Let’s get this info popping....How to start a Beauty Supply Store

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All natural niche market could be a thing to break into the market. I think a storefront with a strong online game is necessary. Also look at the margins in the market. It may be challenging to enter a market with 2% margin. And if so , “shrinkage “, will kill you.
can you explain how to do that?
 

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Use Cost To Set Retail & Wholesale Prices
Have you ever been puzzled trying to figure out how to price your products for retail sale? Pricing questions come up a lot for all businesses and we certainly get asked about it, especially from those new to the beauty industry. The first step in setting your pricing is to understand the different terms associated with pricing.

“Retail (Or SRP)”, “Wholesale” Or “Cost”?
John Landforce, president of Essential, and I were having a confusing pricing conversation the other day and I realized the reason I was confused was because he and I were using different terms. I was talking from the customer point of view and John was talking from a manufacturer’s point of view. I was using the term “cost” for the customer’s cost and John was using terms “cost” for the manufacturer’s cost; two dissimilar things.

We are all in business to make money and in order to do that you must turn a profit. The beauty business is a beast of its own and you really can’t look at pricing structures from other industries to figure out how to lay yours out. However, all industries use the same terms and if you want to sell to brokers, distributors, or even direct, you need to be using the same terms to avoid confusion like I had with John. Hopefully, this will help you figure out pricing, too.

Cost Components
The total expense for you to produce a single product is ‘cost’. Your cost includes raw materials, packaging, and overhead (labor, shipping, etc). Let me state here that the cost of your raw materials must also include landed cost, which is the incoming shipped fees associated with getting that raw material to you. If you are producing your own products, please remember that your time is valuable and you are worth something for every hour of work. Just like you’d pay an employee a certain hourly wage, make sure you calculate that you have an hourly wage too; even if you don’t yet pay yourself, this is an expense you need to capture. Product costs are highly proprietary; you should never share your cost information.

To Summarize: Cost = raw materials plus packaging plus overhead

Establishing Your Retail Price (Suggested Retail Price [SRP])
Your retail price is the price paid by the end user. A healthy retail price in the US natural and organic skin care and body care market is five to six times your cost, leaving you with an 80% or more profit margin. We understand all pricing is dependent on the market, but If this five to six times cost basis doesn’t work out for the market niche you’re selling into, consider ways to reduce your costs to keep your margins up. Lowering your retail price may not be the right thing to do. Oft times we feel that if we are the lowest, we will sell better than our competitor, but I can tell you that you should never price your products below three times your cost. One thing I learned when I had my own spa is that a business owner must never be tempted to offer lower prices than what one can truly afford. So finding ways to reduce cost becomes paramount.

For example, if you can’t afford the minimums required to get a better price on a raw ingredient purchase, consider splitting purchases with someone else. When EWL was in its infancy, it used to share purchasing of a pallet of ingredients with another small raw ingredient distributor. One thing I didn’t talk about inside the Cost section is that you will find yourself giving away more product than you planned and also that you will find one day that you want or need to spend more on marketing to improve your website ranking in the search engines, or that you realize you need to pay an artist to create marketing materials for you like Point of Purchase displays and you will need that buffer in your margin to do just that. Another consideration is that every time raw materials increase in price, you really don’t want to be changing your Retail price. Costs will fluctuate, and sometimes they can fluctuate weekly. So give yourself enough buffer to not have that happen to your retail price, otherwise soon your customers won’t want to purchase from you.

To Summarize: Retail Price = Cost times five to six.

Wholesale Price
When selling through a distribution channel, such as a local store who will then sell to the end user, you need to have wholesale pricing. The standard is 50 percent of the retail pricing. So if you sell an item for $20 retail, then you would sell your item to the store for $10 wholesale. This way you would still yield a healthy return of about 60% margin if you had had sent your retail price at five times cost.

