Today’s Post

  • Birthday Celebration: BOBSA Celebrates With President Sam Ennon!!!
     
    Happy Bithday Sam. May all your BOBSA birthday wishes comes true.
     Sincerely,
     The BOBSA Staff.
  • Beauty Business Mergers and Acquisitions
     
    By Dr. Edward Tony Lloneau
    MERGERS AND ACQUISITIONS
    There have been several major acquisitions as of late involving black owned firms that are now owned by majority firms.  However, this trend is not new, in fact it dates back to as early as the 60’s.  Prior to the 60’s, the black oriented hair care product business was all but ignored by the general market product companies.  But when market surveys accidentally revealed that black consumer’s purchase cosmetic and related products well beyond their proportionate numbers, (meaning that at that time Afro Americans were only 10% of the total U.S. population, but were consumers of more than 25% of cosmetic products that included for the most part hair care items).  Also, Afro Americans paid more for professional hair care services per visit then others.  For example, the average black patron paid about $30.00 for a full service treatment, meaning shampoo, press & curl, perms, cut, conditioners and set.  The non-black patron spent about $12.00 for just a shampoo, set and style.  Today the prices are higher, but the pay scale and trend are the same, only now Afro Americans are 12% of the population and consume over 33% of cosmetic products and services. The main factor as to why the Afro Beauty Supply consumer market is so strong is:  Afro women spend up to three (3) times as much money per salon visit then do others.  Most other patrons get shampoos and sets per visit.  Afro women generally get a full service treatment such as Relaxer Perms, Curly Perms, Press & Curl, coupled with Conditioning treatments as well as all forms of color services and hair augmentations i.e. Weaves, Braids and Extensions.  Many of these services are not even offered in non-Black Salons, plus the Afro patrons return more often than other cultures.
    So armed with this information, the majority owned firms wanted in on this potential profitable market that they had formerly ignored and considered unimportant.  Note: the majority of Korean owned beauty supply outlets are directed at that market for this and other reasons, resulting in the Koreans controlling 80% of professional Afro hair care product, sales and distribution sold in beauty supply stores.  Also because Afro women are the major consumers of commercial hair that the Koreans have control of, import and distribution for the most part, resulting in their stores being in the areas where the customer base is.
    Revlon was one of the first majority firms to jump into this market in a big way in the early 60’s. They first acquired a black owned firm in Chicago (Deluxol) that manufactured a relaxer line and related products. This product did so well under the original name with Revlon financial backing for advertising and promotions, that Revlon came out with another similar line under their own name of Revlon.  They have done quite well in that endeavor ever sense under several trade names.  Revlon was motivated primarily by how well Johnson Products Company (a black owned product manufacturing company in Chicago) was doing with their Ultra Sheen line of relaxer products.  At that time, Ultra Sheen was the bestselling relaxer line.  Revlon’s advertising and marketing and misleading advertising, “That was addressed by the U.S. Fair Trade Commission” claims was aimed towards the Ultra Sheen market.  With that ploy, they were able to infiltrate and dilute Johnson market share by 50%.  The reason that Revlon did not introduce their Afro line under their own name at first, is because they did not want to taint their name and reputation if the endeavor was not successful or accepted.  Revlon later dropped the Deluxol name in favor of promoting their own trademark name.  After that, many other majority companies jumped into that market with greater success than anticipated.  Company’s such as Alberto
    Culver markers of VO5, developed TCB and later the Motions line.  Clairol acquired an Afro owned line called Summitt Labs out of Indianapolis, Indiana.  After a successful run, they sold the line to their then Summitt director Clyde Hammonds who was with the company from the start, who is black and runs the company out of Harvey, a suburb of Chicago, Ill.  Clairol decided to get out of the ethnic product business because it was distracting from their main focus of hair color products.  However they learned from that experience how to better serve and market to the Afro consumer.  This was the first time that an original black owned company that was acquired by a majority firm was reclaimed by a black owned company.
    In the mid 60’s, a new look that was a draw back to the original Afro hairstyle called the NATURAL.  This was to allow the hair to grow out naturally then groom and comb or “fork” it out to a neat round appearance and cut to a well-rounded shape.  The first company to offer a product that conformed to this style was Magnificent Products in Los Angeles.  Two barbers Dennis Taylor and Wilber Jackson founded the company.  The product and the style it was related to became a nationwide phenomenon.  Other companies tried to capitalize on the merry go round, but none overcame the pursuit.  Later a majority owned firm J. Strickland of Memphis, Tenn., the makers of Royal Crown and Dixie Peach products made the Magnificent Products an offer that they could not refuse, and bought the company.  But instead of furthering and enhancing the sales and popularity of the products, they withdrew it from the market and shut it down.  The speculated reason for this was because the Natural look was interfering with the sales of Royal Crown, Dixie Peach and other similar products produced and sold almost exclusively to Afro Americans.  People wearing the Natural did not need or use petrolatum-based products.  Johnson Products picked up the slack with a product called Afro Sheen, that did quite well until the fad was replaced by the so-called Jeri Curl.
    In the early 1980’s Worlds of Curls a black owned company in Compton, Ca. became financially strapped due to diversifying into endeavors outside of their niche market and the declining curl market.  Worlds of Curls had the best-selling curl maintenance products for both professional and retail.  The company is now owned by the J. Strickland Company in Memphis, Tennessee the makers of Royal Crown Products, as eluted to above, concerning Magnificent Products.
