WWD's headline article today reported that NPD (one of the world's largest market research companies) has declared the hair category to be the fastest-growing category in prestige beauty. Specifically, they report that the hair category growth jumped from 5% last year to 19% this year. Did interest in prestige hair care suddenly take off? No. What changed is that hair care sales shifted from channels that are UNREPORTED by NPD, specifically the salon channel, to channels that are included in NPD data, specififcally retailers like Sephora, Ulta and online retailers. Prestige/professional hair was the fastest growing category last year at both Sephora and Ulta.
According to NPD, retailer sales of prestige hair have grown from basically $0 ten years ago to $650 million today. That's $650 million fewer dollars flowing into salons and $325 million in missing salon profits. That's about $500 in profit taken away from every single hairdresser in the US, and put in the pockets of retailers like Sephora, Ulta, Amazon, Blue Mercury, Space NK and others.
We created a business model to fix this problem. We enable hairdressers to participate in ecommerce and earn profits in the new digital economy. Our top performing hairdressers consistently earn $1,000 -$2,000 PER MONTH. If you still retail a brand that clients can find on Amazon or at Sephora or Ulta, you are just giving them your future profits. Learn more about Hairstory today!