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Wednesday Update

Reading Into the Beauty of B&N’s NOOK


August 3rd, 2010

Manyesha Batist, Editor/Online EditorSome brick-and-mortar retailers see the task of trumping their customers’ online experiences as daunting. Others, however, take a different view: They choose to leverage the opportunities that have always been present within their traditional brick-and-mortar formats.

Barnes & Noble bookseller, for one, announced last week that it has decided to amplify its brick-and-mortar setting’s advantages through its NOOK e-reader, whose experience will be optimized through full-service eReading NOOK Boutiques in Barnes & Noble stores.

The boutiques will span 1,000 square feet of space and will feature demonstration tables, trial NOOK devices, a panel display featuring video demos and more than 100 accessories for the product. The boutique will also be fully staffed with booksellers who will aid customers in demonstration, decision-making, downloading and with ongoing support. In-store, NOOK customers will also have access to Wi-Fi, e-book lending, browsing of complete e-books and exclusive content.

“The NOOK Boutique concept was designed to ensure we’re maximizing the growth potential for all channels through our bookstores,” said William J. Lynch, CEO of Barnes & Noble. “No other company is doing what Barnes & Noble is doing, utilizing its store footprint and innovative technology to add value to the customer’s e-reading experience.”

While commanding its fair share of online “real estate,” the company is dually maintaining the value of its physical presence.

What does this mean for beauty retailers? It means that although the Internet must become an integral part of your business plan, your brick and mortar still has lofty leverage over pure cyber competition. Customers still appreciate seeing, smelling and touching their potential new wares.

 

See you soon,
Manyesha



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Thank You, CPNA ’10


July 27th, 2010

Marc Birenbaum, Executive EditorHere are 20 things you’re dying to know about Cosmoprof North America 2010 on July 18-20 at the Mandalay Bay Resort & Convention Center in Las Vegas:

 

1. Many Reports of a “Good Show”
The reports keep coming in from suppliers … They include big hits for Gina Gallegos of FacePro, which has a unique hair product; Charisse Solomon, with Erico Industries’ private-label bottles and jars program; and Amos Lavian, president of Dermelect Cosmeceuticals, which is being profiled in our September issue out in a few weeks.

 

2. Let’s Make a Deal

Excellent deals were all over the floor this year. I really liked the Cosmoprof sliding scale discounts from Kayline Styling Accessories with this special pricing to distributors, according to Dottie Reiner, head of sales and marketing for Kayline, continuing through the end of August:

  • 2½% on orders $1,000 or more with half freight charge
  • 5% on orders $2,000 or more with no freight charge
  • 7½% on orders $3,500 or more with no freight charge
  • 10% on orders of $5,000 or more with no freight charge

 

3. Most Products Introduced: Those Wonderful Folks From El Paso, Texas?
Beauty Store Business editors will hold their formal, detailed post-CPNA meeting later this week. But I can tell you from what I saw—and I spent most of my time in Pavilion D, the salon-products area—that Hot Tools and Belson Professional Products each had a ton of new products … How do they do it?

 

4. Breaking City of Hope News …
Joico senior vice president and general manager Sara Jones will be honored as the recipient of the 2011 Spirit of Life Award … Jones oversees the company’s Joico and ISO brands.

 

5. Jay Halaby and Associates Partners Up With CHI Deep Brilliance
Jay Halaby and Associates held a kickoff meeting with CHI Deep Brilliance … The multicultural haircare line from Farouk Systems Group is relaunching over the summer … The official stylist relaunch will be at the upcoming Bronner Bros. International Mid-Summer Hair Show. The rep firm is representing the line nationally in the multicultural distribution channel.

 

6. Most Incredible VIP Sighting
Was that really Reuben Carranza, CEO of P&G Salon Professional North America, on my 6:15 a.m. Southwest flight from L.A. to Vegas on the Friday before the show?

