Professional beauty firms are being snapped up at a rapid pace. Who’s not owned by a big beauty conglomerate? WWDSalon has put together a (short) list of some of the most exciting independently owned hair care and makeup companies in the salon industry.
Editor’s note: Sales listed are estimated wholesale sales for 2007, according to industry sources, except for ThermaFuse, which lists estimated wholesale sales for 2008.
1) John Paul Mitchell Systems
Beverly Hills Sales: $500 million Founder, chief executive officer: John Paul DeJoria President: Luke Jacobellis JPMS was founded in 1980 by John Paul DeJoria, a sales and marketing executive, and Paul Mitchell, a hairdresser. They started with three products and a leave-in conditioner, and soon after came out with a Hair Sculpting Lotion that didn’t flake. The products caught on with stylists after about three years, in lieu of zero marketing funds. The duo hit it big when it launched Awapuhi shampoo and Freeze and Shine Super Spray, instant cult faves. When Mitchell died in 1989, many people thought the company would fold. Instead, it endured and flourished and today is the largest independently owned professional beauty company, with hair color and schools in addition to hair care and styling products under the Paul Mitchell, Modern Elixirs, Tea Tree, Paul Mitchell Lab and Paul Mitchell Professional Hair Color brands. This year JPMS is developing an advanced skin care line, anticipated to come out early next year.
2) Tigi Linea
Lewisville, Tex. Sales: $425 million Chairman, ceo: Bruno Mascolo President, chief operating officer: Thomas Reasonover President, salon division: Leslie Elliott Tigi was founded in 1985 when Bruno Mascolo opened his first Toni & Guy salon in Dallas. Shortly after, he launched a product line, Tigi Linea. In 1991, he hired Kyara (now his wife) to develop a makeup line for Tigi Linea. Soon, the makeup line was outselling hair care, and he tapped Kyara to create a new hair range. In 1997, she created Bed Head Stick, a wax stick that created texture and separation. Today, Bed Head, Catwalk and S-Factor are beauty brands under the Tigi Linea product company. The company also operates more than 60 salons nationwide, as well as five training academies. In October, Tigi is entering the hair color category.
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3) Farouk Systems Group
Houston Sales: $400 million Founder, chairman: Farouk Shami Vice chairman, ceo: Rami Shami Farouk Shami, a hair colorist by training, founded his company out of a personal need. He became allergic to the ammonia used in hair dye and was determined to develop an alternative formula. He began distributing his ammonia-free hair lightening product, SunGlitz, and started looking at other harsh chemicals to stamp out, like electromagnetic fields emitted by hair dryers. The 2,000-item range now includes CHI hair care and appliances, BioSilk and CHI Ceramic Nail Lacquers with Nano Silver, designed to stave off bacteria and fungus. Shami says he aims to add more technology, such as a laser to stimulate hair growth, to the CHI hair dryers, which retail for about $150 to $300. The company, which Shami describes as “a company of hairdressers,” does business in 91 countries and sells its wares to more than 100,000 U.S. salons.
4) OPI Products Inc.
North Hollywood, Calif. Sales: $120 million President: George Schaeffer OPI Products traded dental supplies for nail care in the Eighties, using the same chemistry to make artificial nails as it did to manufacture dental accessories. It quickly added brushes, nail forms and lotions to the fold and, in 1989, introduced its first collection of Nail Lacquers. OPI’s artistic director, Suzi Weiss-Fischman, has developed more than 1,000 nail polish shades. “OPI has established an incredible recognition with the consumer,” says Weiss-Fischman. The line is sold in 80 countries, and aims to enter Brazil next year. It consists of more than 2,000 stockkeeping units, including polishes, lipsticks, treatments, creams and pedicure products.
5) Frederic Fekkai LLC
Greenwich, Conn. Sales: $100 million Ceo: Melisse Shaban Frédéric Fekkai has made an impact on the professional beauty world like no other in recent years. Take the $400 haircut, for starters. What he also did was take professional hair care to the masses, a move that many hard-core salon stylists frown upon, but one that ultimately raised the profile of the celebrity stylist and paved the road for many hair care lines to follow. Fekkai’s products range in price from $20 to $35, however, there is the random luxury item, such as Hair Repair, an overnight hair treatment that sells for $195. Products are sold in more than 2,000 doors around the world. There are plans to expand his salon empire, too. Now there are five Fekkai salons—but as many as 25 are in the works over the next several years. In 2005, Chrysallis, a portfolio company of private equity firm Catterton Partners, purchased a major stake in the beauty company.
6) T-3 Micro Inc.
Venice Beach, Calif. Sales: $65 million Founder, president: Kent Yu Started in 2004, T-3’s mission was simple: to make a better hair dryer. Thus the genesis for T-3’s Bespoke Featherweight Dryer, which came out in 2004 and immediately began to make waves with celebrity stylists. Yu introduced tourmaline, a mineral that emits negative ions and far-infrared heat waves when heated, leading to faster drying time and healthier hair. T-3 is distributed to the top 1 percent of salons in the U.S. In 2008, the company will launch ColorLock, an iron designed for color-treated hair.
