SALON HAIR CARE USA 2001
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1 NOW AVAILABLE SALON HAIR CARE USA 2001 The leading source for market data on the professional hair care industry, providing: 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 2006 KLINE & COMPANY, INC. OVERLOOK AT GREAT NOTCH 150 CLOVE ROAD, #410 LITTLE FALLS, NJ (973)
2 INNOVATIVE PRODUCTS DRIVING GROWTH IN THE $2+ BILLION SALON HAIR CARE MARKET The U.S. salon hair care market has experienced significant changes in the past two years. Growth in many categories has reached record lows, and acquisition activity has been intense. Key developments include leading marketer Bristol-Myers Squibb exiting the hair care market by selling Matrix, one of the leading salon brands, to L'Oreal, and by divesting Clairol to Procter & Gamble. Revlon also leaves the industry sector by selling its professional hair care business, which becomes Colomer International, while Wella expands its salon business with the acquisition of Graham Webb. In addition, Shiseido/Zotos has bought Joico Laboratories, and Kao/Goldwell has taken over KMS Research Laboratories. While the market adjusts to these changes, it is the smaller marketers that are benefiting. New, innovative products like TIGI Linea's Bedhead have become enormously popular. These new lines are bringing attention to what has been a lackluster market over the past few years, especially as competition from mass-market products posed a serious threat to professional brands. These trendy products have also expanded the specialty hair care products category, which has recently been experiencing double-digit growth but was virtually nonexistent in the early 1990s. These and other developments will be examined in SALON HAIR CARE USA 2001, the latest edition of this study, which has tracked this market for the past two decades. The report provides key information on this dynamic market, assessing both opportunities and threats for marketers.
3 TENTATIVE TABLE OF CONTENTS 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, 1995 to 2001 Competitive environment Distribution channels Marketing activities New product activity Outlook and forecasts to the year PRODUCT CATEGORIES Product categories covered in this section are shown in Table 1. The overall category is analyzed, with breakdowns for professional use and retail segments where appropriate: 5. COMPANY PROFILES Profiles are provided for 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 2006 Other leading marketers Company overview Salon hair care products Sales of salon hair care products Marketing activities Product description Value sales: 1999 versus 2001 Sales and share by marketer: 2001 Sales of leading brands Estimated retail value Marketing tactics Salon/retail combination outlets Key trends and issues Forecast to the year 2006
4 SALON HAIR CARE USA 2001 Table 1. PRODUCT CATEGORIES Conditioners Ethnic hair care products Hair coloring products Hair perming products Hair sprays Hair styling products Shampoos Specialty hair care products Table 2. MAJOR COMPANIES Alberto-Culver Aveda/Estee Lauder The Colomer Group John Paul Mitchell Systems L'Oreal (L'Oreal Professional, Matrix, Redken, Soft Sheen, Carson) Nexxus Products Procter & Gamble/Clairol Styling Technologies (Abba, Framesi) TIGI Linea (Toni & Guy) Wella Corporation (Wella, Sebastian International, Graham Webb) Zotos (Shiseido) Table 3. OTHER LEADING SUPPLIERS Alterna Artec Conair (including Rusk) Farouk Systems Goldwell Cosmetics (Kao) Joico Laboratories KMS Research Laboratories Nioxin Research Laboratories Schwarzkopf
5 BENEFITS Kline & Company has tracked the salon hair care market for over two decades. Research and management for the study has been conducted by a staff of seasoned professionals with direct experience in the beauty business. Subscribers to this comprehensive report can expect the following key benefits to assist in their business planning: 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 minor players SOURCES AND METHODOLOGY The research and analysis for SALON HAIR CARE USA 2001 was managed by Kline's Consumer Products Practice. Using previous editions of SALON HAIR CARE USA and other information as the foundation, the methodology for this study included the following: Field research - Our staff conducted 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 2001 edition will also draw on other syndicated analyses published by Kline & Company, including COS- METICS & TOILETRIES USA, our annual survey of the U.S. beauty products industry, as well as our historical database. Desk research - For each study we publish, Kline conducts a thorough review of all available published sources, including industry and professional publications, financial statements, product literature, company materials, and related information. OUR CREDENTIALS Kline & Company, Inc. is an international business and management consulting firm offering a broad range of services to the consumer products, specialty chemicals, and advanced materials industries. Our headquarters are located in Little Falls, NJ, and we currently have representative offices in: Brussels, Belgium Tokyo, Japan Singapore Melbourne, Australia Sao Paulo, Brazil
6 Since its inception in 1959, Kline has earned a reputation for delivering high-quality studies and market and technology assessments. We complete approximately 200 proprietary assignments and publish approximately 20 syndicated research reports each year. Kline & Company helps management solve practical issues in marketing, strategy development and implementation, acquisition and divestiture programs, and the appraisal of new technology. The firm is recognized around the world for its market assessments, competitive analyses, strategic planning initiatives, new business assessments, and benchmarking studies. Kline provides its clients with facts, forecasts, and recommended solutions to business problems, based solidly on the realities of the market and modern strategic principles. A partial list of syndicated studies conducted by Kline's Consumer Products Practice is provided below: BEAUTY RETAILING 2000 COMPETITOR COST STRUC- TURES COSMETICS & TOILETRIES USA annual study HOME FRAGRANCES USA HOUSEHOLD CLEANING PRODUCTS USA annual study SUBSCRIPTION TERMS AND PRIVILEGES SALON HAIR CARE USA 2001 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: One day of consultation with members of the team at the Kline Group's offices in Little Falls, NJ, or Brussels, Belgium, to be used at the client's discretion within three months of receipt of the report. This meeting can be used as a company-specific work session to help each subscriber obtain maximum value from the program. The option of hard copy or online versions of the report. Subscribers can elect to receive three hard copies of the report or, alternatively, the online version. The online version includes unlimited access to the report contents for members of the subscribing company via KlineOnline.com, plus one hard copy. Additional hard copies will be made available for a nominal fee. 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 any of our offices. To obtain more details regarding the study, please contact us at any of our locations listed on the back cover.
7 SUBSCRIPTION AGREEMENT Please fax signed agreement to SALON HAIR CARE USA 2001 Please enter our subscription to your comprehensive study SALON HAIR CARE USA The standard subscription includes three copies of the finished report and one day of consultation time within the scope of the study. A subscription to the online version of the study includes unlimited access to the report contents via KlineOnline.com and one day of consultation time, plus one hard copy of the report. 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 2001 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. 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. Study options Three hard copies of the report Online access Additional copies Standard price (U.S. funds) $14,100 15, (each) Amount (please fill in price) Subtotal NJ only: 6% sales tax TOTAL (U.S. funds) METHOD OF PAYMENT: Send invoice Card #: Exp. Date: Name (as it appears on credit card): Signature: 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 Shipping address (if different than billing address): PURCHASE ORDER # Kline use only: NAME ACCEPTED TITLE SIGNATURE ADDRESS NAME TITLE DATE Y357D
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