To Summarize: Wholesale = Retail price divided by two

Profit Margin
I mentioned that I would tell you about the different pricing terms and that hopefully would help you figure out pricing, too. I have subsequently mentioned “margin” and perhaps you weren’t sure what I was talking about. Well, if you want to make a profit and stay in business, you need to know. Ask yourself this: “What is the dollar return I make on each sale?” Let’s take my earlier example in Wholesale Price. You sold an item for $20, this means that it cost you $4 (read Retail Price section and notice this is a “times five” pricing choice). Your dollar return was $16. Your profit dollar and profit margin are the measurements of financial success in your business. To look at it in profit margin terms and not profit dollar terms, take your profit made in dollars and divide by the sales price. Then multiply by 100 to get a %. So your profit margin formula would be ($16/$20)*100 which would equate to 80% Profit Margin.

Profit Margin = (sales price – cost) / sales price

Pricing Your Natural And Organic Skin Care Products
When you set your prices, understanding your product costs and your market are the key factors to consider. Priced too low, consumers will not value the product and may not believe your what your label claims. It just ‘feels’ wrong. Too high and you won’t move enough product. As you set your pricing it’s important to thoroughly understand how your competitors are pricing similar– or apparently similar, products. It’s also important to know how the distribution channels are positioned. High-end boutique or family-friendly salons. Both of those outlets have a price-point profile and your products’ pricing should be consistent with your distribution channels’ pricing profile.
 

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Product Categories
Baby Care
Body & Facial Oils
CBD Ready
Conditioners
Cremes
DIY Kits
Facial Cleansers & Exfoliants
Five for Men Collection
Gels
Hair & Body Washes
Household & Laundry
Kids
Lotions
Masques
Melt & Pour Cosmetics
Men's
Micellar Water
Mineral Makeup
MSM Products
Natural Hair Products
New Products
Organic Spa Collections
Organically Preserved Bases
Sports & Outdoor Essentials
Overstock
Pets
Rainbow Collection
Ready To Label
Salts, Soaks & Powders
Sample Packs
Scrubs & Polishes
Serums
Shaving & Styling
Sirius Skincare Collection
Spa
Splashes
Summer Selections
Supplies
Toners, Sprays & Astringents

Ingredients
 

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Makeup Brushes Market 2018 Global Share, Trend, Segmentation and Forecast to 2024

Wednesday, March 6th 2019, 12:11 PM CST
Wiseguyreports.Com Added New Market Research Report On -“Makeup Brushes Market 2018 Top Key Players, Segmentation, Industry Analysis and Demand Forecast to 2024”.

Description

A makeup brush is a tool with bristles, used for the application of make up or face painting. The bristles could be made out of natural or synthetic materials, while the handle is usually made out of plastic or wood. When cosmetics are applied using the appropriate brush they blend better into the skin.

Scope of the Report:
China is the largest producer due to the abundant raw materials, low labor cost, she take a market share of around 45% in 2017, the brushes produced in China has a lower price level, this made China’s revenue share in global declined to 37.4%.

Global giant manufactures mainly distributed in U.S. and E.U. The key consumption markets locate at developed countries. The Europe takes the market share of 25.6%, followed by North America with 20%. The developed countries have a high makeup penetration rate, for the developing countries, China market got a consumption market share of 31.1% due to the large population.

The worldwide market for Makeup Brushes is expected to grow at a CAGR of roughly 8.5% over the next five years, will reach 2170 million US$ in 2024, from 1330 million US$ in 2019, according to a new GIR (Global Info Research) study.


Get sample Report @ https://www.wiseguyreports.com/samp...-brushes-market-2019-by-manufacturers-regions

This report focuses on the Makeup Brushes in global market, especially in North America, Europe and Asia-Pacific, South America, Middle East and Africa. This report categorizes the market based on manufacturers, regions, type and application.

