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Effect of Nature water-based, ammonia-free hair color formulas to bow in February.

This article was originally published in The Rose Sheet

Executive Summary

EFFECT OF NATURE WATER-BASED PERMANENT HAIR COLOR TO BOW IN FEBRUARY nationwide, following a planned three-month test market, South Plainfield, N.J.-based Advantage Cosmetics said. The trial run is slated to kick off in September in Connecticut, New Jersey and New York mass market doors, including Walgreen's and Eckerd's. Advantage Cosmetics hopes to attract hair color users by offering an odorless and ammonia-, alcohol- and hydrogen peroxide-free coloring formula that delivers "natural- looking results." According to the company, hair color products are used by 23% of women, with the majority of non-users abstaining because chemicals, such as ammonia and hydrogen peroxide, can damage hair.

EFFECT OF NATURE WATER-BASED PERMANENT HAIR COLOR TO BOW IN FEBRUARY nationwide, following a planned three-month test market, South Plainfield, N.J.-based Advantage Cosmetics said. The trial run is slated to kick off in September in Connecticut, New Jersey and New York mass market doors, including Walgreen's and Eckerd's. Advantage Cosmetics hopes to attract hair color users by offering an odorless and ammonia-, alcohol- and hydrogen peroxide-free coloring formula that delivers "natural- looking results." According to the company, hair color products are used by 23% of women, with the majority of non-users abstaining because chemicals, such as ammonia and hydrogen peroxide, can damage hair.

Advantage Cosmetics uses a polymerization process whereby molecules form a bond inside the hair, the company explained. With the technology, hair strands are "infused with lush color that can't wash away" and will not "damage the hair's delicate protein structure," according to the firm. Ammonia, on the other hand, can "weaken protein in the hair," the firm noted.

The Effect of Nature coloring system is activated when a colorant powder is mixed with warm tap water to create a mousse. The "no-muss, no-fuss" mousse comes in 21 colors for women, such as Medium Mahogany, Ash Brown and Coppery Golden Blonde, and six for men -- including Dark Brown, Natural Chestnut and Jet Black. Advantage Cosmetics has marketed the products in Eastern Europe, Russia, the Middle East and South America since 1995. The company said it used the overseas introduction as a means to "test the waters" before bringing the hair color to the U.S. market.

Print ads will run in Family Circle, People, Ladies Home Journal, Woman's Day and McCall's from September to November. The spots, tagged "Now color your hair without damage," feature a painted picture of a woman brushing her hair with a product shot in the foreground. Regional TV ads will air on ABC, NBC and CBS.

The company plans to spend more than $1 mil. on advertising and promotions in eight weeks during the test market period and 30% of sales on advertising when Effect of Nature hits the shelves nationally. The ads were created in-house. Advantage Cosmetics generates annual sales of approximately $10 mil. and estimates revenues from the Effect of Nature line will reach $60 mil. by the end of its first year of national distribution.

Advantage Cosmetics will face competition from the two dominant hair coloring companies, L'Oreal and Clairol, which continue to vie for the top spots in the hair color market. Smaller companies historically have found little room for entry. Clairol introduced its water-based, ammonia-free hair coloring formula Hydrience in August 1996. The brand's sales catapulted 86% to $79 mil. in 1997 ("The Rose Sheet" Feb. 2, p. 8).

While Advantage Cosmetics faces an uphill battle to gain a foothold in the hair colorant market, the company's natural positioning may attract an alternative audience. Positioned to baby boomers, Effect of Nature provides "superb gray coverage," while "treating all the symptoms of gray hair [and] actually improving the hair's condition and manageability," the company claims.

The men's version of Effect of Nature should face less competition with fewer male hair color offerings, and no other water-based formula on the market. Only 7% of men use a hair colorant. Effect of Nature for men "blends away [gray] in only five minutes and [gives] up to 100% coverage in 20 [minutes]," the company claims. Upcoming product launches may include a color line for younger women and semi-permanent eyebrow colors, Advantage Cosmetics added.

The men's and women's Effects of Nature systems will be premium-priced at around $10 and will contain 4.2 g of hair coloring powder and a .33 oz. after-coloring shampoo packet. The women's box is illustrated with the painting of the women from the ad campaign. Orange leaves and a blue strip accent the women's box, while the men's burgundy carton is edged in marble. Sergei Fomenko, a former distributor for AM Cosmetics, founded Advantage Cosmetics in 1994 with Yuri Benin, PhD, a physiotherapist, becoming his partner in 1995.

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