SALON HAIR CARE USA 1999
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1 ANNOUNCING SALON HAIR CARE USA 1999 Kline s comprehensive report on the U.S. professional hair care industry is the authoritative source for:! Category size and growth! Market shares by company and brand! Sales by segment for back-bar and take-home! Profiles of key suppliers! Salon statistics! Key category and fashion/hair trends! Distribution practices! Forecasts to the year 2004 KLINE & COMPANY, INC. OVERLOOK AT GREAT NOTCH 150 CLOVE ROAD PO BOX 410 LITTLE FALLS, NJ (973)
2 SLOW GROWTH CONTINUES FOR THE SALON HAIR CARE INDUSTRY... The U.S. professional hair care industry continues to experience lackluster sales. In fact, growth is believed to be the lowest ever. Several of the key categories like shampoos have experienced the slowest growth in decades. Mass market brands from such companies as Procter & Gamble, Unilever, and Bristol-Myers Squibb/Clairol continue to impede growth of salon brands at the retail level. In addition, the market is going through significant changes, including marketer, distributor, and salon consolidation. SALON HAIR CARE USA 1999 will examine the impact specialty stores such as Ulta and Trade Secrets are having on the salon retail market and also the rapid growth of distributor-owned stores. Furthermore, the report will assess the role the Internet and e-commerce will likely play in the industry. In addition, Kline s update of SALON HAIR CARE USA 1999 will examine developments and assess the future growth of the industry and the opportunities it offers. To stay on top of the developments and trends in this hardto-measure channel, industry insiders depend on Kline s 35+ years of expertise in the cosmetics and toiletries industry for:! Reliable category sales data! Industry knowledge of both mass and salon brands! A thorough understanding of salon distribution practices
3 TENTATIVE REPORT OUTLINE 1. INTRODUCTION 2. EXECUTIVE SUMMARY 3. INDUSTRY OVERVIEW This section will provide 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 to be covered are shown in Table 1. Analysis will be provided for the overall category, with breakdowns for professional use and retail segments where appropriate: Product description Value sales: 1997 versus 1999 Sales and share by marketer: 1999 Identification of leading brands Estimated retail value Marketing tactics Salon/retail combination outlets Fashion/hair trends Key trends and issues Forecast to the year COMPANY PROFILES Profiles will be provided for more than 20 leading major and minor marketers, as shown in Table 2 and Table 3, respectively: Major companies " Company overview and ownership " Corporate sales and profits " Salon hair care products " Salon hair care sales by segment, category, and division (where appropriate) " Marketing strategies " Sales and distribution practices " Recent developments " Forecast to the year 2004 Other leading marketers " Company overview " Salon hair care products " Sales of salon hair care products " Marketing activities
4 Table 1. PRODUCT CATEGORIES SALON HAIR CARE USA 1999! Conditioners! Ethnic hair care products! Hair coloring products! Hair sprays and styling products! Shampoos! Specialty hair care products Table 2. MAJOR COMPANIES-a,b! Alberto-Culver! Aveda (Estee Lauder)! Bristol-Myers Squibb (Clairol, Matrix)! Cosmair (L Oreal, Redken, Soft Sheen)! John Paul Mitchell Systems! Nexxus Products! Revlon (Revlon, American Crew)! Styling Technologies (Abba, Framesi)! Wella (Wella, Sebastian International)! Zotos (Shiseido) a- Sales breakdown will be provided by division where applicable. b- Subject to change. Table 3. MINOR COMPANIES-a! Artec! Carson Products (including Johnson Products)! Conair (including Rusk)! Goldwell (Kao)! Joico Laboratories! KMS Research Laboratories! Nioxin Research Laboratories! Schwarzkopf! Tony & Guy! Graham Webb a- Subject to change.
5 ADVANCE SALES DATA Prior to the publication of the full report (anticipated in early summer), sales data arranged by category and company will be provided in spreadsheet format in May SOURCES AND METHODOLOGY Kline & Company s cosmetic and toiletry consulting staff will conduct the research and analysis for SALON HAIR CARE USA Using our previous editions of SALON HAIR CARE USA and other information as our foundation, our methodology will include: Field research - Our staff will conduct telephone and personal interviews with salon hair care marketers, distributors, chain and independent salons, beauty supply stores, and trade and professional organizations. Kline reports - Kline has been tracking the professional hair care industry for over 20 years, with published reports available since Research for the 1999 edition will also draw on other Kline reports, including COSMETICS & TOILETRIES USA, our annual survey of the U. S. beauty products industry, as well as BEAUTY RETAILING: THE NEW PARADIGM, which provides a comprehensive overview of where and how personal care products are sold. OUR CREDENTIALS Kline & Company, established in 1959, is a leading business consulting firm serving the consumer products sector and other industries. Kline s worldwide staff of over 100 professionals conducts approximately 250 customized consulting engagements each year and publishes 25 syndicated reports. The firm is recognized around the world for its market assessments, competitive analyses, strategic planning initiatives, new business assessments, and benchmarking studies. A partial list of syndicated studies conducted by Kline s consumer products staff is provided below: SALON HAIR CARE USA (1988, 1990, 1993, 1995, 1997 EDITIONS) COSMETICS & TOILETRIES USA ANNUAL STUDY PURCHASE CHANNELS FOR COSMETICS & TOILETRIES BEAUTY RETAILING: THE NEW PARADIGM COMPETITOR COST STRUCTURES THE U.S. MARKET FOR HOME FRAGRANCES HOW TO SUBSCRIBE SALON HAIR CARE USA 1999 is available by subscription only. Pricing and other terms are detailed in the attached agreement. To subscribe to the study, please sign the enclosed subscription agreement and return it to Kline & Company by fax or mail. Desk research - Kine will conduct a thorough review of all available published sources, including industry and professional publications, financial statements, product literature, company materials, and related information.
6 SALON HAIR CARE USA Please enter our subscription to your comprehensive study SALON HAIR CARE USA This subscription includes three copies of the finished report and one day of consultation time within the scope of the study. Additional copies of the report will be 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 1999 is available only by subscription and that the price of the study is $10,000 (U.S. funds) until February 29. Subscription prices do not include sales tax. (NJ add 6% sales tax.) Kline will invoice us immediately for the full amount, and we will pay this invoice within 30 days of receipt. We understand that if a sufficient number of charter subscribers is not obtained, the study will be canceled before an invoice is submitted. We have completed and signed this subscription agreement. Please indicate your acceptance of this subscription by countersigning and returning one copy for our files. ACCEPTED KLINE & COMPANY, INC. COMPANY SIGNATURE SIGNATURE DATE DATE P.O. SHIP TO: SEND INVOICES TO: ADDRESS ADDRESS Y357C
7 THE KLINE GROUP USA KLINE & COMPANY, INC. OVERLOOK AT GREAT NOTCH 150 CLOVE ROAD PO BOX 410 LITTLE FALLS, NJ TEL: (973) FAX: (973) EUROPE KLINE EUROPE, S.A. 1 AVENUE GRIBAUMONT B-1150 BRUSSELS BELGIUM TEL: (32-2) FAX: (32-2) consult@kline-europe.com
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