This past Monday, the Professional Beauty Association (probeauty.org) announced its special 2008 honorees for the 19th North American Hairstyling Awards on the evening of Sunday July 13 during Cosmoprof North America (cosmoprofnorthamerica.com) in Las Vegas. International educator, school owner and platform artist Martin Parsons (martinparsons.com) will receive the Lifetime Achievement Award, and Scruples Professional Salon Products (scrupleshaircare.com) president, CFO and co-founder Jack Storey will be inducted into the Hall of Leaders. Tickets and more event details will be available starting on March 15 at probeauty.org/naha or call 800/468-2274, 480/281-0424.

      So…with 130-plus days until the start of Cosmoprof North America 2008, the stage is set for the three big salon industry awards that will be handed out at THE b-to-b event of the year. As we reported in our February issue, DePasquale Salon Systems (despasqualesalonsystems.com) president/CEO Carmen DePasquale will receive the City of Hope’s 2008 Spirit of Life Award on the evening of Monday, July 14. For more information about this cocktail party and dinner, and tickets, please email City of Hope’s Csynthia Savage, csavage@coh.org, or call her at 626/256-HOPE (4673), ext. 26153. Joey D & The Starliters will provide entertainment. Look for updates about this event at cityofhope.org.

      Individually, these are excellent selections by PBA for NAHA 19 and for the City of Hope by the institution’s professional salon industry group. Parsons, Storey and DePasquale are truly among the greats in the pro beauty biz! However, when you look at these choices collectively and back through 2006, made within an industry dominated by women and for females, you have to note that all nine of these NAHA and City of Hope honors have now gone to … men.

See you next Wednesday,
Marc

As I mentioned in my editor’s note in the March issue (now in beauty stores and beauty distributors across the country), the organizers of the inaugural America’s Beauty Show—formerly known as the Chicago Midwest Beauty Show—taking place on March 1-3 at McCormick Place in downtown Chicago, are calling it the beauty event of the decade, and I wholeheartedly agree. Late last week, I checked in with Paul Dykstra, the show’s manager and the CEO of Cosmetologists Chicago, for the latest exhibitor and attendance news about America’s Beauty Show ’08. From all current indications, this promises to be the place to be if you have any connection whatsoever to the salon industry.

America’s Beauty Show will occupy McCormick Place South, which is North America’s largest single exhibit room, boasting 840,000 gross square feet of space. The show has had one or two exhibitor cancellations in the past few weeks, just as all organizers have had for the 22 years that Dykstra has managed the show, he reports. On the flip side, however, ABS has received several last-minute, we’ve-just-got-to-be-there requests for floor space, he adds. My guess is that this eagerness is driven, among other things, by the huge cash sales potential of products. The show’s surveys consistently tell organizers that the No. 1 reason attendees come is to buy, and the average intended expenditure is $788.

Dykstra and his talented group of ABS personnel closely watch the pre-registration numbers daily. When I touched base, the count had already exceeded 2007 by a whopping 47%! Let me add: That incredible figure is without counting sales from beauty supplies, professional-only beauty stores and distributor salon consultants. They report increased sales too, according to Dykstra. “We know that this trend will continue through the last two weeks [before the show], when we always have a huge increase in registration,” he says. Of course, there’s on-site registration as well.

Currently, attendees will coming in from every U.S. state, each Canadian province and 34 countries. This is before registration of any of the OMC (Organisation Mondiale Coiffure) HairWorld Championships of Beauty teams and their entourages.

In addition, ABS’ non-Midwestern attendance will be higher, even more great news regarding this new event. So far, 34% of all planned attendees are from outside the show’s traditional 10-state area around Chicago.

As for BSB, Manyesha Batist will head up our editorial coverage; associate publisher/advertising director Jerry Lovell will also be there. Stop by the Creative Age Publications booths, 2540 and 2541, and say hello.

For more information about the show, visit www.americasbeauty.com or call 800/648-2505, 312/321-6809.

See you next Wednesday,
Marc

Every year about this time I eagerly await the release of the annual Professional Salon Industry Haircare Study from Cyrus Bulsara, president of Professional Consultants & Resources (proconsultants.us). I consider it the best in the industry. Bulsara understands beauty stores, beauty product distributors and the important roles they play. Last Friday, he made his proprietary study on 2007 available, and he has graciously allowed me to share some of what’s in it with you.

