Frédéric Fekkai has never shied away from breaking paradigms. He spearheaded the $400 haircut. He pioneered selling celebrity hair care products in department and specialty stores, a move that’s been mimicked by his peers. Now, the uberstylist plans to grow his salon business into an international enterprise by opening 20 to 25 locations over the next three years. The firm is actively looking into possible lease opportunities in the top 18 markets in the U.S., as well as at real estate in London and Paris.
Fekkai’s successful product business is funding the expansion, said Melisse Shaban, chief executive officer of Fekkai. Product sales now reach approximately $55 million worldwide, according to industry sources. Frédéric Fekkai hair care products are sold in 1,700 doors worldwide, in the U.S., United Kingdom, France, Greece, Austria and the Netherlands.
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The product business received a huge boost in January 2005 when the firm partnered with Greenwich, Conn.-based private equity firm Catterton Partners. In less than two years, the product side of the business grew 45 percent at a compounded annual growth rate, said Shaban. “It has been the right time for the brand, it’s the right time to have a luxury hair care line,” Shaban said. “It’s because of our success on the product side of the business we now have the ability to attack the service side of the business.”
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The move is being lauded by his peers, many of whom are eager to see where the new locations will pop up. A new SoHo salon at 394 West Broadway in New York is planned for early December, and a mini salon is in the works for later that month at the spa of the Hotel Guanahani in St. Barth’s. In 2007, an undisclosed location is planned for Greenwich, Conn., London and Paris. Las Vegas, Texas and additional units in Florida are on the drawing board, too. Fekkai operates salons in Manhattan, Beverly Hills and Palm Beach, Fla., which sources said generate $25 million in combined sales annually.
When asked about whether there was enough room in Las Vegas for more than one celebrity stylist — West Coast stylist Kim Vo is reportedly planning to conquer the region — Shaban said, “The pie is so big there we feel confident there is enough room for more than one.”
Shaban is also not concerned salon expansion will water down Fekkai’s prestige positioning.
“We think just the opposite. The salons will anchor [the positioning]. We are an affordable luxury,” she said.
Bruno Mascolo, chairman and ceo of Toni&Guy and TIGI Linea, a $270 million operation, agreed.
“A great hairdressing icon like Frédéric Fekkai should not hesitate to expand. By expanding his salons, he is making himself more accessible; a lot of people can experience his talent instead of a few. I think it’s a good decision,” he said.
Since staffing salons is always a challenge for salon owners, Fekkai said an educational center is in the works, which would help supply a stream of stylists trained by Fekkai educators to new locations. The center would supplement the company’s ongoing weekly training sessions already in place at each salon. New units could also serve as an ideal opportunity for seasoned Fekkai stylists looking to move on to the next step in their careers.
“The problem with the industry is there is no place for someone to go once they get good enough to open their own salon,” said Fekkai.
Edward Tricomi, one half of the Warren-Tricomi duo who operate five high-end salons in the U.S., is on a similar growth path as Fekkai. Tricomi said his entry into new markets is also being fueled by sales of hair care products. But staffing salons, he said, is more difficult than it appears.
“When you open up hair salons of our caliber, the stylists have to be highly, highly, highly trained. You are asking for big money from clients. Stylists need a skill set. There is a lot of training involved,” he said.
Then, there is also the fact that new markets offer up a different culture, even areas within the U.S. Tricomi referred to his Los Angeles entry that happened seven months ago, where he is still working on the skill set of his employees.
“In L.A., the girls wear their bodies. It’s a very different mind-set from New York, where women wear fashion. So, the hair is very different, too.” Los Angeles girls prefer longer, sexier styles compared with New York women, who like straighter, cleaner styles, Tricomi said.
One tip Tricomi offered Fekkai is to partner with an expert in each new locale so as to have someone who can teach the culture to other stylists.
Is Tricomi worried about his rival’s entry into Greenwich next year, where Warren-Tricomi operates a salon?
“Competition is great because it keeps you on your toes. If they are doing it better, we will learn” how to do it better, too, Tricomi said.
Fabrice Gili, cocreative director of the Fekkai salon at Henri Bendel, learned of the expansion on Wednesday over breakfast. Gili, who started as a junior stylist nine years ago, will become creative director of the SoHo salon. Employees like him, he said, are instrumental to the company’s growth, since they will be heading up quality control in the salons and teaching a new generation of stylists the company’s philosophy.
“I see the company growing and heading in the right direction, adding more opportunity for everyone,” Gili said. “It has always been the policy of Frédéric Fekkai to train the staff for the long run.”