Market Segment by Manufacturers, this report covers
L’Oreal
Shiseido
Estee Lauder
LVMH
E.l.f.
Paris Presents
Sigma Beauty
Avon
Amore Pacific
Chanel
Watsons
Zoeva
Chikuhodo
Hakuhodo

Market Segment by Regions, regional analysis covers
North America (United States, Canada and Mexico)
Europe (Germany, France, UK, Russia and Italy)
Asia-Pacific (China, Japan, Korea, India and Southeast Asia)
South America (Brazil, Argentina, Colombia etc.)
Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria and South Africa)

Market Segment by Type, covers
Natural Hair Brushes
Synthetic Hair Brushes

Market Segment by Applications, can be divided into
Offline Sales
Online Sales


Complete Report Details @ https://www.wiseguyreports.com/repo...-brushes-market-2019-by-manufacturers-regions


Table of Contents -Major Key Points

1 Market Overview
1.1 Makeup Brushes Introduction
1.2 Market Analysis by Type
1.2.1 Natural Hair Brushes
1.2.2 Synthetic Hair Brushes
1.3 Market Analysis by Applications
1.3.1 Offline Sales
1.3.2 Online Sales
1.4 Market Analysis by Regions
1.4.1 North America (United States, Canada and Mexico)
1.4.1.1 United States Market States and Outlook (2014-2024)
1.4.1.2 Canada Market States and Outlook (2014-2024)
1.4.1.3 Mexico Market States and Outlook (2014-2024)
1.4.2 Europe (Germany, France, UK, Russia and Italy)
1.4.2.1 Germany Market States and Outlook (2014-2024)
1.4.2.2 France Market States and Outlook (2014-2024)
1.4.2.3 UK Market States and Outlook (2014-2024)
1.4.2.4 Russia Market States and Outlook (2014-2024)
1.4.2.5 Italy Market States and Outlook (2014-2024)
1.4.3 Asia-Pacific (China, Japan, Korea, India and Southeast Asia)
1.4.3.1 China Market States and Outlook (2014-2024)
1.4.3.2 Japan Market States and Outlook (2014-2024)
1.4.3.3 Korea Market States and Outlook (2014-2024)
1.4.3.4 India Market States and Outlook (2014-2024)
1.4.3.5 Southeast Asia Market States and Outlook (2014-2024)
1.4.4 South America, Middle East and Africa
1.4.4.1 Brazil Market States and Outlook (2014-2024)
1.4.4.2 Egypt Market States and Outlook (2014-2024)
1.4.4.3 Saudi Arabia Market States and Outlook (2014-2024)
1.4.4.4 South Africa Market States and Outlook (2014-2024)
1.4.4.5 Turkey Market States and Outlook (2014-2024)
1.5 Market Dynamics
1.5.1 Market Opportunities
1.5.2 Market Risk
1.5.3 Market Driving Force

2 Manufacturers Profiles
2.1 L’Oreal
2.1.1 Business Overview
2.1.2 Makeup Brushes Type and Applications
2.1.2.1 Product A
2.1.2.2 Product B
2.1.3 L’Oreal Makeup Brushes Sales, Price, Revenue, Gross Margin and Market Share (2017-2018)
2.2 Shiseido
2.2.1 Business Overview
2.2.2 Makeup Brushes Type and Applications
2.2.2.1 Product A
2.2.2.2 Product B
2.2.3 Shiseido Makeup Brushes Sales, Price, Revenue, Gross Margin and Market Share (2017-2018)
2.3 Estee Lauder
2.3.1 Business Overview
2.3.2 Makeup Brushes Type and Applications
2.3.2.1 Product A
2.3.2.2 Product B
2.3.3 Estee Lauder Makeup Brushes Sales, Price, Revenue, Gross Margin and Market Share (2017-2018)
2.4 LVMH
2.4.1 Business Overview
2.4.2 Makeup Brushes Type and Applications
2.4.2.1 Product A
2.4.2.2 Product B
2.4.3 LVMH Makeup Brushes Sales, Price, Revenue, Gross Margin and Market Share (2017-2018)
2.5 E.l.f.
2.5.1 Business Overview
2.5.2 Makeup Brushes Type and Applications
2.5.2.1 Product A
2.5.2.2 Product B
2.5.3 E.l.f. Makeup Brushes Sales, Price, Revenue, Gross Margin and Market Share (2017-2018)
2.6 Paris Presents
2.6.1 Business Overview
2.6.2 Makeup Brushes Type and Applications
2.6.2.1 Product A
2.6.2.2 Product B
2.6.3 Paris Presents Makeup Brushes Sales, Price, Revenue, Gross Margin and Market Share (2017-2018)
2.7 Sigma Beauty
2.7.1 Business Overview
2.7.2 Makeup Brushes Type and Applications
2.7.2.1 Product A
2.7.2.2 Product B
2.7.3 Sigma Beauty Makeup Brushes Sales, Price, Revenue, Gross Margin and Market Share (2017-2018)