    Johnson Products of Chicago that was mentioned earlier in this article, was acquired by a majority holding and investment firm a few years ago, and has changed ownership three times sense then including the Walla Corporation of Germany with U.S. headquarters in New Jersey.  Walla’s major niche market is hair color products (the best-selling hair color line in Europe).  Clairol is the #1 seller. Later Walla was acquired by Proctor & Gamble, and now Johnson has new owners (more about that later in this article).
    Soft Sheen Products of Chicago was the next product line to be acquired by a major majority firm.  L’Oreal of Paris with U.S. headquarters’ in New York, Soft Sheen manufactured the best-selling Afro Curl products, plus the Optimum and Mazoni line.  At the time of the acquisition Soft Sheen was the largest Afro owned hair care firm in the world, with assets well over $85,000.000.00.  This acquisition was the largest one of its kind ever recorded and put L’Oreal in the Afro Hair Care market big time, plus they now own the Dark and Lovely line.  Prior to this, L’Oreal was the largest manufacturer of hair care products to the general market in the world, along with Bristol Myers (who also owned Clairol), that is now owned by Proctor and Gamble.  This acquisition also gave L’Oreal the distinction of owning the largest Afro hair care company in the world.  L’Oreal later attempted to acquire the Johnson Products Co. from the investment company, but was stopped by the Fair trade Commission because it would have given L’Oreal an unfair monopoly in the Afro hair care market.  This opened the door for Walla to purchase Johnson.  Proctor & Gamble who also acquired Clairol from Bristol Myers acquired Walla later.
    Pro Line products of Dallas, Texas were acquired by Alberto Culver (mentioned earlier in this article) in 2005.  Pro Lines niche was strong in the retail market for Afro hair care products.  Alberto-Culver was already strong in the Afro professional market, with TCB and Motions, plus the fact that they were at that time the parent company of Sally’s Beauty Supply Stores.  This acquisition gave them a strong position in the Afro retail market.  In the latter part of 2010, Alberto Culver was purchased by the Unilever Company head quartered in the UK, Pro-line and the other Afro centric products (TCB & Motions) were a part of the deal.  This made Unilever the third largest manufacturer of ethnic related products.
    A non-Afro firm in Chicago (JF Labs) now owns Hawaiian Silky, originally home based in Shannon, Miss., owned by Mr. Harry Green.  Mr. Green passed away in mid-2010.  Leisure Curl was also Afro owned and is now also owned by JF Labs.  Namaste, makers of ORGANIC ROOT STIMULATOR (the most imitated product line on the market today) in Blue Island, Ill. (southwest of Chicago), was purchased by an India owned firm called Dabur towards the end of 2010.  This was the largest such transaction of an Afro owned hair care company in history, the owner of Namiste, Mr. Gary Gardner is the son of Edward Gardner the former owner of Soft Sheen Products, prior to this transaction Soft Sheen acquisition by L’Oreal  was the largest such transaction.
    When Proctor and Gamble acquired Walla, Johnson Products were a part of the deal.  Due to the fact that Johnson (Ultra Sheen & Gentle Treatment) was not the major reason for the acquisition, it made Johnson vulnerable for acquisition by anyone interested.  Johnson was  purchased in March of  2009 by an Afro owned holding company headed by Eric and Renee Brown, a husband and wife team that are the son in law and daughter of the former Afro owner of Pro Line Mr. Comer Cottrel.  This is the second time that a hair care company that was originally owned by a black concern, sold to a majority owned firm, which sold back to a black entity.  The first time was the Summit deal alluded to earlier in this article.  A company founded by Ernest Jhosua, JM Products was headed by his son Michael after Mr. Jhosua’s death in 2005. In October of 2009 the company went into receivership.  The company had several divisions that include production of the ISOPLUS and other trade name “Wet Goods” products, and an aerosol plant.  The Isoplus line and other wet goods are now owned by the majority owned Murray Products Co. in Detroit, MI.
    A few of the hair care manufactures that are still Black owned as of this writing are: Luster products of Chicago, Ill. Producers of the Pink Moisturizer, Kizure Iron Works of Carson, Calif. (just south of Los Angeles). Manufacture of Curling Irons, Pressing Combs, Stove Heaters and several other related items,  Summit Labs in Harvey, Ill. Also a suburb of Chicago, Lloneau Products in Los Angeles, Ca. makers of Liquid Gold Hair Bonding and Lace Front Adhesives, Bronner Bros. Of Atlanta, Ga. with a complete line of hair care products.  Bronner Bros. Also are the publishers of Upscale Magazine and the producers of the most successful multicultural Cosmetology Trade Show in this or any other country.  Dudley Products of Kernersville, N.C. one of the few Afro owned direct sales organization in this field.  Dudley also owns a chain of Cosmetology schools in several states.  Johnson Products that has recently come back under the Afro owned umbrella as stated earlier in this article. Fashion Fair Cosmetics, owned by Johnson Publishing (Ebony & Jet).  Clentex of Chicago, Ill. owned by Mr. Steve Luster the brother of the founder of Luster Products.  Research Labs in Atlanta, Ga. owned by Mr. Cornell McBride with a line called Design Essentials.  Mr. McBride was one of the original owners of M&M Products. E.F. Young Products of Meridian, MS is now being run by a third generation of a family owned business.  Mixed Chicks in Woodland Hills, CA.  Professional Products unlimited in Fayetteville, GA.
    The preceding is a partial listing of Afro owned firms, but does represent most of the major Afro owned players still in the game.
    So if you were curious as to who’s who in regards to ethnicity in the ownership of major ethnic directed product company’s you now know part of the story.  This story is still unfolding as you read this article.
     
