I interrupt this scheduled blog due to breaking news. If CNN and FOX can do it, so can I!
Actually it's not breaking news (and what the hell is breaking mean anyway?) but it's news nonetheless. In the race who can be the biggest and own the most market share, L'Oreal, the $25 Billion company based in Paris, bought both Maly's and Marshall's.
Their combined sales were $110 Million with some 700 employees. Last quarter 2009, Sally Beauty Holdings who owns Sally Beauty Supply and BSG (Cosmoprof) bought Schoenomen Beauty Supply.
The $100 question of the day is who is going to buy C.B. Sullivan which is most likely the next candidate to go down and then who is going to buy East Coast Salon Services and perhaps Emiliani and Peel's?
It's not enough that L'Oreal owns Matrix, Redken, L'Oreal Professionnel, Kerastase, Pureology, Garnier, and countless other brands. They want to own the distributors too. With this purchase, they are 80% of the way towards national domination.
Procter & Gamble who brands such as Wella, Sebastian, Nioxin, Clairol, Pantene and Head and Shoulders isn't going to watch while L'Oreal continues to snap up the distributors that are left. And certainly SBH knows its time is limited to acquire so the race is on.
In the meantime, if you are a salon owner or hairdresser, 2010 is going to be the pivotal year for you to decide once and for all if the global players strategy is spot on. The ramifications if their strategy is successful are severe.
2010 isn't even a week old but already, it's getting intense. For more breaking news, stay tuned.
P.S. I'll be out all next week, take some time to check out our all new website, tngworldwide.com.