The Internet Age is here for pro beauty
Transcription
The Internet Age is here for pro beauty
APRIL 2010 volume 13 issue 4 The Internet Age is here for pro beauty By Rocco DiBernardo A MONTHLY NEWSLETTER FOR EXECUTIVES IN THE PROFESSIONAL BEAUTY BIZ 2 Lafayette Jones’ Multicultural Report 5 At American Culture, it’s all about keratin 6 HAI’s new tools help stylists express art 8 Surface rolls out Smooth & Healthy 9 BIR reports from The Makeup Show LA 10 ASD Show features impulse items 12 Kim Vo/Fromm form partnership 21 George Schaeffer buys Aloxxi Colour 24 PBA launches ISSE Midwest in Chicago 24 Watch list: TIGI’s Rockaholic-Bed Head Bus 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 F irst quarter has flown by, and BIR has already attended nine trade shows. In this issue, we share our experiences reporting from the ASD Las Vegas general merchandise show and The Makeup Show in Los Angeles. We also found time to interview Lou Guarneri, who along with his wife Doreen, founded American Culture. Plus, we are delighted to share updates from Richard Ouellette on Hai Elite’s new product rollouts and from Wayne Grund, who talks about Surface hair care’s new smoothing system, Smooth & Healthy. As BIR went to press, news broke that the Professional Beauty Association will launch ISSE Midwest in Rosemont, IL, just two weeks after America’s Beauty Show in Chicago in 2011. We’ll have a full report next issue and would love to hear your thoughts on the topic. Please drop me a line. Regards, A ttention professional beauty industry marketers: Read these facts about the Internet Age. Fact: The number of Internet users worldwide exceeded 1 billion in 2005— up from only 45 million in 1995 and 420 million in 2000. The number of Internet users in 2011 is expected to reach the 2 billion milestone, according to the Computer Industry Almanac, 2008. Fact: Online shopping is exploding NOW! 2010 market projections say ecommerce will produce $7.5 trillion, according to Forrester Research. Fact: In the Internet age, the greatest risk is being left behind, says Newsweek, December, 2007. Add to those facts that in the last 10 years, thousands of salon professionals have grown up with this computer age and ecommerce as part of their lives, not to mention the millions of consumers who were born into this environment. This is the time to do some serious soul searching on your company’s ecommerce business. The sale of professional beauty brands online is equal only to 1 to 5% of the total sales of all salon products. That means that salons and retail outlets account for 95% of the sales, proving that the Internet poses no threat to the salon retail business. Manufacturers can't overlook the Internet sales channel for additional sales in this economic downturn. Many salons and beauty professionals, who are not able to keep their inventory levels stocked, are driving their loyal clients to the Internet to make their product purchases. Companies like Kérastase, Aveda and Tigi are now selling directly to consumers online. Those brands are still thriving in the salons, which do not seem to object to this practice. The increase of booth renters in the beauty industry has not only fragmented the The Internet Age....cont. on p. 2 The Beauty Industry Report Visit www.bironline.com The Internet Age...cont. from p. 1 industry, but disrupted the beauty sales channel. Many renters do not stock retail inventory, which is a great frustration to clients who want the take-home products, as well as to distributors and their salon consultants. As a result, many manufacturers are considering the direct-sales approach, selling directly to the salon and eliminating the distributor altogether. In addition to this breakdown in the sales channel, many manufacturers fail to realize that salons and beauty professionals have created many clients who are brand loyal. Those brand-loyal clients now search out their brands online and are buying from unauthorized retailers outside the professional beauty channel. It's time for manufacturers to embrace the online sales channel. Most are afraid that their loyal salons will drop their lines if they do. However, even if that were to happen, loyal brand followers would turn to the Internet to purchase their favorite products, leaving those salons in an even more vulnerable position. Creating an online ecommerce solution— that is managing and marketing brands online—is a complex and a costly undertaking for most manufacturers that are using the conventional beauty sales channel. Outsourcing those responsibilities can be a profitable option, while making it easy for consumers to find the brands they want online. _____________________________ Rocco DiBenardo is CEO of HairFlix, which has worked with manufacturers and distributors for more than three years to streamline the online sales channel. Call 407-417-3330 and visit www.HairFlix.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 APRIL 2010 From March 19 through August 6, TIGI goes on the road. What do Rod Stewart, Def Leppard, Bryan Adams, Jimmy Buffet, Huey Lewis, Velvet Revolver, Third Eye Blind and Poison have in common? They were all livin’ the dream on the Rockaholic-Bed Head tour bus before TIGI got its hands on it. “We wanted to amp it up a bit, like what TIGI does to professional hair care. So we ripped out the bunks, added a few TVs, cranked up the sound system and threw in a salon,” says Anthony Mascolo, TIGI international creative director. “Not just any salon—one with black leather, blazing red fake crocodile patterned seats and flames, lots of flames. There’s a shampoo bowl and three cutting stations and a full-on rock star hairdresser vibe. We’re not foolin’; this is one kick-ass, fully-charged rig that’s ready to rock”. With the energy of an authentic music tour, the bus will make stops at salons, beauty shows and concert festivals all over the country. Stay tuned for details on appearances near you and how you can take over the bus and have your own salon event. Reach Jamie Buis, TIGI Linea public relations specialist, at 469-528-4336 or jbuis@tigilinea.com. Visit www.tigilinea.com. CND (Creative Nail Design) introduces the first hybrid nail color after nearly five years of development. Now you can say good-bye to chips, smudges and dry time and say hello to Shellac Hybrid Nail Color. It applies like polish, wears flawlessly for 14 days of high gloss shine and is removed in minutes. Shellac paints on like polish—base coat, color, top coat—and is cured in a UV light, so there is zero dry time. The colors are hypo-allergenic and free of formaldehyde, toluene and DBP. Shellac will launch in 12 shades, from pretty French pinks and whites to siren red and rich darks. The formula is thin and flexible like polish, so it not only looks natural, it provides strong natural nail protection with a resilient mirror finish that resists dullness and chipping. Shellac is a professional salon service launching globally in May. Reach John Heffner, president/CEO, at 800-833-6245, ext. 277, or john.heffner@cnd.com. Oligo Professionnel introduces a new toning system that includes eight new toners (salon list $4.95), new Fortifying Toner Acticolour (salon list/10 ounces $7.95/32 ounces 19.95) and 5 volume developer (salon list/32 ounces $6.95) in its KOKO colour solution hair color line. The system is also offered in an introductory boxed kit (salon list $49.99). The ammonia-free toners were formulated to be applied on pre-lightened hair levels 9-10, offering beautiful and long lasting tonalities. Toners must be mixed with the Fortifying Toner Acticolour, which is enriched with 11 amino acids that fortify the porous and usually damaged pre-lightened hair. Finally, the 5 volume developer oxidizes the dyes gently. Moty Cohen, president of Oligo Professionnel, says, “Often, stylists either use an ammoniabased toner that when applied on prelightened hair damages the hair further, resulting in drastic fading or have to treat the hair after the toner application to limit the fading. With this new system, not only is an ammonia-free toner used, but the 11 amino acids fortify the hair during the toning process, resulting in longer-lasting color in one single step, saving time and money.” The Canadian manufacturer also adds Clear to its KOKO colour solution hair color line (salon list $4.95). The Clear has two functions: It can be used to add shine to any hair type or it can be used to dilute an existing shade, resulting in a shade one level lighter. The Clear creates a new service that can generate a new source of revenue in the salon. It can be applied after a hair color service, between hair color appointments, after a perm or straightener or on natural or white hair. Application takes less than 15 minutes. Reach Annik Chartrand, brand manager, at 877-837-6426 or annikc@vernico.com. Visit www.vernico.com. Babo Botanicals launches with four distinct categories of hair, skin and scalp offerings. The cornerstone of every Babo Botanicals formula is the certified organic Nutri-Soothe blend, rich with vitamins A, C and D to deliver nutrients, protection and moisturization. The 100% plant-based NutriSoothe blend combines rich anti-oxidant and anti-inflammatory extracts of chamomile, calendula, kudzu and watercress, which protect against pollutants as they nourish and comfort skin. SRPs range from $16.00 to $18.00 for 8-ounce sizes. The lineup includes Berry Primrose Smooth Detangling Shampoo, Instantly Smooth Detangler, Oatmilk Calendula Moisturizing Baby Shampoo & Wash, Moisturizing Baby Lotion, Rosemary Tea Tree Lice Repel Shampoo, Lice Repel Conditioning Spray, Cucumber Aloe Vera Clean Sport Shampoo & Wash and UV Sport Conditioning Spray. Reach Kate Solomon at 212-577-5061 or info@babobotanicals.com, and visit www.babobotanicals.com. traditional healers to promote the health and appearance of hair, skin and scalp. This fast-absorbing, lightweight treatment serum utilizes pure essential oils, such as kukui nut, cranberry, neem and argan, to moisturize, condition and heal while offering protection from further damage. Eufora's blend of pure essential oils of tonka bean, grapefruit, lemon, orange and geranium offers antiinflammatory, antiseptic, anti-microbial, antibacterial and astringent properties, as it moisturizes, soothes and relieves common symptoms associated with scalp and skin conditions. It is free of artificial colorants or fragrance (4 ounces/List $19.00/SRP $38.00). Contact Kate Bice at 800-638-3672 or kateb@eufora.net. Visit www.eufora.net. Kenra Ltd. recently launched Kenra Platinum Sheer Holding Spray 8, an ultra-light, quickdrying hairspray designed to provide a soft, touchable hold while eliminating frizz and flyaways. By listening to feedback from stylists and clients, Kenra discovered a strong desire for a high-quality, multifunctional, aerosol hairspray. The new holding spray provides styling versatility with completely customizable control and humidity-resistant hold. With just one overall spray, it enhances the workability of slippery, style-resistant hair and eliminates frizz and flyaways. When reapplied in layers, Platinum Sheer Holding Spray 8 increases its level of control and hold without getting stiff or sticky. This aerosol mist allows for a smooth, even application and leaves no build up or residue (10 ounces/salon list $9.00/SRP $18.00). Reach Jen Norman, senior director of sales and business development, at 800-428-8073, ext. 134, or jnorman@Kenra.com. Visit www.kenra.com The North American Hairstyling Awards (NAHA) 2010 will honor Beth Minardi and Frederick Holtzberger this July. Internationally-renowned hair color specialist, educator and salon owner Beth Minardi will receive NAHA’s top honor, the Lifetime Achievement Award. Beth is dedicated to salon hair color as an art form, and her work has truly set the standard of excellence for the industry. As co-founder with her husband, Carmine, of NYC’s Minardi Salon, Beth delivers the finest level of service to her coiffure-conscious clients, who include celebrities and social figures. Frederic Holzberger, the CEO, president and founder of the Aveda Fredric’s Institutes, will be inducted into the NAHA Hall of Leaders. Frederic built an eco-system as a single line distributor to service salons and spas, providing education, building Aveda stores and operating academies to develop future beauty and wellness leaders. Frederic and his family have left an indelible mark on the careers of many. For NAHA sponsorship, contact Wendy Forakis at 800-468-2274, ext. 3444, or wendy@probeauty.org. Visit www.probeauty.org. The new antioxidant-rich Eufora Beautifying Serum, aka “Truth Serum,” harnesses the benefits of naturals used for centuries by At Sexy Hair Concepts’ International Conference, senior management, led by Karl Heinz Pitsch, president/CEO, acknowledged customers and top educators. Categories and winners were Greatest Productivity/ International Distribution: Pepko, Latin America; National Account Distribution: Salon Innovations; Domestic Distribution: Salon Direct; Best Brand Representation/ International Distribution: Friends Distributors, Norway; National Accounts Distribution: Ulta; Domestic Distribution: Peerless Beauty Supply; Newcomer of the Year/International Distribution: Haium, Finland; National Accounts Distribution: Chatters; Domestic Distribution: Amico; Excellence in Education/International Distribution: Preben, Denmark; National Accounts Distribution: JCPenney Salons; Domestic Distribution: Maly’s NW; Highest Increase Sell-Out/International Distribution: Professional Beauty, UK; National Accounts Distribution: Regis; Domestic Distribution: Aerial Company; Overall Best Performance/ International Distribution: Hairconcepts, Germany; National Accounts Distribution: Beauty Brands; Domestic Distribution: Salon Direct. In addition, five stylists were recognized for their outstanding service and education contributions: Master Artist of the Year: Faye Judson, Oregon; Regional Education Manager of the Year: Jimmy Melton, Georgia; Educator of the Year: Dani Danzuso, Pennsylvania; 10 Year Service Award: Rod Sickler, Illinois; International Artist of the Year: Nikki Caggiano, Italy. Reach Karl Heinz at 800-848-3383 or KarlHeinzP@Sexyhair.com. AG Hair Cosmetics’ newest product, Split End Spa Repair Serum, earned top honors in the 2010 Elle Quebec/Elle Canada Beauty Grand Prix Awards in Montreal. This ultralight repair serum conditions, repairs and helps to eliminate split ends (50 ml/1.69 ounces/ list $12.00/SRP $24.00). Reach Tatiana Jovic, AG’s public relations and communications manager, at 604-294-8870, ext. 130, or tjovic@aghaircosmetics.com. Visit www.aghaircosmetics.com. News continued on page 4 APRIL 2010 3 The Beauty Industry Report Visit www.bironline.com News continued from page 3 Sexy Hair Concepts recently honored company founder, Michael O’Rourke, at a party themed Painting the Town Red that followed the company’s distributor conference. At the conference, Sexy Hair stylists joined together to welcome Rafe Hardy as the new creative artistic director and bid farewell to Michael, who stated, “I will miss working with this team every day, many of whom have been with Sexy Hair since the inception of the company. Sexy Hair is in good hands with Rafe, with whom I have worked closely over the last decade and who is an extremely gifted stylist. I am confident in his talent and his loyalty to Sexy Hair.” Adding to the festivities was performance artist Jean Francois, who painted an avant-garde portrait of Michael that will hang in the lobby of Sexy Hair’s corporate office as a reminder of Michael’s vision and creativity. Scott Schatz is the new director of salesNorth America for Bio Ionics. Scott has 20+ years experience in sales and marketing management at Wella, Goldwell and Schwarzkopf. In his last two positions at Wella, Scott managed extensive sales territories. As a plus, Scott is a licensed hair stylist. He will be responsible for all sales to Beauty Systems Group and AMCO. Reach him at 908-268-9356 or sschatz@bioionic.com. Peter Loef has left the company and has become the international education director for Kevin Murphy hair care. Robanda