “Find what’s missing and create a better mousetrap.” That way of thinking inspired us to create viaBeauté (there were no other luxury distributors) and Exclusive Salon Distributor (there were no other green inspired distributors.) Reach Morad Zahabian at 800-888-4055, ext. 320, or morad@nancysbeauty.com. Cynthia Heisser, Reach Cynthia Heisser at sr. vice president 866-200-6005, ext. 250, or cynthiaheisser@hotmail.com. Visit www.ultimatebeautycompanies.com. NOVEMBER 2010 9 The Beauty Industry Report Visit www.bironline.com BIR reports from Int’l Congress of Esthetics/Spa T treatment in the convenience of the home or just two to four weeks, you can see visible he annual International Congress of results. Blinc Long Lash can be used up to twice when traveling. Alla Dorodny, marketing Esthetics and Spa in Long Beach, CA, codirector, said, “They are enriched with a day and is applied to the base of lashes, as produced by Les Nouvelles Esthétiques & Spa hyaluronic acid, a natural would apply eyeliner. It you attendees an alland Dermascope, offers molecule of the skin that is causes no stinging, eye inclusive $60 registration fee. That one fee known for its moisturizing irritation or skin or eye covers the show entrance plus all general properties. Hyaluronic acid discoloration” (SRP $48.00). session lectures, manufacturers’ workshops and is capable of restoring 1,000 Reach Sarah at seminars. On an annual basis, sister shows are times its own weight in 877-454-7763, ext. 2739, or also produced in Dallas, Miami and water. It redensifies the skin sarah@blincinc.com. Visit Philadelphia. and refills wrinkles from www.blincinc.com. Beauty Industry Report (BIR) talked with the inside.” The line consists Also displaying an Christele De La Haye, show director and Lotus Moon Green Spa Network Village of six tissue facial masks eyelash growth product marketing director for Les Nouvelles and one set of hydra gel eye patches (SRP was first-time exhibitor GrandeLASH-MD. CEO Esthétiques & Spa, who shared that a total of $5.50). Each mask performs a different function 12,000 skin care and spa professionals attended Alicia Grande shared, “Our GrandeLASH-MD and features ingredients, including caviar eyelash conditioner and eyebrow enhancer the show, an increase of 30% over last year’s extract, arbutin, deep sea pearl extract, CoQ10, made with natural ingredients feature a lower event. Almost 200 exhibitors, including 44 new retail price point for a four-month supply and a aloe, green tea and olive oil. Iroha products are vendors, displayed their product lines. paraben free. Reach Alla at 818-551-0209 or 90-day money back guarantee. We sell Said Christele, “An upbeat mood resonated, zephyrpac@yahoo.com. Visit exclusively to the salon/spa industry and are creating a positive atmosphere that lasted the www.irohamask.com. not sold in the mass market” (SRP $59.95). duration of the conference. We were very Cailyn, a cosmetic and skin care contract Reach Alicia at 877-835-3010 or pleased with the show results and the new manufacturer, also markets a select few alicia@grandelashmd.com. Visit features introduced at this year’s show, products under its brand. Jin Kim, CEO, www.grandelashmd.com. including the Medical showed the Exfoliating Peeling Gel, which BIR had the opportunity Esthetic Seminar, provides gentle exfoliation and vitamin C in to spend a few minutes Salon/Spa Management one application. Taking advantage of a new with Emmett and Beth Business Seminar, Green technology in the preparation of vitamin C Hickey, who operated EOH Summit round tables, the beads, the Exfoliating Peeling Gel removes dead Industries, a nail care Aesthetics International skin cells, leaving skin with a healthy glow, manufacturing business, Association Education while supporting the natural cell renewal which they sold to classes and the National process and stimulating circulation. Vitamin C Marianna Industries in Aesthetic Spa Network Attendees discussed how to be more stimulates collagen production, improves 2004. Their new company, round tables.” Over the green at the Green Summit roundtables. elasticity and helps protect against damaging Spa Specialties two days, there were 51 environmental aggressors (SRP $38.00). Reach Representatives, is a manufacturer’s rep workshops, 12 lectures/demos and more. Jin at 877-980-0783 or organization. “We started the company Indicative of the trend that lashes are a hot jin@smileworldcosmetics.com. Visit because no one was focused on the emerging fashion accessory and big business for salons www.cailyncosmetics.com. spa distributor. This distributor has different and beauty stores was the large number of Natural Selection Bath and Body’s Zenneeds than that of the beauty distributor,” said exhibitors promoting products for eyelash inspired bath and body products pamper the Emmett. The company has a network of growth, including Divaderme Lash Extender, resources for product development and private body while lifting the spirit. Each scent has a JB Cosmetics Lash Food, Rapid Lash, spiritual uplifting quote on the label, so you labels everything from hair care to foot care, as GrandeMD Revitalash and Rogze. Marketing well as major national brands. Reach Emmett or can add a positive affirmation to your daily eyelash extensions were Extend Your Lash, JB ritual. Buddha Baby provides moms with a Beth at 817-706-4700 or bhickey@eohind.com. Cosmetics, Minky’s Eyelash Extensions by E Zephyr Pacific Distributors launched Iroha product to pamper their little ones after and Bio Touch. pampering themselves. “You can use the Masks as part of its goal to bring quality, Blinc marketing director, Sarah Lowe, melted oils of our massage candles on your convenient cosmetics to the market at lowshared, “Blinc Long Lash is designed to skin as a body oil or warm massage oil,” said cost prices. Iroha Masks are manufactured in dramatically enhance the look of a woman’s Jean Vavra, owner and creator of the line. Spain and offer a 15-minute mini spa facial natural lash length, fullness and thickness. In 10 NOVEMBER 2010 Reach her at 877-994-7627 or jean@naturalselectionbathandbody.com. Visit www.naturalselectionspa.com. Kristy Armijo and Noelle Mathieu debuted their organic coconut oil product line. According to Kristy, Extra Virgin Coconut (8 ounces/SRP $20.00) is an anti-aging moisturizer for men, women and children. “While smoothing and softening the skin, our deeply penetrating and vitamin E rich oil’s antiinflammatory, anti-viral and anti-microbial properties go to work to help heal burns, soothe rashes and calm psoriasis—even cold sores,” she added. The company plans to add to the line shortly. Reach Noelle or Kristy at 800-997-7916 or info@nohonaproducts.com. Visit www.nohonaproducts.com. LaDonna Sheridan, Fake Bake national sales educator/manager, noted, “We featured the Airbrush Mobile Tanning Package, which gave attendees the opportunity to get a quick tan of their own, while they learned how to increase their salon dollars.” LaDonna added that the company’s pitch is, “Don't just wait for money to come to you...go to the money. Go mobile and include home airbrush tanning treatments to your repertoire." The Fake Bake Airbrush Tanning Package includes airbrush machine; pop-up tent; two 32-ounce tanning liquids; six sets of disposable panties, hairnets and sticky feet; Fake Bake towel and Fake Bake poster (# FBABP-01/list $599.00). Reach La Donna at 888-244-4826 or ladonna@fakebake.com. Visit www.fakebake.com. The show floor was crowded with attendees. Lori Nestore, president/CEO of Eva’s Esthetics, said, “It has been about four years since we have participated at this show, and we were pleasantly surprised by the caliber and quantity of attendees. Show management was supremely available and helpful, which is always great for an exhibitor and educators.” Consumers want beautiful, luscious lashes, making lash growth products and extensions a huge opportunity for salons, spas and beauty supply stores, and as a result, popular choices at this show. “Nothing cleans like a cleansing oil” is the concept behind Eva’s Esthetics Tu’eL skin care line. When properly-formulated cleansing oil is massaged into the skin and converted into a The Eminence workshop. water loving oil with the addition of a sugar complex serum, the skin is left ph-balanced and perfectly prepared. It can be used at the deep pore cleansing stage of a professional treatment and at home in the evening. It is available for the following skin types: dry; combination; acne and dry-reactive (4-ounce retail size/SRP $27.00; 16-ounce professional size/$38.00). Reach Lori at 800-765-7597 or lori@evasesthetics.com. Visit tuelskincare.com. Micabeauty added Glisten hair jewelry to its 100% all natural mineral makeup collection. These long strips are quickly applied with a flat iron to any desired area on the hair, making it a sellable accessory, especially for the holidays. All materials are non-toxic, heat resistant and durable. Each package contains six strips (SRP $19.99). Reach Roni Paz, president, at 818-709-6900 or roni@micabella.com. Visit www.micabella.com. PFB Vanish is a roll-on gel with moisturizing and exfoliating ingredients used to prevent and treat ingrown hairs, razor burns and bumps resulting from shaving, waxing, tweezing, electrolysis and laser hair removal. Available in a small counter display, it is an ideal line for beauty stores, salons and spas. President Ottmar Stubler said, “The Long Beach International Congress of Esthetics was the best show in our 10-year history of exhibiting at trade shows. My only regret was not bringing enough products to the show.” Reach Ottmar at 877-225-0233 or ottmar@comcast.net. Visit www.pfbvanish.com. The next Long Beach Congress of Esthetics and Spa Show will be on September 11-12, 2011. To learn more about the various opportunities to get in front of this important audience, contact Christele