Salon Hair Care USA 2005
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1 NOW AVAILABLE Salon Hair Care USA 2005 The eighth edition of Kline's comprehensive report on the U.S. professional hair care industry, covering: Category size and growth Market shares by company and brand Sales by segment for in-salon use and salon retail Profiles of key suppliers Salon statistics Distribution practices Forecasts to the year
2 Product sales in the U.S. professional salon industry have reached $2.7 billion. The five leading marketers in this segment account for nearly 65% of overall sales, as shown in Figure 1. Consolidation at the manufacturer, distributor, and salon chain level over the past several years have affected the industry considerably. Consolidation has made the market space more competitive, and companies are quick to introduce new lines and products that are supported by new marketing and advertising campaigns to capture consumers' and stylists' attention. Major marketers like L'Oreal and Procter & Gamble are vying for market share in major categories like shampoos and conditioners as well as hair colorants. Smaller marketers are also active and represent a source of innovation. New brands and companies from stylist or industry veterans continue to enter the market, as most recently seen with Pravana. Figure 1 COLLECTIVE MARKET SHARE OF TOP 5 COMPANIES, 1995 TO 2005 % Of sales Bristol-Myers Squibb - Matrix, Clairol 2. John Paul Mitchell Systems 3. Cosmair - Redken, L'Oreal 4. Nexxus 5. Wella - Sebastian, Wella L Oreal Matrix, Redken, Artec 2. Procter & Gamble Clairol, Wella, Sebastian, Graham Webb 3. Estee Lauder Aveda, Bumble and bumble 4. John Paul Mitchell Systems 5. Colomer Group 64 To stay on top of the developments and trends for this market, industry insiders depend on Kline & Company's 35+ years of expertise in the hair care industry. Our market analysis is the leading source of reliable brand and category data and industry knowledge of both mass-market and salon brands, coupled with a thorough understanding of salon distribution practices. Salon Hair Care USA 2005 will enable subscribers to make actionable strategic business plans to enhance their position in this changing and dynamic market.
3 Report Outline 1. INTRODUCTION 2. EXECUTIVE SUMMARY 3. INDUSTRY OVERVIEW This section provides an overview of key industry statistics and trends, including: Industry structure and segments Salon statistics Total industry size and growth, Competitive environment Distribution channels Marketing activities New product activity Outlook and forecasts to the year PRODUCT CATEGORIES Product categories covered in this chapter are listed in Table 1. Analysis is provided for the overall category, with breakdowns for professional use and retail segments where appropriate: Category development Product description Sales and share by marketer, 2005 Sales of leading brands Competition Marketing activity New product activity Margins and pricing Outlook 5. COMPANIES Profiles are provided for 15 leading marketers, as shown in Table 2. Company overview and ownership Corporate sales and profits Salon hair care products Salon hair care sales by segment, category, and division (where appropriate) New product activity Distribution Marketing activities Outlook
4 Table 1 CATEGORIES PROFILED IN THE REPORT Table 2 COMPANIES PROFILED IN THE REPORT Conditioners Alberto-Culver (Nexxus) Ethnic hair care products The Colomer Group Conair (including Rusk) Hair coloring products Hair perming products Estee Lauder (Aveda) Farouk Systems John Paul Mitchell Systems Hair sprays Hair styling products Kao (Goldwell, KMS) L'Oreal (Artec, SoftSheen-Carson, Matrix, Redken) Shampoos Markham Prestige Group Nioxin Research Laboratories Procter & Gamble (Clairol, Wella, Sebastian, Graham Webb) Schwarzkopf Sexy Hair Concepts Shiseido (Zotos, Joico) TIGI Linea
5 Benefits Subscribers to this comprehensive report can expect the following key benefits to assist in their business planning: Kline s FutureView Forecasting Model. With the enhanced forecasts, subscribers can see how adjustments in the assumptions behind the forecasts can bring about different outcomes. Market size, growth, and trends A detailed analysis of each category and segment Sales breakdown of in-salon use versus salon retail as well as sales through beauty supply stores Comprehensive profiles of leading marketers and detailed overviews of key smaller players Subscription Terms and Privileges Salon Hair Care USA 2005 is available only by subscription. In order to maximize the value and usefulness of this report to each subscriber, the following privileges and services will be made available: Sources and Methodology Staff from Kline & Company's Consumer Products Practice conducted the research and analysis for Salon Hair Care USA Using the previous editions of the study and other information as our foundation, our methodology included: Field research. The project team conducted in-person and telephone interviews with salon hair care marketers, distributors, chain and independent salons, beauty supply stores, and trade and professional organizations. One day of consultation with members of the project team, to be used at the client's discretion within six months of receipt of the report. Hard copy, online, and pdf versions of the report. The standard subscription includes one hard copy, pdf files of the report contents, and unlimited online access to the report contents through KlineOnline.com for members of the subscribing company. Additional hard copies are available for a nominal fee. Kline reports. Kline has been tracking the professional hair care industry for more than 20 years, with published reports available since Research for this program also draws from other Kline publications, including Cosmetics & Toiletries USA, our annual survey of the U.S. beauty products industry, as well as our historical database. Details regarding subscription options and rates are described in the attached subscription agreement. To subscribe now, please complete the subscription agreement and forward it to our offices. For more details on the study program, please contact us at any of our locations listed on the back cover. Secondary research. Kline conducted a thorough review of all available published sources, including industry and professional publications, financial statements, product literature, company materials, and related information.