announces a new purchasing manager, Martha Guerra. Martha will oversee product development for all of Robanda’s brands. She has more than 10 years experience in the retail/cosmetic industry in product development, purchasing and inventory management, sourcing and even makeup artistry. Most recently, she was employed with the Estee Lauder Companies under the Prescriptives brand, where she served as merchandise planner/regional assistant, sales and education manager. Reach Martha at 800-783-9969 or martha@robanda.com. Redken and PureOlogy management announce the following promotions. Howard Schnapp has been promoted to vice president of promotional purchasing, L’Oréal Professional Products Division. Since 1994, Howard has played a vital role in attaining successful promotional activity goals for Redken, PureOlogy and more recently, for the Luxury Products Division group. He will lead the consolidation of eight professional business units toward a synergized method of procurement, seeking additional cost savings and efficiencies through best practice implementation. Charles Kennedy has been promoted to assistant vice president, show production and events for Redken & PureOlogy U.S. As the key Professional Products Division strategic leader throughout the years, Charles has taken over leadership of the event and show department along with production to create one unified strategic team. In his new role, he will oversee all operations of the entire Redken 2011 Symposium plus 40+ events and projects annually. Kirsten Marsh has assumed the position of assistant vice president, PureOlogy U.S. marketing. She transitions to PureOlogy after seven years overseeing the Redken U.S. marketing, hair color and texture categories. During her tenure, Redken Hair Color achieved the No. 1 professional hair color products position in U.S. salons and averaged 8% growth per year. Shawn Stearns has been promoted to assistant vice president, testing, Redken & PureOlogy. Shawn has worked to improve the efficiency in the testing center and lead, with the help of his team, testing and technology for key strategies for the Redken and PureOlogy brands. In his new role, he will continue to run testing and development for both brands, as well as work to expand international testing. Perrine Calvet has been promoted to senior director, global marketing, for Redken. Perrine has been working as the head of styling for Redken, which includes working on the styling renovation and the launch of Style Connection. In her new role, Perrine will continue with the work she has started, as well as take responsibility for the Redken For Men brand. Ruth Ann Reese is the new CEO of Inspiring Champions, a business training and coaching company founded in 1995 by Lauren Gartland. Call 800-496-9305 or visit www.inspiringchampions.com. David Mulhollen is the new director of sales at Global Keratin. He is responsible for sales worldwide and initially is focusing on seeking distributors for the U.S. salon market. Reach David at 305-390-0044, ext. 278, or david.mulhollen@globalkeratin.com. Visit www.globalkeratin.com. Eva Bardanzellu is the new public relations and communication manager for the SoGeCos organization, which owns and produces Cosmoprof shows worldwide. Reach Eva at eva.bardanzellu@cosmoprof.it. Greg Shedrow is InfraShine Inc.’s new East Coast sales manager and will be responsible for sales and new product introductions. He will also grow distributor salon consultant and store relations throughout the territory and provide InfraShine show support in North America. Greg served as the South East sales manager for L’Oréal, regional sales manager for Scruples and as a sales representative for Professional Beauty Brokers. Reach Greg at 877-973-4259 or gsinfrashine@yahoo.com. Matteo Monteverde joins Z.One Concept USA as national sales director, North America/Canada. He brings a strong track record in international sales. Kristine Sluka is the new director of marketing North America/Canada. Both come from Italy. News continued on page 14 4 APRIL 2010 The Multicultural Report M izani multi-texture expert, Diane Da Costa, embraces natural curls, and the curly hair category is growing in both the professional and retail markets. Over the next decade, expect even more twists and turns, as clients request wavy, curly and coily styles seen on celebrities, like Taylor Swift, Alicia Keys and Indie Arie. Contact Diane at 877-726-3624 or visit www.mizani-usa.com. Drug Store News reports that ethnic skin care, which was once overlooked, now presents a glowing opportunity for retailers. Store buyers and decision makers used to focus primarily on hair care or cosmetics for women of color, leaving skin care to the general market. Additionally, statistics revealed that multicultural women used less skin care, with one in four African American women reporting that they do not use skin care products. That’s all changing now. The emphasis on skin care from major companies, such as Johnson and Johnson, Procter & Gamble, Unilever and L’Oréal, coupled with product developments from such niche marketers as Dr. Miracle’s new line are boosting sales of not only all mass skin care lines, but ethnic skin care, as well. The potential is huge. According to the U.S. Census Bureau, one-third of the U.S. population of 303 million belongs to one of 67 subtypes of ethnic groups. By the year 2050, one-half of the American people will be Black, Latino or Asian. Contact Drug Store News at 800-274-6951 or visit www.drugstorenews.com. Palmer’s Cocoa Butter Formula introduces Moisturizing Gel Oil with SPF 15. Contact Robert Neis, president, at 201-894-9020 or visit www.palmers.com. Eucerin Dry Skin Therapy Plus Smoothing Essentials Fast Absorbing Lotion is for very dry skin. The alpha hydroxy formula moisturizes all day and smoothes skin with a non-greasy feeling. Contact K. Hannig, corporate vice president, at 800-227-4703 or visit www.eucerin.com. Cetaphil Daily Advance Ultra Hydrating Lotion for Dry Skin or Sensitive Skin hydrates and protects dry skin for 24 hours. It’s nongreasy, fragrance free and non-comedogenic. Contact Chuck Paschke, vice president, at by Lafayette Jones 866-735-4137 or visit www.cetaphil.com. Johnson and Johnson Consumer Products Company introduces the Ambi Essentials Facial Care Line designed specifically for women of color. It gently nourishes skin, leaving it feeling soft and smooth. Women of color experience unique challenges in keeping their skin soft and smooth without irritating their skin, which can be sensitive. Ambi Essentials Daily Moisturizer with SPF 15 contains emollients and pure nutrients. It gently replenishes and moisturizes dry skin, as it protects from the damaging effects of the sun. Women of color also experience challenges with cleansing their faces. They want to cleanse their skin gently and remove oil, dirt and signs of makeup. And they want a product that is designed for sensitive skin. Ambi Gentle Cleanser, a soapfree formula with moisturizing ingredients, including menthol, gently cleanses skin, leaving it feeling soft. Visit www.ambiskincare.com The Skin Care Answer Book provides quick answers to the most-asked consumer skin care questions and will help educate students, estheticians and clients, as well. In more than two decades of practice, the author, Dr. Mark Lees (M.S. Health, PhD Health Sciences) has been asked hundreds of questions by clients, as well as estheticians. Multicultural skin care questions and concerns are covered, with one chapter devoted to Dark Spots/Pigment Problems. Visit www.milady.cengage.com Fantasia’s Hair Polisher for Colored and Chemically Damaged Hair prevents color fade, moisturizes and shines. Contact Paul Bogosian, president, at 201-261-7070 or visit www.fantasiahaircare.com. SoftSheen Carson, a subsidiary of L’Oréal USA, offers Dark and Lovely Fade-Resistant Rich Conditioning Lightener. The lightener is a 1-application size and available in a variety of shades. Visit www.softsheen-carson.com. Motions by Alberto Culver, USA introduces a new look and fragrance for Light Hold Working Spritz. Visit www.motionshair.com. Strength of Nature Protectiv Mega Growth introduces Anti-Breakage Strengthener Growth Oil. Contact Mario de La Guardia, president, at 888-842-3378 or visit www.strengthofnature.com. Derjers International specializes in developing professional-quality hair care products that are used and recommended by dermatologists. The Rejuvé 3-Step Hair & Scalp System consists of a scalp cleanser, repairing shampoo and conditioner (each 8 ounces/SRP $13.95). Contact Axel Poessy, director, at 877-405-7964 or a.poessy@derjers.com or visit www.derjers.com. Expo Latino International Salon and Spa Show will take place July 11-12 in Long Beach, CA. The show will host industry educators and manufacturers, as well as beauty and styling competitions, classes and workshops. Contact Juan Dior, CEO, at 562-802-7471 or visit www.expolatino.com. Chews Multicultural Hair Affair Expo 2010 will take place in July in Lake Charles, LA. The expo will showcase student and professional competitions in designer and traditional cuts, barber battle, hair battle and nail art. Contact Russell Chew, founder, at 337-540-7617 or visit www.chewshairaffair.com. Cosmoprof North America will take place July 18-20 in Las Vegas. This 2010 event encompasses all beauty sectors and highlights the global perspective on emerging trends. Cosmoprof North America is making a special effort to serve multicultural professionals and retailers by offering a special program to the OTC community along with financial incentives. OTC owners/decision makers who attend the event can qualify to receive a travel incentive in the form of a reimbursement of up to $150 with reservations made through a Cosmoprof North America travel agent, a complimentary 3-day show pass (value $100) and complimentary admission to the OTC education seminar (value $30). Contact Eric Horn, show director, at 800-468-2274, ext. 3431, or visit www.cosmoprofnorthamerica.com. Lafayette Jones is CEO of SMSi-Urban Call Marketing, a promotion and marketing company, and publisher of Urban Call custom publications. To learn more about his company, visit www.SMSiUrbanCallMarketing.com. Contact him with your multicultural news at 336-759-7477 or president@smsi-net.com. APRIL 2010 5 The Beauty Industry Report Visit www.bironline.com At American Culture, it’s all about the keratin L ou and Doreen Guarneri operate American Culture, a salon industry best-kept secret, in spite of the fact that this hair care company markets two keratin smoothing systems and other products through the largest distributors in the industry. Beauty Industry Report (BIR) recently interviewed Lou to get the inside story on this growing company and learn more about the new innovations that his team has planned. BIR: Lou, please introduce American Culture to BIR’s readers. Lou Guarneri (LG): Three generations of our family have worked in the professional beauty business for more than 60 years, and the fourth is waiting in the wings. We have experience on all levels of the industry. My wife, Doreen, and I are both hairdressers, and we operate an active hair salon called American Culture's THE LOOK, the salon. Doreen works behind the chair. The salon is used for product development and testing. As a result, we understand what our customers want and need, because we stand in their shoes every day. As stylists, we see what helps us grow our business, and as salon owners, we appreciate the services and products that help set our business apart and grow our bottom line. The beauty industry is who we are. At American Culture, our vision is to continue to pioneer quality products and revenue-making services for hairdressers and salons. To that goal, we are committed to advancing the keratin treatment category. American Culture evolved in 2001. We had been distributing major brands for years. Around the time of the acquisition of ARTec by L’Oréal that resulted in our losing the line, we knew that we had more to give to the industry. We always put our hearts and passion behind companies we supported. That’s just how we work! Becoming a manufacturer was always the course we were on. Learning and experiencing all the facets of our industry is how we became American Culture. Today, we no longer operate a distribution business, but instead, focus on both our manufacturing and salon businesses. We market two keratin brands—Simply Smooth and Pure NV BKT—two smoothing 6 APRIL 2010 services in what’s become the new“smoothing” service for salons. In addition, we’re very excited to preview Pure Color, a 90% botanically-based, keratin-infused hair color line in Las Vegas this summer at Cosmoprof. Through acquisitions of the companies that were distributing our products, today we are enjoying an evolving relationship with the two largest salon product distributors, Beauty Systems Group (BSG) and SalonCentric, as well as leading independently owned distributors. BIR: Tell me about the evolution of keratin treatments from a market perspective. LG: Traditionally, the straightening category consisted of thio- or lye-based relaxing creams. Keratin was introduced through Brazil with formaldehyde bases. What is such a breakthrough with Simply Smooth and Pure NV is that they enhance any—that’s right, any— other chemical service by fixing the keratin depletion from the chemical service. That is a huge breakthrough as a service, because we can do all the wonderful techniques we do, and make the hair feel practically virgin again! Think of the category’s evolution this way: Thirty-five years ago, highlighting was called frosting and it hardly existed. Today, it’s a dominant part of the hair color category. Thirty years ago, manicuring consisted of a polish change. Now, we see an entire industry of nail salons offering menus of hand and foot services. It’s the same with keratin treatments, but the evolution into a unique hair smoothing category has been faster. For American Culture, the hair smoothing category includes a range of shampoos, conditioners and styling aids built around maintaining and replenishing keratin in the hair. It works for any and all clients, even if they have not had a treatment. Whenever someone is trained in performing the services, it really enhances their practice and their income soars. I really believe we have barely tapped this market. These services are generating new revenues to build salons’ business—recession or not. The industry is fashion; the clients are reading and becoming educated in achieving the latest for beautiful hair. The consumer is growing this category by asking for it. Stylists love to see they can achieve “magazine hair.” BIR: What’s the difference between your two keratin brands? LG: We make two types—Simply Smooth and Pure NV BKT—for different salon choices. Simply Smooth is a larger, more expansive product line made predominately with human hair keratin. It has a larger distributor network. Pure NV is marketed with very earthy ingredients, fragrances and plant keratin. Our distributors and salons told us that they wanted those options, so we gave them what they asked for. BIR: What else is generating excitement? LG: We are having great results with a new product called After Color Lock under our Simply Smooth brand. It’s a mini treatment and it takes no more time than a blow out. It is a new add-on service based on a blend we made of keratin and collagen. One 8-ounce bottle can generate $800.00 to $2,500.00 in service revenue. After Color Lock locks in color, giving clients four weeks of luxurious hair. It creates shine, reduces volume, texture and frizz, and repels humidity. What’s so great is that it doesn’t need to be pre-booked. It provides an option created for stylists to put keratin back into their clients’ hair between treatments. Stylists charge $25.00 to $80.00 for the new service. BIR: Pure Color, your 90% botanically based keratin infused hair color line, sounds intriguing. Please give BIR’s readers an overview. LG: American Culture is excited to bring Pure Color to market this July during Cosmoprof under the Simply Smooth brand. Every shade is double