De La Haye at 800-471-0229 or christele@lineonline.com. Visit www.lneonline.com. NOVEMBER 2010 11 The Beauty Industry Report Visit www.bironline.com People are the stars at Peel’s Creative Edge Show P eople are the heart and soul of the beauty business, and at Peel’s Salon Services, that starts with the Peel family, who has served several generations of salon professionals in the Midwest. Peel’s Salon Services has a large network that extends into Colorado, Wyoming, Kansas, Nebraska, Iowa, North and South Dakota, Missouri and parts of New Mexico, Oklahoma and Minnesota. Peel’s was founded in 1938 by Bob Peel Sr., who still goes to the office early every day and focuses on his first love: salon equipment. His two sons work with him, growing the business to annual sales in excess of $100 million, thanks to the efforts of almost 100 distributor salon consultants (DSC) and managers at its chain of 57 professional-only beauty supply stores. Bob Jr. runs the company’s Hutchinson, KS distribution center, and Bill leads the La Vista, NE distribution center. Bill’s daughter, Lindsay, is executive director of sales, and son, Eric, is a DSC. Bob Jr.’s two daughters, Evan Peel and Erin Kooiman, are DSCs and Erin’s husband, Bart Kooiman, is sales director. Erika Peel-Barnes’ husband, Darren Barnes, is a DSC, as well. In fact, at Peel’s, both customers and vendors are treated like family as well, making this one of the last large distribution companies that still relies on intimate personal relationships to help its customers and vendors grow their businesses. Nowhere is that more apparent than when the Peel family invites its extended professional salon industry family to its semi-annual shows. On September 18-19, Beauty Industry Report (BIR) was welcomed into the family when we attended the Peel’s Salon Services Creative Edge 2010 Show at the MidAmerica Center in Council Bluffs, IA, just minutes from downtown Omaha. The fact that the show is able to attract a large attendance on a Saturday/Sunday schedule (as opposed to the traditional Sunday/Monday schedule) is evidence of Peel’s Salon Services’ drawing power and the value salon owners and beauty professionals take home from this event. As a result, they come back show after show. According to Beth DeGeorge, executive assistant, the Peel’s Fall Creative Edge show had 12 NOVEMBER 2010 4,400 attendees, a significant increase from last year’s 3,800 and the second largest in the show’s history. The vendor count also increased from 75 last year to 90 exhibitors this year. Why a Saturday/Sunday schedule with an 8:00 a.m. start time? Bill explains, “If salon owners or stylists work on Saturday, they can have a full day on Sunday to attend the show, and then have their Monday free. It also gives those attendees who prefer to attend on Saturday a day of rest on Sunday. Also, what distributor show do you know that has a strong attendance and sales on Monday?” The Mid America Center is a round structure built around an arena that makes the show floor layout a combination of a few good sized halls. Dominating the arena were L’Oréal’s Redken, Pureology and Matrix. In contrast, Tom Bowles’ Wholesale Beauty Club/Special Premium Plus had the worst location, yet was the busiest exhibitor by far. With his large array of merchandise, including clothing, sunglasses, belts, scarves, gloves, costume jewelry and purses, it was like a miniature ASD General Merchandise show. Tom shared, “Salon owners are realizing they can buy and sell accessories, and when you offer them a deal, they will load up and many buy for personal use, as well.” Reach Tom at 316-267-7533 or tbbspp@aol.com. Dinorah Gomez, Moroccanoil account manager, showed two round cosmetic cases in the brand’s signature blue shade with the orange “M” logo. One case featured the wet line and contained one each of Treatment (100ml), Repair Shampoo (250 ml), Repair Conditioner (250 ml), Hydrating Mask (250 ml) and Restorative Mask (250 ml) (a $75.00 value for $65.00). The other case featured the styling line, including one each of Treatment (100 ml), Styling Cream (300 ml), Curl Cream (300 ml) and Glimmer Shine Spray (100 ml) (a $62.00 value for $55.00). Reach Dinorah at 514-448-8967 or dinorah@moroccanoil.com. Visit www.moroccanoil.com. At the AminoGenesis booth, its instant wrinkle eraser, Gone In Sixty Seconds, was being snapped up by stylists so quickly that it almost lived up to its name. Gone in Sixty Seconds contains oxygenating peptides, micro- collagen and firming proteins that tighten, firm and eliminate wrinkles and puffiness instantly. The formula time releases key ingredients all day, eliminating wrinkles around the eye area, mouth and forehead, while also eliminating under-eye bags and puffiness on contact. Reach Tori Kinney, marketing director, at 877-523-4455 or aminotori@aol.com. Visit www.aminogenesis.com. BIR talked with Joyce Beehmen, a long-time Peel’s Salon Services DSC who was working the company’s holiday booth, to find out more about this year’s seasonal marketing program. Joyce noted, "Peel’s offers a holiday program every year to our customers by providing them with a catalog of suggested holiday-themed products and promotions in August and then shipping these presold orders in October.” She added, “In addition, the program gets a big boost on the one Sunday a year that all of our stores are open offering the catalog items, other holiday oriented goods and bag deals.” Bob Peel Sr., was working with the Peel’s Salon Furnishings Department team showing equipment from Kaemark, Belvedere, European Touch, Kayline, International Tanning Equipment (HEX) and other associated suppliers. Bob shared that his first year in business, company sales hit $100,000. (Fast forward to today and you have to add another set of three zeros for Peel’s current annual sales.) The Salon Furnishings department has 10 full-time employees and plays a significant role in the business by focusing on delivering quality products and service. At a young 83 years old, he arrives early to work every day. What a great role model! At FHI Heat, vice presidents Dave Genes and Les Haverty said the company is expanding its distributor network successfully across the country. Les told BIR that FHI Heat is consistently among the top sales volume producers at its distributor shows, due to its creative promotional packs and education with Phillip Wilson, global creative director. He also shared that the company has shipped 8,000 of its new salon merchandising units since June. They’re designed to put salons into the tool retailing business. He said, “Our displays give salon owners of all sizes a true retail opportunity to generate an additional stream of revenue by getting into the business of retailing professional quality styling tools.” Reach Les at 216-456-0346 or les.haverty@fhiheat.com. Visit www.fhiheat.com. HAI-Elite introduced Big Heat and Big Power, two tools designed for styling multitextured hair. The Big Heat hair dryers feature an improved AC motor generating 1,875 watts of power and twice as many restoring tourmaline and ions. The dryer comes with two nozzles and a diffuser (#GO 38/SRP $169.00). The companion Big Heat flat iron delivers a true 450 degrees of heat. It makes single-pass smoothing a reality and comes with a bonus heat-resistant leather storage clutch. As the flat iron’s temperature rises, it triggers a reminder timer that activates a voice message that announces, “Big Heat achieved,” when the unit reaches 450 degrees (#CO37/SRP $169.00). Reach Rick Elliot, national sales director, at 858-776-6968 or rick@hai-elite.com. Visit www.hai-elite.com. Matrix recently launched five new styling and finishing products under the Design Pulse line, bringing its total to nine total products (with more to come in 2011): Fiber Shuffle Paste, Glow To Pieces Wax, Go Big Extra Strong Hold Mousse, Hard Lock Hairspray, Loosely Defined Texture Crème, Messy Couture Molding Paste, Rock 'N Hold Hard Hold Gel, Switch-Flicks Wax-Gel and Thermo Glide Express Blowout Crème. Guest artists Ammon Carver and Sandra Carr gave ideas, tips and cocktailing ideas for all of the new products. SRPs are an affordable $14 to $15. Visit www.matrix.com. Mirabella Beauty launched its Le Smoking Collection of three simple steps to smoky eyes. The collection is available in classic (gray hues), fashion (violet hues) and shy (brown hues). “Le Smoking is so easy to apply and absolutely beautiful on the eyes! Anyone can be a makeup artist with Mirabella, especially with this collection,” said Jennifer Rider, regional manager. Reach her at 661-702-9910 or jrider@mirabellabeauty.com. Visit www.mirabellabeauty.com. Doreen Guarneri, who owns American Culture with her husband, featured their Simply Smooth Keratin salon intro units in her classroom and busy booth. Reach Jennifer Israels, vice president of national sales, at 631-293-3145 or jendgr@aol.com. Visit www.americanculturehair.com. “Thank you, Peel’s, for a show that takes a stand for the success of the hairdresser.” Don Shedrow, national sales manager for InfraShine, introduced the MST or microsilica infused ceramic styling irons using anionic or negative ion technology. Don said, “Working at the molecular level, ultra-fine high-grade silica fills the ceramic micro-pores of the floating beveled plates to allow irons to glide easily through even the coarsest hair to smooth the cuticle layer and seal precious moisture in, leaving hair silky and luster-rich.” This new technology has been introduced in both the Classic Line and Red Line professional styling tools. Reach Stephen Nenadich, vice president, at 877-973-4259 or stephen.nenadich@infrashine.com. Visit www.infrashine.com. Education was a chief show attraction. Both days featured hands-on workshops and platform presentations from a number of vendors, including Matrix, Pureology, Redken, Aquage, Nioxin, American