 

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Global False Lashes (False Eyelashes) Market 2019 Industry Key Players, Trends, Sales, Supply, Demand, Analysis & Forecast To 2024

Posted: Mar 01, 2019 1:11 PM EST

Market Analysis Research Report On “Global False Lashes (False Eyelashes) Market 2019 Industry Growth, Size, Trends, Share, Opportunities And Forecast To 2024 ” To Their Research Database.
World False Lashes (False Eyelashes) Market
Executive Summary
False Lashes (False Eyelashes) market research report
provides the newest industry data and industry future trends, allowing you to identify the products and end users driving Revenue growth and profitability.
The industry report lists the leading competitors and provides the insights strategic industry Analysis of the key factors influencing the market.
The report includes the forecasts, Analysis and discussion of important industry trends, market size, market share estimates and profiles of the leading industry Players.
Request a Sample Report @ https://www.wiseguyreports.com/sample-request/3605073-world-false-lashes-false-eyelashes-market-research-report
The Players mentioned in our report
Ardell
ESQIDO
Kiss
Revlon
Shu uemura
MAC
Makeup Geek
Benefit
NARS
Elf
Global False Lashes (False Eyelashes) Market: Product Segment Analysis
Handmade Eyelash
Mechanical Eyelash
Global False Lashes (False Eyelashes) Market: Application Segment Analysis
Drugstore
Supermarket
Specialist Retailers
Internet Sales
Global False Lashes (False Eyelashes) Market: Regional Segment Analysis
USA
Europe
Japan
China
India
South East Asia
Table of Content-Key Points Covered
Chapter 1 About the False Lashes (False Eyelashes) Industry
1.1 Industry Definition and Types
1.1.1 Handmade Eyelash
1.1.2 Mechanical Eyelash
1.2 Main Market Activities
1.3 Similar Industries
1.4 Industry at a Glance
Chapter 2 World Market Competition Landscape
2.1 False Lashes (False Eyelashes) Markets by Regions
2.1.1 USA
Market Revenue (M USD) and Growth Rate 2013-2023
Sales and Growth Rate 2013-2023
Major Players Revenue (M USD) in 2018
2.1.2 Europe
Market Revenue (M USD) and Growth Rate 2013-2023
Sales and Growth Rate 2013-2023
Major Players Revenue (M USD) in 2018
2.1.3 China
Market Revenue (M USD) and Growth Rate 2013-2023
Sales and Growth Rate 2013-2023
Major Players Revenue (M USD) in 2018
2.1.4 India
Market Revenue (M USD) and Growth Rate 2013-2023
Sales and Growth Rate 2013-2023
Major Players Revenue (M USD) in 2018
2.1.5 Japan
Market Revenue (M USD) and Growth Rate 2013-2023
Sales and Growth Rate 2013-2023
Major Players Revenue (M USD) in 2018
2.1.6 South East Asia
Market Revenue (M USD) and Growth Rate 2013-2023
Sales and Growth Rate 2013-2023
Major Players Revenue (M USD) in 2018
2.2 World False Lashes (False Eyelashes) Market by Types
Handmade Eyelash
Mechanical Eyelash
2.3 World False Lashes (False Eyelashes) Market by Applications
Drugstore
Supermarket
Specialist Retailers
Internet Sales
2.4 World False Lashes (False Eyelashes) Market Analysis
2.4.1 World False Lashes (False Eyelashes) Market Revenue and Growth Rate 2013-2018
2.4.2 World False Lashes (False Eyelashes) Market Consumption and Growth rate 2013-2018
2.4.3 World False Lashes (False Eyelashes) Market Price Analysis 2013-2018
Chapter 3 World False Lashes (False Eyelashes) Market share
3.1 Major Production Market share by Players
3.2 Major Revenue (M USD) Market share by Players
3.3 Major Production Market share by Regions in 2018, Through 2023
3.4 Major Revenue (M USD) Market share By Regions in 2018, Through 2023
Chapter 4 Supply Chain Analysis
4.1 Industry Supply chain Analysis
4.2 Raw material Market Analysis
4.2.1 Raw material Prices Analysis 2013-2018
4.2.2 Raw material Supply Market Analysis
4.2 Manufacturing Equipment Suppliers Analysis
4.3 Production Process Analysis
4.4 Production Cost Structure Benchmarks
4.5 End users Market Analysis
Continued….
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To view the original version on ABNewswire visit: Global False Lashes (False Eyelashes) Market 2019 Industry Key Players, Trends, Sales, Supply, Demand, Analysis & Forecast To 2024
 