dye loaded, plantkeratin-based and loaded with technology! It is 90% botanically based and nano-pigmented. Our technology allows for more color molecules to bond inside the cortex of the hair. They are smaller, which means we do not need to upset the cuticle layer, as we have in the past. Our color does not fade and does not release keratin, like past technologies do. Everything we create has the keratin treatment in mind. We make new products taking into consideration, that at some point, everyone will be receiving these services! BIR: You’ve mentioned several interesting service products. Do you also offer care and styling products? LG: Both our brands include support products. These replenishing products will maintain the treatment applied to the hair; however, anyone will benefit from our products. We make shampoos and conditioners in different fragrances, so clients can switch for variety. A full line of styling and finishing products is also offered. All of these items will support and replenish keratin in the hair and are color safe. BIR: As a manufacturer, do you also produce products for other hair care companies? LG: Yes, we do private label for a number of hair care companies. We not only make the products, we offer video production, marketing, product and package design, and testing. Once we complete our expansion into our new 65,000-square-foot facility, we will offer inventory storage and shipping. BIR: Because of the size of Beauty Systems Group and SalonCentric, a number of hair care marketers avoid doing business with these super-sized distributors for fear of getting lost in the crowd. However, your company is not only doing business with them, you are one of the few vendors that does business with both organizations. What is your secret for success? LG: The beauty industry is broken down into five segments: Beauty Systems Group, SalonCentric, corporate chain salons, international distribution and a segment made up of the remaining U.S. distributors. We are fortunate to do business with each of those segments. In addition to BSG and SalonCentric, we sell through a distribution network consisting of RG Shakour, Peel’s Salon Service, Raylon Corp., Goldwell of New York and more. Our international distribution consists of master distributors who represent us in specific countries. They select local distributors. BIR: Tell me about your education programs. LG: Doreen creates the education map. She’ll be writing a monthly Q&A column on keratin products in the BE magazine. Doreen has been training for years and has found a way to reach stylists by creating visuals and analogies to help advance the education process. We approach education as an "exchange of knowledge.” We’re so proud of the compliments we receive from stylists and American Culture has innovated new smoothing and hair color salon services and support products all built around maintaining and replenishing hair’s keratin. distributors regarding our education. Our distributors utilize a core staff trained internally by Doreen. It helps our education be consistent. I think stylists like that we do what they do. BIR: I understand American Culture will be launching its first Master Keratin Artistry training at Cosmoprof. Tell me about it. LG: The training will take place July 18-19 in Las Vegas. We envision stylists becoming master-artist certified in the art of keratin. They will receive a plaque upon completion. There will be a rotation of education that moves around the room. They will visit different educational stages that provide them with all the new services we have pioneered and how to execute them properly. We will have fun, and they will learn things they never imagined they could do. They need all the information to provide the best consultation to steer them to the correct keratin service. Stylists can call our hotline at 888-333-6563. BIR: What are some of the challenges in introducing a new service category? LG: I think the greatest challenge is education. It takes a lot of time and money. When stylists get it, their income really increases. We really push the distributor to have trainings for support, as well as focus programs to have the DSCs understanding the category. It's working! BIR: How do you help salons market your services and products? LG: As we develop services and products, we support salons with literature, tent cards and mirror clings to help stylists communicate with their clients. That is particularly important for salons pioneering these new services. BIR: What is the salon industry’s biggest challenge in 2010? LG: Greed and politics. The executives at the manufacturer level believe increases in sales come from repackaging. They stick the distributors with old packaging or cut the distributors off in search of the next opening order. The only way for our industry to solve that problem is to stop recycling the "has beens" or the "never was." The culture between the distributor and the manufacturer needs to change. BIR: Who have been your mentors? LG: I have had the fortune to have been exposed to two of the greatest beauty innovators as a teenager. Both Arnold Miller, the founder of Matrix Essentials, and Bob Malin, the owner of United Beauty were influential in shaping my career. Arnie told me to go about life one day at a time, remain consistent and be persistent. Bob told me to wake up each day, work toward enhancing your business and concentrate only on your business. Your competitors should never be your concern. To learn more, reach Lou and Doreen Guarneri at 888-333-6563 or louis@americanculturehair.com, and visit www.americanculturehair.com. APRIL 2010 7 The Beauty Industry Report Visit www.bironline.com HAI’s new tools help stylists express their art F or the last couple of years, Beauty Industry Report (BIR) has had the pleasure of interviewing Richard Ouellette, the CEO and founder of HAI Elite. Recently, he shared the news about his most recent launches with BIR, and we’re delighted to file this report. BIR: Please share the story of HAI’s exciting new launches with BIR’s readers. Richard Ouellette (RO): Our team at HAI hasn’t been this excited since we introduced the first professional ceramic pressing iron in 1999! That iron was the 1 1/4-inch Convertable with its slick blue ceramic plates. Now, we are launching six amazing new products in 2010. We know how difficult it is for a company to create, design, manufacture and launch a slate of products like this, but we are up to the test! This month, we will ship a limited edition of our original Convertable styling iron. We’ve super-charged its packaging with a modernretro look and feel in electric pink. The iron features extended heat and components. Included with the limited edition will be one of our professional thermal styling brushes and a designer thermal storage bag. We present those in matching colors to increase the value to the stylist, yet we still deliver the collections for less than $90, We knew that we had it right when the first production run sold out immediately. The time was right to offer a beautiful, value-added version of such a classic and popular iron. Coming this summer will be a new styling iron and hair dryer that provide more heat and more power. When designing the iron, we included a heat boost switch and voice reminder at 450 degrees, because we were concerned with the percentage of products in the market place that do not reach the same temperature at the plate surface as they claim. Ours do! The matching HAI performance dryer has the most advanced motor to offer long lasting performance at the lowest possible weight. The dryer is our first AC powered dryer, and it will deliver more power, longer life and quieter operation. Then, just to make it more irresistible, we added more padding to he handle and doubled the tourmaline for the most beautiful and shiny hair. We believe that 8 APRIL 2010 people who share the same values. A key value that we share at HAI is integrity. We believe that our individual integrity and the integrity of the company should guide each product that we make. BIR: Please share more about what quality means at and to HAI. RO: Quality has to be considered from the point-of-view of the user. We’ve made quality our primary focus, but quality is only as good as its impact on each customer and business partner. To us, it means we pair unique design with the finest craftsmanship in order to deliver phenomenal results. We’ve always invested heavily in R&D and quality control— even when it came at the expense of advertising— because building the best hair tools is our mission. We believe that great products speak for themselves. BIR: Please bring BIR’s readers up to date on your other recent developments. RO: We recently participated in the Night of 100 Stars at the Beverly Hills Hotel to sample our HAI Elite’s Limited Edition of its original Convertable styling iron is StyleMate collection of packaged with a thermal styling brush and a thermal storage bag. professional compact tools. Celebrities from television, film, sports and BIR: What’s your biggest challenge in 2010? entertainment were thrilled to receive the RO: We are committed to improving our ultra-portable StyleMate iron and dryer in their tools on a continuous basis and exceeding our favorite color. It was flattering to hear how customers’ expectations in everything that we many celebrities already owned an HAI tool. do. For a company of our size, we have given The real indicator of success for our mini line is ourselves a very big challenge to deliver the that professionals have realized that while scope of new products in 2010 that we have these dual-voltage, compact hair tools are planned. We have been pushing our resources great for travel, they also help bring a new level for the testing, packaging, marketing and sales of creativity to stylists’ session work. materials to make sure that each one is a As a hairstylist, I am always looking for new success and delivers on our promise of products and tools to create new textures, save producing amazing products. We put the time and differentiate ourselves in order to systems in place for quality. Now we are able grow our customers. That is why creating the to use those systems to support the launches tools that make it easier for stylists to express of these new products. their art and expand their business will always BIR: What makes HAI unique as a company? be a key priority for our company. RO: The people. As a former hair stylist and salon owner, I learned that the key to longReach Richard Ouellette at 858-451-3750 or term success is finding the right core group of richard@hai-elite.com. Visit www.hai-elite.com. the salon professional deserves and needs that kind of power and results. BIR: When I visited your booth at the Western Buyers Conference in Las Vegas, you showed me a beautiful blue titanium iron. When will that iron be available? RO: That is our first titanium iron, and we have chose to do it as a special edition of our Classic Convertable. It will have 1 1/4-inch floating plates, fully adjustable heat up to 410 degrees and stunning sapphire blue titanium plates. In addition, it will come with a great value-added group of products for the stylist, including a bone comb, designer bag and hair clips. That will ship in June. Surface rolls out Smooth & Healthy Protein Treatment I t seems like only yesterday that Beauty Industry Report (BIR) interviewed Wayne Grund about the upcoming launch of his new hair care line Surface, and in just two years, his company has gained a foothold in the U.S. salon marketplace through its full-service distributor network. Wayne recently checked in with this update on the launch of the Smooth & Healthy salon service, a protein smoothing system that Wayne says completely respects personal health and the earth. BIR: Wayne, you named your line Surface. What does that mean? Wayne Grund (WG): The name Surface came from a passion to develop superior, allnatural products that respect personal health, the surface of our earth and create a strong surface of success from which salons and their guests could grow. BIR: Share how your commitment to “Respecting Personal Health and The Earth” is incorporated in how you market Surface. WG: As we formulate products, we make no compromises. We believe that all ingredients must respect personal health and the earth. Today’s consumer is demanding that, and Surface helps salons brand and market themselves to that end. BIR: Surface had an amazing 2009. You have 12 distributors covering 30 states, have trained 75 educators, have more than 500 registered Surface salons and your products have already won awards. Please share how Surface achieved such success when many other marketers were struggling. WG: I believe it was best summed up by Irving Russo, Eclips Salon owner from McLean VA. After experiencing instant success, he stated, “Surface is the right product at the right time with the right education and support.” After bringing in our line, Irving and his team attended our New Beginnings Symposium; they instantly quadrupled their retail sales and grew service revenues by 25%. They also took the Surface Culture of being Day Makers to their salon, community and world around them. BIR: The straightening craze began in the early 2000s with the Japanese straighteners, then grew with the keratin protein systems and has now become a big business. How does new Surface Smooth & Healthy fit into the category of salon straightening/smoothing services? WG: Surface Smooth & Healthy is new science and has created a new position in the smoothing world. The Smooth & Healthy primary treatment ingredients are amaranth protein and babassu oil, which work through a proprietary amino acid complex to naturally and gently bind amaranth protein into and onto the hair during the smoothing and repair process. Amaranth strengthens and repairs, while the healing properties of babassu oil smooth and condition. The National Academy of Sciences has named amaranth as one of the world’s top protein sources. Certified organic amaranth has 50 to 60% higher levels of antioxidants. A locking lotion then binds the amaranth and babassu oil to the hair. Smooth & Healthy differs from keratin-type products in that it lasts from two to five months and beyond with little reversion, has no animal by products, has no formaldehydeassociated health issues and is a relatively fast in-salon service. The major difference from the Japanese type straighteners or traditional relaxers is that Smooth & Healthy leaves the hair healthy and alive with control and body. You can color or highlight the hair and even perm curl back into it if desired. Smooth & Healthy is free of formaldehyde, alternate aldehydes, formalin, vanillin, thioglycate, sodium hydroxide, parabens, PVP/VA, wheat protein, animal protein and bi-animal protein. By adjusting treatment times and choosing to use a blow dryer or flat iron, the stylist has the option to completely smooth the hair (three-hour service with results lasting four to five months), reduce the curl (90-minute service with results lasting three to four months) or eliminate frizz while leaving the curl (60-minute service with results lasting two to three months). BIR: What motivated Surface to develop Smooth & Healthy? WG: There are so many health concerns related to the current relaxing and smoothing category that it was just the right thing to do. The consumer demand for the service is strong, and you have salons trying to install new ventilation systems and wearing masks just to provide the service. In addition, we focused our resources on creating a system that maintains the condition of the hair, lasts longer and takes less time to complete. After very thorough testing, we can confidently say we have achieved our goal. New Smooth & Healthy lets stylists adjust treatment times to customize results. BIR: When we began our interview, you shared the quote, “Surface is the right product, at the right time with the right education and support.” Can you expand on that a bit? WG: The right product refers to Surface being a truly natural product that is highperformance, salon-exclusive and