The Future Impact Of Multiculturalism On The Hair Care Industry

 

COSMOPROF INTERNATIONAL TRADE SHOW, JULY 13-15, 2013, LAS VEGAS, NEVADA

A first of its kind on the international platform of Cosmoprof – a candid round-table with and about the multicultural players and the state of the industry. The multicultural market is very nuanced and segmented with many stereotypes being used as part of marketing campaigns but is this segmentation still relevant and / or necessary in today’s landscape where African-Americans make-up 14% and Latinos are 25% of the total US population. There is lots of attention put on the black hair industry; while the rest of the economy was sagging, black hair care achieved sales of $9 billion a year. This session is of particular interest to the retailers catering to this market segment especially the OTC community.

Speakers:

Lafayette Jones | Urban Call Communications | Publisher

Gerri Duncan Jones | AHBAI (American Health and Beauty Aids Institute) | Executive Director

Sam Ennon | BOBSA (Black Owned Beauty Supply Association) | President

Moderator: Manyesha Batist |Beauty Store Business Magazine| Associate Editor

Panel Discussion: The future impact of multiculturalism on the hair care industry

Q-1: What are some misconceptions about black hair to bring clarity to help the industry’s understanding of the African-American market?

A-1: There is a need to look at the whole industry. Hair care is only one aspect and the market is much broader in terms of the potential dollars. There is a need to include skin care and fragrances as well when talking about the African-American hair industry.

Q-2: How big is the African-American hair industry?

A-2:  The market is large and getting larger once all the other aspects of the African-American industry are taken into consideration.

Q-3: What does the term multicultural mean?

A-3: It means diversity of race, hair, textures, styles, etc. It also includes generational descriptional trends. We have differing aspects of the African-American hair industry that impact young to old customers as well as hair styles that project a wide range of needs and trends.

Q-4: What are some aspects of historical value that the beauty industry needs to understand about the African-American hair industry?

A-4: There needs to be clarity about how times change the market and the impact of politics on styles and trends. The start of our industry dates back to Madame C. J. Walker, who was the first African-American millionaire. That might have been a time you could categorize all African-Americans in the same way. That is not true anymore and our communities demand to be viewed in a more diverse way.

Q-5: Are there areas in the African-American hair industry that are stifled?

A-5: Yes. Some of the areas are thinning hair, baldness, older brand-loyal consumers, and skin care.

Q-6: How does technology encourage brand loyalty?

A-6: Social media has changed the face of marketing and the speed of distribution. No longer does a customer have to wonder how she will look with a different style or color. The technology exists that will allow customers to do a virtual change that shows how they would look with a different style or color. Social media gets the new trends and changes out there to a large audience of all sizes, shapes and consumer needs.

Q-7: How should businesses use technology to appeal to the younger generation?

A-7: Technology is not a replacement for common sense and must be used alongside traditional means. This is necessary because you don’t want to offend the large diverse customer base. As people are living longer there is a need for respect their loyalty to brand products. Social media only works if one is used to it. Otherwise, you need to maintain options for customers who are not usual users of technology.

Q-8: What are the characteristics of the current young culture and how should we appeal to this market?

A-8: Those in the business must be very flexible with the rate at which the young market customers change their appearance with hair, colors, styles, and textures. They are not loyal to brands that are manufactured by African-Americans. They will be loyal to a brand because it works for their texture of hair. Youth are not too concerned with who makes a product. They will buy and continue to buy a product that works for their particular hair texture. The trends followed by the youth are heavily influenced by celebrities and athletes.

Q-9: What are some generational differences among African-American consumers?

A-9: Some differences are that the older generation consumer is more brand loyal, today’s young consumer likes to be communicated with and to, and the younger generation switches brands more often.

Q-10: How should brands handle the market loyalty issue?

A-10: It’s all about hair texture! Some consumers want products by black manufacturers but these consumers are found in small pockets and it is not as widespread as it used to be. The AABAH lady used to symbolize that the product was made by a black manufacturer. Not necessarily true anymore because a lot of the large black manufacturers have sold their businesses to white manufacturers. The reason is that banks would not lend to the black manufacturers, creating cash flow problems for a lot of the black manufacturers who had been in business for a long time.

 Q & A SESSION WITH AUDIENCE PARTICIPATION

Q-1: What are you doing to help Blacks in the industry businesswise?

A-1: This is why BOBSA exists. We support every aspect of business development for African-Americans who want to open a business in the hair care industry. From providing support for finding locations, ordering products and inventory, development a business plan, to advertising and marketing---we are there for you!

