© Euromonitor International 2011 www.euromonitor.com

HAIR CARE IN CANADA 27 Jun 2011

HEADLINES

In 2010 hair care grows by modest 2% in current value terms to reach C$1.5 billion

Emphasis on product development and marketing is on salon-quality care

Push for salon-quality hair care in retail represents challenge for salon products and sales, forcing salon

products to reconsider choice to emphasise exclusive image and quality

Unit prices edged up on the wave of product development, but consumers’ cautious attitude and search for

discounts limits extent of price increases

L’Oréal Canada and Procter & Gamble together account for over half of all hair care sales in Canada in

2010

Hair care sales projected to see modest 1% constant value CAGR over forecast period to achieve C$1.6

billion in 2010

COMPETITIVE LANDSCAPE

L’Oréal Canada and Procter & Gamble remained the two leading marketers of hair care products in

Canada, at the end of the review period with a combined value share of 56%. L’Oréal had a slight

edge over Procter & Gamble, which is chiefly due to L’Oréal’s strength in colourants, salon hair care

and styling aids.

Although Procter & Gamble ranked second in hair care, its Pantene brand ranked first in Canadian

hair care sales in 2010 with a value share of 8%, registering a gain over 2009. The brand is

particularly strong in standard shampoo, conditioners and 2-in-1 products. It is also among the top-

ranked in styling aids. The brand receives strong support from the company, with continuing product

development (most recently the Pantene Curly line of hair care products for curly hair) and strong

investment into marketing and advertising to maintain a high degree of brand awareness. In fact, in

2010 the Pantene brand was officially “re-launched” with a new look and emphasis on a customised

approach to hair care. The revamp reportedly led a simplified approach to hair care identifying four

major hair care requirements – fine, medium-thick, curly and colour. This led to a reduction in the

number of SKUs, making it easier for customers to find products according to their needs. The

company called it “problem solution merchandising”. The brand re-launch was accompanied by an

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innovative advertising campaign featuring real female customers as opposed to celebrities and

models, thereby bringing Pantene products more in touch with the average user.

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NATIONAL BRAND OWNERS AND THEIR BRANDS

Company Name (NBO) Brand (GBO)

Alberto-Culver Canada Inc Alberto European (Alberto-Culver Co), Alberto VO5 (Alberto-Culver Co), Nexxus (Alberto-Culver Co), TRESemmé (Alberto-Culver Co)

Amway of Canada Ltd Satinique (Amway Corp)

Avon Canada Inc Avon (Avon Products Inc)

Belvedere International Inc Down Under Naturals (Belvedere International Inc), European Formula (Belvedere International Inc), Nature's Organics (Belvedere International Inc)

Chattem (Canada) Inc Selsun (Sanofi-Aventis)

Combe Inc Grecian 2000 (Combe Inc), Just for Men (Combe Inc)

Diamond Products Inc Toni (Diamond Products Inc)

Innovative Brands LLC Pert Plus (Helen of Troy Ltd)

John Paul Mitchell Systems Inc Paul Mitchell (John Paul Mitchell Systems Inc)

Joico Laboratories Inc Joico (Shiseido Co Ltd)

Kao Brands Canada Inc John Frieda (Kao Corp), KMS (Kao Corp)

L'Oréal Canada Inc

Garnier (L'Oréal Groupe), Garnier Fructis (L'Oréal Groupe), L'Oréal Couleur Experte (L'Oréal Groupe), L'Oréal Excellence (L'Oréal Groupe), L'Oréal Féria (L'Oréal Groupe), L'Oréal Préférence (L'Oréal Groupe), L'Oréal Professional (L'Oréal Groupe), L'Oréal Studio Line (L'Oréal Groupe), Matrix (L'Oréal Groupe), Redken (L'Oréal Groupe), Vive (L'Oréal Groupe)

Lush Handmade Cosmetics Ltd Lush (Lush Ltd)

McCaughey Consumer Products Management Inc

Finesse (Lornamead Group)

McNeil Consumer Healthcare Nizoral (Johnson & Johnson Inc), Rogaine (Johnson & Johnson Inc)

Other Private Label Other Private Label (Private Label)

Prestige Brands International Inc Denorex (Prestige Brands Holdings Inc)

Procter & Gamble Inc

Aussie (Procter & Gamble Co, The), Clairol Herbal Essences (Procter & Gamble Co, The), Clairol Hydrience (Procter & Gamble Co, The), Clairol Men's Choice (Procter & Gamble Co, The), Clairol Natural Instincts (Procter & Gamble Co, The), Clairol Nice 'n' Easy (Procter & Gamble Co, The), Clairol Professional (Procter & Gamble Co, The), Head & Shoulders (Procter & Gamble Co, The), Image (Procter & Gamble Co, The), Infusium 23 (Procter & Gamble Co, The), Pantene (Procter & Gamble Co, The)

Revlon Canada Inc ColorStay (Revlon Inc), Flex (Revlon Inc), Frost & Glow (Revlon Inc), Outrageous (Revlon Inc)

Shoppers Drug Mart Inc Life (Private Label)

Stiefel Canada Inc Polytar (GlaxoSmithKline Plc)

Unilever Canada Inc Dove (Unilever Group), Suave (Unilever Group), Sunsilk (Unilever Group), Thermasilk (Unilever Group)

Wella Canada Inc Wella System Professional (Procter & Gamble Co, The)

Source: Passport by Euromonitor International

© Euromonitor International 2011 www.euromonitor.com

FORECAST

DEFINITIONS AND METHODOLOGY

Hair Care This is the aggregation of shampoos, styling agents, 2in1 products, perms and relaxants, colourants

and salon hair care. Ethnic hair care products, such as conditioning relaxers for Afro-Caribbean hair,

are included across all subsectors. Excluded are hair accessories such as hair extensions, hair clips,

combs and brushes.

Methodology This report is derived from Euromonitor International’s Passport information system. Industry

research is carried out by a global team of more than 600 in-country analysts and is based on a core

set of research techniques:

National-level desk research, company research and analysis, store checking, trade interviewing with

national players and market analysis

International-level desk research, multinational company research and analysis, trade interviewing with

international players and market analysis