completely respects personal health and the earth. The right time is our focus on helping salons position and understand profitability in a Green World. Salon guests are demanding healthier products, but many natural product lines have not performed as well as desired. Repeat sales prove that Surface products perform! The right education is our belief in training life skills, business skills and artistic skills. The right support ranges from in-salon point-of-purchase displays to professional press releases for salons to my monthly face-to-face webinars with Surface salons! To learn more, reach Wayne Grund at 306-651-6035 or wgrund@surfacehair.com or visit www.surfacehair.com. APRIL 2010 9 The Beauty Industry Report Visit www.bironline.com The Makeup Show LA unveils newest products T he Makeup Show, a two-day event produced by The Powder Group and Metropolitan Events, featured a line up of top makeup artists, more than 50 exhibitors and an educational program that focused on realworld business and artistry for the professional makeup artist. Each day, 12 seminars touched upon the art of makeup, providing tips, new trends and techniques. Topics included editorial beauty, airbrush secrets and the perfect bride; hands-on workshops; seminars and keynote presentations. Celebrity artists, including Sharon Gault, Pati Dubroff, Francesca Tolot and Bruce Grayson, were among the attendees seen shopping and networking at the event, along with leading educators, including Joanna Schlip, James Vincent, Eve Pearl and John Rizzo. The Powder Group, founded by Michael DeVellis, a 14-year veteran of the makeup industry, and based in New York City, supports the growing field of makeup and makeup artistry. In addition, it provides the makeup community with business and product development and creative and personal growth needs. Michael’s organization also creates and presents events for makeup professionals and consumers. Five years ago, he produced the first The Makeup Show in New York City, followed by a similar event in Miami. These show provide the opportunity for distributors, beauty stores, salons and spas to discover new lines and products. Beauty Industry Report (BIR) stopped by and shares this report. The sharply rising sales of professional makeup brushes is one result of the explosive growth of the makeup and cosmetics category. At Crown Industries, co-owner Michael Paviadakis said he is expanding into the export market, doing significant business in Australia and Southeast Asia. Crown also has a large private label business. Michael stated, “In the last 24 months, we have seen our sales skyrocket to the point where we are being challenged to keep up with the growing demand.” Reach Michael at 219-791-9930 or sales@crownbrush.com. Visit www.crownbrush.com. Shadow Shields are moon-shaped, 10 APRIL 2010 disposable, self-adhesives that gently stick under the eyes to catch falling pigment, eliminating that all too familiar “raccoon eye” side effect experienced during eye shadow application. Major time savers, these lightweight shields are an alternative to the usual powder-under-the-eye trick or holding a tissue under the eye during application (box of 30/list $6.50/SRP $12.99). Reach creator and owner Michelle Villanueva at 714-223-5883 or info@shadowshields.com. The concept of Mai Couture is to apply makeup without a brush, eliminating the mess. The company offers 2-1 Oil Blotting/Bronzing Papier in either light/medium or medium/dark shades (wallet of 100 sheets/list $19.50/SRP $39.00; refill package/100 sheets/list $14.25/SRP $28.50). The 2-1 Oil Blotting/ Bronzing Papiers eliminate shine, while giving the face a glow. Blush Papiers allow the application of blush without a brush. They also absorb oil on the cheeks for long-lasting color. The Lavendere-fresh Papier refreshes the skin, and the Vitamin c+ePapiers revitalize the face. The product is made for all skin types and colors. Reach Mai Tran, president/creator, at 888-683-6116 or mai@maicouture.com. Visit www.maicouture.com. With a large presence in Southern California, the motion picture and television industry’s makeup departments generate a great deal of business for four local beauty supply stores: Naimies Beauty Center, Nigel’s Beauty Emporium, Frends Beauty Supply and Cinema Secrets. At The Makeup Show, three of the four had prominent exhibits, with Cinema Secrets not exhibiting. Cesar Tejeda, manager of Naimies Beauty Center, introduced BIR to Minna Ha, who has a new makeup accessory that Cesar says is selling well at his store. Minna was not exhibiting, but did show BIR a sample of her new UNII Palette. According to Minna, the UNII Palette solves the problem of the excessive clutter in makeup bags and bathroom drawers. This re-usable, freestyle makeup case allows women to consolidate their stash of makeup cases into one multi-brand palette, refillable and customizable to each woman's preferences. The average woman might carry in her purse an assortment of eye shadows, blushes and eye pencils—each a different brand and in a separate container. By consolidating makeup into one magnetic case, the UNII Palette offers convenience. By encouraging the use of refills, it saves its users money and reduces the waste associated with conventional packaging. Each UNII Palette includes a purse-friendly palette, plenty of magnetic strips to keep makeup from sliding, a mirror for makeup application, a movable thumb grip and a tight, rubberized seal to prevent leaks. The case is compact (outer dimensions 3.7 inches wide x 6 inches long and 0.7 inches thick/list $14.50/SRP $29.00). Reach Minna at 626-502-7470 or info@uniicosmetics.com. Visit www.uniicosmetics.com. After years of artist training and product development for various cosmetic brands and a career that included editorial, celebrity and commercial work, NYC-based makeup artist David Klasfeld started his own company, Obsessive Compulsive Cosmetics. David began the company with two lip balms—Tarred & Feathered, a sheer black and a white, respectively, created in response to the dominating natural trend in beauty at a time when even the most neutral of lipsticks was considered too much color. The introduction of hi-definition television led to new requirements for makeup that looks natural. David’s solution was OCC Skin, a water-based, 100% oil-free liquid makeup that provides a natural looking finish that is perfect for the intensity of HD, the flash of the camera or daily wear. David showed his newest creation, Lip Tar, which combines the longevity of a lipstick with the ease of application of a gloss. Reach David at 212-675-2572 or david@occmakeup.com. Mineral makeup continues to be a major cosmetic category, and at The Makeup Show, there were a number of companies exhibiting. Mineral Essence products are triple-milled and rich in vitamins A, C and E, which the skin needs to regenerate and retain a healthy glow. Best sellers in the line include Ultra Micronized Foundation, which is non-comedogenic (list $13.00/SRP $26.00) and Magic Finish, an aluminum free translucent powder that’s used to set the makeup for flawless coverage (list $9.50/SRP $18.99). Reach Marilou Buenaventura, sales manager, at 818-765-2606 or marilou@mineralessence.com. Alcone Company, one of the major suppliers to the professional makeup market, started in 1950 as a pharmacy that also sold cosmetics and false eyelashes to Broadway showgirls. My father, who was in the distribution business supplying movie and TV makeup and hairdressing departments, purchased a number of products from Alcone. Owner Vincent Mallardi stated, “Our philosophy is still the same today: to find the best makeup products from around the world and offer them at affordable prices so everyone (not just the rich and fabulous) will benefit.” The firm’s 185-page catalog is jam packed with everything connected with the world of makeup. Call 800-466-7446 or visit www.alconeco.com. LA SPLASH Cosmetics sells under its brand and also does private label and turnkey service, along with bulk production and formulation. At the show, LA Splash was exhibiting glitter, shimmer powder, lip gloss, liquid eyeliner, mineral blush, body shimmer and mascara. It offers small prepack counter displays that are ideal for beauty stores. In addition, the company’s minimum order quantities are small. Call 626-968-8826 and visit www.lasplashcosmetics.com. Inglot Cosmetics, a Poland-based cosmetics manufacturer with more than 250 store locations in Australia, Europe, Canada, Dubai and Asia, recently opened its flagship North American store at Times Square in New York City. Wojtek Inglot, president and founder, stated, “Inglot is a combination of high-end luxury products at everyday value prices.” At the show, he featured O2M, a breathable nail polish. Using polymer technology originally designed for breathable contact lens, O2M increases the oxygen and water vapor permeability of the polish, which allows nails to breathe, diminishing the potential of fungal infections. Wojtek said that Inglot plans to open 10 more stores in the United States in the next year. Reach him at winglot@inglot.pl or visit www.inglotcosmetics.com. Model in a Bottle is a matte finish setting spray that locks in foundation and eye makeup without the need for touchups. It’s resistant to smudging, tears, humidity and water. It dries quickly, absorbs excess oil, doesn’t clog pores and is never sticky. It’s available in the original formula (2 ounces/list $9.00/SRP $18.00) or an extra sensitive formula (2 ounces/list $10.50/SRP $21.00). Reach owner Jill Stephens at 949-642-5615 or jill@modelinabottle.com. Visit www.modelinabottle.com. “The Makeup Show featured top makeup artists, 50 exhibitors and an educational program that focused on realworld business and artistry for the professional makeup artist.” Naked Cosmetics’ primary product is the high cosmetic grade, high pigment mica color. Colors are organized into collections of six colors. Also featured are mixing items for the mica pigments, which can transform the powdered shadows into eyeliner, lipgloss or nail polish, as well as a range of natural mineral powder foundation. At The Makeup Show, Naked Cosmetics launched the Java Collection of natural matte colors with a pearlescent undertone. Java is available in a six-piece collection (#JV-C06/list $25.00/SRP $59.99). Singles can also be purchased (list $6.00/SRP $15.99). Reach Peter Estey, owner, at 888-806-2533, ext. 150, or peter@nakedindustry.com. Visit www.nakedindustry.com. Crystal Wright started her career as an agent and for 24 years represented celebrity stylists before becoming a consultant and speaker. She shared her newest program, “30 days at 100%.” The presentation is about the potential available in addressing the question: How would your life be different if you were striving to live at 100%? She delves into eight major areas of life and then challenges you to complete the sentence, “I am 100% when…” addressing each of those areas. Check out Crystal Wright’s Portfolio Building Workshops Empowering Makeup, Hair and Fashion Stylists at wwwcrystalwrightlive.com. Reach her at 323-299-0500 or crystal@crystalwrightlive.com. BIR talked with Michael DeVellis, executive director of The Powder Group and co-producer of The Makeup Show, who noted, “This was our second year at the California Market Center, and we were thrilled to see a more than 20% increase in attendance over last year’s West Coast premiere. Our sponsors—Make Up For Ever, Temptu Pro, Inglot, Crown Brush and On Makeup Magazine—along with more than 50 other pro-focused brands and more than four dozen top educators, came together to create our most dynamic and inspirational show ever.” The Makeup Show stops next in New York City, where it celebrates its fifth year in The Big Apple on May 16-17. Reach Michael at 212-627-7447 or michael@thepowdergroup.com. For information about The Makeup Show, contact Shelly Taggar at shelly@metropolitanevents.com and visit www.themakeupshow.com. APRIL 2010 11 The Beauty Industry Report Visit www.bironline.com ASD features ideal impulse items for stores/salons F rom its beginning in 1961, the event originally known as the ASD-AMD Show (referring to the two member associations comprised of surplus dealers and general merchandise dealers that initially produced this show) has grown into one of the largest trade shows in the country. It covers a whopping 610,000 net square feet of exhibit space across four venues. Las Vegas is the home for the twice-a-year event that started after the Second World War by a group of store operators who specialized in war surplus. As time moved on, the dwindling amount of war surplus was replaced with general merchandise. Today the event, now known as the ASD Show, hosts almost 2,500 exhibitors. “General merchandise,” which translates to everything from belt buckles to bras, from giftware to gadgets and just about every product that can be sold in a store was being displayed at one of the show’s four venues: Sands Expo upper floor (ASD General Merchandise/Jewelry); lower floor (Las Vegas Gift Show); Las Vegas Convention Center South Hall (Closeout and 99 cent goods); Mirage Exhibit Center (fine jewelry). Specialized sections were grouped in four major categories that include jewelry, style and beauty, gift and toy, and value and variety. ASD attracts every type of buyer, including independent retailers, department stores, national chains and Internet retailers among the more than 45,000 attendees in 2010, which represents a 15% increase over last year’s show. The show also attracts a large number of international buyers who represented more than 85 countries across six continents. It’s interesting to note that the number of buyers from Latin American countries, including Mexico, Argentina and Costa Rica, among others, increased this year by more than 33%. Most attendees spend a number of days at the four-day event, and for store owners, there is also full program of seminars focusing on topics, such as “Big Ideas for Small Business,” “Build an e-Commerce Web Site in One Day” and “Secrets to Increasing Retail Sales and Profits in the Next 30 Days.” 12 APRIL 2010 Lori Higgins, marketing director, retail group Nielsen Exposition, the ASD Show owners and producers, told BIR that as a result of the continued growth, starting with the next ASD Show scheduled for August, 8-11, 2010, all the venues will be combined. They will take over the entire Las Vegas Convention Center. Attending an ASD show reminds me of the old saying, “You have to kiss a lot of frogs to end up with a prince.” Motoring up and down aisle after aisle of merchandise, you will experience an avalanche of product lines, and the majority will be meaningless to you. However, there are a number of pearls that can become profitable products for beauty stores, distributors and salons/spas. Of most interest is the style and beauty section, which featured health and beauty exhibitors, (fragrances, spa products, cosmetics, professional beauty supplies and pharmacy supplies). As a result of widespread product diversion, beauty stores lost a major competitive edge and the reputation for being the exclusive source to the public for professional salon brands. If your store falls into that group, you can bounce back by adding ASD to your trade show calendar to explore the opportunities to expand your product mix. In fact, beauty store operators who cater to the multicultural marketplace have been regular attendees for year. As a result, they have broadened their product selection and become more viable retail outlets to their customers. The ASD show can also be a valuable resource for distributors who operate professional-only stores. The salon professionals who shop in those stores are prime targets for fun or trendy impulse items. For example, the show featured 320 exhibitors of fashion accessories; 184 in the health and beauty category, which includes cosmetics and nail care; 86 showing perfumes and fragrances; 87 exhibiting sunglasses and 53 showing fashion watches. Following are product highlights to give you an idea of what’s worth checking out. Sunglasses are a major impulse sale item and a natural for