This latest study reveals overall salon industry growth at 4.2% and haircare soft-goods growth at 3.8%. According to his data, these are slightly better than 2006—when the industry experienced its lowest growth in decades—but low growth continues to hurt a once-vibrant, high-growth industry. Some key findings of factors impacting the industry in his 2007 study are:

• The major struggle for industry domination and leadership continues between L’Oréal, Beauty Systems Group and Regis after the failed Sally/BSG-Regis merger. The related effects of major distribution realignments, vertical integration and direct sales are impacting the industry.
• Salon haircare-service revenues registered modestly higher growth due to burgeoning growth at booth-rental salons, but this begins to negatively impact salon chains. “The Beckham Bob” may just bring back short, sleek, styled hair and a resurgence in salon-service revenues.
• The booth-rental phenomenon continues to propel sales for open-line products at Sally Beauty Supply stores and exclusive lines at BSG, Beauty Alliance and distributors’ professional-only stores.
• Large salon-store chains like ULTA, Beauty Brands and others are still a high-growth sector and now account for 13.5% of all salon industry products.
• Direct sales to salons plateau in strength and volume at 12.4%. Aveda, Bumble and bumble, Wella International, Kerastase and others successfully sell direct to salons.
• Hair color experiences high growth at 5.6% due to consumer demographics and heavy use of color as fashion.
• Specialty products grow strongly, and hairstyling booms again.
• Shampoos and conditioners are caught in a low-growth cycle due to mass/retail brands and diversion.
• Vertical integration and consolidations cause reorganizations and realignments, and distribution changes cause disruptions and slow down sales.
• Rampant diversion impacts the industry and leading exclusive-line salon products are available at major drugstore chains and other retailers.

By the way, Bulsara has a new section in this year’s study, revealing shipment market shares for top companies. L’Oréal, Procter & Gamble Professional Care and John Paul Mitchell Systems are ranked as the top manufacturers. Zotos, Lauder and Colomer follow.

For more information about the study or to purchase it, contact Bulsara, cbulsara@augustmail.com, 6649 Wickliff Trail, Plano, TX 75023, 972/517-8259, fax 972/527-5102.

See you next Wednesday,
Marc

Savvy beauty store owners and managers know that Valentine’s Day on Feb. 14 is a great holiday promotion time. If your store isn’t taking full advantage of how you can capitalize on it, vow to do something—early—next year. And suggest to your suppliers the many ways in which they can help you. In general, the salon industry doesn’t do enough and plan far enough in advance for Valentine’s Day.

The holiday’s sales statistics are simply staggering. According to the National Retail Federation’s excellent 2008 Valentine’s Day Consumer Intentions and Actions Survey, conducted by BIGresearch, the average consumer plans to spend $122.98 on Valentine’s Day, up from last year’s $119.67 and an increase for the third straight year. Total spending on this Valentine’s Day is expected to top $17 billion.

Yes, there are greeting cards, candies, flowers, jewelry, clothing and that special night out, but there are also gifts of experience and—as some beauty stores have already found out—loved ones’ favorite beauty products. Gift cards/certificates are another area in which you can invest and increase revenue. The NRF survey, which polled 8,447 consumers in early January, says that 12.3% of those surveyed indicated that they were giving gift cards this year. That’s compared to 11.3% last year. Other gift-card demographic statistics of note: women, 14.6%; under $50,000 in annual salary, 14%; ages 25 to 34, 15.2%; in the West, 14.2%. “Valentine’s Day is a great time to get creative with gift options,” recommends NRF president and CEO Tracy Mullin.

According to the NRF survey, 6 of 10 respondents plan on celebrating this year. Of those celebrating, the majority expects to spend the most on their spouse or significant other ($79.99). The survey also found that consumers plan to spend slightly more this year than last year on friends, children’s classmates and teachers, and co-workers.

Men will again dish out more this year than women. Adults aged 25 to 34 plan on spending the most this year with the average person expecting to shell out $160.37.

In addition, estimated spending on pets for the holiday should reach $367 million. When it comes to real puppy love, 17.2% plan to spend on their pets this Valentine’s Day. For the record, yes, I will, for Spirie, my female Doberman pinscher/mutt and longtime best friend.

See you next Wednesday,
Marc