The hottest trend in haircare right now in salons across America is that they are all launching their own brand. Whether it’s Trader Joes, Target, Saks 5th Ave or even Amazon itself, retailers are embracing private label as strategy that accelerates brand awareness and increases profitability. Salon owners have caught up to the rest of the retail world and launching private label hair care lines at an incredible rate.
The reason we are seeing such an acceleration in salons launching their own brand is clear. It’s a combination of 3 major factors. First, Diversion and direct sales (online and via retailers like Ulta and Sephora) have lowered the cache and appeal of many of the major haircare brands available. Salons are struggling to compete and differentiate themselves as traditional brands have embraces other channels to sell their products. Second, more and more salons are starting to awaken to the value of their business as a brand. Rather than erode that by hitching their wagon to conventional hair care companies, they are using private label as a strategy to strengthen their overall brand image. And lastly, private label companies like Genesis Private Label are enabling salons to access high quality formulations with much lower up front costs than previously available. 10 years ago, most salons simply didn’t have the cashflow to launch their own private label hair care line based on the limited options of partners. Now, Genesis is among a group of companies offering a much more accessible model.
The control, exclusivity, and profitability that private label offers is more appealing for salons than ever before given the increasingly competitive landscape. As more and more haircare brands abandon the salon and undermine the integrity of the salon industry, private label will be the natural refuge for owners seeking something new, and have more at the end of the month to show for their hard work.