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Product Diversion Impedes Salon Product Growth

November 22, 2005

The $2.2 billion U.S. professional salon hair care market was affected by recession and increasing brand diversion, resulting in the lowest rate of growth in two decades, 2.8% from 2001 and 2003, according to the “Salon Hair Care USA 2003” study by Kline & Company, Little Falls, NJ. Consumers have budget constraints as well and have increased time between salon visits.
During the first half of 2004, 45% of all new launches were specialty hair care products and styling aids. However, diversion of salon-only brands to mass market channels accounted for 15% of the salon segment with 20% annual sales growth in shampoos and conditioners between 2001 and 2003, compared to 2.4% in salon channels, according to Kline. Kline executives said manufacturers need to offer new, trendy products to gain market share. More info: Carrie Bonner, (973) 435-3412; E-mail: carrie_bonner@klinegroup.com; Website: www.klinegroup.com/Y357.htm.
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