 

7. Beautiful Booths Abound
CPNA doesn’t give out an award for the best booth. However, if it did, you’d have to place your bets on Helen of Troy’s Hot Tools, which debuted a brand-new booth, and HairUWear … Wow! … There were also a number of other great presentations on the floor.

 

8. The Family Is B-a-c-k!
Redding Hair Care launched on July 17 in Las Vegas with PHresh Professional Beauty, an exclusive line that debuted with PHorgive Shampoo and Conditioner … Its director is Robert Redding, grandson of the late Jheri Redding … The Agoura Hills, California-based company sponsored award-winning celebrity stylist Faatemah Ampey at NAHA on July 18.

 

9. Best Manufacturer Parties
BSB staff members attended more parties and events than ever this year because … there were more. Seriously, how much can three over-30, (OK, over-50 in my case) married editors schmooze during the industry’s annual trek to the desert? I attended five parties one night! For the record, here are our top six picks (in no particular order):

 

10. Best Manufacturer Party We Didn’t Attend (Yet Wished We Did)
BaBylissPRO celebrated the North American launch of its Volare Collection blow dryers on July 17 during a private reception for distributors and media at the Ferrari racetrack in Las Vegas … Made in Italy, it’s the first professional luxury blow-dryer line driven by an engine developed in collaboration with the Ferrari Challenge Team … The V1 and V2 blow dryers will become available in the United States midsummer.

 

11. Where Was Bruce? Everywhere!
From a trade journalist who gets around: Was there anywhere Bruce Selan, chair of the Professional Beauty Association, didn’t make an appearance at during CPNA/PBA Beauty Week? If there was an industry event, Superman was there … Sometimes, he even seemed to be at two different events at almost the exact same time.

 

12. Most Heard Question
“So what do you think is going to happen with the Trade Secret Stores [Trade Secret, BeautyFirst, Beauty Express and PureBeauty] in the United States?” … When I reversed the question, I found out that there are more theories out there than who shot JFK.

 

13. Breakfast With Sally
The Sally Beauty Supply annual Partners in Progress Awards breakfast is getting to be one of the top events at the show, and it’s a ticket I could make a lot of money on if the brilliant minds there would allow me to scalp it … Sally Beauty Supply president Mike Spinozzi and his team did another superb job at this year’s breakfast on July 19 … Sally honored vendors Betty Dain Creations, Zotos International, Cosmetic Design Group and Namaste Laboratories … These are the Oscars of the beauty-store sector … The vendors’ beautiful acceptance speeches will be one of my top memories from CPNA 2010.

 

14. Zotos Hands Out Rep Awards
Zotos International presented eight manufacturer rep awards to sales reps and the firms it works with on all the Zotos and Bain de Terre brands … The awards are the most coveted in the rep sector because of the tremendous business the manufacturer does with the brands under the direction of Selan, who is Zotos International vice president of core brands in his day job … David Chinburg of VNC Sales & Marketing in the Midwest won the Zotos International 2009 Rep of the Year Award for the Zotos brands. Tom Harrison of VNC in the Midwest received the second-place award, and Bobby LaFrance of Southeast Rep Services got the third-place award … Gary Fishkin of CFN Beauty Representation in the Northeast won the Bain de Terre 2009 Rep of the Year Award. Jay Templeton of GM & Associates in the West received the second-place award, and Ryan Kayser of All Step Sales & Marketing in Puerto Rico and the Caribbean got the third-place award …VNC in the Midwest won the 2009 Zotos International Rep Group of the Year Award … VNC in the Southwest won the Stacey Cohen Outstanding Service Award for its office staff’s exemplary customer service. The award is named for the late Stacey Cohen who ran the CFN sales office. “Stacey wrote the book on customer service and is missed by the entire professional beauty industry,” says Selan. “This award is one way we can all remember her.” … Kudos to Zotos for all these awards! How many manufacturers opted this year not to give out any rep awards?