6 The Kline Group Credentials Kline & Company is an international business consulting firm offering a broad range of services to the consumer products, specialty chemicals, and life sciences industries. Established in 1959 as a specialist in the chemicals field, Kline has evolved over the past four decades to provide consulting services and syndicated market research reports across the entire value chain. We help management solve practical problems in marketing strategies, acquisition and divestiture programs, and the appraisal of new technology. Kline provides clients with facts, forecasts, and recommended solutions to business problems, based solidly on the realities of the market as well as modern strategic principles. Through our Consumer Products Practice, Kline has attained a leadership position in providing consulting services to the cosmetics and toiletries industry. Our firm has developed in-depth expertise in this area by tracking and analyzing the U.S. market for cosmetics and toiletries, including skin care, hair care, and makeup, for more than 40 years. In addition to our resources in the consumer products sector, the members of our Specialty Chemicals Practice have a thorough understanding of the U.S. and international markets for specialty raw materials used in cosmetics and toiletries, household and industrial cleaners, and pharmaceutical excipients, including leading suppliers, end uses, and distribution channels. Over the past four decades, Kline has established itself as an authoritative source for market research for consumer products and specialty raw materials. A list of representative reports Kline has published recently and those currently under consideration is provided below: Salon Hair Care USA (various editions) Salon Hair Care Western Europe Global Cosmetics & Toiletries Professional Skin Care USA and Europe The U.S. Male Grooming Market Beauty Retailing USA Beauty Retailing China (planned) Home Fragrances USA Household Cleaning Products USA Specialty Raw Materials for Cosmetics and Toiletries Opportunities in Specialty Actives and Active Delivery Systems for Cosmetics and Toiletries
7 Subscription Agreement Please enter our subscription to your comprehensive study SALON HAIR CARE USA The standard subscription includes one hard copy of the report, online access to the report contents via KlineOnline.com, pdf files of the report sections, and one day of consultation time to be used within six months of publication of the report. Additional hard copies are available for a nominal fee. To protect our investment in this report and that of other subscribers, we agree that, for a period of three years after its date of issue, we will: (1) refrain from reproducing or copying this report in whole or in part by any means; (2) restrict its circulation to our own employees; and (3) use all reasonable precautions to prevent the disclosure of its contents to any other persons or organizations. We may, however, make this report available to any subsidiary company in which we hold more than half interest or to any parent company that holds more than a half interest in our firm. We may also use or disclose any information in this report that is public knowledge, that was already in our possession before receipt of the report, or that comes to us from third parties independently of this report. Kline & Company, Inc. similarly agrees that it will use all reasonable precautions to prevent the disclosure of the contents of this report to any persons or organizations other than subscribers for three years after its date of issue. We understand that SALON HAIR CARE USA 2005 is available only by subscription. Subscription prices do not include sales tax. (NJ add 6% sales tax.) You will invoice us for the total amount, and we will pay this invoice within 15 days of receipt. We understand that this agreement is fully binding on the corporation and non-cancelable. Domestic ground shipping within the United States is included in the subscription price. Overnight and international shipping fees are optional and will be added to the total amount. We have indicated our subscription preferences on the following page. We have completed and signed this subscription agreement. Please indicate your acceptance of this subscription by countersigning and returning one copy for our files. Send invoices to: COMPANY NAME SIGNATURE DATE TITLE NAME ADDRESS TITLE PHONE PURCHASE ORDER # Shipping address (if different than billing address): Kline use only: NAME ACCEPTED TITLE SIGNATURE ADDRESS NAME TITLE DATE METHOD OF PAYMENT: Send invoice Card #: Exp. Date: Name (as it appears on credit card): Signature (for credit card authorization): Please fax signed agreement to Y357g
8 SUBSCRIPTION OPTIONS AND RATES Salon Hair Care USA 2005 Subscription price $23,000 Additional hard $500 each = Subtotal 6% sales tax (NJ only) TOTAL NOTE: All prices in U.S. funds. Y357g
9 The Kline Group USA Kline & Company, Inc. Overlook at Great Notch 150 Clove Road, #410 Little Falls, NJ Phone: Fax: EUROPE Kline Europe, S.A. 1 Avenue Gribaumont B-1150 Brussels Belgium Phone: Fax: consult@kline-europe.com JAPAN Kline Japan Ltd. Yurakucho Building 11F Yuraku-cho Chiyoda-ku, Tokyo Japan Phone: Fax: consult@klinejapan.com CHINA Kline Asia Shui On Plaza, Suite Huai Hai Road (Middle) Shanghai China Phone: Fax: consult@kline-asia.com BRAZIL Factor de Soluçào Av. São Gabriel, CJ. 112 Itaim Bibi - São Paulo - SP Brazil Phone: Fax: srebelo@factordesolucao.com.br
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