Consumer confidence has hit a 15-year high. My optimistic view of 2017 is in full play. So what does that mean? People are eating more butter than ever before. In fact, more so since 1949. Consumption is up 8% this year. Restaurants are adding it just about everything to make their food taste better. Even exotic coffee shops are adding a chunk into a hot cup to make the coffee extra creamy. Of course butter equals fat and calories but who cares, times are good. But get this: Wendy’s decided to offer pure butter on its baked potato instead of its blend and customers didn’t like it. Why? Took too long to melt. Get this, Wendy’s blend is butter, soybean oil AND coconut oil. Ouch!
One of the hot items made with butter is something you most likely never heard of: Kouign-amann. It’s made with butter, flour and sugar and is a cross between a croissant, donut and sweet roll. Apparently 330 calories of deliciousness. Be on the lookout! Oh, our Buttercup Creamers are hot, hot hot and 100% fat-free and calorie-free!
I just got the new Apple air-pods. Amazing invention and just the beginning of a whole new technology dealing with sound and hearing. These last up to a week without charging and they charge inside the case. Remove one from your ear and the music turns off. Apple can’t keep them in stock.
Speaking of hot, our Hair Bobbles are flying out. I am very excited for our next product release second half of the year.
Charcoal isn’t just for cooking anymore, it has invaded the natural beauty products industry. I am very excited to introduce our first charcoal-based products this July. Lighter fluid not needed!
With all the latest and great technology why are we still pumping gas and freezing our ass off doing so?
Since when did it become OK to talk on a cell phone getting professional services done at a salon? We need to ban this practice just like they are banned on planes.
The next five years will result in a tremendous shortage of nail techs. Vietnamese nail techs are no longer coming to the USA especially with the new immigration rules coming into place. And existing nail techs can’t fill the current demand. Add to the fact hundreds of beauty schools have closed or are on the verge of closing, no new supply is in the foreseeable future. The result right now is the dearth of new salons and med spas opening. The time is now to make getting a manicure license prestigious as the business of nails will only get better as Boomers age and Millennial flock to salons.
Can you believe WIFI will be passé in 5 years? How much will it cost to remove all those WIFI signs?
Craft beers are on their way down. Why? Consumers are tired of spending 30 minutes seeking out ones they like. With more than 5000 different brands, the market is oversaturated. Good news for the majors.
What MSU team will show up this weekend?
Homeland is really good this season but why is it only Carrie and Sol can solve the complex issues? Westworld is truly bizarre!
One of the great things of being an Entrepreneur for more than 40 years is that you get to watch public companies walk the talk and then see if their results match up to expectations. You can also take advantage of missed opportunities they seem too trivial to pursue.
Best yet, public companies must inform their shareholders quarterly of their financial results, and what analysts want to hear most, future expectations. Based on the current quarter of earning releases to date, one must question the state of the pro beauty business.
Since you are reading this blog, you know my thoughts all along on where the pro beauty business is heading. My two favorite companies in the space, Amazon and Ulta continue to take market share while the traditional companies are struggling more than ever. Listen if Sears Holding is going broke, J.C. Penney is treading water and a Canadian retailer is looking to take over Macy’s which is ten times their size, you know the entire retail picture is changing quickly.
You know salons shrunk by 7% last year and my thoughts are that we will see a similar scenario in 2017. In a classic dilemma of what came first, the chicken or the egg, we have to ask ourselves if salons are closing where are people getting their haircuts? In classic Uber fashion, the industry has always been filled with overcapacity, hence the reason for so many part-time hairdressers and the evolution of booth renters. Walk into just about any salon today and you will see there is still too much capacity so we have a ways to go.
In the meantime you have companies such as Regis reporting negative sales growth and huge drops at retail. Yes innovation has been lacking but consumers are flocking to Ulta to buy their pro hair care items instead of the mall. Sally also reported negative growth with their stock getting slammed. The CEO announced a total restructuring with plans to eliminate up to 150 field managers, cut operational costs and somehow squeeze more margin from their suppliers. But again with beauty schools shutting down along with salons, where will the growth come from when many of the same items are available at THE INDUSTRY SOURCE and Amazon at far cheaper prices.
Bottom line: We are going to see more hair care brands move to alternate distribution as they can no longer rely on traditional methods. And really, how many years has diversion of these brands taken place anyway?
Speaking of the hair business, new items we recently launched that I am very excited about include:
Hair Bobbles are half the price other brands and flying out.
Why spend up to $49.95 for a digital scale when you buy the ForPro model for only $12.99?
I am also loving the new XHI X-Steam Pro Flat Iron & Straightener. It truly is a magical tool for straightening hair in half the time without damage.
As I have stated before, innovation and excitement is alive and well at TNG and to further this statement, I just announced one of our biggest product launches in company history today. More to come on this next blog.