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Major Players in False Lashes(False Eyelashes) market are:
Ardell
Sephora
NARS Cosmetics
Leg Avenue
Makeup Geek
Kiss
ESQIDO
Revlon
ETUDE HOUSE
Shu Uemura
BenefitCosmetics
MAC
Elf

Major Regions that plays a vital role in False Lashes(False Eyelashes) market are:
North America
Europe
China
Japan
Middle East & Africa
India
South America
Others
 

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Global False Eyelashes Market Research Report: Information by Type (Strip Lashes, Individual Lashes, Cluster Lashes, Others) Raw Material (Synthetic Hair, Human Hair, Animal Hair, Others) Production, Distribution Channel, and Region – Forecast Till 2023
Market Scenario

Global market for false eyelashes has witnessed significant demand during the last few years and is projected to reach USD 1,754 million at a CAGR of 7.34% during the forecast period. Growing demand for luxury eye-makeup with trending new fashion is driving the growth of the market. Moreover, innovation in the cosmetic product lines has a great impact on the consumers preference for false eyelashes.

False eyelashes are artificial lashes worn to define the eyes and to make the upper and lower lash lines, appear thick. They are applied with the help of a special glue and are available in different types, designs, color, and length. Rising awareness of eye makeup along with increasing demand for customized & personalized eye makeup products, is a driving factor for the false eyelashes market.

The adoption of trends by consumers, is driving the false eyelashes market. Moreover, due to improved technology, a large volume of false eyelashes are being manufactured to meet the increasing consumer demands, which is a positive factor for the market growth. Increasing working population and rising consciousness about their professional appearance, have created immense opportunity for the false eyelashes manufacturers.

Global false eyelashes market is segmented into North America, Europe, APAC, and RoW. North America projected for the maximum market share of 36.78% in the year of 2017. However, Asia Pacific is witnessed to be the fastest growing region in this market, in which China is the major market shareholder with 48.56% market share in the year 2017. Increasing information regarding false eyelashes and product innovation, are the driving factor for the growth of false eyelashes in this region.

On the basis of the type, it is segmented into strip lashes, individual lashes, cluster lashes, and others. Among them, strip lashes accounted for the major market proportion of 57.34% in the year of 2017. Moreover, it has highest market share in North America, followed by Europe. However, individual lashes segment is expected to grow at the fastest rate of 7.60% over the forecast period.

Based on the raw material, false eyelashes market is segmented into synthetic hair, human hair, animal hair & fur, others. Among them, synthetic hair segment is witnessed to be dominating with major market share of 64.67% in the year 2017 and is expected to grow at the fastest rate over the forecast period. Also, human hair segment is expected to witness a healthy growth rate of 7.48% during the review period.