 

15. Funniest Show Anecdote I Heard
From a nonexhibiting manufacturer (who shall remain nameless because advertising in BSB has its benefits) who got caught red-handed presenting products to a buyer in a lunch area on the floor. Yes, the manufacturer got thrown off the floor … There were no handcuffs, as the authorities use with fights in casinos. But a security guard did tear up the manufacturer’s exhibitor badges … One rumor has it that he stomped on them too … Weren’t there a lot more nonexhibitors in the aisles this year conducting business? … Even with the new meeting rooms near the floor this year, weren’t there also a lot more suppliers in nearby hotel suites?

 

16. Monroe Brush Becomes Taylor Swift’s Microphone
Hey, have you seen this award-winning music video? Celebrity stylist Brady Wardlaw lent the director of it his favorite hairbrush during the shoot … Yes, it has helped distributors and salons. (And got my teenage daughter to say I work in a cool industry.) You gotta love the pro beauty biz!

 

17. UBC Keeps Rocking & Rolling
The Exclusive Salon Distributor division of Ultimate Beauty Cos. will now be carrying the line from Kim Vō, who was at the after-NAHA party UBC sponsored … The winner of UBC’s Ultimate Session Stylist Giveaway, which launched at NAHA, is Melody Jones of Elixir Salon in Berkeley, California.

 

18. ICMAD Launches Microsite
The Independent Cosmetic Manufacturers and Distributors association now has a special microsite to celebrate the winners of its 7th Annual Cosmetic Innovators of The Year. Click here to see the winning companies and their products and ideas as well as the judges’ statements on why each was named the winner—all in a highly entertaining, informative way.

 

19. Industry Moves
Numerous, as always, from what we know on the record and off the record … At Robanda International, Bill Deliman has been contracted to lead the sales for Bodyography Cosmetics and the new ProRituals by Jingles hair care and color, and will be the driving force for distribution and sales in the Midwest and West, say company officials … Patti DeMarbiex is now marketing director at LeChat Nail Care.

 

20. Industry Golfers Play On

The golf tournament—which isn’t an officially sanctioned event—took place again with a mix of manufacturers, distributors and reps on the Wednesday after the show. The high temperature in Vegas that day dipped below 110°F for the first time in six days. Organizers are planning another outing in 2011. Next year’s CPNA is even later in the summer: July 24-26. The golf tournament is scheduled for July 27. Do these folks love golf or what?

 

See you soon,
Marc



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Students Stock Up for School


July 15th, 2010

Manyesha Batist, Editor/Online Editor

As parents prepare their children for heading back to school, they’re taking inventory of any items needed for the classroom along with any general-use items in need of replenishment or stocking. And parents of college students, in particular, are expected to spend slightly under what they spent on back-to-school items last year—just over $600—according to the National Retail Federation’s 2010 Back to College Consumer Intentions and Actions survey conducted by BIGresearch.

According to the report, spending on K-12 and college back-to-school merchandise is a prime spending event, only second to winter holidays, and expected to reach $55.12 billion. Consumers will still be watching their spending, however, as 34% of families said they planned to buy more store-brand or generic products. Likewise, more than half of the college students surveyed plan to shop discount stores.

“This year, parents will make sure to shop smart, stocking up on necessities like gift cards, apparel and personal-care items for their everyday needs,” said NRF president and CEO Matt Shay. “Some families may not have the luxury of providing extra spending cash for their child throughout the year, so preparing ahead of time will at least guarantee their child has the essentials.”

Stores can be sure to catch some of the windfall by posting their own back-to-school signage—reminding customers that their school needs are also met by stocking up on their beauty supplies. And, of course, launching a back-to-school sale couldn’t hurt.

 

See you soon,
Manyesha



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Those Eyes, What Lips, That Face …


July 13th, 2010

Shelley Moench-Kelly, Managing EditorThe eyes (still) have it: Eye makeup sales are more than making up for flat and declining lip and foundation makeup purchases, reports Mintel, a leading global supplier of consumer, product and media intelligence.