Crew, TIGI, Kenra, InfraShine, Hai-Elite, FHI Heat, Monroe hair brush, Oster, Simply Smooth Brazilian Keratin Treatment and Product Club. Bob Peel Jr., Kevin McKowen and Geno Stampora provided business and motivational tips to help stylists earn a better living. BIR sat in on one of Geno’s motivational presentations. Philip Wilson, global artistic director for FHI Heat, popped in just in time to introduce Geno and referred to him as the best motivator in the industry. Geno is a master when it comes to assisting stylists and salon owners with generating more income. He opens his sessions by writing responses to some key challenges stylists and salon owners face on a large easel poster, and then gives his solutions. Reach Geno at 540-338-7747 or genostampora@verizon.net. Bob Peel Jr. presented, “17 Ways to Grow Your Business 17%,” which he bases on his visits to more than 400 salons a year just to ask them what is growing their business. For example, he said it’s critical to properly manage gift certificate revenue. “Don’t use gift certificate income as cash flow,” he explained. “Create a separate bank account to hold your gift certificate income. You need to track the net dollar amount from sales and redemptions every month and move the cash between the savings and checking account accordingly.” Other suggestions for salons include to create a VIP program and offer discounts, bonuses and/or incentives; offer daily specials; develop creative promotions to excite clients and your team; reach new clients through social media; create frequent email blasts and newsletters to keep your clients up to date and engaged with your salon; design a referral program to reward clients who refer a new client; and create special events, such as a “Night of Color.” Bob also shared the nine traits of great small businesses: 1. They are about more than money; 2. They are fun; 3. They are creative; 4. They are led by charismatic entrepreneurs; 5. They have a great team; 6. They experiment and innovate; 7. They risk failure; 8. They work hard and play hard and 9. They strive to be the best Bob stated, “These ideas have credibility because they are not hypothetical, they are being used successfully and are easy to implement.” Reach Bob Jr. at 620-662-3374, ext. 102, or bjpeel@peels.com. Peel’s Show continued on page 14 NOVEMBER 2010 13 The Beauty Industry Report Visit www.bironline.com Peel’s Show continued from page 13 The Aquage show featured two gymnasts from Cirque d’ Soleil, who opened the presentation with a display of strength and balance. BIR caught up with Luis Alvarez, vice president, who said, “The big news is the recent launch of the Biomega line. Between the high degree of thermal heat we apply to hair today and the frequency of hair color services, the scalp’s own natural oils can no longer effectively repair and protect the hair from dryness and damage,” he explained. “Today, hair needs a boost, a more effective solution to replenish natural oils, but unfortunately, until now, there was not an effective way to mix natural oils into a water-based system. That’s the Biomega breakthrough. We have discovered a new way to suspend highly-active amounts of ultra-light, ultra-rich botanical oils in our extragentle, sulfate-free and water-based shampoos and conditioners so they can be infused into the hair shaft at the highest beneficial levels to replenish, repair and renew the healthy look and feel of color-treated hair and deliver longer lasting color results.” SRPs are $17. Reach Luis at 440-893-1100, ext. 105, or alvarez@aquage.com. Visit www.aquage.com. The Sweet Spa area was located in a quiet space off the show floor and featured OPI, CND, Art of Beauty, Medicool, Nufree, Berins Wax, Escential Wax, Norvell Tanning & Skincare Solutions, Clinical Care Skin Solutions, Bioelements and Mirabella, in a more peaceful atmosphere. According to Warren Peskin, who was working the booth for his client, La-tweez, a line of illuminated professional tweezers, the brand’s breast cancer awareness tweezers received a great response. “La-tweez continues to be a successful brand for Peel’s, as evidenced by the number of satisfied salon professionals who came by the booth to buy and let us know how great their retail sales have been,” stated Warren. “It has been a long time since I attended a distributor show in which the sales people brought by their accounts for us to talk to. Thank you, Peel’s, for a show that takes a stand for the success of the hairdresser.” Visit www.la-tweez.com. Reach Warren at WRP Business Development at 530-320-6633 or visit www.wrpbusinessdevelopment.com. At Shark Fin Shear Company, the Double Shark Fin Shear was the big seller. It is the 14 NOVEMBER 2010 newest addition to the Shark Fin Family and has the company’s patented handle design—times two. It features a ball bearing system in the pivot and swivel area for ultra smooth performance, as well as cobalt enhanced blades for harder, sharper steel and crisp cuts. It is available in non-swivel, swivel and superswivel thumb for the right or left hand (available in 5.5 inches or 6.25 inches/list $519.95). Reach Randy Ferman, CEO, at 888-544-7254 or randyf@sharkfinshears.com. Visit www.sharkfinshears.com. Daniel Baumwald, vice president of sales and marketing for TheraPearl, said, “The Peel’s show highlighted the launch of our new Pink Packs to benefit breast cancer research ($12.99 for eye-mask, $11.99 for sport pack). The new Pink line allows the consumer to enjoy all of the soothing benefits of TheraPearl, while supporting a cause that impacts millions of people each year. TheraPearl is pledging $10,000 to the fight against breast cancer.” Reach Daniel at 877-PEARL09 or daniel@therapearl.com. Visit www.therapearl.com. At the Bling Strand booth, owner Joanne Richardson and her partner, Angela Cooley, demonstrated how easy it is to put their multicolored strands of metallic vinyl strips in the hair. Joanne said, “There's no better way to start the holiday season off right than with a successful show like Peel's. Their clients are always looking for the new, exciting trends to help them add a few dollars to their ticket, and Bling Strands are the answer. What better way to set your salon (and your clients) apart from every one else than by offering a service that always gets noticed—especially around the holidays.” Reach Joanne at 801-791-4399 or blingstrands@gmail.com. Visit www.blingstrands.com. Beatrice Fogle, Tantowel director of sales and marketing, showed the new fall and holiday sets, including the Express Tan kit. It contains five half body plus towelettes and new Express Tanning Mist (2 ounces/SRP $30.00). “This is the perfect cocktail for that instant color and the continued development of the tan over the next 24 hours. Even with this instant color, you will dry in minutes and there will be no color transfer,” noted Beatrice. Reach her at 702-360-4879 or bea@tantowel.com. Visit www.tantowel.com. The Lano Company’s new natural Pure Illumination 3-in-1 lip gloss offers a medicalgrade lanolin-based lip gloss with an LED light and mirror for flawless application (.30 ounces/9 ml/SRP $20.00). Layne Coggins, director of sales, also featured Pure Illumination Light Up Lip Plumper, a physician-formulated lip plumper that plumps and moistens lips without irritation (.30 ounces/9 ml/SRP $35.00). Reach Layne at 816-223-9453 or laynecoggins@comcast.net. Visit www.pureillumination.com. “At Peel’s, both customers and vendors are treated like family.” It wouldn’t be a salon show without a party. At the end of the first day, more than 1,000 attendees, exhibitors and Peel’s employees were treated to a concert of Rock Legends featuring Billy McGigan and his rock group. Billy entertained the audience by performing a tour of rock legends that included the Beatles, Buddy Holly, the Eagles, U2 and many more. Also happening at same time was a wine tasting hosted by Bob Jr. At Peel’s, L’Oréal-owned brands, including Matrix, Redken and Pureology, are major players, which fuels speculation that it’s only a matter of time before the family sells to L’Oréal’s Salon Centric distribution division. Rumors have continued to run rampant. BIR asked Bill Peel about it, and he said, “The Peel’s family goal is to stay as an independentlyowned distributor, but we realize the industry is changing.” BIR looks forward to returning to Council Bluffs for the Peel’s spring show scheduled for April 9-10, 2011. Modern Salon to offer database of distributors I n the past, salon product marketers made distribution changes based on performance. Today, however, marketers are constantly changing distribution partners as a result of new strategic alliances—regardless of the distributor’s track record. In addition, international marketers target the U.S. salon market and are looking for distributor partners. As a result, smart distributors make sure that manufacturers and marketers know who they are and how and where they operate. To help them do just that, Modern Salon is creating a comprehensive distributor database to facilitate the process of bringing marketers and distributors together. Beauty Industry Report (BIR) contacted Steve Reiss, publisher of Modern Salon Media, to find out more. BIR: Your distributor database is just what the industry needs. Please share the details. Steve Reiss (SR): The beauty industry is going through some fairly significant changes, impacting both the landscape and the players. In this environment, access to good information and resources is more valuable than ever—especially as it can be the difference between success and failure. For more than 70 years, Modern Salon has been an advocate for all segments of the industry— beauty school owners, students, stylists, salon owners, manufacturers, sales reps and distributors. We are very aware that our success is tied to the larger success of the industry, and when we find areas where we can add value, it’s