When it comes to hair care products, retailers should look to private label with natural ingredients for profit growth, according to one global marketplace expert.
A Gerson Lehrman Group expert contributor did an analysis of Procter & Gamble aims to rejuvenate the hair care line Pantene and concluded, “the hair care category has been flat.”
The article said Pantene is the largest hair care brand with $3B in sales with 13.1 percent share of market in a $23B category. Despite P&G’s special focus to boost innovation rates by 30 percent in key categories, the author said the hair care category still lacks innovation. The writer said P&G’s efforts will fair well for the long-term health of the Pantene brand, but it will not drive the much-needed category growth. The hair care category needs a growing transaction value, increasing line extensions, and more people using hair care products. And, Pantene will not be the brand to do this.
The author said private label hair care is the path to retail success. The millennial generation likes to use private label products with natural ingredients because they see infusions of botanicals and other natural ingredients as credible, responsible ways to nurture hair. The article mentioned the success of Walgreen’s private label bioInfusion, which is expected to outsell Pantene this year. BioInfusion ingredients include olive oil, ginseng, ginko, algae, rosemary, and silk protein.