Heads-up on Hair Care

Consumers are willing to experiment to find out what works on their hair.

Shoppers questioned by Supermarket Business said they are eager to try many different hair care products to determine which ones are ideal. Then, many said, even when they appear to be content with their choices, they are always on the lookout for new and different products.

Said one consumer, "All the beauty magazines tell you to switch products from time to time so that a build-up on your hair does not occur. When I'm in the supermarket, I'll look to try a brand new product if it looks and sounds like it's right for my hair type?and, of course, I look for the one with the lowest price tag attached."

This personal observation reflects widespread attitudes that have been uncovered by market research. Bob Hilarides of Cannondale Associates, a marketing consulting firm based in Evanston, Ill., says shampoos and conditioners are a variety-driven category. "People look for the product that is 'just right' for their hair type," he adds.

As a result, manufacturers have differentiated their products almost to an extreme. According to Cannondale, it takes 226 SKUs to account for the first 50 percent of daily hair care category sales, a much higher number than for almost any other HBC category.

Needless to say, this presents a problem for retailers, especially since the overall hair care category has produced little growth over the last decade. In fact, when the fast-growing hair coloring segment is deleted, hair care sales have actually dropped in supermarkets since 1990. Margins, meanwhile, have followed a similar course as retailers fight to attract the attention of consumers.

The third whammy in this equation is the fact that price points have decreased as value-priced products have gained in popularity. The one bright spot has been hair coloring. "Hair coloring produces great sales growth and margins that are usually above 30 percent," says one industry observer. "This segment is also a great traffic builder."

Cannondale figures for 1998 indicate that when it comes to shampoo/conditioner sales, mass is the leader with 44 percent of market share, followed by grocery with 30 percent and drug with 26 percent. According to Hilarides, research indicates that mass moves the most units per occasion. People are coming to think of mass as the place to stock up on HBC items, and of grocery as the place to fill in as needed.

When consumers were asked what factors influenced them when buying shampoos and conditioners, price was always mentioned as a key determinant. Although most shoppers look for specific product matches with their hair type, they believe that more than one product can meet their needs and that hair care products do not have to be among the higher priced items in their baskets.

"I will always look for sales, especially two-for-the-price-of-one offers," said one woman, adding that she purchases as many as three or four shampoo products a month in addition to hair coloring items and some accessories. "I spend as much as $15 per month on hair care items," she said.

Along the same lines, another woman commented, "If I see a shampoo that I like is on sale, I will buy it even if I don't need it at the time. The same goes for coupons. If I have one, I'll use it to buy the item even if I bought it somewhere else the day before. Whether it's the supermarket or the drug store, if the price is right, I'll buy it."



Retailers might also find interesting the importance of convenience to many women. Almost half of the consumers interviewed said they were drawn to buying two-in-one products so that they only have to lather up one time instead of two. "I like my shampoo and conditioner in one bottle. My time is valuable, and anywhere that I can cut corners is appreciated," said one woman, who added that she does not buy more than one hair care product per month.

Many shoppers also noted the importance of a product's odor to the purchase decision. While most said they love products that smell good, many mentioned that they stay away from fragrances that are "too sweet." Other influential factors included the "creaminess" of the shampoo, and how clean hair felt and how shiny it looked after the product was rinsed out.

Several shoppers mentioned being attracted to products that family members can share. "I like my kids to be able to use the same shampoo I use," said one mother of three. "I will never buy shampoo with a stupid animal toy head on it, which I would feel guilty throwing out. I would rather not have my kids play with the shampoo bottle."

Others said they feel exactly the opposite and gravitate to the "fun" bottles that many kids love, explaining that these items often make the hair washing experience just a little more fun for their offspring.

So, which shampoos were mentioned as women's top choices? The names that came up most often in the discussions included Pert, Finesse, Pantene, Suave, Salon Selectives, Vidal Sassoon, Herbal Essence, L'Oreal and White Rain. As for the kids, Pert Plus and Johnson & Johnson products were favorites. Among those who need a dandruff-fighting product, Head and Shoulders was chosen most often.

Convenience is the name of the game for many women when it comes to buying hair care products, especially as it pertains to where they make their purchases. Several women questioned mentioned that they buy their products at their salons because their hairdressers recommend the best product for their hair type and actually hand the items to them.

Others prefer the superior selection of supermarkets, mass merchandisers or drug chains. Most of the women interviewed said they will buy their shampoos and conditioners wherever they happen to be. This willingness to buy in various places is an important point for the supermarket retailer, says Hilarides. "Some women who do not usually buy their hair care items in the supermarkets may merely need some visual stimulus to trigger their interest in doing so," he says. "Research into consumer dynamics indicates the importance of displaying these HBC items in end-aisles and promoting them with attractive prices."

Research also points to the value of stores making sure their displays appeal to different consumer segments, including men, women and children. "Mix and match promotions that package shampoos and conditioners together lead to increased sales, as well," notes Hilarides.

Several shoppers interviewed said they buy their hair care products at wholesale clubs because they can get the biggest sizes there. "I go to Costco because I like the big bottle with a pump," said one woman. "I know it will last me a long time and will not cost me an arm and a leg."



Interestingly, most of the consumers interviewed did not believe they are influenced to any great extent by either ads or coupons. Rather, they look at packaging to determine which products are specifically geared to their hair type.

"Oftentimes, an ad or a coupon will catch my eye because it says the product will address my type of hair," said one man. "Then I get to the store and find 10 other bottles that say the same thing, so I go for the one that costs the least." Another consumer added, "I'm a working woman. I have no time to read magazines or clip coupons."

Women who believe they have "difficult" hair make slightly more discerning customers. One woman who has tight, curly hair said she often relies on recommendations from the salons she frequents, or from other people with curly hair. "Although it would certainly be convenient for me to buy products at the supermarket, they don't usually carry the specialized products I need," she noted.

The convenience of buying hair care products in supermarkets, where the average consumer shops 87 times a year, was mentioned repeatedly. However, several women who live in densely populated urban environments noted that their supermarkets tend to be poorly stocked and overpriced on these items. These women said they have to look elsewhere for the products they need.

Things to look for in the future? One trend predicted, according to Hilarides, is the proliferation of more customized products for both males and children. There is growing interest in this market, as evidenced by the successful L'Oreal Kids line. Another trend is an increase in the use of technology to solve consumer hair problems. An example of technological innovation is Unilever's very successful Thermasilk.