 Q-2: How does one break into the African-American industry?

A-2: Join BOBSA! Also you must realize that we do not have black sales reps going to salons and beauty supply stores anymore. Those days are gone.  Blacks do not dominate the African-American hair industry as we once did. The business now is dominated by Koreans and other ethnic groups.

Q-3: Is saying black out of date because we need to include all shades of blackness?

A-3: Multicultural is preferred because it includes hair styles, hair textures, skin care, fragrances, etc.

The American Health & Beauty Aids Institute (AHBAI) is pleased to present its 2013 Ethnic/ Multi-Cultural HBC Conference.

The American Health & Beauty Aids Institute (AHBAI) is pleased to present its 2013 Ethnic/ Multi-Cultural HBC Conference.

This industry event is scheduled for August 12-14, 2013 at The Cosmopolitan of Las Vegas, Las Vegas, NV.

 

Click Here for info

27 Days Left Until The Bronner Brothers Show

 

 

 

 

Home Grown Hair Care for the Natural Hair Movement by Jane Carter

Jane Carter

 

Our hair is our most visible and vulnerable body asset; it requires special care and maintenance. Natural, wavy, curly, straight, relaxed, color-treated, or twisted; hair is hair. Jane Carter is passionate about creating products that are natural, sustainable and effective – homegrown hair care. After 20 years in the hair care industry, the Jane Carter Solution came to fruition, a diverse collection of healthy homespun hair products for all hair types and textures. A multi-cultural hair care line that is designed for ‘humanity’; plant-derived, vegan-safe, hair color-safe, child and eco-friendly products that promotes scalp health and hair growth.

The journey began with Jane Carter’s desire to reward clients with beautiful, healthy hair. She opened her first salon, challenged with obstacles to assist the needs of a diverse clientele. Finding the right formula was pertinent to her brand and influential in her belief that “hair is hair”. Frustrated with the lack of chemical free product choices, Jane realized that she would need to create them with her own hands; she formulated her own hair care line using plant derived ingredients. Utilizing her years of experience, including traveling with Clairol’s National Style Team and serving as Educational Director for Avlon, she began experimenting with different botanical oils, sea botanicals and natural proteins and discovered that these natural ingredients were both light and effective on all hair types and textures. 

The strong woman today, as a mother and dedicated business mogul, she has become the DNA to a leading natural hair care company. Her success story reflects a wealth of knowledge, past experiences and personal determination that led her to create the winning formula for our diverse world. Jane Carter Solution was created to fill a need for natural hair products that work effectively on all hair textures. Expanding to meet the needs of her growing hair family, Jane launched two extension lines; Jane Carter Solution Restore, formulated to promote hair growth, scalp care and moisture retention Jane Carter Solution Hydrate, offering unique moisturizing styling options for natural hair.

Traditionally the average small business doesn't easily find their way to becoming a global brand. Coming from a family of innovators, Jane has become the driving force for a brand that exemplifies a purpose, a cause and a solution. She is proud that her award winning products are available nationwide at top retailers such as Target, Whole Foods, Vitamin Shoppe, Rite Aid, CVS, Walgreens and various health and wellness stores and available in Europe.

Love your hair!

Beauty Business Mergers and Acquisitions

 

By Dr. Edward Tony Lloneau

MERGERS AND ACQUISITIONS

There have been several major acquisitions as of late involving black owned firms that are now owned by majority firms.  However, this trend is not new, in fact it dates back to as early as the 60’s.  Prior to the 60’s, the black oriented hair care product business was all but ignored by the general market product companies.  But when market surveys accidentally revealed that black consumer’s purchase cosmetic and related products well beyond their proportionate numbers, (meaning that at that time Afro Americans were only 10% of the total U.S. population, but were consumers of more than 25% of cosmetic products that included for the most part hair care items).  Also, Afro Americans paid more for professional hair care services per visit then others.  For example, the average black patron paid about $30.00 for a full service treatment, meaning shampoo, press & curl, perms, cut, conditioners and set.  The non-black patron spent about $12.00 for just a shampoo, set and style.  Today the prices are higher, but the pay scale and trend are the same, only now Afro Americans are 12% of the population and consume over 33% of cosmetic products and services. The main factor as to why the Afro Beauty Supply consumer market is so strong is:  Afro women spend up to three (3) times as much money per salon visit then do others.  Most other patrons get shampoos and sets per visit.  Afro women generally get a full service treatment such as Relaxer Perms, Curly Perms, Press & Curl, coupled with Conditioning treatments as well as all forms of color services and hair augmentations i.e. Weaves, Braids and Extensions.  Many of these services are not even offered in non-Black Salons, plus the Afro patrons return more often than other cultures.