On the basis of the production, false eyelashes market is segmented into machine made, hand-made and others. Among them, the machine based segment is dominating the market in the year of 2017. However, the hand-made segment is expected to witness the fastest growth rate at a CAGR of 7.61% during the forecast period of 2017-2023.

Based on the distribution channel, false eyelashes market is segmented into store-based and non-store based. Moreover, store-based segment is further divided into supermarkets/hypermarkets, cosmetic stores, drug stores, and others. Among all, supermarkets/hypermarkets accounted for the largest market share of 53.47% in the year 2017. However, non-store based segment is estimated to be growing at a fastest rate over the review period.

Key Players

Some of the key players profiled in the global false eyelashes market are Revlon Inc.( New York), MAC Cosmetics (The Estée Lauder Companies Inc.) (New York), Ulta Beauty, Inc (U.S.), and Ardell International, Inc (U.S.). Kiss Products Inc (U.S.), Shu Uemura Cosmetics, Inc. (Japan) - L'Oreal SA., and Esqido Lashes (Canada) are among others.

Target Audience

  • False eyelashes manufacturers
  • Cosmetic industry
  • Fashion industry
  • E-commerce
Key Findings

  • North America dominated the market with a market share of 36.78% for the year 2017. Furthermore, in North America, the U.S. accounted for the major market share followed by Canada during the forecast period of 2017-2023.
  • Individual lashes segment is gaining the highest growth rate during the review period, in which Asia Pacific is witnessed to have the fastest growth rate of 8.27%
Regional and country analysis of global false eyelashes market development and demand forecast to 2023 market

As per MRFR analysis, the global false eyelashes market is expected to reach USD 1,754 million by the end of the year 2023 at a CAGR of 7.34% during the forecast period.

The reports also cover country-level analysis:

  • North America
  • U.S.
  • Canada
  • Mexico
  • Europe
  • Germany
  • France
  • U.K
  • Italy
  • Spain
  • Rest of Europe
  • Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia Pacific
  • RoW
  • Brazil
  • Argentina
  • Saudi Arabia
  • Egypt
  • South Africa
  • Other
 

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Money flowing into the natural hair industry is a blessing and curse for those who built it up

By MAKEDA EASTER
AUG 10, 2017 | 3:00 AM



Miko Branch was deep asleep when her sister Titi woke her up to celebrate. After months of experimentation in the kitchen of their Brooklyn brownstone kitchen, she had finally perfected the concoction that would come to be known as Curly Pudding. (August 10, 2017) (Sign up for our free video newsletter here http://bit.ly/2n6VKPR)




Miko Branch was deep asleep when her sister Titi woke her up to celebrate. After months of experimentation in the kitchen of their Brooklyn brownstone kitchen, she had finally perfected the concoction that would come to be known as Curly Pudding.

It was a major discovery — well worth the early morning wake-up call — because in 2003 there were very few hair products for black women with kinky, curly or wavy hair.

“There was nothing like [Curly Pudding] in the early 2000s,” Miko Branch said. “It was really transformative.”

The product line they would go on to develop, Miss Jessie’s, was one of the pioneering brands in the natural hair industry, a once-grass-roots segment of the beauty world that’s now a hotbed for investment.

In the 1990s and early 2000s, these companies catered to and were largely run by a small community of black women embracing their natural hair. But with 71% of black adults in the U.S. wearing their hair naturally at least once in 2016, according to research firm Mintel, natural hair has now hit the mainstream. And with black consumers spending an estimated $2.56 billion on hair care products in 2016, it’s no surprise others are eager to edge into the market.

Investment from beauty industry giants has helped natural hair products move from specialty stores to the shelves of major retailers such as Target, Wal-Mart and CVS — making it easier for customers to get their hands on what were once niche products.

But it’s also forcing independent black-owned companies to compete with corporations that long ignored the natural hair market, resulting in sometimes uncomfortable changes for customers and business owners alike.

For black women, hair is more than a style — it’s something tangled up in history, politics and race.

