Color Services = Steady Growth

The new 2008 Professional Salon Haircolor Study reveals that hair color is the "axis" service keeping the salon industry alive through this deep recession. Although color service revenues grew only 3 percent in 2008 and are currently growing at around the same rate through the first half of 2009, they are the glue that holds the salon industry together.

Hair color services are a conduit to the usage of more shampoos and conditioners at backbar, and the drivers of all salon-retail hair care at the front end. Color locking and preserving products, sun blockers and products that prevent off-tone fading are in demand. Color refreshers, which grew 7.4 percent, are hot and fast-moving, especially considering all salon hair care products taken together grew only 2.1 percent.

2008 Overview

In 2008, all types of color services taken together registered $13.6 billion in service revenues for a 3-percent growth, still remaining the highest growth category in all hair care services. All hair care services taken together grew from $48.56 billion in 2007, to $49.56 billion in 2008, growing by only 2.1 percent. Cutting and styling grew by only 2.3 percent, one of the lowest rates on record. Perming and relaxing remained flat. This is all due to the severe recessionary trends in 2008 and the first half of 2009.

In the past, hair color services have historically grown between 5 percent and 7 percent. The recession has sharply reduced salon traffic, and consequently hair color service demands, since it is one of the higher-priced services. Salons of all types have felt the impact, with a reduction in numbers of overall repeat and retouch services requested.

Know Your Client

The aging Baby Boomer population, who need gray-coverage and gray-blending hair color services, continue to be a major market component. There are also increased demands for "fashion color" among young urban adults, and the emerging teens and tweens market.

Full-head hair color changes, highlights, lowlights, duo-lights, hair-painting, baliage and blonding services are also in demand, by those who can afford them, just to make a fashion statement.

Victoria Beckham's bob, Jennifer Aniston's cut and Katie Holmes' shag have all created demands for solid color, high-lift multicolor highlights, or solid black/brunette respectively-combined with a tricky cut.

Major research and development breakthroughs, like L'Oréal Professionnel's INOA, could propel industry growth back to 5-7 percent growth. INOA, which stands for Innovation No Ammonia, is billed by L'Oréal as the most revolutionary new colorant to come out of its labs in decades.

New products will bring new color techniques and services, bringing 5-percent growth in color services back to salons.

-Cyrus Bulsara Professional Consultants & Resources (proconsultants.us)

Hair: Ruben Torres Photography: Roberto Ligresti