Tuesday, 22 May 2012
"I started cutting hair at 15, now I own a hair product company"
Whether you are the proud owner of a hair salon, beauty salon or spa, you all have something in common: you need suppliers.
I can already imagine you grimacing at the mention of this simple word.
After all, who among you never shouted at one his suppliers because one of your order arrived late or complained that the prices are “skyrocketing”? Honestly?
No, it is never easy to be dependent of someone else but, as you know, it’s vital for any business to operate with suppliers, be it product distributors, utility companies or manufacturers.
How would you run your business without them?
I recently interviewed Scott Michaels (center of the photo), founder and CEO of Hairbond, a hair styling products company based in Lancaster. After 15 years being a hairdresser, Scott decided to take on a new challenge and set up his own company a few years ago. He identified a shortcoming in the male grooming products market and decided that “men deserve better!” So he embarked on a journey which resulted in the creation of Hairbond, the all British Men’s grooming company.
This article aims to show you that, even if the core of the business is completely different, those companies actually aren’t so different from you. I hope it will help you to understand how they work and being less frustrated when your order is delayed ;)
So, what do they require to set-up, run and remain profitable?
1. Years of development
Remember the early days of your career. You were paid less than everyone else (if anything at all), you had to hit the ground running and learn fast. If you go on to open a salon and run it as a business, you will need to develop an entirely new set of skills whilst maintaining those you learnt early on.
Well it's basically the same for a hair product company, it takes time before being able to start on your own: "I created Hairbond in 2008 and finally launched in 2010. It took us two years of development to create our range of hair styling products but that's what you have to do if you want to create a product you can be proud of", says Scott. "Some products took us more time to develop than others, like shampoos, but it is imperative to create products that meet our customers expectations".
2. Marketing, marketing and more marketing
You probably remember your first year in the industry, when you had just established and had to create yourself a clientele. You have to gain peoples’ trust whereas they didn't even know you. The hardest but most exciting part!
To do that, Scott invested a lot of time using social media marketing and online marketing. He first created his website and then accounts on the two most powerful social networks existing: Facebook and Twitter. "Facebook is a very useful tool to do your promotion and introduce your products to people. Twitter is a bit different but you can create a bigger database quicker. We run several promotional campaigns which made us gain hundreds of followers in few days".
3. People saying nice things
Just like for your salon, Scott found recommendation to be the key factor for Hairbond’s growth. In short, if you like their products, those companies will ask you to spread the word! Hairbonds products have already been endorsed by several celebrities, like the Manchester United footballer Michael Owen, Phil Jones and TV Presenters Dick and Dom, giving them more credibility: “It’s all about the network you’re able to create. There is always someone who knows someone who might be able to help you. Don’t miss any opportunity”.
It is also vital for that kind of company to pay attention to their clients feedback, above all when they are raising the alarm: "If one of my client tell me he doesn't like my product and that it won't work, I won’t keep it in my range. That kind of ‘missed’ product could destroy a reputation”.
4. A well-oiled machine
Today the cosmetic product market is saturated with big multinational companies: L’Oreal, Schwarzkopf and Fudge to name a few. Even if smaller companies like Hairbond don’t have the same financial resources and infrastructures, they still have to provide their customers with the best service and therefore need a good working system.
Hairbond uses online retailers like LookMantastic to sell its products online in more than 13 countries including Europe, Scandinavia and Australasia. Once ordered, the boxes containing the products are sent via Despatch Bay.
It also sells directly to salons in the hope that they use the product on their clients hair and sell directly to clients. This way he avoids scrambling for shelf space on the crowded aisles of Boots, Superdrug and Tesco. With his limited financial resources he has to implement a lean logistical approach: “The most complicated thing is to have enough products to be dispatched” Scott told me. "The problem is to avoid overbuying whilst having enough in stock to meet demand".
5. Constant innovation
Fashion changes all the time, it stands for clothes and for beauty products too - Innovation is therefore vital in this industry. Just like you keep on training throughout your career to remain on top, product companies need to release new ranges regularly. “People love new things and change, it’s a fact. So we are always expanding our range of products to offer them our latest creations”, says Scott. Hairbond is now about to launch two new hair styling products to complete its already existing range.
The company also works on its brand as well as product innovation. I am sure you would slap anyone who called your salon “standard” or “just like everyone else”. Scott has tried to make Hairbond stand out by changing the type of packaging he uses and the smell of his products. "Your business is a reflection of your personality or the personality you create for it, it must therefore evolve with you".
Thank you Scott for the interview. If you want to contact Hairbond, don't hesitate to tweet them or check out their website.
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