our obligation to get involved and do what we can to help. BIR: Why are you creating this database? SR: We’re regularly approached by marketers looking for a listing of industry distributors. Some are considering changes to their current distribution, some are new to the market and others are bringing in lines from overseas. But pretty uniformly, they say they’ve had problems getting an accurate listing of their distribution options. Since we couldn’t find what they were looking for, we decided to create one. BIR: Being a former distributor, I love this idea! My first question is what are you going to do with the information I supply? SR: We’re going to create a searchable database of distributors, including the information that potential customers are looking for—territories covered, lines they represent, number of stores, etc. and contact information. And we’re going to take advantage of Modern Salon’s resources to make it easy for the industry to find and use these listings. BIR: How well do companies currently understand their distributor options? SR: It really is a mixed bag. For some people, this list will primarily be a way for them to keep current on the distribution landscape. For others, it will provide a huge benefit and give them access to their full range of options. BIR: What steps should distributors take to make sure that they are included? SR: Distributors can feel free to contact me directly. As a first step, we will confirm that “We are very aware that our success is tied to the larger success of the industry, and when we can add value, it’s our obligation to help.” they belong in the database. After that, we’ll send them to our easy-to-use online interface to update their listing and ensure that all their information is correct. For the user, the whole process takes no more than five minutes. BIR: Is there a charge to the distributor? SR: There is no charge for a distributor to be included in the database. BIR: Will your database also be a resource for salons that are trying to find out who distributes a particular brand in their area? SR: We will make that info available to salons as a free service. Often, salons are looking for a local contact who can provide information on a particular brand/product and are not sure where to go. They will be able to find that information on modernsalon.com. BIR: When will the directory be available? SR: As soon as we’ve gathered all the data— in the next month or so. BIR: Can distributors update their data throughout the year? SR: Since the market is continually changing, we expect that distributors will need to update their information during the year. We’ll accept changes throughout the year, and will also be sending out regular messages to the distributors in the database reminding them to keep their listing current. BIR: Will the data be available online? SR: Our intent is to make this as easy to use and as current as possible. To that end, online delivery makes the most sense. Regardless, we’ll be talking to suppliers on a regular basis and will accommodate their needs. BIR: Steve, is there anything that you want to add that I have not asked? SR: Mike, there seems to be a lot of interest in the project, and we really appreciate the opportunity to communicate directly with your audience. I encourage anyone who has questions about the database or a listing or who has suggestions about how it can be made more valuable to contact me directly. Reach Steve Reiss, publisher of Modern Salon Media/Vance Publishing, at 847-634-4354 or sreiss@vancepublishing.com. NOVEMBER 2010 15 The Beauty Industry Report Visit www.bironline.com News continued from page 4 Karie Davies has been promoted to national creative director at Empire Education Group. In that role, she will lead Empire’s efforts to incorporate cutting-edge styles into the training and curriculum for educators and students alike in each of its 100+ schools across the country. Karie will also be developing Empire’s Creative Artist and Artist in Residence programs to identify internal and external talent to help bring new and innovative ideas to Empire’s classrooms, curriculum and education. That includes working with Nick Arrojo, the twotime National Platform Artist of the Year and the leader of Empire’s Masters of Beauty advanced education program, along with the Arrojo team. Karie will help nurture the relationship Empire has with many other celebrated industry icons to continue to elevate the Empire student experience. Karie comes from Empire Beauty School in Spring Lake Park, MN, where she served as academic director. Reach her at kdavies@empire.edu or visit www.empire.edu. As mentioned last month, Ken Mammini, Nova Salon Systems co-founder/CEO, passed away September 4 at 69 years old. The following is a tribute to Ken from company employees and business associates: “Ken Mammini’s rebellious ways made him an icon in the beauty industry. He was a force to be reckoned with, and that tenacity led Nova through many successful years. Those of us who were lucky enough to work with him will remember how great it felt to have him as a leader and an ally. Once you were on his team, you knew that he had the utmost faith in your abilities and that you had his unyielding support and guidance in reaching success. His loyalty, honesty and wicked sense of humor won everyone over. I know that many people share my sentiments; Ken made my career at 16 NOVEMBER 2010 Nova an experience of a lifetime. I am grateful to have had Kenny as my mentor and very dear friend.” (Michele Del Castillo, senior sales at Nova 1988-2008) “I knew Kenny for 33 years. He made me smile, laugh, cry and shake my head in wonderment. However, the thing I remember most is that when his brother, Larry, died, Kenny became the driving force that helped build Nova into one of the most successful beauty supply houses in the industry. Because of his determination (and sometimes desperation), we enjoyed great success for many years. Although we had our differences, he was like a brother to me. I loved him and will miss him.” (Jeff Woods, Nova executive vice president, 1984-2008) "He had confidence in me and allowed me to run a part of his business as if it was my own. He was a true friend and mentor." (Lori Bagdasarain Ruh, Nova Fresno store manager 1991-2008) “Ken was like a brother to me. He had a great sense of humor, and he was always trying to get me to change my serious demeanor. He was a person who had a heart of gold and was very caring to all people that he came in contact with.” (Steve Stefano, founder of Joico Laboratories and Cinque Science.) “Kenny, many came to your company as inexperienced sales consultants and young adults. You helped us to grow and to believe we were the best in the beauty industry. I am a better man for knowing you. You taught me that family came first, and you made us part of yours. I will miss you. I will love you all of my life. Good-bye for now, my friend.” (Marc Valez, senior sales at Nova 1986-2008.) “Ken was truly a renaissance man! His word was his bond. When Kenny made a decision to represent your line, there was no turning back. Loyalty, tenacity, integrity and commitment permeated Nova Salon Systems and made it the premier distributorship in Northern California for 20 years. Over time, Kenny became my confidante, my friend and my brother. Shine on, Kenny! Knowing you, I’m sure you’re dancing with stars! Peace.” (Ralph Coccaro, co-founder, Taberco Cosmetics & Skincare) “Kenny’s classic response to new manufacturers, ‘I am already committed to you. We need to make sure we sell our sales people, and we are all off to the races.” (Jeffrey Moore, director of chain sales at Nova 1988-2008.) “Nova was a once-in-a-lifetime experience. I have not had as much fun on a job as I did working for Nova, nor have I ever seen a company like it. We did have a good run! Happy trails, Kenny; I’ll see you on the other side.” (Tom Richardson, salon consultant at Nova 1994-2008.) Jason Lang has 20 years of experience in the professional beauty business and is seeking a national or regional sales management position with a growing company. As a sales leader and strategist, he achieved double digit growth for Nexxus, Empress Beauty Supply, Nisim International and West Coast Beauty Supply. For the past six years, Jason has worked for French manufacturer, Rene Furterer, Inc., as director of U.S. sales and also managed its distributor network. Reach Jason at 602-717-0562 or langjason@msn.com. Alterna introduces Bamboo, everyday care for sustainable healthy hair. Free of chemicals and full of eco-cert, fair-trade compliant, certified organic ingredients, this strengthening line presents the eco-chic consumer with luxury formulas at accessible prices (all Bamboo products fall within the $18.00 to $24.00 SRP range.) Each formula starts with organic bamboo, a fast-growing and resilient botanical resources. Launching this fall is Bamboo Smooth, a collection with anti-frizz shampoo, conditioner, Kendi Pure Treatment Oil and Kendi Dry Oil Mist, all featuring organic kendi oil. Kendi is a highly sustainable ingredient from Sulawesi, Indonesia that supports the local community and creates straight, smooth and frizz-free hair with a blend of omegas and tocopherol. In early 2011, Bamboo Smooth will launch Frizz-Correcting Blow-Out Lotion, Intensive Moisture Masque and Humidity-Resistant Flexible-Hold Hair Spray. Two more collections within the Bamboo line will follow: Bamboo Volume (four skus), featuring maca root, and Bamboo Shine (five skus), featuring Indian gooseberry. Reach Joan Malloy, president, at 424-253-2090 or jmalloy@alternahaircare.com. Visit www.alternahaircare.com. Recently, the New York Times and Women’s Wear Daily featured blow-out services and a new crop of salons that focus on finishing hair services. Salons need the training and products to compete. That's where Blow, the New York Blow