beauty stores. With more than 80 sunglass exhibitors, it’s no problem finding a company with the selection, location and terms of business that will be right for your store or distributorship. Dynasol Eyewear (626-444-6181, oxigen1@hotmail.com, www.dynasoleyewear.com), Sunsharkey/Trio Eyewear (909-390-8282, sales@sunsharkeyewear.com, www.sunsharkeyewear.com) and NY Eyewear Trading Inc. (212-213-0338, nyeyewear@yahoo.com, wwwnyeyewear.net). Jinny Corp, the largest distributor of ethnic personal care products, also has a thriving direct import business, and at the booth, Kayla Kranc took me through the J2 Sunglass presentation. She pointed out that readers are a growing part of the business. Kayla handed me a couple that featured frames with smart looking designs. She stated that her readers all come with glass and not plastic lenses and spring hinges. I found out that optometrists are big buyers of these readers, which have an unbelievable cost of $24.00 per dozen or $2.00 each. Kayla noted, “We have a number of optometrist accounts who are buying these readers by the dozens and replacing the lenses with their clients’ prescriptions and charging the going rate, which generates a huge profit." The regular fashion glasses all come with glass lenses and are well made. Another large category under the J2 brand is salon styling tools. Bright colored flat irons come in an acrylic display that contains three pieces each of blue, purple, pink, green and beige coated irons, all individually boxed (#DRES2200/list $227.25 display deal, $15.15 each/SRP $75.00). In addition to flat irons, the company also offers a selection of dryers. Reach Kayla at 847-600-3030 or kaylac@jinny.com. Visit www.jinny.com. Another monster category is fragrance, which is often overlooked by beauty store operators. After all, beauty store shoppers are predominantly women, and most of them wear and buy fragrance. Because most beauty store operators get stuck on the margin issue (traditionally designer fragrances margins are 40%) and do not focus on the penny profit generated by the higher selling prices, many stores have stayed away from selling fragrance. At the show, there were a number of beautiful fragrance brands for men and women that were not the well-known and highly-discounted designer brands. These alternative brand fragrances are doing well in beauty stores serving the multicultural marketplace. One of the major suppliers in the fragrance category is Belcam, a division of Delagar and a long-time supplier to the beauty store market with its Ultra Denco line of implements. Delagar has developed a comprehensive line of designer brand knockoffs, which are merchandised in packages similar to the original brands, and their fragrances are replicas of the original scent. They provide a profitable alternative to the original designer brand. Reach Gail Hekkema, vice president/general manager, at 800-948-9281, ext. 2740, or ghekkema@delagar.com and request a catalog. Visit www.delagar.com. Luggage is another ASD Show category with a flock of exhibitors. Séya Inc. is a direct importer of practical storage solutions and offers a broad selection of storage solutions for makeup artists and hair stylists. At the show, the firm was exhibiting multi sectioned professional beauty cases. Edan Smolinisky, the company sales manager showed BIR an impressive range of rolling storage cases are organized to hold a variety of products and tools. Units come in black, silver, pink and pattern finishes, including polka dot and animal prints. With a telescopic handle and rollers, these cases travel easily (TS series/list price $85.00). Reach Edan at 562-690-7990 or edan@seyainc.com. Visit www.seyanic.com. Energy drinks have become a major category. Products, such as Red Bull, Monster, Rockstar and Full Throttle, have become huge selling brands. Individual sized energy drinks have been a major impulse item that are found at every convenience store outlet, as well as car washes and other retailers. Recently at a couple of salon trade shows, BIR spotted an exhibitor or two displaying their lines. Salons and beauty supplies are ideal outlets for these impulse instant energy drinks. At the Continental Vitamin Company (CVC Specialties), Greg Faull, vice president of sales, showed BIR his line of 2-ounce Liquid Energy Shots. They are packaged in bright small plastic “There are a number of pearls that can become profitable impulse products for beauty stores, distributors and salons/spas.” containers with different labels, including Ginseng Blast, Staminex, Pep N Energy, and are merchandised on a small wire display. He advised that there are a variety of racks available. The company also offers a complete line of national brand pain relievers, including Tylenol, Excedrin, Advil and more, in singledose packages merchandised on a 12-prong rack. Again, these are great impulse item for beauty stores and salons. Reach Greg at 800421-6175 or greg.faull@cvc4health.com. Visit www.cvc4health.com. Fisk Industries, a family-owned business started by Steve Adler, has created or acquired a number of beauty brands that are sold successfully in both the general market and multicultural beauty stores. The company markets four major brands: Cover Your Grey, Irene Gari, Claudia Stevens and Daggett & Ramsdell. Cover Your Grey is a perfect example of a single item color touch-up crayon that Fisk acquired, and over the years, it has expanded into a complete product range that includes the original Touch-Up Stick, Brush-in Hair Color, Root Touch-up, 2 in 1 Hair Color Touchup Wand, Root Touch-up & Highlighter, Color Combs, Cover Your Gray Professional, Hair Color Sticks For Men and Cover Your Gray Mini Boxes. The product line is merchandised on an extensive array of counter racks and floor stand displays. Reach Steve at 800-2488033 or shadler111@aol.com. Of course there were a couple of electrical styling tools being exhibited. At GMJ USA, Inc., BIR met sales and marketing director, Lisa Yamatoya. This Japanese company recently set up a subsidiary in Torrance, CA, which is marketing its line of flat irons and hair dryers manufactured in China. There are two hair dryers, three flat irons and two mini irons—one flat and one curling. Reach Lisa at 310-618-9677 or lisa_yamatoya@gmjbeauty.com. Visit www.gmjbeauty .com. Budget-priced cosmetics is another category with a number exhibitors showing their product lines. With the challenging economy, affordable cosmetics are perfect to stimulate impulse sales at stores. Rich On Inc. has been one of the leading suppliers of affordable cosmetics for years. Dareld Karns, vice president of sales, showed BIR a couple of best sellers. Starry Eyeliner Gel is actually a cream that’s applied with a brush. It comes in black and brown, merchandised on a counter display of 48 pieces (#61170/ list $48.00 unit or $1.00 each/SRP $3.99). Starry Baked Eyeshadow comes in a compact with four different color ranges, 12 pieces to a display (#MU1016/list $12.00 unit or $1.00 each/SRP $3.99). To learn more, reach Dareld at 323-881-0805 or dareldbrcolor@yahoo.com. Visit www.richon.com. If you want to entice customers to return to your store often, BIR’s recommendation is to attend the next ASD Show on August, 8-11. To learn more, reach Lori Higgins at 310 481-7324 or Lori.Higgins@nielsen.com, and visit www.asdonline.com. APRIL 2010 13 The Beauty Industry Report Visit www.bironline.com News continued from page 4 Stuart Wolman joins Peter Hantz Company as vice president of sales and services. Before joining the company, which also owns and operates 19 cosmetology schools, Stuart served as director of pet services of Petco in San Diego. His background includes 13 years in corporate finance, budgeting, forecasting and marketing for the Pet Services division of Petco. He also owned Pet Supply Warehouse in San Diego, which he sold to Petco in 1997. Stuart’s success includes increasing grooming sales and profits 700% in eight years for Petco. Reach Jessica Wolman at jessicaiwolman@hotmail.com or 480-967-6464. Visit www.peterhantzco.com. Two members of The Kirschner Group (TKG) lost family members recently. Vice president Lance Z. Posen mourns the passing of his father, Edward Posen. Sales rep Bob Jones, mourns the passing of his father, Marshall Jones. BIR sends condolescences to both. Director of education will be based in Los Angeles and provide education expertise in the development of all marketing materials and communication. This person will conduct educational classes, develop training agendas and materials and recruit field educators. This position involves direct interaction with all departments in the company, as well as with Kim Vō and the Kim Vō salon artistic team to take new trends and cuts to the stylists, This is the perfect job for a high-energy, highexpectation, resourceful and goal-and-team-oriented individual. Send resume with salary history to Craig Shandler, president of Kim Vō Enterprises, at 323-543-6664 or craigs@kimvo.com. 14 APRIL 2010 Rusk announces that award-winning journalist, author, producer, entrepreneur and former co-anchor of Access Hollywood, Nancy O’Dell, is the official spokesperson for Rusk and BaByliss Pro. As a celebrity who shines on the red carpet and a wife and mother caring for a family, Nancy understands the need for hair care products that exceed expectations. She relates to the modern woman balancing career and family. Reach Ken Russo, vice president, Conair Professional Division, at 800-726-6247, ext. 9027, or ken_russo@conair.com. Visit www.conair.com. A stylist’s working environment is greatly improved when ammonia-free products are used. Still today, many people are not aware of the advantages of working with ammoniafree products. The ammonia gas is a strong irritant to the respiratory tract. Stylists who are sensitive to the fumes can develop respiratory problems. Jacinthe Hardy from Hardy Coiffure says, ‘‘Over the years, I’ve developed chronic rhinitis mainly caused by the inhalation of ammonia fumes. Since I started using KOKO colour solution, my allergy problems have decreased.’’ Moty Cohen, president of Oligo Professionnel, says the company has maintained the same mission since 1986—to offer stylists healthier, safer products that perform well. ‘‘I am proud to share with you that our customers, as well as their clientele, benefit on a daily basis from the ammonia-free products Oligo offers, which includes our KOKO colour solution, perms, texturizers and straighteners. It is important to inform people and to raise awareness about the damage ammonia does. For those reasons, we decided to create the AFP program and logo. The program provides point-of-sale advertising, which includes a shelf talker and an electrostatic label, to every Oligo Professionnel salon that uses our ammoniafree products. These salons will raise awareness and inform their clients of the benefits ammonia-free products offer. Consequently, clients will demand ammoniafree products in the future. Also, our AFP logo will be incorporated on the packaging of all Oligo products that are 100% ammonia free.’’ Reach Annik Chartrand, brand manager, at 877-837-6426 or annikc@vernico.com. Visit www.vernico.com. Bain de Terre introduces the Jasmine 2minute Intense Conditioner. It delivers intense moisture in just two minutes. The blend of jasmine and cottonseed oil delivers an instant conditioning boost that transforms hair from damaged and dry to healthy and hydrated. All of Bain de Terre’s products are infused with its signature botaniceuticals, including black currant, goji berry, magnolia bark and wild jujube (8.45 ounces/List $7.00/SRP $14.00). Reach Bruce Selan, vice president Zotos Core Brands, at 847-390-6299 or bselan@zotosintl.com. Visit www.zotosintl.com. Roy J. Hurley, Z.One Concept USA president/CEO, tells BIR that the company has moved its operations from Phoenix to Pine Brook, NJ. “This move has given us the ability to receive product from our factory in Italy quicker and reduce our freight costs, and because 70% of our clients are on the eastern seaboard, we have dramatically shortened our shipping times,” he says. Reach Roy at 973-396-2654 or roy@z-oneusa.com. Visit www.z-oneusa.com. Vincenzo Sorrentino helped create the Enzo Milano clipless curling irons and styling aids. Now, he has created Dolce Milano, a liquid product line that replaces traditional shampoos and conditioners with cleansers and treatments that are organic with natural and botanical extracts and hypo-allergen safe. Reach Judy Thao at 949-743-1188 or sales@dolcemilano.com. Visit www.dolcemilano.com. Affinage will introduce Infiniti ColourCare Shampoo and Conditioner this June. Infiniti ColourCare Shampoo (pH 4.5-5.5) is a sulfate-free cleanser that features sodium cocoyl isethionate, a mild surfactant, and citric acid, which combine to help remove any residual traces of ammonia (or any alkaline agent) after coloring, while restoring the hair’s natural pH and closing the cuticle. It also contains the naturally sourced mineral M.A.S. to give increased strength to the hair, panthenol to moisturize and UV filters to protect. Infiniti ColourCare Conditioner (pH 3.5-4.5) closes down the cuticle and helps lock in color molecules. Panthenol helps nourish the hair, restoring the correct moisture balance and boosting tensile strength. It also contains a naturally derived, silicone-like ingredient that promotes smoothness and boosts shine. Hair is left more controllable and easier to style (8.5 ounces/list $6.50/SRP $13.00 or back bar size/33 ounces/list $14.75). Reach Michael Ifergan, managing director, at 877-597-2929 or michael@michaelifergan.com. Visit www.monarchbeautygroup.com. $20.00). Reach Jay Morris, executive vice president, global sales, at 760-415-9710 or morris@alternahaircare.com. Visit www.alternahaircare.com. Alterna launches Sun Recovery Spray and Ocean Waves. A leave-in conditioner, Sun Recovery Spray utilizes a bi-phase formula that remains separate until dispensed. It then activates on contact to boost moisture and shine, detangles the hair and offers UV protection. The formula is infused with protein-packed certified organic hemp seed oil; vitamins and minerals; certified organic botanicals, including hemp seed oil, cranberry extract, cucumber extract, avocado extract and white tea extract; and natural ingredients, such as fennel seed, carrot root, wasabi root, algae, seaweed, red mushrooms and soy (4 ounces/list $10.00/SRP $20.00). Ocean Waves is a texturizing spray designed to create sexy, fresh-from-the-surf waves with a matte finish. Ocean Waves is packed with certified organic botanicals, such as hemp seed oil, cranberry extract, cucumber extract, avocado extract and white tea extract, along with natural ingredients, including fennel seed, carrot root, wasabi root, citrus rind oil and red mushrooms to create healthy, voluminous hair (4 ounces/list $10.00/SRP In celebration of Redken’s 50th Anniversary, 10 salon professionals will have the opportunity to sharpen their professional edge with a $5,000 scholarship to The Salon Professional Academy (TSPA). The scholarship will be applied toward TSPA tuition fees and books needed to complete a student’s training at franchise locations of TSPA schools. Scholarship awardees will be chosen by the Redken Scholarship Advisory Board based on their submitted application, as well as educational and career goals. “The scholarship targets the top 20% of current and/or prospective students in a class,” says Marilyn Fulkerson, senior vice president of TSPA Admissions and Student Loan Programs. “This gives Redken and TSPA an opportunity to groom the best of the best graduates for the 21st century salons and spas.” Jodi Dahl, senior vice president of TSPA Marketing and Advertising, says, “The scholarship gives recipients a definite edge over others. It is a testament to students’ dedication and pride in the beauty industry. It also provides the winners with the advantage of being recognized as talented L’anza Healing Haircare introduces the Healing Texture Exothermic Perm. L’anza utilizes its Keratin Healing System and Flower Shield Complex to create a perm that heals the hair and preserves hair