Customized hair care throughout Europe.

AN ATTEMPT TO ERADICATE bad hair days in Europe has resulted in heady growth in some markets, a distinct lack of volume in others.

France has traditionally had the largest hair care market of the Big 5, and in 2002, a big gain of 6.6% pushed sales to nearly $1.9 billion. Germany followed with sales of $1.28 billion, but reported only marginal growth of 1.8% due to the usual price pressures imposed by the discount-hungry German consumers. The UK was in third place with sales of $1.1 billion, a drop of 0.8% according to Taylor Nelson Sofres. Industry sources, however, put a more positive spin on the market, pointing to growth of 3.6% to just over $1 billion. Since hair care is primarily a mass market business in Italy, the category was relatively unaffected by the perfumeries' malaise and turned in sales of $965 million, representing growth of 3.1%. Spain grew 8.4% to $490 million.

Each country varies according to its format of choice among the product categories, but they provided a unified front in a couple of respects. Most importantly, the hair care category has become more segmented than ever. In an attempt to offer something to appeal to as many consumers as possible, brands are no longer segmented in terms of hair type. Instead, they now offer highly organized ranges based on solutions for every hair condition and problem, whether real or imaginary.

This emphasis on problem-solving has led to another key market development--the rise of conditioners. Penetration of conditioners and treatments remains relatively low in comparison to shampoos at around the 50% mark. This has posed a problem and an opportunity for manufacturers--how to convince folks to use conditioners?

The answer, once again, is to offer very targeted solutions in a format that appeals to their country of operation. Consumers everywhere want intensive formulations but are willing to allow them varying times to work. In France, for example, recent launches include intensive, leave-in conditioners such as Dop's Creme de Soin Nourrissante au Karite (shea butter). But in the UK, consumers prefer intensive conditioners that are left in for just a minute or so. German consumers want conditioners for dry hair, while Italians are looking for manageability and shine, and are willing to spare up to six minutes for treatments to work. Spanish consumers, on the other hand, want as much moisture and sun protection as possible, wrapped up in an ostensibly natural formulation. Success can be measured in category growth in the order of 6-8%, with France the stand-out market with a growth rate of nearly 12%.

Old Kids on the Block

After a lengthy absence, Sunsilk has reappeared in Europe. Lever Faberge has taken segmentation to heart, transforming Sunsilk into a lineup 11-items strong that is divided into six categories and expected to appeal to emotional as well as physical hair care demands.

"The opportunity exists to go beyond the functional benefits of shampoo and conditioner and build on emotions that hair problems trigger in women," explained brand manager Clare Colling. "(It's) positioned as a brand of variants, rather than a brand with variants."

The company has positioned the brand to occupy the middle ground between mass and prestige and hopes to draw consumers from both ends of the market. The strategy, however, leaves it vulnerable to attack from brands in these sectors.

At the top end of the market, for example, L'Oreal's prestige label Biotherm has introduced a five-item hair care range. Hair Resource features Biotherm's signature thermal water, minerals and botanical extracts for a sensorial as well as technical approach to hair care. The prestige hair care market is growing apace in France, Italy and Germany, and has also been joined by Juvena's new specialty hair care label Marlies Moller and Eurocosmesi's Swiss anti-aging brand Transvital.

At the low-end of the market, a number of brands have been reworked to suit this segmented approach. Schwarzkopf & Henkel, for example has launched Gliss in France with 15 products divided into six solutions-based programs. Laboratoire Vendome has reformulated and reorganized its Le Petit Marseillais brand with seven shampoos, two conditioners and two masks for an array of different hair conditions. Eugene Perma's Keranove, meanwhile, has been reformulated with a new active called Physio Keratyl and reorganized into three beauty programs--Equilibre, Vitalite and Nutrition. Similarly, the company reworked its venerable Petrole Hahn brand, dividing it among six, color-coded, solutions-based programs. In Italy, home-grown Cielo Alto has followed a similar path with an enormous range of hair care products, positioned for an environmentally aware audience who want natural, ecological products that provide targeted solutions.

Scurf's Up

The quest for solutions has also led to the rise of' anti-dandruff products. One industry source says that it's probably no coincidence that rising sales of anti-dandruff shampoos have accompanied rising sales of styling products. "Some men have been using a lot of gel on their hair to shape it. Gels tend to flake and perhaps this makes men feel that they have developed dandruff."

Head & Shoulders added Natural Menthol to appeal to young, active people. Dove launched Dove Anti-Dandruff shampoo, said to offer anti-dandruff efficacy along with the Dove moisturizing and cosmetic properties.

L'Oreal's Elseve/Elvive/El'Vital, meanwhile has developed a summertime line for hair compromised by sun exposure. Elseve Solar contains a glycerine and silicon combo called Hydralium with a UV filter in Repairing After Sun shampoo and Regenerating After Sun Conditioning creme to help hair recuperate from the drying effects of sun and swimming.

For the moment at least, segmentation is winning. Everyone thinks their hair care problem is unique, but few can leave the groaning hair care shelves without something to help them. The only question is: how much room is there to develop new solutions? Perhaps the growing prestige sector will provide an answer.

EUROPEAN COSMETIC MARKETS IS PUBLISHED MONTHLY BY QUEST MAGAZINES & EVENTS. IT PROVIDES IN-DEPTH DATA AND ANALYSIS OF THE EUROPEAN COSMETICS AND TOILETRIES MARKET. FOR SUBSCRIPTION DETAILS CONTACT QUEST MAGAZINES & EVENTS, TEL: [phone]; FAX: [phone].

VIVIENNE RUDD EDITOR, EUROPEAN COSMETIC MARKET