     Dr. Edward Tony Lloneau,
    Lloneau Products
     
  • Black Listed: The Importance of Black Owned Products vs. Not Black Owned Products
     
     By Dr. Tony Lloneau
     
    According to new research by the W.K. Kellogg Foundation (WKKF), black people are far more likely to give back to their community than other races. Your dollars make a difference. Support Black owned and manufactured products to keep our communities strong and financially healthy.  
    Below is a list of Black Owned Beauty Products and Products Owned and manufactured by other races.

    Black Manufactured Products
    1.) By Nature’s Protein Products, Doo Gro
    2). By Straight Arrow, Mane n’ Tail Shampoo, Conditioner Herbal-Gro
    3). By Jinny’s Beauty Supply of Chicago, IL Max Products, Jamaican Dream
    4). By M & M Products Company, Sofn’ Free, Bump Patrol, Easy Wave
    5). By Universals Dist Supply, African Essence, Relaxer,
    6). By Fantasia Products, IC Products Shine Styling Gel, Shear Butter Sheen Spray
    7). By Scientific Research Products, Le Kair products
    8). By Avlon Industries, KeraCare, Affirm Relaxer
    9). By Imperial Dax, Dax Relaxer Kit
    10). By Ampro Industries, Styling Gel Memphis, TN
    11). By Spartan Brands, Black Sassy, Duke Products
    12). By Division of Matador Styling Products Industries Inc, Organics African Best
    13). By Murray’s, Wella, Posner Cosmetics, Black Radiance Cosmetics
    Products Manufactured By  NON Black Companies
    1). By Revlon, Realistic No-Lye Relaxer, African Pride, Crème of Nature
    2). By L’oreal, Johnson Products, Ultra Sheen, Soft Sheen, Care Free Curl, Optimum, Wave Nouveau, Carson, Dark & Lovely Naturally, Breakthru,
    3). By Alberto Culver, Motions Tcb, Soft & Beautiful Just For Me, Comb thru (Sally Beauty) Proc Aim, Silk Elements Relaxer, Pro-Line, Botanicals
    4). By J. F. Labs, Of Chicago IL, Leisure Curl, Vitale, Hawaiian Silky,
    5). By Smooth’n Shine
    6). By Keystone Lab, Ultra Glow, Long Aid Gel, Better Braids
    7). By J. Strickland & Co, Worlds of Curls, Royal Crown, Nadinola Skin, Blue Magic
    8). Black and White, Artra Plus, African Gold Relaxer, Suifur8 Loc Twist & Braid, Zuri Cosmetic
    9). By Queen Helene Beauty Products,
    10). By Golden Supreme Styling Tools
    11). By Walbert Lab, Black Thang Fantastix, Short n’ Easy, Real Soft Fro
    12). By Lustrasilk, Cholesterol, Tea Tree, Herbal, Crème Conditioner, Moisture
     
    Tony Lloneau
    Lloneau Products
  • Pure Remy Conference Mondays At 8 PM EST
     
    Don’t forget to join the Pure Remy System Conference Call @ 8 pm EST every Monday!
     