So armed with this information, the majority owned firms wanted in on this potential profitable market that they had formerly ignored and considered unimportant.  Note: the majority of Korean owned beauty supply outlets are directed at that market for this and other reasons, resulting in the Koreans controlling 80% of professional Afro hair care product, sales and distribution sold in beauty supply stores.  Also because Afro women are the major consumers of commercial hair that the Koreans have control of, import and distribution for the most part, resulting in their stores being in the areas where the customer base is.

Revlon was one of the first majority firms to jump into this market in a big way in the early 60’s. They first acquired a black owned firm in Chicago (Deluxol) that manufactured a relaxer line and related products. This product did so well under the original name with Revlon financial backing for advertising and promotions, that Revlon came out with another similar line under their own name of Revlon.  They have done quite well in that endeavor ever sense under several trade names.  Revlon was motivated primarily by how well Johnson Products Company (a black owned product manufacturing company in Chicago) was doing with their Ultra Sheen line of relaxer products.  At that time, Ultra Sheen was the bestselling relaxer line.  Revlon’s advertising and marketing and misleading advertising, “That was addressed by the U.S. Fair Trade Commission” claims was aimed towards the Ultra Sheen market.  With that ploy, they were able to infiltrate and dilute Johnson market share by 50%.  The reason that Revlon did not introduce their Afro line under their own name at first, is because they did not want to taint their name and reputation if the endeavor was not successful or accepted.  Revlon later dropped the Deluxol name in favor of promoting their own trademark name.  After that, many other majority companies jumped into that market with greater success than anticipated.  Company’s such as Alberto

Culver markers of VO5, developed TCB and later the Motions line.  Clairol acquired an Afro owned line called Summitt Labs out of Indianapolis, Indiana.  After a successful run, they sold the line to their then Summitt director Clyde Hammonds who was with the company from the start, who is black and runs the company out of Harvey, a suburb of Chicago, Ill.  Clairol decided to get out of the ethnic product business because it was distracting from their main focus of hair color products.  However they learned from that experience how to better serve and market to the Afro consumer.  This was the first time that an original black owned company that was acquired by a majority firm was reclaimed by a black owned company.

In the mid 60’s, a new look that was a draw back to the original Afro hairstyle called the NATURAL.  This was to allow the hair to grow out naturally then groom and comb or “fork” it out to a neat round appearance and cut to a well-rounded shape.  The first company to offer a product that conformed to this style was Magnificent Products in Los Angeles.  Two barbers Dennis Taylor and Wilber Jackson founded the company.  The product and the style it was related to became a nationwide phenomenon.  Other companies tried to capitalize on the merry go round, but none overcame the pursuit.  Later a majority owned firm J. Strickland of Memphis, Tenn., the makers of Royal Crown and Dixie Peach products made the Magnificent Products an offer that they could not refuse, and bought the company.  But instead of furthering and enhancing the sales and popularity of the products, they withdrew it from the market and shut it down.  The speculated reason for this was because the Natural look was interfering with the sales of Royal Crown, Dixie Peach and other similar products produced and sold almost exclusively to Afro Americans.  People wearing the Natural did not need or use petrolatum-based products.  Johnson Products picked up the slack with a product called Afro Sheen, that did quite well until the fad was replaced by the so-called Jeri Curl.

In the early 1980’s Worlds of Curls a black owned company in Compton, Ca. became financially strapped due to diversifying into endeavors outside of their niche market and the declining curl market.  Worlds of Curls had the best-selling curl maintenance products for both professional and retail.  The company is now owned by the J. Strickland Company in Memphis, Tennessee the makers of Royal Crown Products, as eluted to above, concerning Magnificent Products.

Johnson Products of Chicago that was mentioned earlier in this article, was acquired by a majority holding and investment firm a few years ago, and has changed ownership three times sense then including the Walla Corporation of Germany with U.S. headquarters in New Jersey.  Walla’s major niche market is hair color products (the best-selling hair color line in Europe).  Clairol is the #1 seller. Later Walla was acquired by Proctor & Gamble, and now Johnson has new owners (more about that later in this article).