color. Hair porosity is balanced, and fragile hair is strengthened, resulting in shiny true-to-rodsize curls that are smooth, vibrant and longlasting. The self-heating, low-odor formula shortens processing time and adds comfort for stylist and client. Liposome technology ensures the ideal moisture balance. L’anza Healing Texture Exothermic Perm is ammonium-thio-based with a pH of 8.1. (Salon list $7.25). Reach Holly de Rivaz, brand manager, at 310-393-5227, ext. 3433, or hderivaz@davexlabs.com. Visit www.davexlabs.com. individuals by a leading international hair care brand–even before they graduate.” Interested students can find the application at www.TheSalonProfessionalAcademy.com Deadline for submission is May 31. Spencer Forrest, the makers of Xfusion Hair Fibers, introduces the Xfusion Hair Fattening System. It’s available in a kit designed for retail in the salon and includes a shampoo, a conditioner and a leave-in Hair Fattener being offered with an introductory salon price (regular salon list $27.50/intro special list price of $20.00/SRP $49.95). Reach Gary Udell of Gerry Udell, Inc. at 800-535-1919 or garyudell@gerryudell.com. With Pravana Naturceutical’s new Beach Wave Control Mist, styling wavy or curly is as easy as a day at the beach. Whether your hair is naturally wavy or curly or whether it has been treated with The Beach Wave Service, with a simple mist and your hands, this new spray refreshes and shapes waves (8.5 ounces/list $8.50/SRP $17.00). Reach Steve Goddard, president, at 800-957-5629 or sgoddard@pravana.com. Visit www.pravana.com. American Crew launches the Trichology Hair Recovery System, which offers men a simple solution for thicker, fuller and stronger hair. The system includes Hair Recovery Shampoo (list $5.75/SRP $11.50), which preps the hair and scalp for maximum absorption of ingredients. The Hair Recovery Patch (list $25.00/SRP $49.95) is applied on the problem area before bed or for a minimum of eight hours. Hair Recovery Concentrate (12 units/list $14.99/SRP $29.95) is applied daily and massaged into the roots when hair and scalp are dry to help recover hair. To learn more, reach Brian Cash at 212-468-3316 or Brian.Cash@mslworldwide.com. Visit www.americancrew.com. News continued on page 16 APRIL 2010 15 The Beauty Industry Report Visit www.bironline.com News continued from page 15 Goldwell introduces Dualsenses for Men. Goldwell’s Recharge System with Guarana Caffeine Complex strengthens men’s hair to protect against environmental elements with protein and panthenol, while the combination of menthol, guarana and caffeine revitalizes the hair and scalp. For normal hair, Hair & Body Shampoo cleanses, revitalizes and cares for hair, skin and scalp (300ml/list $6.50/SRP $13.00). Activating Scalp Tonic fortifies and revitalizes hair and scalp with a soothing, cooling effect (125ml ounces/list $7.50/SRP $15.00). Power Gel gives strong hold and protects against moisture loss (150ml/list $7.50/SRP $15.00). For special needs, Hair Thickening Shampoo adds fullness to fine, thinning hair (300ml/list $6.50/SRP $13.00). Reach John Fortunato, vice president of sales, at 800288-9118 or john_fortunato@kpss-hair.us. Forever Natural launches a new category for nail products: polytech. Forever Natural Polytech offers the natural nail strength and flexibility, while promoting growth. It can be worn alone or with polish. Worn with Forever Natural Polytech, polish lasts two to three times longer with no chipping or peeling. It applies as quickly as base coat, UV cures in 90 seconds and can be removed in less than five minutes with pure acetone. The Starter Kit includes Polytech, Finish, Clean, an application brush and a gold buffing block (#101355/salon list $49.97). Reach Dixie Eklund, vice president of sales, at 800-362-6245 or deklund@tngworldwide.com. Visit www.tngworldwide.com. Nothing says summer like bright polish. The six neon colors in China Glaze’s Poolside Collection include Pool Party, a neon pink; Flip Flop Fantasy, a neon coral; Sun Worshipper, a neon orange; Yellow Polka Dot Bikini, a neon yellow; Kiwi Cool-Ada, a neon green and Towel Boy Toy, a neon blue 16 APRIL 2010 (list $3.25/SRP $6.50). For a shiny finish, try China Glaze’s Patent Leather Top Coat. Reach Kathleen Armstrong, professional division sales manager, at 323-728-2999, ext. 277, or karmstrong@aiibeauty.com. Visit www.aiibeauty.com. Trind’s Caring Color features active crosslinking technology, which when applied to the top layer of the nail plate provides extra strength and extra adhesion for a perfect nail and long lasting color. Available in 24 fashionable colors, the polish is free of DBP, toluene and formaldehyde (deal #1528 with counter display with 72 pieces, 3 each of 24 shades). Caring Color Polish comes with a free display (deal cost reflects 20% savings $374.80/list $6.50/SRP $12.95). Reach Richard Houts at 866-874-6326 or r.houts@trindusa.com. Visit www.trindusa.com. For hot summer beauty, Mirabella Beauty takes a modern slant on the youthful counter-culture of the ’60s with two Eye Colour Crayon trios in happy neon retroglam hues. Cool shades in the Moonbeam trio include Purple Haze, Bugaloo Blue and Limelight Green. The Sunshine set features warm tones in Yellow Submarine, Hot Pants Pink and Clockwork Orange. “Anyone can wear the look and give these Eye Colour Crayons as bold or as conservative a twist as they’d like,” explains Darlene Zembrod, Mirabella Beauty’s national trainer. “To make them more sheer and translucent, blend the color out with your fingers until you have your desired effect.” (Eye Colour Crayon trio/SRP $29). To help salons sell through, Mirabella offers a gift with purchase. While supplies last, consumers who buy an Eye Colour Crayon Trio receive a free beach tote and mini Lash Essential Mascara. Visit www.mirabellabeauty.com and become a fan on Facebook. White Sands Velcro Strips are the new way to create waves, volume and curls on wet or dry hair and provide an alternative to roller sets. Pair White Sands Velcro Strips with any of its Liquid Texture Styling Sprays to achieve soft, textured curls with voluminous shine. White Sands Velcro Strips provide countless options for texture and curls, allowing you to adjust curl sizes without the need for multiple sized rollers. Due to this design flexibility, Velcro Strips can even be used for perming. White Sands Velcro Strips take up less space than conventional rollers, and are perfect traveling companions (list price $20.00/SRP $40.00). Reach Noel Salas, CFO, at 949-206-1300, ext. 26, or noel@whitesandsproducts.com. Visit www.whitesandsproducts.com. Rebecca Adams, president of Beauty Love, taps into her experience as a former beauty store operator and stylist to create a collection of basic salon sundries, including, apparel, tools, hair color accessories and equipment, that stylists will love. For example, the stylist apron called The Frill comes in four styles: Black Tie (#BB8055); Zebra (#BB8035), Purrfect (#BB8045) and Love Child (#BB8075/salon list $19.99). Attention distributors: If you want to liven up your sundry assortment, reach Rebecca at 877-213-6336 or rebecca@beautyloveinc.com. Visit www.beautyloveinc.com. Product Club recently held its fourth educator training in New Jersey. Team members came together for two days of technical training and a presentation skills workshop. The training was led by artistic director, Patrick McIvor, and national technical training director, Adrienne Rogers. To find a class near you or for more information, reach Mary Albanese, vice president of marketing, at 800-308-3588 or mary@productclub.com. Visit www.productclub.com. The Marilyn Brush line celebrates its 10th anniversary. “The design and quality of the Marilyn Brush has been an outstanding success since its introduction in 2003 and has undergone a further revision by incorporating an Advanced Hourglass Design in 2007, providing even greater value to the consumer,” says David Leib, president of Robanda International, which has owned the company since January 2009. David adds, “Marilyn has again shown explosive growth now that we are 100% in stock. Customers who were forced to give up the brand due to lack of supply are coming back in droves.” Reach David at 800-783-9969 or david@robanda.com. Visit www.robanda.com. Jatai International recently introduced the new Feather Flexion Styling Razor, the first Feather folding razor designed for both standard and texturizing blades. Developed by the Feather Safety Razor Co. in Osaka, Japan, the Flexion with its distinctive aquamarble handle incorporates the traditional folding-style razor and the Feather guarded styling razor blades. Flexion offers balance and complete cutting control, with handle neck grips that prevent slipping while cutting (#F1-80-110/distributor list $72.00/salon list $130.00). Reach Dean Wada, president, at 888-965-2824 or dwada@jatai.net. Visit www.jatai.net. Terri Taricco, Helen of Troy vice president of marketing, tells BIR that Hot Tools has added a new color family. Blue Ice Titanium features a Blue Ionic hair dryer (list $70.00), two Electroplated Blue Ice Flat irons with Titanium plates—one full-sized that heats up to 450 degrees (list $70.00) and a new midsized flat iron (list $65.00). The Blue Ice Titanium line also heralds the arrival of four Hot Tools specialty irons, including Spiral iron, Ribbon iron, Coil Iron and a 3-Barrel Iron, all with titanium barrels and the Hot Tools patented “Gets Hot… Stays Hot” Pulse technology, and all family priced (list $50.00). Reach Scott Hagstrom, vice president of sales, at 915-225-5805 or shagstrom@hotus.com. Visit www.hotus.com. The Wet Brush from J&D Beauty features bendable bristles with coated tips that glide through long and tangled hair. It's an “ouchless” detangler and scalp massager that works on wet or dry hair. It’s available in five colors per dozen (#B830W/list $5.00/SRP $9.99). Reach Phil Greco, J&D Beauty president, at 800-523-2889 or philg@jdbeauty.com. Visit www.jdbeauty.com. The Daylight Company will introduce a stylish, new, technologically-advanced version of its Duo Design UV Nail Lamp in May. The compact, dual-purpose unit (#U33187/list $299.99) now has a strong plated coating that is highly resistant to damage from cleaning liquids and detergents. “The Duo Design UV Nail Lamp is a sleek and deluxe curing system aimed at the top of the health and beauty market,” says Steve Pomeroy, vice president of sales. “The lamp is multifunctional with a sliding manicure tray and removable pedicure unit, and has a unique 'smart' digital timer function. The tube positioning ensures maximum light on the nails, which are accurately positioned in the unit through the use of finger indicators.” The new unit includes Daylight’s 36w manicure and pedicure UV lamp plus Smart Digital Timer, which lets the user choose a precise curing time from five seconds to 10 minutes. It also remembers the last time setting for a quick start and warns the user when its tubes need replacing. To learn more, reach Steve at 720-341-8806 or steve.pomeroy@daylightcompany.com. Sport Clips recorded an overall system sales increase of 15.8% and a solid 5.1% same-store sales growth in 2009 for stores open at least one full year, according to Gordon Logan, founder and CEO. “We have a great team that works daily to make hair care a positive experience for men and boys throughout the country,” Gordon says. “From the support center in Georgetown, TX, to our trainers and coaches out in the field to our strong network of area developers, team leaders, managers and stylists representing our 675 stores in 36 states, everyone works to make it ‘good to be a guy' at Sport Clips! No matter the ups and downs in the economy, when you stick to what works, it’s a win for our clients and for Sport Clips.” Sport Clips also saw a 14.8% increase in its client count, due in part to the additional 59 stores that opened last year. Sport Clips served more than 11 million clients in 2009. The company planned to open 35 stores in the first quarter of 2010. Reach Gordon at 512-869-1201 or gordon@sportclips.com. Visit www.sportclips.com. Wella school students took the top two spots at the 2010 Sassoon Academy/School Connection (SASC) Cut and Color Contest, during the International Salon & Spa Expo in Long Beach, CA. Lydia Mikal of the Wella Signature School Bellus Academy in San Diego, took first place, a 5-day ABC Cutting Course at the Sassoon Academy in London. Kayla Skaggs from Wella Signature School Honors Beauty in Indianapolis received a 5day ABC Cutting Course at the new Sassoon Academy in Chicago and a $500.00 education voucher for her second-place win. News continued on page 18 APRIL 2010 17 The Beauty Industry Report Visit www.bironline.com News continued from page 17 All prizes for this year’s contest were contributed by the Wella Signature Program. In addition to her prize, Lydia was also awarded a trip to NYC to attend the U.S. Wella Trend Vision Competition this fall. Lydia will also be automatically entered in the Trend Vision competition, giving her a chance to compete in the Wella International Trend Vision event in Paris. Reach Megan Newell, P&G Salon Professional coordinator, at 800-829-4422, ext. 4507 or newell.m.1@pg.com. Cosmetology schools now have the opportunity to join Farouk Systems by becoming CHI Environmental Schools. Partnership schools benefit from exclusive product discounts; free instructor training, monthly webinars; quarterly merchandising packs that include educational manuals and DVDs; and ongoing instructor training at the CHI Academy in Houston. Using a rewards point system, schools can qualify for extra classes, such as Color Confidence, Hair Tricks with Product Knowledge, Classic Foiling, Classic Cutting, Texture, CHIscentuals Manicure and more. Farouk Systems will train instructors to teach multiple techniques and services in a new threephase curriculum. Phase 1, 0-500 hours, covers basic product knowledge, color theory and techniques; Phase 2, 501-1000 hours, emphasizes advanced theory and techniques; and Phase 3, 1001-1500 hours, delves deeper into theory, corrective color and intricate techniques. CHI Environmental Schools will also play an integral role in bringing new products to market. Students will be able to evaluate new, innovative products before they launch. “Farouk Systems was founded on the principles of environment, education and ethics,” says Jason Yates, director of schools. “We believe educating future generations of hairdressers will create a safer salon environment for both stylists and clients.” School owners interested in having their campus become a CHI Environmental School or having any questions can reach Jason at 800-237-9175 or jason@farouk.com. 18 APRIL 2010 Empire Education Group, the largest provider of cosmetology education in North America, is teaming up with world-renowned hairstylist, educator and celebrity hairdresser, Nick Arrojo, and his celebrated team of master stylists to help beauty professionals build profitable, rewarding and sustainable careers. At the heart of this new relationship, the two companies will collaborate to offer the Masters of Beauty (MOB) Skills Certification Program, a national advanced education platform. The goal of the MOB is to build confidence and creativity in salon professionals, while giving them the opportunity to become masters of their craft. A MOB candidate can become a Master of Beauty in a desired skill in as little as 12 months. The MOB will kick off nationally at Empire’s Future Professionals Expo in Hershey, PA, on May 16-17 (www.futureproexpo.com). Nick and his master stylist team will headline the event with a spectacular show for more than 2,000 Empire students from across the country, who will attend the two-day beauty show and competition designed just for future professionals. Nationwide, beauty professionals who want to master the art of hairdressing can join Nick and his team during the two-day Tour of Beauty presentations, then attend more than 200 one-day Skill Certification Classes led by Arrojo Master Stylists and hosted at Empire Beauty Schools. “MOB workshops and classes will encourage salon professionals