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Tamika Sayles

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The Threat of Generic Brands: Natural Hair-Care Companies, Black-Business Owners, and the Retail Boom

Posted: 06/29/2012 1:25 pm

While flipping through your favorite magazine you may notice an increase in advertisement featuring African-American models and celebrities who've opted to go relaxer free. Among the products advertised, you may run across many that are Black-owned.

The increase of natural hair awareness is prompting a gradual increase in Black-owned companies catering to natural hair. Black women are increasingly making efforts to manage their natural hair textures, and by doing so, they are generating a huge market for natural hair care products, which has attracted the attention of mainstream companies looking to enter the natural hair-care arena. As a result, companies that once marketed exclusively to relaxed hair (Proctor and Gamble, Revlon, etc.) are creating new products to coincide with other independent companies that cater exclusively to natural and curly hair textures.

The Black Snob's, Danielle Belton, wrote an insightful article for Clutch magazine concerning mainstream hair-care companies and their sudden shift toward the natural care market.

According to Belton,

"These companies are now followers - shifting formulas and marketing strategies to keep up with their African-American lead upstarts, who came out to dominate the market right from underneath them... Going natural is now a big and growing part of the more than $165 million black hair care mass market. Companies that focused primarily on creating hair relaxers are scrambling to capitalize on what they initially thought would be just a "fad."

I agree. But, what would happen if distributors and manufacturers created a "generic band" in an attempt to keep up with African-American companies. Will mainstream companies attempt to swallow the market by incorporating similar products?

The practice of creating a "generic brand" is fairly common in the retail industry, often frequenting the market whenever a patent expires. Generally, companies hold exclusive rights for a limited number of years before other companies can produce a generic. In most cases, patents and pending patent applications are published online, making it easily accessible to anyone looking to create a similar product. Although generic brands may not pose a significant threat to mainstream companies, it could very well be an issue for smaller more independent business owners, who may not have the resources to sue.

For example, take the ongoing rift between natural hair-care brand, Mixed Chicks and Sally's Beauty Supply. Mixed Chicks, founders Kim Etheredge and Wendy Levy, accused Sally's Beauty Supply of creating, Mixed Silk, a product strikingly similar to the Mixed Chicks conditioner. Whether or not Sally's Beauty Supply is actually at fault is still yet to be determined, but the situation lends itself to smaller independent brands who pursue huge companies based on "generic" accusations.

According to MadameNoire.com,

" In March 2011, Mixed Chicks formally filed a lawsuit against Sally Beauty Supply for trademark infringement, trade dress infringement and unfair competition claiming that the chain was selling and advertising an imitation of their product".


The decision to sue did not come easily. Here's where it got complicated:

"If a court ruled against Mixed Chicks, the two women could be forced to compensate Sally Beauty for any lost revenue. On the other hand, if Etheredge and Levy filed a lawsuit and won, they might be able to get Mixed Silk off the shelves--and collect damages for lost sales and a tarnished reputation caused by customer confusion with what Levy and Etheredge considered inferior products."

Yet, despite legal costs and an uncertain outcome, Mixed Chicks, is still thriving. According to Inc. com, "Despite the suit, Mixed Chick's business has continued to grow. The company added seven products in 2011 and is now distributed to 3,000 retail stores." This could be contributed to market power and brand loyalty among Bi-racial and African-American markets.

Inc. com states that, "Discovery can be an incredibly arduous process, and a multibillion-dollar company can bleed a small company dry. It takes time, money, and resources, and sometimes its death by a million cuts".

Fortunately, though, Black-owned companies continue to thrive. But as mainstream companies struggle to enter the natural market, will generic brands pose a threat to smaller brands?

 

Follow Tamika Sayles on Twitter: www.twitter.com/@tamiRachelle

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While flipping through your favorite magazine you may notice an increase in advertisement featuring African-American models and celebrities who've opted to go relaxer free. Among the products advertis...
While flipping through your favorite magazine you may notice an increase in advertisement featuring African-American models and celebrities who've opted to go relaxer free. Among the products advertis...
 