Discrimination against black hair can be traced to slavery, when slave owners gave preferential treatment to those with “good hair” — a term still used today to describe black hair that more closely resembles European hair textures. To better assimilate and achieve a higher status in society, black people developed techniques to straighten their hair.

It wasn’t until the civil rights movement that black people began to reclaim their natural hair in droves. However, by the 1990s product offerings for those sporting natural hair remained sparse.

“Back then retailers weren’t bringing in natural brands,” said Richelieu Dennis, chief executive of Sundial Brands, best known for its SheaMoisture line. “They were focused on serving only women with relaxed hair.”

Black hair, which can grow out instead of down, can range from loose waves to tightly packed coils. Because of the hairs’ curl pattern, natural hair products must address unique needs, such as inherent dryness, to promote healthy hair.

With few offerings from major beauty brands, those who wanted to care for natural hair took matters into their own hands, creating products for black customers and an avenue for black entrepreneurship.

Liberian-born Dennis partnered with his college roommate and mother to make hair and skin products inspired by family recipes in 1991. A decade after opening her first salon, Jane Carter launched the Jane Carter Solution product line in 1992. Carol’s Daughter was born out of a Brooklyn kitchen in 1993. Curls, founded in Elk Grove, Calif., and Kinky-Curly, of Los Angeles debuted in 2002 and 2003, respectively. The Branch sisters started Miss Jessie’s in 2004.

Generations of being told in school, work, media and even inside the black community that natural hair was unacceptable had lasting effects. But for black women going against the grain in the 1990s and early 2000s, online forums such as NaturallyCurly.com and Nappturality.com helped foster a sense of pride while spreading the word about nascent businesses, said Shelley Davis, founder of Kinky-Curly. Seeing other black women embrace their hair on YouTube, Facebook and Instagram inspired many to take the plunge.

“It’s always been a community — people sharing and complaining and consoling — that has evolved with different technologies,” Davis said.

la-1502124184-g4en1yfprp-snap-image

Bianca Alexa. (Christina House / For the Times)
As more women went natural, homegrown natural hair operations reaped the benefits. Sales increased and operations expanded. Sundial Brands, which started as a street-vending operation, moved to mass retailers in 2007 and is now worth an estimated $700 million.

“For so long we haven’t had a lot of options, we’ve been sold misinformation and now the tide has changed,” Davis said.

Meanwhile, multinational corporations were left catering to a dying trend: relaxers. According to Mintel, black spending on relaxers fell 30.8% between 2011 and 2016. By 2020, it’s estimated that relaxers will plummet to the smallest segment of the market.

The hair care industry is saturated, said Toya Mitchell, a multicultural analyst at Mintel, with shampoos and conditioners experiencing soft sales. “Companies looking for growth are looking for consumers that are the low hanging fruit,” she said.

Adding natural hair products is an obvious way for big beauty corporations to tap into the more than 24 million black women in the U.S — a market many had previously overlooked.

This has led some multinational beauty brands to build their own natural hair lines. Cantu, developed by AB Brands in 2004, was sold to PDC Brands in 2015. L’Oréal unveiled Au Naturale in 2013. Pantene launched a natural hair line in January developed by a team of black scientists.

Major beauty companies also began investing in and acquiring black-owned natural hair brands.

Carol’s Daughter was sold to L’Oréal in 2014. Namaste Laboratories, known for its Organic Root Stimulator line, was sold to Indian wellness company Dabur for $100 million in 2010. Bain Capital, an investment firm co-founded by onetime presidential candidate Mitt Romney, has a minority stake in Sundial. (Dennis declined to discuss the size of Bain’s stake).

This funding has helped natural hair companies expand. With L’Oréal’s acquisition, Carol’s Daughter reached more than 30,000 stores nationwide. Mitchell estimates that Carol’s Daughter and SheaMoisture are aiming for 45,000 retail outlets.

Despite their increasing influence in the market, major beauty brands acknowledge it will be an uphill battle to win over black customers who feel the industry has neglected their needs.