Dry Bar, comes in. The Blow Dry Bar was created more than five years ago. Last year, Blow launched its product line and The Blow Dry Bar Academy. Blow launches Ready Set Blow, a blow dry lotion that accelerates blow dry time. The less time a stylist takes performing a service, the more time he/she has to make additional money performing other services. New heat-conducting polymers speed up blow outs, eliminating frizz, static and flyaways (4 ounces/ SRP $21.00). Visit www.blowny.com. Affinage has assembled its reds in the new bRed Collection Kit. The off-the-scalp, intensive red highlighting system is now available at substantial savings to salons. Used with or without heat, its fast action means no pre-lightening. The formulation allows bRed colors to be used with lower volumes of developer, including 10 volume. Hair is left in great condition with brilliant results. It is not generally necessary to use a high-volume developer to achieve maximum lift and color. High volume developer can give more lift, but reduces the intensity of the color. The bRed Color Highlighting Crème Kit includes five 100-ml tubes of copper, red copper, red, red violet and magenta; one 250-ml 10 volume Affinage Crème Developer; one 250-ml 30 volume crème developer; a mini bRed swatch shade chart and one Refresher Red (list $40.00). Reach Michael Ifergan, managing director, at 877-597-2929 or michael@affinage.com. Visit www.affinage.com. At New York Fashion Week, Number 4 High Performance Hair Care launched Jour d’automne Mighty Hair Spray (Memory Hold Finishing Spray) during Juan Carlos Obando’s Spring Summer 2011 Collection in collaboration with MAC Cosmetics, Milk Studios and Swarovski Crystals. Lead stylist, Didier Malige, along with the Number 4 Pro Team, created the Messy Knot finished with Number 4’s Mighty Hair Spray (10 ounces/SRP $26.00). Reach Toni Wells, brand director, at 800-507-6250 or toni@number4hair.com. Visit www.number4hair.com. USP, Inc., the parent company of Enjoy hair care, has new packaging. Stackable jars and tall cylindrical bottles look good and make retailing more efficient. Enjoy offers a full range of sulfate-free, pH-balanced and stable products. In other company news, Enjoy Life magazine, a salon-oriented lifestyle publication, was launched at the House of Blues in West Hollywood, CA. Enjoy president and co-founder, Patrick Dockry, unveiled the premier issue of the quarterly print magazine while the video version, Enjoy Live, was shown on a loop. Patrick said, ”The House of Blues was the perfect venue for our launch, since Los Angeles is the focal point of the inaugural issue. There has also been a great response to the video magazine, which is available online at www.enjoylive.tv.” Reach Patrick at 760-597-1886 or personalsalon@sbcglobal.net. Visit www.enjoyhaircare.com. Moxee, a deep reconstructing conditioner from SUDZZfx, helps revitalize hair that has taken a summer beating. Certified organic and homeopathically balanced botanicals of asparagus, parsley, cucumber and sandalwood help naturally exfoliate, soothe and balance the scalp and skin. Moxee provides the nourishment needed to rebuild, revitalize and restore hair, while defending against daily environmental stresses (10.1 ounces/SRP $27.50). Reach Aris Koroyan, president, at 888-783-9939 or aris@sudzzfx.com. Visit www.sudzzfx.com. New from Redken is Shine Form Defining Wax, a styling wax that helps re-mold, reshape and refine a man’s look. Now, he can sculpt polished styles with a moldable cream-wax that delivers a clean feeling, flexible and flake-free hold that easily takes him from day to night. Shine Form gives hair strength, shape and malleable hold. And application is a breeze with the easy-to-use pump packaging (75 ml/SRP $16.00). Reach John Woloshyn, senior vice president of Redken sales management, at 212-984-4779 or jwoloshyn@redken.com. Visit www.redken.com. L’Oréal Professionnel Homme adds several line extensions. Homme Mat sculpting pomade provides flexible, malleable texture with directional styling. Wheat starches provide a matte finish and wheat protein nourishes the hair. It can be applied to wet or dry hair for a groomed or tousled look (80 ml/SRP $18.00). Homme Clay provides strong hold, definition and texture with an intense matte finish. Kaolin clay adds matte texture, beeswax adds even more texture and density and resins give control and high definition (50 ml/SRP $18.00). Reach Manny Montalvo, vice president of field sales, at 800-545-8152 or mmontalvo@us.loreal.com. Visit www.lorealprofessionnel.com. News continued on page 18 NOVEMBER 2010 17 The Beauty Industry Report Visit www.bironline.com News continued from page 17 Andis introduces the e.logica Tourmaline/ Ionic/Ceramic Hair Dryer, which combines new, improved technologies with 1875 watts of drying power for smoother, shinier, healthier hair. A portion of the proceeds will be donated to nonprofit organizations that help preserve rainforests worldwide. The dryer's high-velocity, hyper-DC motor generates 40% more airflow, resulting in a faster drying time. The dryer is equipped with three heat and two air settings and comes with a concentrator and pick (#80840/SRP $45.00). Reach Fred Koeller, vice president of marketing, at 800-558-9441 or fkoeller@andisco.com. Visit www.andisco.com. Shark Fin Professional Shear Company announces its “We Love Our Customers” pattern. Each new Shark Fin patented handle now displays its new heart-shaped design on the reverse side of the shears to remind customers they are loved and valued by the company. “We want our customers to know how much we respect and appreciate them and their business each time they use our shears,” says Randy Ferman, CEO/founder. Shark Fin’s patented handle allows for proper finger alignment, and in combination with its patented Shear Fit finger fitting system, offers the stylist an ergonomically designed shear. Shark Fin’s new address is 961 Route 10 East, Suite 1D, Randolph, NJ 07869. Reach Randy at 888-544-7254 or randyf@sharkfinshears.com. Visit www.sharkfinshears.com. Orly International introduces the Pro Italian Mandarin collection of treatment 18 NOVEMBER 2010 products that leave hands and feet soft and renewed. Orly Pro can be used as a complete system to exfoliate, detoxify, refresh and moisturize hands and feet for an energizing manicure or pedicure experience. Purifying Soak with Dead Sea salts and avocado oil soothes and conditions skin (1 gallon/list $45.95, 33.8 ounces/list $19.95). Moisturizing Exfoliator, an exfoliator with natural sugar cane crystals, polishes and refines the skin (1 gallon/list $72.50, 33.8 ounces/list $25.95). Detoxifying Mask, a detoxifying volcanic clay mask, eliminates impurities and softens skin (33 ounces/list $29.95). Moisturizing Lotion, enriched with shea butter and aloe and scented with Italian mandarin, provides a smooth finish to a manicure or pedicure (33 ounces/list $17.50, 8.5 ounces/list $5.95). Reach Liz Dellinger, director of sales, at 214-855-7875 or ldellinger@orlybeauty.com. Visit www.orlybeauty.com. OPI commemorates the tenth anniversary of Original Nail Envy, a product for stronger, healthier and natural-looking nails. Since its inception, Original Nail Envy has spawned five additional incarnations that target specific nail care needs. Crafted with hydrolyzed wheat protein and calcium, Original Nail Envy transforms weak, damaged nails into harder, longer and stronger natural nails. The Nail Envy family of products also includes Matte Nail Envy, Soft & Thin Nail Envy, Dry & Brittle Nail Envy, Sensitive & Peeling Nail Envy and Maintenance Nail Envy. Reach Suzi Weiss-Fischmann, executive vice president and artistic director, at 800-341-9999 or suziwf@opi.com. Visit www.opi.com Elaine Watson, head of global education for Star Nail International, and Tony Cuccio, president/CEO, are doing an original series titled, “A Tech and the Exec,” as part of the Meeting of the Minds” seminars. Recently, the duo traveled to England, Italy and Greece to run three of these seminars. The first Meeting of the Minds seminar in London was produced and hosted by the company’s head consultant, Stuart Dickinson, for its network of exclusive Star Nails/Cuccio Naturalé distributors in Europe. The two-day seminar kicked off with Tony presenting his marketing plans, campaigns, promotions, product launches and his vision for the brands in 2011. On the second day, Elaine demonstrated the newest products and technical information and focused on the new Soak Off UV Gels. Reach Tony at 661-257-5855 or tony@starnail.com. Visit www.starnail.com. A recent report by two Texas dermatologists claimed that UV nail lamps are a source of "high-dose UVA rays.” Most in the nail industry were surprised and suspected the report overestimated exposure of client skin to UV light emitted from UV nail lamps. Industry scientists, Doug Schoon (CND), Paul Bryson (OPI) and Jim McConnell (McConnell Labs), teamed up with the Nail Manufacturers Council (NMC) to review the claims. They worked with an independent laboratory to test popular UV nail lamps to determine how much UV light is emitted, and then compared the results to natural sunlight. They tested popular UV nail lamps designed to utilize four 9-watt UV bulbs, as well as lamps with two 9-watt UV bulbs, which they claim are representative of more than 90% of those used in salons. The results show that UVA exposure is much lower than suggested by the dermatologists’ report. Receiving regular UV nail lamp nail services is approximately equivalent to spending an extra 1.5 to 2.7 minutes in sunlight each day between salon visits, depending on the type of lamp used. The same levels of exposure would be achieved by spending 10 to 20 minutes in natural sunlight once per week. The three industry scientists agree that the testing shows that UV nail lamps are safe when used as directed and brief client exposures are as