As the Unilever’s, Procter & Gamble’s and L’Oreal’s of the world jockey for market position globally, the question is which brand in their arsenal will be hot in 2010.

Here are your choices:

1. TIGI (Bedhead, Catwalk, Rockaholic)

2. MATRIX (Biolage)

3. REDKEN

4. PAUL MITCHELL

5. SEBASTIAN

6. None of the above

Thanks for voting!

Happy Thursday!

A long, long, long time ago business associate stopped by yesterday to say hello and tell me about his latest discovery that came about by happenstance.

I remember Ed back when he worked for Revlon Professional in the early 90’s. Whatever Ed has in his bag, Ed sold and would tell you it’s the latest and greatest product ever. One such item was Viola hair color. At the time we didn’t even sell full service hair products but Ed knew that it would sell well (truth is we never bought it because Revlon wouldn’t sell it to us and it bombed anyway).

Ed finally retired but never really. Always looking for something hot and new, he stumbled onto flavored coffee syrups before Starbucks came to town. Alas, that lasted a short time.

Then Ed stumbled in Monster energy drink, Jones soda and everything was rosy until ownership changed and Ed was back looking for something else.

I’ve seen clean air machines, water filters, bottled water, and who knows what else. But Ed doesn’t stop. His latest item is Vitamin D3 delivered in a one dose spray. One bottle is good for 365 doses and retails for $20. Ed brags that the product is animal-free, 100% vegan, gluten-free, soy-free and only contains pure blueberry extract for flavoring.

Ed tells me that we went to a D3 seminar in Marshall (hey, there are seminars for everything) and that the doctors in attendance all agreed that D3 is king of vitamins. Apparently we are all deficient in D3 and doctors are prescribing it in record amounts. D3 is good for bones, fighting cancer and many other things.

To keep Ed happy, I told him I would share the product with my sales team the following day. With 11 in the room, I was shocked to find that 8 in fact take D3 daily in a pill form (Calcium added).

So here’s the question for you: Do you take D3 daily and if so, would you buy a FDA approved spray delivery instead of taking pills?

And don’t answer yes just to make Ed happy. The fact that he got to pitch yet another item to me has already made his month.

Happy Wednesday!

New York, New York

Tuesday, February 2, 2010

For Immediate Release

Coming soon will be the latest venture into the new phenomenon: Member only shopping websites. This website code name "Max" will be more difficult to access than an American Express Black card.

VIP members must be invited by the website, carry at least one American Express Platinum card, spend at least $50,000 a year on handbags, shoes and jewelry and most importantly, not refer any friends in fear of losing their membership privileges.

And what are those privileges going to be? According to an inside source at the Max website, members will be able to buy brands such as Prada, Gucci and Chanel at 60% discounts in two day increments. And unlike common invite-only websites, each brand will be fully represented.

Apparently there will be a beauty category. Salon brands will sell at 65% off, nail polish brands such as Essie will sell at 69% off and appliances such as Hot Tools will sell at 75% off.

Jeff Bezos, CEO and founder of Amazon.com is rumored to behind the new site. Other experts have Bezos figuring out how to demystifying the invite-only websites by putting standard discounts of 50-75% on his website 24/7. Still others think Bezos who is fighting Walmart, Barnes and Noble, Apple and virtually every other retailer may just offer everything at 90% off to make a statement.

Max’s strategy is not to sell any Amazon brands. Their brands will be strictly chosen by the best designers based in Manhattan and the Hampton’s. Bezos based in Seattle will see Max has his ultimate battle.

In the end, consumers will win as retailers slash their prices yet again to compete. One thing is for certain, member-only clubs will only keep on growing.

Happy Tuesday!

From LA to Detroit to NY salon and spa owners are looking for solutions to lackluster consumer spending at their locations.

This past weekend featured the ISSE show in Long Beach. Crowds packed the exhibit floor with attendees looking for that "spark" that could change their business. What they weren’t looking for was another flat iron and bottle of polish. Reports were that sales were weak and most likely, attendees left the show wondering.

I was on the road last week and met with several salon owners in high end neighborhoods. While all were happy that 2009 was behind us, all had their concerns about 2010. They lamented that they couldn’t raise prices and their clients were spending less. Another major concern was that their staff was being involuntarily thinned out. Unlike the good old days where stylists walked out to get higher commission at another salon, now stylists are retiring or becoming full time moms as they aren’t earning enough money to make it worthwhile.

Unlike other industries that depend on technology to drive productivity and reduce costs, the salon industry is built on human labor and until Silicon Valley invents a virtual stylist, that will be the case for years to come. Interestingly enough, even specialized doctors such as cardiologists are seeing less revenue not because of falling demand (pretty difficult to do a heart operation in someone’s basement), but because Medicare is paying up to 30% less.

One thing our industry has abundance of is capacity. One idea that consumers are accustomed to with health club memberships is paying an annual fee for unlimited use. Salons can charge an annual fee for manicures, haircuts, color and so forth and clients can come in based on the frequency of the contract. The clients pay less per visit but it uses capacity the salon has anyway and more than likely, increases the opportunity for retail.

Salons will always be part of the American landscape. Salon owners have to rethink what they do best, make sure they are the best, and then most importantly, ask their clients a few simple questions. Here’s one to start with: Would you mind paying an extra dollar or two for your service? Hey, if Starbucks can raise their prices by 8%, why can’t we?

Happy Monday!