GSP 2004 - The Return of the Curl? Refashioning curls and waves will grow the haircare market

SUMMARY

This report reviews trends in demand for hair curling and waving services and products in the professional (hair salon) channel, particularly in Europe and the USA. The rise of straight hair as the most fashionable style saw demand for wavy and curly hair fall in salons to an all time low. This was bad news for salons because the permanent wave had been an important component of the most lucrative business in the channel -- technical or chemical services.

The most recent research by Diagonal Reports (2003 and 2004) indicates that curls and waves are making something of return -- though from a very low level -- in some salons. The revival is strongest in the up-market, fashion-aware salons whose clients are affluent, and fashion conscious.

TABLE OF CONTENTS

THE GSP SERIES 4

• How terms are used 4

EXECUTIVE SUMMARY 5

MARKET TRENDS AND SIZES 6

• Current levels of demand 6
• Is a change in sight? 6
• Estimates of the market size 6
• The "old smelly perm" 7
• The unfashionable permanent wave 7
• The unsafe permanent wave 7
• One chemical bad, two chemicals worse 7
• Time pressures 7
• New styling regimes 8
• Does styling date a woman? 8
• What salon stylists are saying 8

CONSUMER SEGMENTS FOR HAIR STYLING (CURLS AND VOLUME) 10

• Summary 10
• Table 1 Curls and hair volume - consumer segments for and methods of achieving 10
• Curling straight hair 10
• The social curlers 10
• Curl controllers 11
• Volumizers 11

HOW STYLISTS AND CONSUMERS CURL HAIR 12

• Styling tools 12
• Styling aids 12

A MARKET OPPORTUNITY -- UNMET DEMAND FOR EFFECTIVE CURLING AND VOLUMIZING 13

• Summary 13
• Lack of effective alternative to perms 13
• Perms with less problems 13
• Table 2 Chemical perils 13
• Perming coloured hair 14
• A forced choice 14
• Safe on natural and treated hair 14
• A simpler product range 15
• A multi-functional perm product 15
• Simpler process 15
• Shorter product development times 15
• Products for chemically treated hair 16

SELLING PERMS IN THE PROFESSIONAL CHANNEL 16

• Technical skills 16
• Technical support 16
• Preventing products falling into the wrong hands 16
• A make-over for the perm 17
• Strong promotions 17
• Table 3 Check list of product requirements "the dos" 18
• Table 3.2 list of product requirements "the don'ts" 18

MARKET SIZES (ESTIMATES) 19

• Data problems 19
• Professional products market 19
• The "diverted" / "grey" market 19
• Table 4 Professional market, estimates for selected countries 19

PERMING DEMAND IN THE GSP SALONS 20

• Table 5 Demand for perming services in Europe, Americas, and Asia (GSP salons) 20

PERMING SERVICE PRICES IN THE GSP SALONS 21

• Table 6 Average spending per salon visit 21
• Table 7 Prices for perming services 21

COMPANIES AND BRANDS IDENTIFIED 22

• Summary 22
• Professional only 22
• Own label (salon) 22
• Table 8 Hair care and hairstyling brands 23
• What different brands deliver 23
• Table 9 Perming brands 24

APPENDICES 26

APPENDIX GLOSSARY OF TERMS 26

• Table 10 Glossary of hair perming terms 26

APPENDIX PRODUCTS AND TOOLS USED TO CURL/WAVE HAIR 27

• Table 11 Hair styling methods 27

APPENDIX HAIR STRAIGHTENING -- CHEMICAL PROCESSES 27

• How the chemicals work 27

APPENDIX HAIR PERMING IN SALONS 28

• Table 19 Hair perming process in salons 28
• Perming technique 28
• The salon consultation 28
• Pre-treatment test 29
• Are tests carried out? 29
• Applying the scalp protector and chemical formula 29
• Sectioning hair 29
• Appling the chemical formula 29
• Cold and hot perms 29
• Rinse and apply neutralizer 29

APPENDIX PROFILE OF COMPANIES AND BRANDS 30

DIAGONAL REPORTS STATEMENT 43

• Symbols used in tables 43