harmless as brief exposures to natural sunlight. Read the full report at www.schoonscientific.com/uv-nail-lampfacts.pdf. Reach Doug at 949-493-3380 or dschoon@schoonscientific.com. The newly designed Repêchage Sea Spa Body Care Travel Collection in a signature Sea Spa bag features Sea Spa Body Wash (1 ounce) with orange and sage extracts; Seaweed Body Cream (1 ounce) with vitamin C and gingko biloba; Sea Spa Hand Cream (1 ounce) with green tea extracts, eucalyptus, lavender extract and shea butter; and Sea Spa Foot Cream (1 ounce) with seaweed and shea butter (SRP $37.00). Reach Shari Sarfati, executive vice president of sales, at 201-549-4200, ext. 244, or shiri@repechage.com. Visit www.repechage.com. Dermalogica recently launched Age Reversal Eye Complex, a blend of retinol, peptides, vitamins and botanicals to combat the visible signs of aging to the eye area, including fine lines, wrinkles, hyper pigmentation and loss of contour (SRP $75.00). Reach Jerry Wenker, president/CEO, at 310-900-4000 or jwenker@dermalogica.com. Visit www.dermalogica.com. Blow launches Beautique Beauty Ltd. (BC) this month in Vancouver with a high-profile Blow Out event for select salons. It joins Blow's other distributors, TRU Beauty Concepts (Pennsylvania, New Jersey), Moda Salon Supplies (Georgia) and Sweis Inc. (Southern California and Las Vegas). Blow is looking for distributors, particularly in the Northwest, Florida and Texas. Reach Blow's representative, Jim Fogg, at 720-273-0901 or james@foggllc.com. Bassett Salon Solutions treated more than 250 stylists and salon owners to an event at the Marconi Automotive Museum in Tustin, CA to launch the Eufora HERO for men brand. The museum staff fired up two F40 Ferraris and revved their high-powered engines to open the event. A champagne cocktail reception was followed by a runway show featuring men’s haircutting, styling and grooming trends. Don Bewley, Eufora Intl. co-founder, opened the event. Bassett Salon Solutions’ CEO/founder, Ward Bassett, said, “In addition to hosting a great gathering of salon professionals, the event raised more than $2,000 for ChildHelp USA." Eufora HERO, a line of specially formulated, straightforward grooming solutions for men's hair, scalp and skin needs, offers products that help prevent premature hair loss. Reach Ward at 877-BSS-9288 or wbassett@bassettsalonsolutions.com. Visit www.bassettsalonsolutions.com Seattle-based Salon Services & Supplies expands its store operations with a new showroom in Kennewick, WA, and adds the Kim Vo- signature hair care line in all 13 showroom locations throughout the - ’s line of luxury hair care Northwest. Kim Vo and styling products for color treated, keratin treated and chemically treated hair blends Asian botanicals with French nanotechnology to create red-carpet-ready hair. Also new is the Eugene, OR showroom for licensed hair and skin professionals, featuring 1,100 square feet of shopping and educational event space, easy freeway access, ample parking and a spacious classroom area. Reach Sydney Berry, co-owner of Salon Services & Supplies, at 800-251-4247, ext. 203, or sberry@salonservicesnw.com. Visit www.salonsservicesnw.com. Lakme USA launches Louisiana, Alabama and Mississippi distributor, Liquid Assets of Baton Rouge, LA. Lakme, imported from Barcelona, Spain, is a hair color and hair care support line. “This entrepreneurial distributor is the perfect match because both organizations believe that the hairdresser is its most valued commodity. What a great team, incredible passion and unbelievable Southern hospitality,” comments Arda Itez, Lakme USA national education manager. Reach Lakme USA president, Joseph Mastalia, at 800-724-4247, ext. 252, or joem@depasqualeco.com. Visit www.lakmeusa.com. Paramount Beauty Distributor Associates, Inc. is Izunami’s new exclusive distributor for the Arrojo by Izunami line of tools in New York and New Jersey. Paramount has 50 distributor sales consultants, 35 of which will handle the Arrojo by Izunami line. They also have 20 Royal Beauty Supply professional stores, which service licensed hairdressers and cosmetologists. Reach Peter Lim, senior sales manager, at 866-455-0777 or peter@izunami.com. Visit www.izunami.com. When you think about hairdressing, you envision hair color, shears, styling, fashion, models and up-dos. Raylon Corporation looks at hairdressing in a different light with an emphasis on professionalism, inspiration, communication and motivational tools to become professionally fantastic. Nineteen years ago with that in mind, Raylon created C.A.M.P (Creating Achievements through the Mastery of Professionalism), a weekend devoted to the non-technical, nonartistic side of hairdressing. Recently, 320 professionals celebrated the nineteenth anniversary of C.A.M.P in the Poconos. Speakers Geno Stampora, Frank Gambuzza and Steven Brooks shared experiences, wisdom and stories that enabled owners and stylists to view their businesses in a different light, while generating ideas to make their salons the best they can be. “Beauty professionals need to be aware of what’s happening around them, what their customers are telling them and what you need to do to be busy, have fun, make money and have a higher quality of life,” states Geno on a summary of the seminar he performed at C.A.M.P. Reach Erika Hafetz, Raylon corporation social media specialist, at 800-422-8166, ext. 1336, or erikah@raylon.com. Visit www.raylon.com. News continued on page 20 NOVEMBER 2010 19 The Beauty Industry Report Visit www.bironline.com News continued from page 19 Four Star Beauty Supply opened its fourth professional-only store recently in Germantown, WI. Four Star has stores in Milwaukee, Madison and Green Bay, WI. Ed Stein, owner and president, who acquired Four Star in 2002, reports that sales and profits have grown substantially over the last few years. He says, “We have added new resources, personnel and expanded the selection of products we offer to our customers. This store is just one of the exciting, new ways in which Four Star will meet and exceed customer’s needs. Four Star is always looking for new opportunities to reach out and expand its distribution network. We have plans to open two to three additional stores in Wisconsin and Minnesota in 2011.” The organization services more than 4,000 salons and spas throughout Wisconsin, Minnesota and Upper Michigan. Four Star carries ABBA, Aloxxi Color, Alterna, Brazilian Blowout, Enjoy Haircare, Esuchen, Framesi, Moroccanoil, RetroHair, Revitalash and Sexy Hair Concepts. Reach Ed at 414-744-6868 or revite@aol.com. Visit www.fourstarbeauty.com. Bosley Pro taps Gerpri Beauty Corp. to service hair salons throughout Puerto Rico. “Early prevention and education are key to maintaining thicker, fuller-looking hair for life,” says Eric McLemore, president of Bosley Pro. “Gerpri Beauty is ready to bring advanced education about Bosley Pro to Puerto Rico. Gerpri is a company that focuses on the hairdresser and education, which makes it a great fit for Bosley Pro.” Reach Norbert Feifel, Gerpri Beauty, at 787-792-0800. Visit www.gerpri.com. Ginny Gordon has joined VNC Sales and Marketing’s West team and will be taking over accounts previously called on by Bill White. Ginny has 18 years of sales and marketing experience, including business-to- 20 NOVEMBER 2010 business sales, presentation sales, cross selling and customer care. Ginny is a native Southern Californian who recently relocated to the Las Vegas area. She reports to John Madia, VNC managing partner. Reach Ginny at 702-533-7014 or ginny@vncsales.com. Farouk Systems announced that CHI Deep Brilliance, a line of products for highly textured hair, including a full wet line, color, relaxers and heat appliances, will be available at independent beauty supply stores and is now represented by Jay Halaby + Associates. “By having Jay and his team on board, we can better meet the demand for CHI Deep Brilliance in national markets,” says Gregg Emery, Farouk Systems executive vice president of sales. “Although we support every major full-service distributor in the country,” says president, Jay Halaby, “the small independent distributors are just as important.” Reach Jay at 800-651-2106 or jay@jayhalaby.net. Visit www.jayhalaby.net. A Crain’s BtoB magazine cover article recently named modernsalon.com as one of “10 Great Media Sites.” It was included alongside such online heavyweights as the Financial Times and Greenbiz.com. Crain’s recognized modernsalon.com for its attention and commitment to the key needs—education, inspiration and collaboration—identified by its audience of professional stylists; its integration of interactive social tools, including blogs, Facebook and Twitter conversations and feedback mechanisms; its strong focus on video, including Modern Salon TV; and a strong visual identity that is consistent and provides seamless navigation over its different communities, each representing a different stage in a beauty professionals’ career. Reach Steve Reiss, publisher, Modern Salon Media, at sreiss@vancepublishing.com and visit www.modernsalon.com. M. Evan Parker Consulting has changed its name to Élan Marketing and Events and expanded its services. The management consulting and event-planning firm specializes in the support and development of professional salon industry companies. The company offers product development, branding, marketing strategies, sales programs, distribution management, education, training, event planning, production, manufacturing (sourcing and negotiations), packaging concepts and sourcing. Reach M. Evan Parker-Calderon, president, at 888-344-3731 or info@elanmarketingandevents.com. Visit www.elanmarketingandevents.com A big thanks to Larry Oskin, president of Marketing Solutions, for his report on the 18th annual HBA Global Expo and Conference. More than 600 international industry suppliers and educational partners came together