    Don’t delay, come learn about the revolutionary Pure Remy System and how you can benefit by selling High Quality 100% Indian Remy Human Hair Extensions and Hair Products!  Take advantage of the most powerful hair distribution system in the world!  
     
     
     
    Go to:  www.mypureremy.com   and click the Joinlink
     
    now! 
     
    Talk to you tonight!
     
    The Pure Remy Team
    800-250-4992 
     
     
     
     
  • BOBSA Insurance Options

     
    Did you know that BOBSA members have exclusive access to a number of health insurance products?  Deciding what insurance is necessary for your business and life can be confusing. Let the knowledgeable help you cut through the insurance Jargon. Here are a few questions to consider when finding an insurance agency and policy.
      1. What kind of insurance should I carry, and to what limits? How much are the deductibles and premiums?

       

    1. Is there such a thing as too much insurance coverage?
    2. What are coverage gaps?
    3. Does this cover disability?
    4. Is it better to have a high insurance premium and low deductible or vice versa?
    5. How often can I review my coverage?
    6. Are you a full-time agent? If not, what happens when you quit, where do I turn?
    7.  

      Inland Empire Insurance Services
      Multiple Needs Benefit Program
      Rex Jackson
      1-909-748-0033
      rex.jackson@ieia.net
       All State Insurance Agency
      www.allstateagencies.com/A0927
      Charles W. Johnson
      President
      J&W Global Enterprises, LLC
      Mobile – 443-994-5924
      jandwglobal.net
      johnsoncj33@aol.com
    8. Get Classy – Take the Understanding Contracts Course @ the Bronner show
       
       
       B.O.B.S.A has designed this professional development program to give you a solid understanding of contracts in the procurement and acquisition process. Update your skills to stay effective and gain knowledge both in and outside your area through B.O.B.S.A business classes.
        What
      HOW TO START A BUSINESS Open your own beauty supply store or manufacture you own product Contract Review – Before you sign on the dotted line, ensure that you are making a sound business decision based on industry standards or your specific business needs. Inventory Services – Learn the importance of the right product mix. Marketing Strategy – Carving out a name for your business in such a crowded market can be difficult. Obtaining a license to use the BOBSA brand has immediate recognition nationally and internationally. Private Label Product Development – Learn what to do when it’s time to take that great product idea and make it a reality.
      Where
      BRONNER BROS. International Hair Show 2013
      August 17-19, 2013 • Georgia World Congress Center • 285 Andrew Young Blvd. • Atlanta, GA 30313
       When
      MONDAY AUG. 19, 2013
       10am to 11:30am
    9. Dots Mother-Daughter Advertising Team
        Vera White and her daughter, Monique of Evoke Media Marketing, are the “idea girls” behind the Dots-Online Magazine. Located in Moreno Valley California, Evoke made it their mission to lend a hand to the movement at B.O.B.S.A. and thread creative thinking in conjunction with the association members in order to extend its reach.
       Vera started her career in retail advertising while Monique‘s experience stems from her work as an executive account manager with a major advertising agency. Their ideology to nurture the creativity that is a part of each person has helped them grow on a personal level and as well a partnership. The differences in the way they look at things has the brought success to Evoke and they have built a model withstands the ups and downs of the fickle beauty business. They can be found online @ www.evokemediamarketing.com
    10. BusinessPlanStartup.com
      B.O.B.S.A is now offering Business Startup Plans through http://www.businessplanstartup.com.
      Whether you are a new business owner starting out or an existing company that wants to expand your horizons, business plans startup increases your ability to obtain funding.
      B.O.B.S.Ahas earned its reputation as a business-friendly community andoffers a wealth of resources to business owners.
    11. African American Hair Import Group
       African American Hair Import Group gets a new logo.  To learn more about the  group go to http://bobsa.org/partners
      We welcome comments on the new style at http://bobsa.blogspot.com

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