Beauty Store Business

JUL 2016

Beauty Store Business provides solutions for better retailing! New products, industry news, savvy business moves and important trends affecting both brick-and-mortar and online retailers are included in each issue.

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104 July 2016 | News PC&R STUDY: U.S. SALON SERVICES AND PRODUCT SALES GREW 3.2% IN 2015 Overall revenue for all U.S. salon-industry services (hair, skin and nails) plus salon retail grew 3.2%, according to the new 2015 Professional Salon Industry Haircare Study from Professional Consultants & Resources. Total U.S. salon services and salon retail sales grew to $60.27 billion. In addition, there were nearly 294,000 U.S. salons and barbershops using and selling salon haircare products. Salon count declined by 2.5% as large rental suites opened. "The state of the professional-salon industry is strong with an upward growth curve and changing dynamically," says Cyrus Bulsara, president of Professional Con- sultants & Resources. "Major economic barriers affecting the salon industry are fading as innovative, new products, salon suites and new management at top manufacturers bring new vitality. Manufacturers' sales of hair color, shampoos, conditioners, hair sprays, hairstyling products and specialty products all increased. We also saw a major paradigm shift toward large, family, economy chains and rentals. Most rentals still do not retail effectively. Therefore, product sales at mega-salon stores like ULTA Beauty increased." NAD REFERS AD CLAIMS MADE BY NEW NORDIC U.S.A. TO THE FTC In March the National Advertising Division referred to the Federal Trade Commission advertising claims made by New Nordic U.S.A. for its Skin Care Collagen Filler dietary supplement. The referral follows a review of the advertiser's compliance with a previous NAD decision. NAD is an investigative unit of the advertising industry's system of self- regulation that's administered by the Council of Better Business Bureaus. In the case, NAD recommended that the challenged performance claims and testimonial be discontinued. In its advertiser's statement, the advertiser agreed to comply with NAD's recommendations. Subsequent to that decision, NAD reviewed a print advertisement that featured claims similar to the claims at issue in the case, including: "Skin Care works from the inside – by nourishing the deep layers of the skin, where traditional skin care treatments seldom reach," coupled with a visual of many layers of the skin and the claim "skin care in a tablet." In response to NAD's compliance inquiry, the advertiser noted that it is reformulating the product to more closely reflect the results of ingredient studies and said that the new product would be in the marketplace within two months. Further, New Nordic said the advertisement in question would be discontinued within the same time frame and replaced with a new advertisement that would better reflect the results of its testing. NAD noted that the fact that the advertiser is in the process of making modifications to the product formula does not relieve the company of its obligation to abide by the NAD's recommendations in the case. Based on the advertiser's failure to make a bona fide effort to comply with NAD's recommendations, NAD referred this matter to the FTC for further review. ■ 5Color Prepare 5Scalp Therapy 5Miracle Repair 5Color Correction 5Malibu Blondes ® 5Curl Partner 5Hard Water 5Swimmers HAIR SOLUTIONS MALIBU C ® 1.800.622.7332 | Global Problem Solving Without: Gluten, Parabens and Sulfates wellness beauty collection

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