“We understand that many have the perception that Pantene is not a brand for women with natural hair,” Jodi Allen, vice president of hair care for North America at Procter & Gamble, said in an email.

Such sentiment hasn’t stopped Pantene, Dove and Garnier Fructis from launching “very overt campaigns to black women trying to bring them into the fold,” Mitchell said.

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Natural hair has hit the mainstream and companies are eager to cash in. Pictured is a sampling of natural hair products including Cantu, Curls, Miss Jessie's, Au Naturale and SheaMoisture. (Jerome Adamstein / Los Angeles Times)
The interest and capital from big beauty has upsides and downsides, said Kashmir Thompson, founder of Delish Condish, a small natural hair product line. “I have mixed feelings because it almost seems kind of culture-vulturish,” she said. But “a part of me feels like it’s about time. I don’t really want to shun it because we should’ve been part of these bigger brands.”

Yet the changing industry has some customers fearing they’re the ones who are being shunned.

The influx of money — and competition — has led some in the natural hair industry to prioritize the most traditional of business goals: growth. With black women making up about 7.5% of the U.S. population, one way to grow sales in the increasingly crowded natural hair sector is to reach new demographics of shoppers.

Some natural hair firms have started targeting a broader audience of multicultural buyers to better compete with corporate giants. But in doing so, they risk alienating their original customer base.

Before its acquisition, Carol’s Daughter signaled a transition with a 2011 ad featuring singer Solange and multiracial models Cassie and Selita Ebanks. “What we’re doing now is moving into a polyethnic space," investor Steve Stoute told Women’s Wear Daily when the campaign was launched.

For some, the ad marked a step away from a movement for black women. "It seems like Carol’s Daughter did what many companies tend to do — feature only lighter-skinned women of color, because they’re considered more palatable to mainstream society," wrote blog Brown Sugar Beauti.

Founder Lisa Price says she knew Carol’s Daughter had the potential to reach a larger demographic than its original largely black and female customer base when she realized the products work for a wide range of hair and skin types.

“We will continue addressing diverse beauty needs and featuring African American women, and all types of women in our advertising — as our Carol’s Daughter family has grown to include real women from around the world,” Price said in an email.

SheaMoisture faced similar backlash for an ad in April. The ad, part of a campaign with dozens of short videos, featured several white women talking about the hair-related struggles they’ve faced — like having red hair. Critics said it minimized the lifetime of discrimination black women face over their hair, affecting their employment prospects, media representations and self-esteem, among other factors.




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The blowback was swift and fierce.

“The reason people felt upset is because you feel so close to this brand that you’ve seen grow and you’ve helped build and you’ve spread the word about,” said Patrice Grell Yursik, creator of black beauty website Afrobella. “To see them making decisions that make you feel excluded and that they’re intentionally trying to move on from you as a consumer is hurtful.”

Dennis said the ad did not go through Sundial’s typical process. “We understand that we as a brand have transcended a brand and we are part of our cultural identity and there’s a responsibility that comes with that.”

When asked if they are shifting to a multicultural audience, some brands point to hair type instead of race. “From the beginning, my sister and I were staying focused on texture,” Branch said. “It’s not uncommon for a Jewish woman to have the same afro-texture as a woman with African descent.”

“I’m black,” Davis said. “I made [Kinky-Curly] for my hair type and as time went on, other ethnicities and other demographics have started to use the product which is fine.”

Some customers are denouncing the shifts by brands such as SheaMoisture and Carol’s Daughter — companies that helped kick-start the natural hair movement — and pledging their support to small, independent black-owned companies.

“A lot of these brands ... say they’re listening and in the same breath they try to defend what they do,” said Erin McLaughlin, a 20-year-old from Philadelphia who went natural two years ago.

There’s a reason those with natural hair are concerned, Yursik said. After all, the movement emerged because big beauty companies were ignoring their wants and needs. Who’s to say that won’t happen again?

“I want to see our black brands grow in a way that doesn’t result in alienating us as a consumer base,” she said. “It’s something we’ve seen before.”
 
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