Distribution channels are as much a trait of a hair care brand as the name, packaging or scent of the products themselves. And while the average consumer may not realise the finer points of difference, you won’t be forgiven for confusing salon-only and retail brands when talking to someone in the industry.
The two are worlds apart,” says Vincent De Lorenzo, director of salon-only brand . You only need to look at the back of two different shampoo bottles – one supermarket and one salon-only – to see the ingredient listings are different by a long way.”
Mark Giglio, founder of agrees that the research and development side of salon-only brands is staunchly different to that of retail products. A consumer brand is designed to make money,” Giglio says. Obviously there are going to be massive limitations on what you can put into a product when there are such tight budget restraints. On the flipside, when we’re looking at professionally priced salon-only product, I want the very best we can make, and we’ll worry about price later. So I build to performance rather than build to budget.”
Why salon-only?
It’s no secret that selling product on broader retail platforms can maximise profit potential. According to Kamila Staines, brand manager for Wella Professionals Australia and NZ, In Australia, one out of 10 consumers buy only professional hair products, three out of 10 buy both professional and retail products, and six out of 10 buy only retail.” This statistic was a big factor in Wella’s decision to launch the range, a retail extension of Wella Professionals. With a lower price point, it’s available in retail stores and is designed for use at home. We feel that to touch more consumers, we need to be present in both salons as well as retail outlets.”
With such promising sales potential, why would a brand restrict its distribution to less than half of Australia’s consumers? Most brands cite their salon-only distribution to their heritage, which dates back to hairdressers. Our choice of distribution comes back to our heritage and pedigree,” says De Lorenzo. My father and uncle – the first developers of De Lorenzo – were hairdressers first and foremost. Also, being stocked in salons only maintains that professional edge.”
Gariglio argues that veering away from salons would be taking away from the core business – the salons – and would compromise the integrity of the brand. Our philosophy is to create the very highest quality product, and when it comes to non-salon entities, with the lower price point, it means a drop in quality.”
Opting for a salon-only distribution network also allows the brand greater control over the way products are presented, sold and stocked. The way we partner with our salons and the service we offer is very unique,” says Louis Chabert, marketing manager for . In 85 per cent of our distribution, Aveda is exclusive to the salon, so the salon doesn’t stock any other brand. This allows us to have great brand representation.”
A professional point of view
For traditional consumers, selecting a product off the shelf can be easily substituted with choosing a product online. The salon-only consumer, however, craves a professional standard. We still maintain that the hairdresser has the knowledge, and you need that knowledge to get your prescriptive product because your hair changes all the time,” explains De Lorenzo. This stance supports both the hairdressing profession and the businesses that stock and sell the product, rather than allowing them to be available through alternative channels.
Stopping salon only” product from somehow sneaking its way online requires very tight control on distribution, says Gariglio. We’ve taken our salon-only one step further in that we don’t supply to any wholesalers. What that’s done is prevented product from filtering into online. We also have an agreement with every one of our clients that they’re not authorised to sell the product online,” he explains. So we’ve taken all the necessary steps to ensure that if someone wants MUK product, they have to go into the salon.”
What’s next in haircare?
With salons at the forefront of what’s up-and-coming in hair care, you can bet that whatever salon-only brands are focusing on will soon trickle down into broader retail outlets. Every brand we spoke to agrees that hair serums and oils, as well as dry shampoos have recently had their moment in the spotlight. And while they do have their place in hair care, focus is shifting a little bit. We’re actually focusing on style and prep products, because we know customers can achieve greater results at home by using these types of products,” says Chabert.
I think hair oils are starting to settle down a bit, but they do still have their place,” says Gariglio. I see trends moving towards healthy, soft, yet textured hair. Those ribbony-type curls people were creating with their straightening irons are gone. It’s very much a soft, textured curl now.”