7) Sexy Hair Concepts
Chatsworth, Calif. Sales: $65 million Founder: Michael O’Rourke President, ceo: Jim Morrison Founded in 1992 as Ecoly International, the company’s name was changed in 2000 after the launch of several successful products under the Sexy Hair brand. Sexy Hair, founded by hairstylist Michael O’Rourke, is now sold in more than 60,000 salons in the U.S. and is distributed to more than 25 countries worldwide. Last year, the company tapped industry veteran Jim Morrison to take it to the next level. Since then, Sexy Hair slowly has turned the image of a sexy, fun niche brand into one that is more elegant and mature.
8) FHI Heat
Cleveland Sales: $35 million Ceo: David Kim Chief operating officer: Joseph Kim David Kim discovered a surge in heat-styling appliances while helping operate his parents’ beauty supply business. “That made me investigate factories producing high-quality flat irons,” he says. Kim discovered FHI of South Korea and partnered with it in 2003. Now, FHI sells products to nearly 10,000 salons in the U.S. and 10 other countries. The company caters to specific market segments with three ranges. The firm’s premium range, Runway, utilizes $2 million in research and development and each appliance sells for $400.
9) Essie Cosmetics Ltd.
Astoria, N.Y. Sales: $31 million Founder, president: Essie Weingarten Ceo: Max Sortino As a girl, Essie Weingarten’s mother would take her to the beauty parlor to get her nails painted as a special treat. Weingarten was hooked. In 1981, she developed a dozen shades and dropped off samples to Las Vegas hotels and salons. Tourists headed back to their local salons asking for Essie shades, and her business was born. Essie is available in 250,000 salons and spas and is sold in 90 international countries. Weingarten, who schedules a weekly manicure for Friday evenings, has developed 600 shades since the start.
10) Alterna Professional Haircare
Century City, Calif. Sales: $30 million President, ceo: Paul Johnson Alterna entered the professional market a decade ago with the aim of carving out a luxury tier and distinguishing itself with colorful bottles in unique shapes. The 47-item range includes five lines, namely Hemp, Caviar Anti-Aging, Life Solutions, Luxury—formulated with white truffle extract—and Science of Ten. Alterna also recently launched in the Bliss catalogue. The brand is sold in 35 countries, and international business accounts for more than 30 percent of its sales. In 2005, Alterna received a cash infusion from private equity firm TSG Consumer Partners.
11) Orly International
Los Angeles Sales: $28 million Founder, ceo and president: Jeff Pink Orly’s founder, Jeff Pink, made his mark in the nail care business three decades ago, creating the French manicure in 1975. He dreamed up the look after a Hollywood director asked him to create a polish shade that would suit his lead actress’ multiple wardrobe changes. Since then, he has built a business that averages 32 percent annual growth, has about 400 sku’s and sells to 66 countries. Orly is distributed to more than 15,000 salons and beauty supply stores. Its two-year-old brand, SpaRitual, which began as a vegan nail polish line, recently expanded to body care.
12) Mirabella Beauty Products LLC
Valencia, Calif. Sales: $7 million Founder, president and ceo: Christy Thurston A former beauty director at Nordstrom, Christy Thurston knew what she wanted from a cosmetics line. But when she opened a salon after leaving Nordstrom, she says she found it difficult to find a line to meet her needs. So in 2002, she launched Mirabella, a full cosmetics line for the professional beauty world. Mirabella includes 220 sku’s, which are sold in more than 500 salons and 300 professional beauty stores. Last year, John Maly became a partner in the company.
13) Sudzz Inc.
Oxnard, Calif. Sales: $6 million Founder, ceo: J. Aris Koyaran J. Aris Koyaran has been in the professional beauty industry since 1977. He began as a hairdresser and went on to work as a distributor. In 1999, Koyaran set out to create a sulfate-free hair care line, which he says took 26 months to master. Surfactants used in the line originate from South America’s rain forest, which he says is 100 percent certified organic bamboo. Today, the line is 14 items strong, and includes shampoo, conditioners, styling and finishing products, all safe for color-treated hair. SudzzFX is sold in about 2,000 high-end salons.
14) Esuchen Hair Care
Chino, Calif. Sales: $1.6 million in the U.S. Ceo: Ching Ling Wang Esuchen, a 22-year-old global professional hair care company, has spent the last three years making inroads into the U.S. market by positioning itself as “skin care for the scalp,” says Derek Lashley, vice president of sales and marketing. “We believe in the fountain of youth for the scalp,” says Lashley. The 80-item line, which includes color, is sold in 37 countries and about 10,000 salons. The company plans to open the Esuchen Academy—which will emphasize a mind, body, spirit concept—in October near its headquarters, and later expand the concept nationwide.
15) ThermaFuse
Kannapolis, N.C. Sales for 2008: $6 million President, ceo: Van Stamey Director of sales: Mandi Wolfe Van Stamey founded ThermaFuse as a crusade to save long hair damaged by heat styling. ThermaFuse’s star ingredient, HeatSmart Complex—a silicone and protein delivery system—is said to make heat-styled hair healthier. Since its May introduction, ThermaFuse signed nine distributors and expects to be in about 10,000 salons by year’s end. ThermaFuse is positioned between Redken and Bumble and bumble, and targets independent salons with a working owner.