Frederic Fekkai has announced that it will sell its upscale haircare products at Walgreens and Target. A horrified Sephora immediately dropped the line. It is the original, classic Fekkai line that is going downmarket, although the price will be the same. The Advanced line will still be sold at Saks and Neiman's.
WWD reports:
The decision reflects the quandary facing brands as they head to the mass arena: what's potentially lost is high-end distribution, but what's to be gained is significant sales volume on a global basis. And, if Fekkai succeeds, it could have a profound impact on the future marketing of professional hair care brands.
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The classic items include the Glossing, Full Volume and Technician Color lines. Fekkai executives said they comprise 40 percent of the brand’s overall sales. The items will sell for between $20 and $30, just as they did in prestige.
Sources said Fekkai sales generated in Sephora were an estimated $20 million.
Sephora said in a statement at press time, "In light of Frederic Fekkai's recent decision to expand into the mass market, Sephora has decided to discontinue in-store sales of Fekkai products."
Procter & Gamble owns the Fekkai line and is making the decision based on numbers which say it can make more money by selling at the mass retailers. But not all analysts are sure that the move makes sense. The Fekkai products will sell at full price, which does not make sense given the retail venue. Either the products need to be discounted for mass market or they need to remain in the prestige category.