Sixty-five percent of respondents in a recent Mintel study reported using mascara. Sixty-three percent surveyed use eye shadow, and 62% use eyeliner.

“The focus is now on more dramatic eyes,” says Kat Fay, Mintel senior beauty analyst. “Mascara products are offering everything from serums to invigorate your natural lashes to iridescent particles that reflect light to bring out a woman’s natural eye color. Retailers’ offerings seem to be working; women report using mascara almost five times a week.”

Other segments of the market are still viable too. Lipstick and lip gloss are the most popular color cosmetic products (76%). Women indicated that they use lipstick and lip gloss six times a week, suggesting that these products are daily staples.

“Incidence of lipstick or lip gloss usage increases with age,” adds Fay. “As women get older, lip color is a relatively easy way to brighten up the face without having to put on a face full of makeup.”

So be sure to keep these essentials stocked full to the brim. They’ll keep your customers happy and put a smile on your face too.

 

See you soon,

Shelley



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What’s Really Happening With the U.S. Trade Secret Sites


July 6th, 2010

Marc Birenbaum, Executive EditorTrade Secret beauty stores on July 6 filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. The first Internet reports of the filing and related details were confusing. Later in the day I spoke with Brian Luborsky, chairman and CEO of Trade Secret Stores, and here’s some of what I now know:

The petition was filed by Trade Secret “with the aim of strengthening its store operations by eliminating unprofitable store locations” within the 612-store chain across the United States. Trade Secret offers a wide array of professional haircare products and services as well as professional skin- and nailcare products and services. The majority of its stores are in large shopping malls, while the rest are in shopping centers and outdoor strip malls.

The company announced the immediate closure of about 80 of its locations, and will work with its landlords to determine if it is able to negotiate arrangements to avoid closures at other unprofitable stores. The filing only affects stores in the United States under the Trade Secret, BeautyFirst, Beauty Express and PureBeauty banners. Stores operated by franchisees of BeautyFirst stores aren’t affected by this filing. The company shares certain administrative functions with Premier Salons, and the filing has no effect on the salons and spas that Premier Salons operates in the United States and Canada. In addition, Canadian stores owned by an affiliated entity that operates under the Trade Secret, Beauty Express and PureBeauty banners are also not affected by this filing.

Simultaneously with the Chapter 11 filing, the company asked the court for approval of a sale process to an entity owned by the Luborsky family—the current shareholders—and backed by the company’s secured creditor, Regis Corp. The company has asked the court to approve an auction it expects to take place in late August to allow other interested purchasers to attempt to better the current offer from the Luborsky affiliate of about $45 million (U.S. dollars).

Also, Trade Secret announced that it has retained SSG Capital Advisors to assist with marketing the company in an effort to provide a superior offer to the bid now before the court.

The principal legal adviser for Trade Secret in the Chapter 11 proceeding is Joseph Barry of Young Conaway Stargatt & Taylor.

“The company has a very strong and viable business at hundreds of locations,” says Luborsky. “However, it has been burdened by a significant number of unprofitable stores [that] continue to lose money. Despite our recent efforts to either improve these locations or negotiate their closures, it is apparent that the company must shed these underperformers, which will allow us to continuously improve product and service offerings at our better stores. The Chapter 11 process and its potential sale allow for us to continue the employment of [more than] 3,500 employees [stylists, estheticians and retail beauty consultants] and keep serving our customers with the superior products and services that they have come to expect from Trade Secret stores.”

Luborsky adds, “We expect to emerge from this restructuring with a leaner company that will be able to undertake the necessary capital upgrades at its locations, improve its information systems and expand its product assortments and service offerings in the future.”

Look for more on this important beauty retailer news story online here and in our print editions.

 

See you soon,

Marc



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