Soft Sheen Products of Chicago was the next product line to be acquired by a major majority firm.  L’Oreal of Paris with U.S. headquarters’ in New York, Soft Sheen manufactured the best-selling Afro Curl products, plus the Optimum and Mazoni line.  At the time of the acquisition Soft Sheen was the largest Afro owned hair care firm in the world, with assets well over $85,000.000.00.  This acquisition was the largest one of its kind ever recorded and put L’Oreal in the Afro Hair Care market big time, plus they now own the Dark and Lovely line.  Prior to this, L’Oreal was the largest manufacturer of hair care products to the general market in the world, along with Bristol Myers (who also owned Clairol), that is now owned by Proctor and Gamble.  This acquisition also gave L’Oreal the distinction of owning the largest Afro hair care company in the world.  L’Oreal later attempted to acquire the Johnson Products Co. from the investment company, but was stopped by the Fair trade Commission because it would have given L’Oreal an unfair monopoly in the Afro hair care market.  This opened the door for Walla to purchase Johnson.  Proctor & Gamble who also acquired Clairol from Bristol Myers acquired Walla later.

Pro Line products of Dallas, Texas were acquired by Alberto Culver (mentioned earlier in this article) in 2005.  Pro Lines niche was strong in the retail market for Afro hair care products.  Alberto-Culver was already strong in the Afro professional market, with TCB and Motions, plus the fact that they were at that time the parent company of Sally’s Beauty Supply Stores.  This acquisition gave them a strong position in the Afro retail market.  In the latter part of 2010, Alberto Culver was purchased by the Unilever Company head quartered in the UK, Pro-line and the other Afro centric products (TCB & Motions) were a part of the deal.  This made Unilever the third largest manufacturer of ethnic related products.

A non-Afro firm in Chicago (JF Labs) now owns Hawaiian Silky, originally home based in Shannon, Miss., owned by Mr. Harry Green.  Mr. Green passed away in mid-2010.  Leisure Curl was also Afro owned and is now also owned by JF Labs.  Namaste, makers of ORGANIC ROOT STIMULATOR (the most imitated product line on the market today) in Blue Island, Ill. (southwest of Chicago), was purchased by an India owned firm called Dabur towards the end of 2010.  This was the largest such transaction of an Afro owned hair care company in history, the owner of Namiste, Mr. Gary Gardner is the son of Edward Gardner the former owner of Soft Sheen Products, prior to this transaction Soft Sheen acquisition by L’Oreal  was the largest such transaction.

When Proctor and Gamble acquired Walla, Johnson Products were a part of the deal.  Due to the fact that Johnson (Ultra Sheen & Gentle Treatment) was not the major reason for the acquisition, it made Johnson vulnerable for acquisition by anyone interested.  Johnson was  purchased in March of  2009 by an Afro owned holding company headed by Eric and Renee Brown, a husband and wife team that are the son in law and daughter of the former Afro owner of Pro Line Mr. Comer Cottrel.  This is the second time that a hair care company that was originally owned by a black concern, sold to a majority owned firm, which sold back to a black entity.  The first time was the Summit deal alluded to earlier in this article.  A company founded by Ernest Jhosua, JM Products was headed by his son Michael after Mr. Jhosua’s death in 2005. In October of 2009 the company went into receivership.  The company had several divisions that include production of the ISOPLUS and other trade name “Wet Goods” products, and an aerosol plant.  The Isoplus line and other wet goods are now owned by the majority owned Murray Products Co. in Detroit, MI.

A few of the hair care manufactures that are still Black owned as of this writing are: Luster products of Chicago, Ill. Producers of the Pink Moisturizer, Kizure Iron Works of Carson, Calif. (just south of Los Angeles). Manufacture of Curling Irons, Pressing Combs, Stove Heaters and several other related items,  Summit Labs in Harvey, Ill. Also a suburb of Chicago, Lloneau Products in Los Angeles, Ca. makers of Liquid Gold Hair Bonding and Lace Front Adhesives, Bronner Bros. Of Atlanta, Ga. with a complete line of hair care products.  Bronner Bros. Also are the publishers of Upscale Magazine and the producers of the most successful multicultural Cosmetology Trade Show in this or any other country.  Dudley Products of Kernersville, N.C. one of the few Afro owned direct sales organization in this field.  Dudley also owns a chain of Cosmetology schools in several states.  Johnson Products that has recently come back under the Afro owned umbrella as stated earlier in this article. Fashion Fair Cosmetics, owned by Johnson Publishing (Ebony & Jet).  Clentex of Chicago, Ill. owned by Mr. Steve Luster the brother of the founder of Luster Products.  Research Labs in Atlanta, Ga. owned by Mr. Cornell McBride with a line called Design Essentials.  Mr. McBride was one of the original owners of M&M Products. E.F. Young Products of Meridian, MS is now being run by a third generation of a family owned business.  Mixed Chicks in Woodland Hills, CA.  Professional Products unlimited in Fayetteville, GA.

