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How Sephora is profiting from the boom in prestige hair products

Hair styling and care open up a world of creative possibilities: from intoxicating product scents to transformative hair building to gravity-defying volume infusions. With the launch of its summer hair styling campaign, Sephora is tapping into this artistic potential, combining trend-led visuals with storytelling-led brands. The accompanying campaign is a sunny and cheerful tale of different hair textures and lengths, from voluminous bleached bobs to free-flowing beach waves to textured hair slicked back in a low ponytail.

In-store and online, the campaign’s range includes hairdresser-backed names like Mane (by Jen Atkin), clean beauty innovators like Crown Affair and dae, and brands specializing in textured hair/scalp care like Sienna Naturals, with highlighted SKUs like the It’s Giving Body Hot Round Brush (a nano-coated ceramic round brush), The Texturizing Air Dry Mousse (a weightless styling mousse for added texture without heat), Cactus Fruit 3-in-1 Styling Cream (which defines natural curls and smooths hair), and Plant Power Hair Mask (infused with vegan protein to strengthen damaged hair). Prices for these featured products range from $28 to $98, in line with recent growth in the premium hair care space.

According to Circana’s H1 2024 report, sales of prestige hair products grew 10%, with treatments and styling products being the fastest-growing category. Hair products priced at $30 or more grew three times faster than lower-priced items, accounting for 25% of unit sales, up from 15% just three years earlier. Online sales of these more expensive hair products are growing at double-digit rates.

“Haircare is booming at Sephora. We’ve seen a significant increase in new and existing customers discovering our haircare assortment, and our hair styling campaign (among other things) is expected to further fuel this growth. By highlighting on-trend styles and products that help achieve these looks, we expect to have a strong positive impact on customer engagement in the haircare category,” Jennifer Lucchese, Vice President of Haircare Merchandising at Sephora, tells BeautyMatter.

As for the brands the retailer plans to highlight, she stresses a focus on performance-based formulas and engaging brand stories. “At Sephora, we always try to introduce products and brands with authentic stories and innovative formulas first. With our current hairstyling campaign, we want to highlight high-performance styling products that can be used to achieve the season’s hottest looks, including slick back, air-dried volume, heat-styled curls, and a voluminous blowout. Additionally, we’ve prioritized products that offer instant transformation and ease of use, knowing our customers value simplicity and effectiveness,” comments Lucchese.

In LVMH’s results for the first half of 2024, the conglomerate reported sales of €8.632 billion in selective retail, 46% of which came from the US market. Sephora was cited as the main driver of this growth, with double-digit growth in profit and sales. In the US, the retailer achieved a “record market share” due to its partnership with Kohl’s and the general expansion of its store network. While makeup and skincare remain the largest categories, “particularly strong” growth was reported for haircare (alongside perfume).

Lucchese cites hair treatments and styling products as the most popular product categories.Our customers are looking for products that are easy to use and deliver fast, visible results, including hydrating masks, hair oils and hair care products. Our customers are also attracted to new arrivals in the category, whether from new brands or innovative products from our existing brands,” she explains. “In addition, there is an increasing focus on scalp health and hair growth, with specialty products such as pre- and post-wash treatments generating a lot of interest. These products go beyond the basics of shampoos and conditioners and will continue to be a focus for us as we continue to grow the category.”

By Olivia

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