to participate in advanced education, learn new skills and gain the confidence and creativity required to meet and exceed the expectations of today’s consumers,” says Nick. “MOB will provide insight and inspiration, and help stabilize and enhance the careers of beauty professionals all over the country. It’s a fantastic opportunity to continue our commitment to raising standards in the hairdressing craft.” The program will be available to the more than 100,000 beauty professionals working in the industry who are alumni of Empire Education Group schools, as well as all working stylists, salon professionals re- entering the salon industry after taking a break, and independent and chain salon owners and managers who want to increase their knowledge and improve their skill set. “Empire Education Group and Nick Arrojo have a shared vision to train today’s and tomorrow’s hairdressers to be true masters of their craft,” says Franklin K. Schoeneman, chairman and CEO of Empire Education Group. “With this relationship, we can now provide all the basic training, skills and artistic inspiration that hairdressers need from the day they enter cosmetology school and begin studying our exclusive Certified Learning in Cosmetology (CLiC) curriculum, all the way through to advanced programs from ARROJO education. As a result, they can continuously grow, wow their clients and earn top dollars throughout their careers.” He adds, “MOB is just one part of the Empire Alumni effort. The goal is to offer a complete selection of valuable services, products and industry events to our alumni going forward.” To register today and for details, including a calendar of classes nationwide, visit www.mastersofbeauty.com. Vero Beauty Distributors President Sylvia Arguelles checked in with BIR about a new hair straightening line that is producing excellent results. Sylvia notes, “We are distributing Bella Ionic Keratin in Florida and specific Caribbean Islands with excellent results. Bella is more than a temporary straightening system; it is a deep reconstructor of the hair fibers. It contains botanical activators from coconut proteins combined with hydrating wheat, mixed in with natural hair keratin to achieve hair reconstruction. It is produced in Florida with the highest regard for the safety of the stylist applying the product, as well as for the customer, who is looking for a safe keratin treatment. Salons are amazed at the results. Not only does it perform as it says it will, leaving hair rejuvenated, but the treatment does not produce any type of ‘smoke’ or smell. Additionally, it is costeffective, as less product is needed and it can be applied in less time than a traditional service without the need for a blow dryer. That all translates into more profits for the salon.” (The company’s name is Subelleza. Reach Marieta Sukar at 561-218-6125). For more information, reach Sylvia at 305-5915683 or belleint@aol.com. Visit www.verobeauty.com. Poshé USA, LLC., makers of Poshé nail care products, announces a strategic distribution partnership with National Beauty Group, Inc. and its subsidiaries: Barbara’s Beauty Wholesale Distributors, KB Beauty Supply and Nails Express. Under this arrangement, National Beauty Group is providing nationwide fulfillment services for orders originating from the Poshé website www.poshe.com. “With a strong nail business, including a network of outside sales reps calling on nail salons, longstanding relationships with beauty supply stores nationwide and distribution centers near both Los Angeles and San Francisco, National Beauty Group is the ideal partner for Poshé,” says CEO Lynn Beaurline. “Their growing chain of KB Beauty Supply stores throughout California attracts strong professional traffic.” Entity Beauty Inc. (www.entitybeauty.com) has also appointed National Beauty Group, Inc. and its subsidiaries as its distributor in California. Contact Nails Express at 866-26-NAILS. To learn more, reach Jim Fisher, president and owner of National Beauty Group, at 562-866-8273 or jim@barbarasbeauty.com. Robanda International has selected DWA as its master distributor in Canada for multiple brands, including Robanda Anti-Aging Skincare, Mr. Pumice, Tropical Shine, Snappi and The Marilyn Brush. Shawn Russell, international sales vice president of Robanda, sees the agreement growing business exponentially in Canada and increasing brand awareness. “Stephen Pavlick and his team will deliver excellent customer service and support, which will be instrumental in the long term success of Robanda’s brands in Canada," says Shawn. To learn more, reach Stephen at 403-342-0690 or stephen@dwa.ca, and visit www.robanda.com. Eufora Intl., announces three new partnerships with independent distributors— Liquid Assets in Baton Rouge, LA; Salon Source in Houston; and ESP Salon Sales in Saskatoon, Saskatchewan, Canada “Each of these independent distributors exemplifies the Eufora philosophy—commitment to exceptional service, education and products," says James DeBerry, president. Reach Kate Bice at 800-638-3672 or kateb@eufora.net. Visit www.eufora.net. Keune Haircosmetics USA, Inc adds three full-service distributors. Covering North and South Carolina is European Image Salon Suppliers. Contact David Slack at 800-922-5580 or david@eissinc.com. Covering Georgia, Alabama, Mississippi and the Florida panhandle is Champion Beauty Supply. Contact Brad Champion at 800-676-2563 or bpchampion@gmail.com. Covering Virginia, West Virginia, Maryland and Washington DC is Twin State Salon Supply Inc. Contact Keith Wykle, Jr. at 800-344-5660 or keithwykle@suddenlinkmail.com. Reach Nancy Coss, Keune COO, at 800-330-9302 or ncoss@keuneusa.com. Visit www.keuneusa.com. Bosley Professional Strength adds two distributors—Emiliani Enterprises covering New York, New Jersey and Connecticut and Maly’s Midwest, servicing salons in Michigan, Indiana and Ohio. Eric McLemore, Bosley Professional Strength president, says, “We are now available in more than 95% of the country.” The line includes daily-use thickening products for color-treated and non-color-treated hair, volumizing styling products and hair treatments. Reach Eric at 800-Bosley1 or ericm@bosleypro.com, and visit www.bosleypro.com. White and Associates is now representing LaVaque Professional Tweezers. "LaVaque has taken an industry staple and made it one-better in every possible aspect," states Jeff White, president of J. White and Associates. LaVaque tweezers feature edgy branding, creative packaging, and aggressive promotions. Reach Kristel White for literature, pricing or samples at 704-335-1502 or sales@jwhite-assoc.com. Visit www.jwhite-assoc.com. The Kirschner Group’s Irwin Hass, Phil O’Toole and Jack Arends were awarded Best Buy gift certificates from Tweezerman for the largest percentage increases in 2009. Also being recognized is Paolo Rezzara, who is responsible for European sales in the firm’s international sales division and received an award for exceeding all 2009 sales goals. The Kirshner Group’s International division covers Europe, Asia and Latin America for a number of major salon industry manufacturers. In other company news, The Kirschner Group’s Annual Strategic Planning Meetings will take place on May 13–15. The entire sales force, including both domestic and international sales teams, will attend. The meetings feature sessions on utilizing technology, communications, presentations and followup skills. “These intense meetings are designed to heighten the quality of our service to customers and increase our efficiencies,” says Harlan Kirschner, president. He also noted another addition to The Kirschner Group sales force, as Mike Wolfe joins the national manufacturers’ rep sales organization. He will be calling accounts in the southwest territory. “Mike comes with many years of experience and will add depth to our southwest territory sales force,” adds Harlan. To learn more, contact Harlan at 800-527-8645 or harlan@kirschnergroup.com, and visit www.kirschnergroup.com. News continued on page 20 APRIL 2010 19 The Beauty Industry Report Visit www.bironline.com News continued from page 19 The Independent Cosmetic Manufacturers and Distributors (ICMAD) will host the 29th edition of its FDA Cosmetic Regulations Workshop at The New York Athletic Club in New York City on April 29. This educational event presents the opportunity to hear and question some of the federal officials most responsible for the enforcement of regulations in the cosmetic and personal care industries. Dr. Linda Katz, director of the Food & Drug Administration’s Office of Cosmetics and Colors in the Center for Food Science and Applied Nutrition, will provide an update and overview of the FDA’s current cosmetic programs. This 2010 update will cover some of the latest regulations governing our industry, with ample time for questions and answers. The cost for each day is $255.00 for members and $355.00 for nonmembers, with a discount for early registration. The cost includes meals and all written materials. Online registration is available at www.icmad.org/calendar. For more information, reach ICMAD at 800-334-2623 or info@icmad.org, and visit www.icmad.org. The Professional Beauty Association (PBA) announces increases in overall membership and retention in 2009, and continues increasing membership value through education, networking, government advocacy and professional events. 2010 is expected to see further gains through the merger of the National Cosmetology Association (NCA), which provides a fourth section of membership for licensed professionals. When the merger is fully integrated over 2010, members can expect a more unified trade association, focusing on assisting individual members and companies, while stimulating growth throughout the industry. In 2009, PBA saw 601 new members, 29% manufacturing sector growth, 25% distributor sector growth, 62% NCA renewal 20 APRIL 2010 rates and 30% PBA’s Best Practice Club growth. “Considering that most businesses continue to cut all non-essential costs during the current economic environment, increases in membership across multiple sections and relatively strong retention is evidence that membership in PBA is viewed as a valuable resource,” states Elizabeth Fantetti, director of membership for PBA. Reach Elizabeth at 800-468-227, ext. 3430, or elizabeth@probeauty.org. The Millennium annual User Group Conference unites hundreds of industry professionals from around the world to network, learn vital business strategies and gain knowledge from industry icons. The event has helped thousands of professionals learn how to grow their businesses and streamline operations from a process, management and system perspective. This year’s conference will focus around trust; trust in your staff and trust in your owner. If Millennium clients can create an environment based on trust and respect, they will be on the fast track to reaching their goals and attaining success. The conference will run June 27-29 at The Doral Golf Resort & Spa in Miami. Speakers include Robert Cromeans, John Harms and Neil Ducoff. Millennium is expecting more than 500 attendees. As always, a portion of the proceeds will go to St. Jude Children’s Research Hospital. Reach Matt Martinelli, public relations & market research, at 973402-9500 or mattm@harms-software.com. To register, visit www.millenniumugc.com. Nancy Cwynar’s Action Bag Company has been providing the salon industry with a wide selection of bags and other promotional materials for years. This year, to commemorate its 30th anniversary, the firm is creating promotions, special offers and a custom-printed non-woven bag to give out at trade shows to invite customers to share the excitement. Action Bag’s new spring catalog is now available. To request a copy and free samples, contact Ember Bindrim, marketing coordinator and designer, at 866-421-7075 or ebindrim@actionbag.com. Visit www.actionbag.com. The first episode of ModernSalon.TV featured a fast-paced presentation of International Salon & Spa Expo highlights, interviews with salon and TV star Tabatha Coffey, the scoop on Beth Minardi’s new alliance with Joico, celebrity style reviews and comments from NCA Legends and Icons Ann Mincey, Robert Cromeans and The Doves. Modern Salon’s editors, including Maggie Mulhern, Stacey Soble and Alison Shipley, are hands-on reporters in the program, which features professional hosts in a studio format (think “Entertainment Tonight” meets the beauty industry). According to Steve Reiss, Modern Salon’s publisher, “This new initiative will deliver compelling, timely programming. A new episode will air and go online every two weeks, delivering industry information, education and inspiration to the salon marketplace. Content will include interviews with leading beauty professionals, on-theground coverage of beauty shows and events, business-building advice from successful salon owners and experts, celebrity style commentary and, of course, Modern Salon’s signature how-tos.” It’s available through a wide range of platforms, including email, RSS feed alerts, YouTube, iTunes, Facebook, Twitter and Modern Salon Media websites, and featured in the magazines, to reach professional stylists and owners. View at www.ModernSalon.tv. For more info on sponsorship and other details, contact Steve at 847-634-4354 or sreiss@vancepublishing.com. Rob Ingraham, formerly with Questex Media Group, the organization behind the International Beauty Shows and American Salon, is producing a new beauty industry event under the banner of the Global Beauty Exchange. According to Rob, measurable return on investment is guaranteed at appointment events like the Global B2B Beauty Exchange (www.globalb2bexhange.com/beauty). These invitation-only events are designed to have a one-to-one ratio of buyers to suppliers who meet face-to-face in appointments previously arranged and scheduled online through B2B Match software developed specifically for this type of event. ”The appointment-based event idea is not entirely a new one, but Effort Group LLC and www.globalb2bexchange.com/beauty have developed a proprietary online B2B match-making software that allows suppliers and buyers to nominate their industry colleagues, ensuring only the most qualified buyers and sellers attend. Once approved by the event advisory committee, the buyers and suppliers can schedule the meetings they want at a luxury resort where all supplier and buyer accommodations are paid for by the organizers. Reach Rob at 203202-2576 or ringraham@globalb2bexchange.com. Fromm International announces its partnership with Kim Vō Enterprises. The Fromm/Kim Vō alliance combines the companies’ two missions—“Finding Better Ways to Create Beauty” and ”Beauty by Inspiration, Education and Entertainment”— to ultimately create growth for salons by connecting people to the important value professional stylists can bring to our lives. Effective immediately, Fromm International will manage the sales distribution for the Kim Vō brand with an experienced sales team dedicated to building effective programs for distributors. “We are very excited to create this strategic partnership with Fromm International to help leverage Kim Vō into a global brand,” says Craig Shandler, president of Kim Vō Enterprises. Kevin Johnson, Fromm International president, adds, “We look forward to building growth in our industry by combining Fromm’s knowledge of professional beauty distribution with Kim’s vision for inspiring stylists through education.” Craig retains his position as president of Kim Vō Enterprises. and is responsible for the overall management of the entity. Helen Crutchfield continues as vice president of brand management. Craig adds, “Instead of Sylmark doing the back-end order-entry, processing of orders, A/R and collections and accounting, it will be done in Chicago by Fromm International. In addition, the Fromm sales team will be responsible for managing distributor relationships.” Helen of Troy Limited has entered into an agreement with Innovative Brands, LLC, to acquire the Pert Plus hair care and Sure antiperspirant and deodorant businesses from Innovative Brands. Pert Plus enjoys a long history as a leading brand in