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New Professional Appliance Study Shows Market Growth
Cyrus Bulsara, president of Professional Consultants & Resources, a leading U.S. salon industry strategic consulting, market intelligence and research data company, has just completed a comprehensive study of the 2010 Professional Salon Industry Appliances Market.
by Jan Hillenmeyer
July 11, 20113 min to read
Cyrus Bulsara, president of Professional Consultants & Resources, a leading U.S. salon industry strategic consulting, market intelligence and research data company, has just completed a comprehensive study of the 2010 Professional Salon Industry Appliances Market. This study was compiled utilizing the expert resources of veteran executives in the professional salon industry and salon appliances marketplace.
The 2010 Professional Salon Industry Appliances Study reveals overall growth of salon appliances at 6.5%—that’s 50% greater than the overall salon industry’s growth rate of 4.4 % for the same timeframe. Salon appliances continued to be the leading growth category for the fifth straight year. As a result, leading soft goods companies have entered the hard goods category, which they have identified as a highly lucrative market.
The study identifies key findings and growth drivers that impacted appliance sales in 2010:
Major struggle for industry domination and leadership continues. Erosion occurred with major brands, as new entrants increased their market share and captive store brands gained in importance. The Top 10 professional salon appliance companies include Helen of Troy (all brands), Conair, Farouk Systems, Bio Ionic, John Paul Mitchell Systems, Cricket, ghd, HAI Elite, FHI Heat, and T-3 Micro.
• Premium and private label brands were affected by major distribution changes and direct sales.
• "Salon-only" appliances grew 6.7%, but "Pro-Beauty Gray Market” posted lower growth at 5.9%.
• An important growth factor of the appliance market was the continuing trend in home hair maintenance, the popularity of straightening and conditioning, ionic dryers, plus the resurgence of curly looks.
• New product features, higher premium prices and trendy new appliances supported growth.
• Curling and flat irons grew at 8.7%, blow dryers grew 8.1% and clippers/trimmers at 1.0%.
• Booth-rental salons continued their growth and propelled sales for open-line appliances at Sally Beauty.
• Continuing gray-market diversion accounted for 26.6% of sales, with “exclusive” salon appliance lines, now available at major drug chains, Sephora, Target, Bed Bath & Beyond and other retail stores.
• For the second year, Helen of Troy and Conair were impacted by a mature product mix, economic conditions and trends to captive store labels.
• Farouk, which is now in Beauty Systems Group distribution, fought against product diversion.
• The report identifies significant changes at Bio Ionic, Paul Mitchell, Cricket, GHD, FHI Heat, HAI Elite and T-3.
• Wahl, Andis, Oster and Forfex, the market leaders in the clipper/trimmer category, are reviewed in depth.
• Shears, a leading must-have category in every salon, are also now reported in the study.
The study covers major trends and influences on the market, as well as growth projections and upcoming market needs, while cataloging and projecting leading salon industry store stocking by brand and manufacturer. Trade advertising data for appliances and shears is now reported in greater depth along with an analysis of promotions. A special section reveals market shares for top companies and names more than 129 North American brands.
For purchasing information or questions regarding the 2010 Professional Salon Appliances Study, please contact Cyrus Bulsara, president of Professional Consultants & Resources, at cbulsara@augustmail.com or go to www.ProConsultants.us
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