for the three-day event in New York City to present their newest products, developments and expertise. Exhibitors from around the world showcased raw materials and ingredients, packaging, private label capabilities and services. This year, HBA featured 150 new exhibitors, as well as returning flagship companies. HBA Global Expo combined show floors for the first time with the Spa and Resort Expo, resulting in new educational seminars, technologies, package designs, ingredients, business solutions and trends shared in one location. The show kicked off with a keynote address by Pamela Baxter, president/CEO of LVMH Perfumes and Cosmetics for North America, sharing her rise to executive levels from a modest start at the beauty counter in the 70s. Pamela is responsible for such prestigious brands as Dior, Givenchy, Guerlain, Aqua di Parma and Fresh. Entrepreneur and philanthropist Christie Brinkley was honored with the second annual “Positively Beautiful Award” for her support of Smile Train, which provides free cleft surgery for millions of poor children in developing countries and free cleft-related training for doctors and medical professionals. Jill Burkett, brand director of beauty and wellness for HBA Global Expo, noted, “Christie Brinkley has one of the most recognizable smiles in the world. Her awareness building for Smile Train is helping millions of deserving children discover their own inner beauty while giving them a second chance at life!” The grand prize winner of the 2010 HBA Global-International Package Design Awards was L’Oréal Paris’ True Matching Roller Perfecting Roll On Makeup, which also won in the Mass Cosmetics category. Paul Brown Hawaii took home first place honors for Prestige with its Hapuna Keratin Retexturizer Stylist Caddy System for the professional salon and beauty industries. The actual caddy, collateral merchandising, point-of-purchase designs and branding campaign were created by the Marketing Solutions Team of Fairfax, VA. Other winners included Jane Iredale Cosmetics, Hanae Mori Perfumes, Bella Una Fragrances, Bath & Body Works, RE9 Arbonne Skincare and Shea Radiance. Each year the Global HBA offers a Salon and Day Spa Marketing Seminar aimed at helping entrepreneurial beauty care manufacturers who want to launch a new company or division or want to improve their market share within the professional salon industry. For the 15th year in a row, Larry Oskin, president of Marketing Solutions, Inc., was the chairperson. He offered strategic salon, day spa and medical spa marketing tactics and a recap of current trends. His presentation, “Successful Manufacturer Marketing and PR Strategies for Salons, Day Spas and Medical Spas” included many of the research statistics from the 2010 American Salon Green Book. Dan Kliska, president of Joe Grooming, presented “Successfully Marketing Salon Services and Products To Men” and Andrea Dominic, president of Spa Trends, discussed “How To Market Through The Internet, Websites and Social Networking.” Reach Dan at 703-847-1880 or dkliska@earthlink.net. Visit www.joegrooming.com. Reach Larry at 703-359-6000 or loskin@mktgsols.com. Visit www.mktgsols.com. There were special pavilions for Taiwan, Europe, China, private label and technical and ingredient suppliers. Next year’s show is scheduled for June 28-30, 2011. For information on exhibiting, attending or becoming an educational seminar presenter, call 212-600-3151 or visit www.hbaexpo.com and www.spaandresortexpo.com. It’s time to check your 2011 calendar and make sure these events are on it: WBRA Western Buying Conference, January 13-14, at Bally’s Hotel, Las Vegas; Beauty Expo, January 17-18, at the Rio Hotel, Las Vegas; International Salon & Spa Expo (ISSE), January 28-29, at the Long Beach Convention Center, Long Beach, CA; New York International Beauty Show, March 6-8, at the Jacob Javits Convention Center in New York City; America’s Beauty Show, March 12-14, at McCormick Place, Chicago, and ISSE Midwest, March 26-28, at the Donald Stevenson Convention Center, Rosemont, IL. Sally Beauty Holdings, Inc. (NYSE: SBH) announced on October 4, the acquisition of Aerial Company, Inc. (Aerial) by its subsidiary Beauty Systems Group LLC (BSG). The addition of Aerial will extend BSG's distribution reach and breadth of professional beauty product offerings in the Midwest region of the United States. "Aerial is a leading distributor in the professional beauty products industry,” says Gary Winterhalter, CEO of Sally Beauty Holdings, "The addition of Aerial will complement BSG’s portfolio and expand its geographic footprint in the Midwest, directly supporting our objective to grow Sally Beauty Holdings over the long-term.” Aerial was founded in 1912 and is based in Marinette, WI. The company employs more than 700 people, including more than 70 distributor sales consultants. Sales revenue in fiscal 2009 was approximately $100 million. The company owns 82 professionalonly beauty supply stores in Wisconsin, Northern Illinois, Kansas, Michigan, Minnesota, Missouri, Iowa, Nebraska, Colorado and North and South Dakota, as well as distribution centers in Marinette, WI, and one in Lincoln, NE. “This acquisition is consistent with our strategy to extend our reach in U.S. geographies where we do not have a strong presence,” says John Golliher, president of BSG, “We believe the addition of Aerial will strengthen our position in this important region and create additional value for our customers, suppliers and stockholders.” Ryan Hmielewski, president of Aerial, adds, “We are pleased to join the BSG team to achieve our goal of becoming the professional beauty industry’s best fullservice distributor. I look forward to the new opportunities of the combined companies.” Sally Beauty Holdings paid $70 million, net present value of the future incremental tax benefit expected to be realized by the company from the transaction. The acquisition is expected to be slightly accretive, post integration costs, to Sally Beauty Holdings’ earnings per share in the 2011 fiscal year. Cost synergies are expected to be realized upon full integration of Aerial, and the company projects further accretion to Sally Beauty Holdings’ earnings per share in the 2012 fiscal year. Reach Gary at 800-777-5706, ext 4444, or gwinterhalter@sallybeauty.com. Visit www.sallybeautyholdings.com. Reach John at 800-777-5706, ext. 4441. Visit www.beautysystemsgroup.com. News continued on page 22 NOVEMBER 2010 21 The Beauty Industry Report Visit www.bironline.com News continued from page 21 Unilever, the multibillion-dollar AngloDutch firm, announced on September 27 that it entered into a definitive agreement to acquire the U.S.-based Alberto Culver Company for $3.7 billion in cash. According to Paul Polman, CEO of Unilever, Alberto Culver's hair care brands, Tresemmé, Nexxus and VO5, will complement Unilever's Dove, Suave, Sunsilk and Clear brands, while its St. Ives and Simple skin care brands will complement Unilever's Pond's and Vaseline brands. Unilever states that the acquisition will make it the world’s primary company in hair conditioning, the second largest in shampoo and the third largest in styling, and significantly enhance its hair care presence in the United States, Canada, the United Kingdom, Mexico and Australasia. Paul added, “Organic growth was the cornerstone of the company’s ambition to double in size. Bolt-on acquisitions such as Alberto-Culver supplement organic growth and add powerful new brands to our portfolio.” According to Unilever, it will use its scale, reach and technology to take Alberto Culver’s brands to a new level in existing markets and extend their presence to new emerging markets. Alberto Culver has operations in eight countries, including the United States, Canada, Argentina, Mexico, the United Kingdom, South Africa and the region of Australasia. It has six manufacturing facilities and employs around 2,700 people. Alberto Culver generated sales approaching $1.6 billion for the year ending on June 30. In 2009, Unilever’s personal care division had estimated sales of $15.35 billion, up 4.1% from the previous year. Personal care is outperforming every other category at Unilever and is also part of Paul’s background: he spent a substantial part of his 26-year long career at Procter & Gamble Co. overseeing personal care products. According to Euromonitor International, the deal will increase Unilever’s global market share of the beauty and personal care industry from 6.8% to 7.2%. In total, 75% of Alberto Culver’s personal care sales are generated from hair care, and of those, more than 60% comes from the United States, 22 NOVEMBER 2010 according to Euromonitor International. The total U.S. hair care market in 2009 declined by almost 4%. However, with the help of Tresemmé, Alberto Culver managed to buck that trend, increasing its overall hair care share from 6.0% in 2008 to 6.3% in 2009, stated the Euromonitor International. After incorporating Alberto Culver, Unilever’s share of the U.S. hair care market will increase from 7% to more than 13%, estimated the Euromonitor, and will remain a distant third with L’Oréal and Procter & Gamble holding 25.5% and 23.7%, respectively. The deal adds to a growing list of crossborder transactions that have energized and come to dominate recent M&A activity in and out of the beauty and fashion worlds. Mergermarket reported that such transactions have accounted so far for more than half (50.4%) of the $463.91 billion in M&A value in the third quarter of the calendar year, up from 28.9% of the $321.3 billion changing hands in the entire third quarter of last year. The percentage of deals involving companies in different countries rose far more modestly to 34% from 32%, indicating that the bigger transactions have tended to be the ones involving firms with different national origins. Mark Stiller and Charlie Perer, founders and partners of Intermix Capital