SEXY HAIR NETS PENNEY'S CHAIN'S SALONS WILL USE, SELL FIRM'S DESIGNER PRODUCTS.

Byline: Brent Hopkins Staff Writer

CHATSWORTH - Michael O'Rourke thinks this deal is bigger than a beehive hairdo.

Next month his company, Sexy Hair Concepts, will ship its shiny cans of hair spray and plump bottles of shampoo to more than 600 JCPenney salons nationwide. The partnership, which O'Rourke, the company's chief executive, terms ``huge,'' puts the rapidly growing hair-care products developer in front of thousands of new consumers.

``Take the salon base, then multiply that by five or six hairdressers in each salon,'' he said, eyes gleaming. ``Then multiply that by the 20 to 30 consumers they do a week. That's tremendous marketing power.''

A former salon owner and hairdresser, O'Rourke formed Sexy Hair in 1999, looking to develop professional-quality products for stylists with a trendy edge. Housed in striking, metallic red, blue and chrome containers, the sprays and shampoos have become strong sellers for his privately held firm. He estimates annual retail sales have hit $120 million, with a 73 percent annual growth rate in the past two years.

``We think they're one of the most exciting companies to emerge in the professional market,'' said Steven Casciola, publisher and editor of Salon City Star, a bimonthly beauty industry magazine. ``They've started with the end-user in mind and worked backward to create an appealing image, but also managed to ignite the passion and loyalties of the professional market, which isn't an easy task.''

Much of that passion stems from O'Rourke himself. An animated, dapper South African, he straddles the line between businessman and showman, splitting time between his industrial offices in Chatsworth and international product demonstrations. His fashion sense reflects this duality, as he pairs a traditional dark suit with a tribal bracelet. The beaded string around his wrist bears the word thembeka, Swahili for loyalty, which he says illustrates the close-knit nature of his firm. Hair explodes off his scalp, sculpted with ample amounts of his own products.

``If I'm meeting with lawyers, I do my hair back and wear a suit,'' he said. ``If I'm meeting with hairdressers, I wear boots, wild sunglasses and funk my hair up.''

The trendy edge led JCPenney to stock his wares, adding the Big, Short and Healthy Sexy Hair lines. Targeting women from ages 18 to 54, with annual incomes of $25,000 to $75,000, the in-store salons are aiming for a hipper image than in past years, according to Paula Malloy, marketing manager for the department store's salon division.

``They're very fun products,'' Malloy said. ``I believe stylist recommendation is very important, but in a large salon like JCPenney, the products need to speak to the consumer as well. And they really do - if you have short hair, they have Short Sexy Hair. If you have big hair, then they've got Big Sexy Hair.''

Even several years ago, JCPenney would have been an odd fit for a fashion-forward brand, but the Plano, Texas-based retailer has seen dramatic changes under the guidance of Allen Questrom, chairman and chief executive officer. On his watch, retail experts have taken notice as the century-old chain has begun stocking brands like Bisou Bisou and developed into a trendier option for young consumers.

``Penney's has always been more fashionable than Sears or Montgomery Wards was,'' said C. Britt Beemer, chairman of America's Research Group. ``But what they've been trying to do is go back to a fashionable base to compete more aggressively. They're showing consumers much better looking merchandise than they used to.''

Though his marketing team has been able to maneuver the products into the hands of Hollywood stylists - they boast hairdressers for ``Pirates of the Caribbean'' and ``Legally Blonde'' as clients - the products retain fairly low retail prices. A bottle of shampoo costs $6.50, while a can of spray goes for $11.50.

Brent Hopkins, [phone]

brent.hopkins(at)dailynews.com

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2 photos

Photo:

(1 -- color) Former salon owner and hairdresser Michael O'Rourke formed Sexy Hair in 1999, looking to develop professional-quality products for stylists with a trendy edge. He estimates annual retail sales have hit $120 million.

(2 -- color) Sexy Hair Concepts' range of hair care products will be used and sold in JCPenney salons beginning next month.

Phil McCarten/Staff Photographer