The preceding is a partial listing of Afro owned firms, but does represent most of the major Afro owned players still in the game.

So if you were curious as to who’s who in regards to ethnicity in the ownership of major ethnic directed product company’s you now know part of the story.  This story is still unfolding as you read this article.

 Dr. Edward Tony Lloneau,

Lloneau Products

http://www.liquidgoldbonding.com/about.php

Black Listed: The Importance of Black Owned Products vs. Not Black Owned Products

 

 By Dr. Tony Lloneau

 

According to new research by the W.K. Kellogg Foundation (WKKF), black people are far more likely to give back to their community than other races. Your dollars make a difference. Support Black owned and manufactured products to keep our communities strong and financially healthy.  

Below is a list of Black Owned Beauty Products and Products Owned and manufactured by other races.

Black Manufactured Products

1.) By Nature’s Protein Products, Doo Gro

2). By Straight Arrow, Mane n’ Tail Shampoo, Conditioner Herbal-Gro

3). By Jinny’s Beauty Supply of Chicago, IL Max Products, Jamaican Dream

4). By M & M Products Company, Sofn’ Free, Bump Patrol, Easy Wave

5). By Universals Dist Supply, African Essence, Relaxer,

6). By Fantasia Products, IC Products Shine Styling Gel, Shear Butter Sheen Spray

7). By Scientific Research Products, Le Kair products

8). By Avlon Industries, KeraCare, Affirm Relaxer

9). By Imperial Dax, Dax Relaxer Kit

10). By Ampro Industries, Styling Gel Memphis, TN

11). By Spartan Brands, Black Sassy, Duke Products

12). By Division of Matador Styling Products Industries Inc, Organics African Best

13). By Murray’s, Wella, Posner Cosmetics, Black Radiance Cosmetics

Products Manufactured By  NON Black Companies

1). By Revlon, Realistic No-Lye Relaxer, African Pride, Crème of Nature

2). By L’oreal, Johnson Products, Ultra Sheen, Soft Sheen, Care Free Curl, Optimum, Wave Nouveau, Carson, Dark & Lovely Naturally, Breakthru,

3). By Alberto Culver, Motions Tcb, Soft & Beautiful Just For Me, Comb thru (Sally Beauty) Proc Aim, Silk Elements Relaxer, Pro-Line, Botanicals

4). By J. F. Labs, Of Chicago IL, Leisure Curl, Vitale, Hawaiian Silky,

5). By Smooth’n Shine

6). By Keystone Lab, Ultra Glow, Long Aid Gel, Better Braids

7). By J. Strickland & Co, Worlds of Curls, Royal Crown, Nadinola Skin, Blue Magic

8). Black and White, Artra Plus, African Gold Relaxer, Suifur8 Loc Twist & Braid, Zuri Cosmetic

9). By Queen Helene Beauty Products,

10). By Golden Supreme Styling Tools

11). By Walbert Lab, Black Thang Fantastix, Short n’ Easy, Real Soft Fro

12). By Lustrasilk, Cholesterol, Tea Tree, Herbal, Crème Conditioner, Moisture

Tony Lloneau

Lloneau Products

http://www.liquidgoldbonding.com

Pure Remy Conference Mondays At 8 PM EST

Don't forget to join the Pure Remy System Conference Call @ 8 pm EST every Monday!

Don't delay, come learn about the revolutionary Pure Remy System and how you can benefit by selling High Quality 100% Indian Remy Human Hair Extensions and Hair Products!  Take advantage of the most powerful hair distribution system in the world!  

 

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BOBSA Insurance Options

 

Did you know that BOBSA members have exclusive access to a number of health insurance products?  Deciding what insurance is necessary for your business and life can be confusing. Let the knowledgeable help you cut through the insurance Jargon. Here are a few questions to consider when finding an insurance agency and policy.

1. What kind of insurance should I carry, and to what limits? How much are the deductibles and premiums?
2. Is there such a thing as too much insurance coverage?
3. What are coverage gaps?
4. Does this cover disability?
5. Is it better to have a high insurance premium and low deductible or vice versa?
6. How often can I review my coverage?
7. Are you a full-time agent? If not, what happens when you quit, where do I turn?

Inland Empire Insurance Services
Multiple Needs Benefit Program

Rex Jackson
1-909-748-0033
rex.jackson@ieia.net

 All State Insurance Agency
www.allstateagencies.com/A0927

Charles W. Johnson
President
J&W Global Enterprises, LLC
Mobile - 443-994-5924
jandwglobal.net
johnsoncj33@aol.com