the $2 billion U.S. shampoo category through its pioneering development of the 2-in-1 shampoo and conditioner combination technology. Sure is one of the leading brands in the $1.7 billion U.S. anti-perspirant and deodorant category. The acquisition was expected to close at the end of March 2010. Jerry Rubin, chairman/CEO and president, states, "We are very pleased to acquire the Pert Plus and Sure brands from Innovative Brands. We have a growing position in hair care styling and personal grooming with our innovative appliance and accessory businesses, and adding Pert Plus and Sure will enhance our role as a comprehensive provider of solutions for our hair care and personal grooming consumers and styling professionals. We expect to quickly integrate these two brands into our Idelle Labs division, which markets and manages our hair and skin care products, and we estimate the pair will generate approximately $65 million in annual sales. Our Idelle Labs division sells branded consumer products, including Infusium 23, Ogilvie, Brut, Vitalis, Final Net, Vitapointe, Condition 3-in 1, Sea Breeze and Ammens through professional, mass merchant, drug store and grocery distribution channels. We are excited to be adding these two quality brand names to our existing worldwide distribution, and believe they will provide ongoing value to our customers and shareholders alike. We continue to pursue similar acquisitions that can be integrated into Helen of Troy and provide accretive earnings to our shareholders.” Reach Jerry at 800-480-8832 or jrubin@hotus.com. Visit www.hotus.com. Alleghany Pharmacal Corporation, a marketer of branded hair care products, announced the appointment of Sam Maniaci, a seasoned hair care industry executive, as CEO. Sam has been hired to drive sales, increase product distribution and streamline operations. Sam says, “I am very excited about the future of Alleghany Pharmacal. I have known the company and its products for many years and believe there is a tremendous opportunity to expand the distribution of its strong brand and product portfolio.” Sam has over 20 years experience in the hair care products industry. Most recently, he served as CEO of Samy Companies, a $60 million international marketer and distributor of hair care products. Before his position at Samy, Sam served as head of sales for three other hair care marketers—Vogue International, Key Brands and Redmond Products. His sales experience has been with major food, drug and mass retailers, as well as with major beauty and ethnic distributors. Sam has also worked extensively in international markets and in the home shopping arena. Reach Sam at 516-466-0660 or sjmaniaci@yahoo.com. News continued on page 22 APRIL 2010 21 The Beauty Industry Report Visit www.bironline.com News continued from page 21 In fiscal 2009, Henkel generated sales of $13,573 million, a decrease of 3.9% compared to the previous year. In organic terms, sales decreased by 3.5% versus prior year. After a substantial decline in sales in the first quarter caused by the economic crisis, the subsequent quarters were characterized by a gradual recovery. However, developments at the company's three business sectors continued to show a very mixed picture. While the consumer goods businesses of cosmetics/toiletries and laundry and home care continued to perform very well with organic growth rates of 3.5% and 2.9% respectively, sales of the adhesive technologies business sector decreased organically by 10.2%. “For Henkel, and the world economy as a whole, 2009 will go down as a challenging year. Nevertheless, we have made good progress toward achieving our 2012 financial targets as proven by our outstanding results in the fourth quarter of 2009,” says Kasper Rorsted, chairman, Henkel Management Board. "Our laundry and home care and cosmetics/toiletries businesses have expanded their market positions and further increased their profitability. Once again, our strong brands have also made an appreciable contribution to the good performance: our new brand Syoss, for example, was the most successful launch in the hair care sector in 2009. We have put ourselves in a strong position and expect to improve noticeably our results in the current financial year.” Visit www.henkelna.com. Ulta posted favorable financial results for the fourth quarter and fiscal year ended January 30. Fourth quarter comparable store sales increased 6.2%. The fourth quarter diluted EPS of $0.34 was a 61.9% increase. Fiscal 2009 diluted EPS of $0.66 was a 53.5% increase. Expectations for Q1 2010 are comparable sales up 4-6% and diluted EPS of 22 APRIL 2010 $0.14-$0.16. For the quarter, net sales increased 16.1% to $396.4 million. Operating income jumped 60.1% to $34.3 million; net income climbed 64.6% to $20.2 million. Lyn Kirby, Ulta's president and chief executive officer, states: "We are very pleased with our fourth quarter performance. Our results surpassed the increased guidance we provided in January and included a 6.2% comparable store sales increase, a 60 basis point improvement in merchandise margin and continued momentum of our cost management initiatives, all of which contributed to a 61.9% increase in diluted earnings per share—a strong finish to the year.” Lyn adds, "As we began the year, our priorities were threefold: growing profitable market share, achieving permanent cost efficiencies and delivering free cash flow. We exceeded each one of our goals in fiscal 2009. Our comparable store sales increased 1.4% for the year, or 1.6% on a two-year basis, and we continued our store expansion by increasing square footage by 12%. We also achieved $19 million in permanent cost reductions and generated free cash flow of $104.7 million. As we begin fiscal 2010, we continue to build on our successful 2009 game plan. We are particularly optimistic about our opportunities for market share gains through comparable store sales growth and new store expansion. We expect to continue to generate free cash flow in 2010, while we increase our capital investment in support of our long term growth and believe that we will deliver another strong earnings performance in fiscal 2010." For the fiscal year 2009, net sales increased 12.7% to $1.2 billion. Operating income rose 47.2% to $68.2 million; net income jumped 55.8% to $39.4 million. Reach Lyn at 630-410-4800 or lkirby@ultainc.com. Alberto Culver announced a growth in sales for the fiscal first quarter. Net sales increased 2.9% to $363m compared to $352.8m in the comparable period of the prior year. However, when taking into account foreign currency fluctuations and acquisitions and divestures, including the December 2009 acquisition of UK skin care brand Simple, sales remained flat in the quarter. International sales on a reported basis grew 12.3% with the company’s low cost hair care brand TRESemme and skin care brand St. Ives driving the growth, as consumers sought cheaper products during the economic crisis. “While the hair care category remains soft, trends are slowly beginning to improve and we continue to gain market share,” says Alberto Culver CEO James Marino. Carol Lavin Bernick, executive chairman of Alberto Culver, adds, “While market conditions remain challenging, our business model continues to generate profitable growth. Our focus and consistent strategy of driving growth in our core beauty brands is a major contributor to our success. Our December acquisition of Simple, a UKbased leading skin care brand, builds on that strategy, further strengthens our beauty care portfolio and creates additional growth opportunities.” Reach Carol at 708-450-3000 or CBernick@alberto.com. Reach Jim at 708-450-3000, ext. 3598 or jmarino@alberto.com. Visit www.alberto.com. Sally Beauty Holdings, Inc. (SBH) reports strong first quarter results highlighted by an increase in same store sales growth and store count. Consolidated net sales for the fiscal 2010 first quarter were $704.9 million, an increase of 9.2% from the fiscal 2009 first quarter, and include a positive impact from foreign currency exchange of $9.1 million, or 1.3% of sales. Same store sales in the fiscal 2010 first quarter grew 3.8% from the fiscal 2009 first quarter. GAAP net earnings in the quarter were $26.1 million, growth of 62.7%. GAAP diluted earnings per share were $0.14, growth of 55.6% when compared to earnings per share of $0.09 in the fiscal 2009 first quarter. The fiscal 2010 first quarter adjusted net earnings, a non-GAAP measure, were $24.7 million, an increase of 37.4% over fiscal 2009 first quarter. Adjusted earnings per share were $0.13, growth of 30.0% when compared to $0.10 adjusted earnings per share in the fiscal 2009 first quarter. Adjusted EBITDA increased 7.1% in the fiscal 2010 first quarter to $87.4 million, versus $81.6 million in the fiscal 2009 first quarter. Net cash provided by operating activities in the fiscal 2010 first quarter was $19.8 million and capital expenditures were $12.1 million. Total store count at the end of the fiscal 2010 first quarter was 3,935, an increase of 166 stores or growth of 4.4% over the fiscal 2009 first quarter. Both SBH business segments showed an increase in sales, with Sally Beauty Supply recording net sales of $438.3m, an increase of 6.8% compared to the same period last year. Beauty Systems Group reported a 13.4% increase in net sales, reaching $256.5m for the three months ending December 31. Recent acquisitions made by Sally Beauty have also helped to boost sales for the group, as well as to increase the company’s footprint in certain geographical areas. Last October, Beauty Systems Group acquired professional products distributor, Schoeneman Beauty, whose strong presence in the northeast resulted in BSG increasing its leading channel share in that territory. In December, Sally Beauty Supply acquired Belgian-based Sinelco, a distributor of professional beauty products in Europe, which supplied more than 1,500 customers across 35 countries. Says Gary Winterhalter, president/CEO. “Year-over-year growth in our adjusted net earnings was 37%, with earnings per share of $0.13, a strong start to the new fiscal year. As always, we are focused on a balanced approach in our use of cash. We plan to continue investing in company growth via acquisitions and organic store openings, while reducing our long-term debt." Reach Gary at 940-297-4444 or gwinterhalter@sallybeauty.com. Seche has launched a new website at www.seche.com. Web director, Kristen Spaun, says, “Our new site has a new hot look that matches our new packaging. It features tips and information on our products.” Reach Anne Moratto, director of PR/advertising, at 323-728-2999, ext. 178, or a-moratto@aiibeauty.com. Visit www.aiibeauty.com. Product Club recently launched a new website that helps salons find all the distributors within their area that carry Product Club products. There’s also a new section that features the Product Club educators, called “On the Road with Product Club.” Reach Mary Albanese, vice president of marketing, at 800-308-3588 or mary@productclub.com. Visit www.productclub.com. For 14 straight years, Bob Peel, Jr. has played 100 holes of golf in one day to raise money for a local charity that helps low income residents do minor home repairs. This year, Interfaith Housing Services has taken on an additional project. They are remodeling two homes to be used for emergency relief homes in Hutchinson, KS. “If a local home is destroyed by fire, tornadoes, gas explosions, etc., the family can immediately move into these homes,” says Bob. “In Hutchinson, we unfortunately experience all three of those natural disasters. Peel's Salon Services has also agreed to supply these homes with their hair care and cosmetics. If you would like to sponsor me per hole at 25 cents, 50 cents $1.00 or more, just e-mail the amount per hole with your billing address to bjpeel@peels.com. Thank you for your support!” Reach Bob at 620-662-3374, ext. 102, or bjpeel@peels.com. Gordon Logan, founder and CEO of Sport Clips, and his wife Bettye, vice president, were recently recognized with two Georgetown, TX-area philanthropy awards. The Georgetown Chamber of Commerce presented the Logans with the Jesse (Buz) Sawyer Philanthropy Award for their significant contributions in support of Georgetown-area Habitat for Humanity efforts; Gordon's service on the foundation board of the Georgetown Community Clinic/Lone Star Circle of Care; Betty's service on the Chisholm Trail Community Foundation board and the Georgetown Boys & Girls Club board. Nationally, the Logans through Sport Clips were recognized for being the largest contributor to the Veterans of Foreign Wars Operation Uplink free call days program, totaling almost $500.000 to date and sponsorship of a Habitat for Humanity house in New Orleans after Hurricane Katrina through Vidal Sassoon’s Hairdressers Unlocking Hope campaign. The Logans also recently received, for the second time, the Jeremiah Milbank Society recognition for an outstanding contribution to the Georgetown Boys & Girls Club. Gordon says, “Giving back to our community, our neighbors and our service men and women is a privilege. These organizations make a huge difference in the lives of so many, and we are thankful that Sport Clips has enabled us to contribute to these worthy causes. Much of our contribution is due to the efforts of the thousands of Sport Clips team members and our clients across the country. It is truly a team effort!” Reach Gordon at 512-869-1201 or gordon@sportclips.com. Host your own Dining for Change gettogether and help make a difference in the lives of those impacted by cancer, domestic abuse and natural disasters. Join one of the many small groups of beauty professionals in homes, schools and salons, who are coming together to network, enjoy each other's company and a meal—helping The Professional Beauty Association/ National Cosmetology Association raise $150,000 for three great causes. Reach Rachel Molepske at 480-455-3453 or rachel@probeauty.org. To register to host a dinner or to learn more, go to ncacares.org/diningforchange.com. APRIL 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 George Schaeffer advised BIR that he has fulfilled his goal to own a hair care company by purchasing Aloxxi Hair Colour from Alberto Culver, which owned and marketed the brand through its Nexxus professional distributor network. George is the sole investor and will run the company as a completely separate entity from OPI, where he will continue his role as president and CEO. Myriam Clifford is the new entity’s managing director. Reach her at 818-648-7331 or mclifford@aloxxi.com. Reach George at georges@aloxxi.com. More next month. Fromm International announces its partnership with Kim Vō Enterprises. More on page 21. 1 year ................$96 ............12 issues of the BIR ........................................ 6 months..........$50 ............6 issues of the BIR International Subscriptions 1 year...............$120 ............Outside the U.S. (including .....................................................eBIR emailed monthly FREE!) Be on the lookout for new hair care brands from previously successful marketers. Steve Stefano, who created Joico and sold it to Zotos Intl., will introduce Cinque Science, which is in test market for the next two months before roll out. Jim Markham, who founded PureOlogy and sold it to L’Oréal, is planning a third quarter 2010 launch of his next hair care line. Alleghany Pharmacal Corporation was purchased in February by a team of investors led by industry veteran, Sam Maniaci, who will serve as CEO. Read about his plans on page 21. BIR Special Deals Traditional Subscription Offer: All regular subscriptions include the eBIR monthly FREE. 2 years .............$192 ............28 issues, 4 free issues for a .....................................................savings of $32 The Professional Beauty Association will produce the new International Salon & Spa Expo Midwest on March 26-28, 2011, at the Donald E. Stephens Convention Center in Rosemont, IL—two weeks after the 2011 America’s Beauty Show is scheduled in downtown Chicago. More next month. 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