Partners, announce the sale by Studio USA, LLC of its retail store Studio Beautymix at Fred Segal in Santa Monica, CA to New Beauty. Launched more than 25 years ago, Studio Beautymix at Fred Segal grew into one of the country’s most influential beauty retailers for introducing new and original beauty brands. New Beauty plans to turn the 4,000square-foot location into a new retail experience. Using the store to bring the magazine to life, products will be merchandised alongside relevant editorial content—allowing consumers to browse by beauty concern and educate themselves about the product solutions. A new sample bar will allow customers to choose from a selection of more than 30 bonus-sized take-home samples before committing to purchasing the full-size product. They will also have the opportunity to try beauty products that are being developed by some of the top beauty brands. NewBeauty’s on-site, real-time video and beauty editorial staff will conduct interviews with shoppers; demonstrate the newest products and host beauty events with product creators and skin care, makeup and hair experts. Reach Michele Sotallaro, assistant to the publisher, at 561-8691255 or msotallaro@newbeauty.com. To learn more, visit www.newbeauty.com. Intermix Capital Partners is a private equity firm with a strong focus on beauty, and given that focus, it invested in Studio USA, LLC two years ago. The company had two divisions, the retail store in Fred Segal and a wholesale division consisting of fragrance and cosmetic brands, which was sold to Fusion Brands in August. In addition to providing equity capital, Intermix Capital provided consumer expertise and strategic thinking that helped identify and craft the transactions with New Beauty and Fusion Brands. Reach Mark or Charlie at 818-383-4441 or charlie@intermixcapital.com; mark@intermixcapital.com. Visit www.intermixcapital.com. Regis Corporation reported that consolidated revenues decreased 4.5% in the first fiscal quarter of 2011 to $578 million, compared to $606 million a year ago. First quarter totals for same-store sales decreased 1.5%. In February 2009, the company completed the sale of its Trade Secret retail product division to Premier Salons Beauty, Inc. (Premier). As part of the sales agreement, the company agreed to provide certain transitional administrative and other support services to Premier, including the supply of certain retail products. As a result, the reported fiscal 2010 first quarter North American product revenues included $20 million of sales to Premier at Regis' cost. Without those sales in the prior year, first quarter 2011 total revenues declined 1.3%. “As expected, we are seeing an improvement in visitation trends, and we were very pleased with our retail product same-store sales which increased 1.7%,” says Paul D. Finkelstein, chairman/CEO. “We are currently testing and implementing multiple customer service and marketing initiatives, which we expect will result in improved customer traffic. We continue to believe visitation trends will normalize and are still budgeting positive comps in the second half of the fiscal 2011.” Reach Paul at 952-947-7910 or paul.finkelstein@regiscorp.com. Visit www.regiscorp.com. Helen of Troy reported record net sales revenue and record net income for the second quarter and six months, which ended August 31. Second quarter net sales revenue increased 7.8% to $174,823,000 versus net sales revenue of $162,193,000 in the same period of the prior year. Second quarter net income increased 47.5% to $23,473,000 or $0.75 per fully diluted share, compared with $15,911,000 or $0.51 per fully diluted share for the same period a year earlier. Net sales revenue for the six months ended on August 31, increased 9.4% to $334,976,000 versus $306,066,000 for the same period in the previous year. Net income for the first half of this fiscal year increased 37.6% to $41,860,000 or $1.34 per fully diluted share, versus $30,420,000 or $0.99 per fully diluted share in the same period of last year. Gerald J. Rubin, chairman and president/CEO, stated, “We are extremely pleased with our record sales and record earnings results for the second quarter and fiscal year-to-date. Although the worldwide retail environment continues to be challenging, we continue to have organic sales growth in our Housewares segment, which sells OXO branded goods. Consolidated gross profit margin as a percentage of net sales revenue for the fiscal quarter that ended on August 31 increased 3.4 points to 45.9% compared to 42.5% for the same period last year. Consolidated gross profit margin as a percentage of net sales revenue for the same six month period increased 4.0 points to 45.6% compared to 41.6% for the same period last year. The improved margins were due to the impact of commodity price decreases in fiscal 2010 that continued to cycle through our cost of goods sold during the quarter and first half of this fiscal year. We also benefited from a favorable change in the sales revenue mix, as grooming, skin care and hair care solution products with comparatively higher margins became a more significant portion of the company’s overall net sales revenue. Our second quarter earnings per share results reflect improvements in gross profit margin, the accretive impact of recent acquisitions and continued growth in our Housewares segment year over year. In the third quarter, we expect flat to declining gross profit margin as compared to the same period last year as a result of increasing inbound freight and commodity costs. In the third quarter, we also expect to incur approximately $4,500,000 of incremental advertising expense year over year in support of our newly acquired brands. Due to those factors we expect a decline in earnings per fully diluted share for the third quarter of fiscal 2011 as compared to the same period last year. However, we anticipate year over year net sales revenue and net earnings growth in the fourth quarter of fiscal 2011 and expect earnings per fully diluted share for the fiscal year ending February 28, 2011 to be in the range of $2.70 to $2.80.” Jerry further commented, “As of August 31, 2010, Helen of Troy’s balance sheet remains strong with cash and cash equivalents of $49,069,000 and a shareholders equity of $627,391,000. Our inventory level at August 31 was $167,500,000. During the second quarter, the company repurchased 80,000 shares of its common stock at an average purchase price per share of $22.49. The book value of our common stock as of August 31 was $20.09 per fully diluted share. We believe the company’s core strengths remain strong, and we continue to execute our business plan for fiscal year 2011 as detailed in our fiscal year 2010 annual report. Our business plan includes introducing new product offerings, striving for increased market share through channel expansion and providing product innovation. We also continue to pursue further process efficiencies and related selling, general and administrative expense reductions. We believe we are well positioned as we move into the fall selling season.” Reach Jerry at 800-480-8832 or jrubin@hotus.com. Visit www.hotus.com. Zerran International’s director of education, Debbie Padgett, led a team in the recent Avon Walk for Breast Cancer. Debbie’s team, which included her daughter and was organized in honor of Debbie’s mother, a cancer survivor, raised $11,000 through private donations and a fundraising “Save the Tatas” party. Reach Debbie at 800626-1921 or debbiep@zerranhaircare.com. Visit www.zerranhaircare.com. Make-Up Designory (MUD) raised $25,000 through sales of its limited edition NextAid makeup palette to help build a home for orphaned children in Kenya. 100% of the proceeds were donated to Red Rhino, whose goal is to help create safe and sustainable communities for children—many of whom were orphaned as a result of the HIV/AIDS pandemic. Through MUD’s donation, Red Rhino was able to build a home in Kenya to house 16 orphaned children. Reach Tate Holland, CEO, at 818-557-7619 or tate@mud.edu. Visit www.mud.edu. NOVEMBER 2010 23 Presorted Standard U.S. Postage PAID San Dimas, CA Permit No. 410 PMB #403 22287 MULHOLLAND HIGHWAY CALABASAS, CA 91302-5157 ADDRESS SERVICE REQUESTED The Beauty Industry Report A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ Newspapers, including the Wall Street Journal and New York Times, report that OPI is in advanced talks to sell itself to a beauty care company or private equity firm for as much as $1 billion. Coty is thought to be the front-runner, while private equity firms Bain Capital and Advent International are also among those that made firstround bids. BIR asked OPI CEO/president George Schaeffer, who said, “There have been rumors for 10 years that OPI has been bought and sold numerous times. The bottom line is a bird in hand is better than one in the bush. Our bird is still running around in the bush. Do you believe everything that you read in the Wall Street Journal, a Rupert Murdoch newspaper?” Recently reported by Reuters business and financial news service: According to three sources, several bidders are interested in Regis Corp. Regis announced in August that it was looking at strategic options and had retained investment bank J. Solomon Co. as its financial adviser. Regis, which owns or franchises 12,700 hair salons, is the world’s largest consolidator of salons and has a market capitalization of around $1.1 billion. The report says several private equity firms, including Clayton, Dubilier & Rice, have interest in the company. CD&R has an investment in Sally Beauty Holdings, which owns Sally Beauty Supply and Beauty Systems Group. The private equity firms and Regis declined to comment. Gerry Udell Inc. has agreed to represent the Head Organics line. Reach Gary Udell, president, at 973-338-3100, ext. 16, or garyudell@gerryudell.com. 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