Bye Bye Clairol & Wella
Walking by the executive mailbox slots, overhead one can see four beautiful handmade glass vases designed by a very talented artist. They were gifts from Clairol for buying more than $1 Million in a year.
I remember way back in 1996 after buying Beauty Direct that we had to have Clairol & Wella products. Back then, tube color was gaining popularity but beauty schools and many hairdressers still preferred the ubiquitous liquid products mostly because of price, availability, and that’s what they were used to.
Paula Jacobi, then President of Clairol (ex-VP of Creative Nail Design so I knew her well) gave us two thumbs up and we cranked out 6-packs of color and tubs of BW2.
Fast forward ten years and liquid color continues its decline and eventually will be in the history books. Retail technology and upgraded beauty schools are the main culprits. But we can also blame one of the most innovative companies in the world: Procter & Gamble.
They bought Wella long ago but really never figured out what to do with it. Then they bought Clairol mostly for its retail presence and one day someone told them they also owned Miss Clairol, Jazzing and some bleach products called Basic White and BW2. In a company that doesn’t revere a brand unless it does over a $1 Billion a year in sales, this was like a pimple on a donkey’s ass.
Declining sales and loss of interest is one thing but that was not the ultimate decision breaker that led us to drop both brands. The ultimate decision breaker is P&G’s CEO that continues to attack our industry with ads that claim their retail products are superior to salon products. For a company that also owns Sebastian, this is a dangerous road to travel. But I guess when you are mighty P&G, you can travel any damn road you want.
Their Pantene brand does over $3 Billion a year. Yes, you read that right. $3 Billion a year. Matrix who claims to be the industry leader doesn’t even do $300 Million. In their most recent Pantene ad in just about every fashion and beauty magazine P&G can find to place it, the headline is "Think only a salon brand can go to these lengths?"
With economic times even tough for P&G, A.G. Laffley, their CEO has even been quoted telling analysts that they are thrilled to be in mass market (drug, discount, supermarket) business because that’s where consumers are shopping these days. Olay is a $2 Billion brand, so what do you think they care about Miss Clairol which most likely does 75% of its business in Sally’s?
Oh well. We will miss the history of the brands like we miss the history of most brands. Luckily, we still have four beautiful vases to remind us of the great history that once was.
Happy Wednesday!

May 20th, 2009 at 9:34 am
Larry, Why don’t you invest and open up some new innovative schools with Kemon and FPO brands?
Would it be possible to create our own FPO color line? We already have the developer. That way students willl be comfortable with our brand and continue to use it in the future.
This will help build the future of the company and we wont have to ever worry about lines like Well, Clairol, Matrix, & L’Oreal causing a loss of business in the company.
May 20th, 2009 at 10:43 am
I think this is GREAT! I have had 2 experiances of clients wanting to switch to KEMON since we have announced that we are no longer carrying Wella. Who knows who else will take this oppurtunity.
May 20th, 2009 at 4:23 pm
I agree with Shannon…I think we should come up with an FPO brand of color…I mean, since we already have the developer…it just makes sense! =)
May 21st, 2009 at 1:35 am
I thought the color line TNG has invested in is called Kemon. That is what I thought the signature color line was. And Tng has been doing a great job promoting this line all over the place. So why would you make an FPO color line and invest millions of $’s in producing and manufacturing, when Kemon is going over just fine.
May 21st, 2009 at 9:17 am
Wow Larry, great and very eye opening and that is why you are such a great leader. Thanks for the info.
May 21st, 2009 at 1:05 pm
Anonymous: you are brilliant. Good call.
May 21st, 2009 at 2:22 pm
I agree with Anonymous….Although I am a little partial due to who Miss anonymous is (Stephanie Giltrop). Kemon is our signature line and this is what TNG Worlwide is all about. Rock it out Steph, you make me proud !!
May 22nd, 2009 at 8:04 am
I understand that point, but we were also exclusive to L’Oreal and Matrix for awhile and now that L’oreal is so big (With our help) they went else where to generate more profit, b/c it wasn’t about loyalty anymore. Can we be positvie that this will not happen in the future with Kemon??
If we had an FPO color brand, we would never have to worry about losing that line for any reason. Or what about Fpo, foils, tint brushes and bowls??
June 25th, 2009 at 12:58 pm
I think Larry has great conviction but is a bit over the top! I stopped buying my clairol from TNG due to their rising costs. Marlo Beauty always has the prices right and always has. Sorry you had such bad luck with it.