 
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08:23 PM on 08/18/2012
Black owned hair care products used to be marked with the "Proud Lady," a small silhouette of a black woman that signaled the company was black owned. Is this still true?
03:15 PM on 07/28/2012
Please learn what commas are for. Damn near unreadable. Editors, anyone?
03:11 PM on 07/28/2012
Please find out how to use commas. Damn near unreadable.
12:43 AM on 07/12/2012
:)
09:51 AM on 07/10/2012
Nutress Hair is a 63 year old Black-owned company. Through the years we have suffered many of the situations described in this article. Having developed the first protein conditioner in the US you can imagine the number of me-too's and infringements that have taken place over the years. An entire product sector was built on copying our products. I worked for L'Oreal back in 2005 and I strongly advocated that Natural hair would be the next big thing and that we should get in position to offer products to this community. After making major presentations to management and pushing the issue I was ignored and a huge opportunity was lost. In retrospect, I'm glad they missed it and that these fellow Black owned companies are reaping the benefits. However, relaxed hair still matters and products that work for all hair types are the best option. Like Nutress Protein Pack - relaxed people typically need it more than naturals, but naturals still need it to maintain a proper protein/moisture balance. Hair is also often damaged from color or heat styling or weakened with age. Transitioners especially need it to curtail shedding and manage the line of demarcation during a long transition. I am hoping that this positive trend continues of Black-owned businesses taking back the industry that services our people.
06:02 PM on 07/08/2012
Owe, I forgot to tell the future generations. I do believe that relaxers cause health problems. I had fibrocystic breasts when I was about 40 and uterine fibroids at 50 and an ugly menopausal experience and major surgery. PLEASE PLEASE LEAVE the relaxers alone! When these things were going on -- no one knew what was causing it or how to fix it besides the surgery. PLEASE learn from my bad experience. But God! I am great and wonderfully made and healthy now.
02:20 PM on 07/24/2012
Thanks Cherish_Nia Life is such a experience of tests and trails.  I wish I was as smart long ago as I am now. God Bless you.
05:58 PM on 07/08/2012
I am in my 2nd month of no chemicals. I have been relaxing my hair for 30 years. I am now 55 and it feels good to get up wet my hair, condition it and go! The beauty industry has done such a good job of brainwashing black women about beauty that I actually bought into the myth. I wish I had done it earlier. I just want to embrace me -- my husband calls me his African Queen. ;)
05:08 PM on 07/08/2012
I live in NYC, Yes I notice a big change my beauty supply store, I was so confuse. I asked why was there so many natural products but I realize since more black women are going natural or decided to use natural products they had to changed to. Am I happy for this ...yes.
04:15 PM on 07/08/2012
As a prospective small business owner, and an African-American women who decided to go natural a year and a half ago, I can empathize with small companies trying to compete with big companies when trying to market to a small (but growing) number of the people, so I really enjoyed this article. However, a year and half after I came to this decision, I still face the challenge in finding products that work well with my hair AND are affordable. The market now is incredibly vast, which makes it difficult to find products in the first place. But the inconvenience of the retail arena actually makes it easier for someone like me (who is inexperienced when it comes to product knowledge) to buy the first thing we see on the selves. When I see the prices of most these products, I feel like its not worth it [to be natural] because it does not seem cost effective even though some women have been doing this for years. Many of these larger companies are seeing that they are losing money with relaxers, so they are getting 'smarter' and following the market, which happens to be natural hair. These is unfortunate for small businesses, however [and while I am trying to find ways to support them], is it not about time for them to understand the market also and recognize that more women are maintaining their natural tresses, therefore, they should reevaluate their pricing.
03:09 PM on 07/08/2012
Revlon's President of Professional Products said in the 80's:

“In the next couple of years, the black-owned businesses will disappear. They’ll all be sold to white companies. . . . We are accused of taking business away from the black companies, but black consumers buy quality products — too often their black brothers didn’t do them any good.”

We went along with it and lost our industry.

We need to share amongst our people the wisdom of the ages. At least from Marcus Garvey onward, we failed to completely rally our people to natural styles.

Share the article "Chemicals can kill: Hair Straightening and Heart Failure in African Communities Worldwide" That's one way to raise the consciousness of our people to loving ourselves as we are!
01:20 PM on 07/07/2012
I just found out about this Black woman millionaire from 1903 Madam C.J. Walker who got her start in the hair care industry selling Annie Malone’s Poro products in St. Louis around 1903. Madam was a pioneer of modern cosmetics and hair care industry at a time when most Americans didn’t have indoor plumbing, hygiene was very different. A lot of women had really horrible scalp disease. Her primary goal was to grow healthy hair and her line of products reflected that. They did NOT have the TOXIC chemicals being used now either. I hope they make a movie about Madam. Aswome!
03:45 PM on 07/06/2012
I went natural because it seems as though no one in NYC can truly do hair, especially hair cuts...it is a point to argue but if your from the south you'll know what I mean.

I've noticed the "big guys" trying more and more to be make themselves approachable. What I don't think they realize is that by "going natural" (for whatever reasons) most of us have actually taking the steps to disect and figure out which products work well for our particular hair types.

So a chemically treated "natural" quick fix is not going to work out the way they intended.

I particularly like Shea Moisture products . I think they're affordable and I like the way my hair looks and feels after I use their products.

In summation: F*&k off Revlon.
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05:37 PM on 07/05/2012
We need an article on top African American companies to create awareness.....
10:47 AM on 07/05/2012
I stopped relaxing my hair in 1996 and stopped using a flat iron in 2002. I love my natural hair and fully embrace my curls. There is nothing wrong with our natural hair and it saddens me that African American women think that ourr hair needs to be straightened in order to be "beautiful' or "manageable." I wear my hair in a twist-out style so that I have curls and length.

I FULLY support African American owned hair care businesses with my money and recommendations. I currently order my style products online and have them mailed to me since they aren't sold in my city. It is important for me to spend my money with businesses that understand my hair. I ignore mainstream companies because they just want to exploit the natural hair care market, don't understand the nuances of my hair type, and often use chemical or inferior ingredients.
12:18 PM on 07/03/2012
It has been so refreshing to see the increase of African American men, women and children in print and commercials. Generic brands do not pose a challenge to small businesses because I know first hand that small business owners pour their heart into their businesses, while generic brands are more concerned with making a buck. As a small business owner myself, I enjoy connecting with other small business owners, developing relationships and cross promoting. We are a strong community that support each other.