The first half of 2018 results from Kline PRO USA, our powerful tool for the salon industry based on transactional data, is in. Unlike previous years when Q1 sales routinely fall off after strong fourth quarters that are fueled by holiday activity and gift card sales, Q2 historically trends back up with an increase of 3% to 4%. That did not happen in 2018 − Q2 sales fell 0.6%. While that percent is barely noticeable, it is not consistent with what is normally seen and does not bode well for Q3, which is customarily the weakest quarter of the year.
Despite the overall decline, there were pockets of growth and stories of success. The care categories registered gains in Q2 vs. Q1, with Conditioners up 1.1% and Shampoos surging by 3.7%. The three brands with the highest growth in Q2 are Eleven Australia at +84% (Miracle Hair Treatment was its leading item), Color Wow was up 37% (Dream Coat Anti-Humidity Hair Treatment was the no. 1 item), and Brazilian Blowout increased 36% (Açai Anti-Frizz Shampoo).
Leading Items of the Top Three Brands with Highest Growth in Q2
Within the care categories, products that are focused on color care still command the highest share of dollars at 20% of the market. Leading color-centric items in each of the categories for the first half this year are:
Top Color Care Conditioners, H1 2018
Top Color Care Shampoos, H1 2018
Companies continue to introduce products into the color care segment. Since the last quarter of 2017, new entries include Redken Blondage, Matrix R.A.W. Colorcare, Pulp Riot, Paul Mitchell Platinum Blonde, and Amika Vault Color-Lock.
New Product Introductions in the Color Care Segment
The demand for color care products goes hand in hand with the investment that consumers make in hair coloring services. Coloring service revenues were up 0.4% in the first half of the year, now accounting for 27% of overall salon revenues according to Kline PRO USA. The average cost of a hair coloring service increased 1.5% from $70.90 in the first half of 2017 to $71.96 in 2018. Coloring services with the highest average price are:
| Service | Average Price | Change vs. YAG |
| Balayage/Hair Painting | $130.43 | +4.6% |
| Ombre | $122.30 | +0.8% |
| Virgin Bleach | $107.87 | +8.6% |
Data source: Kline PRO USA
The treatment service segment held two other services that experienced growth in both revenue and transaction count in the first half of 2018. In-salon clarifying treatments saw an increase of 17% in both measures. The average price of the service rose slightly to $22.61. Overall, clarifying treatments make up less than 1% of treatments but they are gaining focus as clients are becoming more in tune with the concept of detoxing. Salon products that are designed to clarify hair have seen a bump in sales so far in 2018. Several brands have stepped up to challenge segment leader Paul Mitchell (Shampoo Two and Shampoo Three). A few that standout include Malibu C’s Un-Do-Goo Shampoo, DevaCurl’s Buildup Buster and Unite Weekender Shampoo.
Emerging Professional Clarifying Treatments
Stand-alone bond builder treatments are the other service that had salons busier and bringing in 12% more revenue in 2018. This is not too surprising given the current trends in hair coloring that are quite extreme and can cause damage to the hair. Bond builder treatments have soared in popularity since the introduction of Olaplex nearly five years ago. Not only has there been an increase in salons performing the service, there has been a surge in the selection of brands to support the in-salon treatment as well as take home products for post-service care. Where Olaplex originally only offered No.3 Hair Perfector for at-home treatment, they are leveraging the brand and now have No.4 Shampoo and No.5 Conditioner. More recently, there are products intended for those that want to tackle re-bonding their hair as a DIY project. One such entry this year is Matrix Total Results Re-Bond line.
Novelties in bond builder treatments
While hair coloring and treatment services saw an increase in revenues, that is not necessarily the case with most service categories. Total salon service revenues fell 0.8% in the first half of this year which, while not catastrophic, is still not great news. What is of significant concern, however, is the decrease in transaction count which is down 3.6% year to date. In response, salon owners have increased prices to compensate for the drop in traffic. The key is to find the optimal price point that won’t cause volume to fall even further.
Understanding the professional hair care marketplace is critical for both salon owners and product manufacturers. As the landscape of this industry is changing rapidly, up-to-date information is vital. Kline PRO USA is a one-stop source that provides transaction-level data updated quarterly and supported by summary written reports helping you to better cater on emerging trends, product novelties, and market and services dynamics, as well as the performance of a myriad of renowned as well as up-and-coming brands. This service is now also available in the United Kingdom and Ireland markets. To learn more about its various capabilities, please visit Kline PRO page or schedule a discovery demo.
