Today, we introduce our first-ever Digital IQ Index: Hair Care & Color study, which benchmarks the digital competence of 53 global Hair Care & Color brands. In addition to the rankings, this report also analyzes industry trends, discusses best practices, and highlights successful brand case studies. Our extensive methodology, which assesses more than 675 data points, weighs the information across four primary dimensions: Site, Digital Marketing, Social Media and Mobile. Unlike with our last rankings from the China Watches & Jewelry supplement, where just one brand earned the Genius title and more than two-thirds of the field qualified as Feeble, in the Hair Care & Color vertical, the industry’s overall performance was much better: more than one-third (36 percent) of the brands came in at Genius or Gifted and less than one-fifth fell into Feeble territory. While not at the level of Beauty or Specialty Retail, both of which have a majority Gifted-or-above, Hair Care & Color is certainly an industry with some innovative performers. Most notably, the top three brands: L’Oréal Paris, Aveda and Redken.
Full Top 10:
One of the most significant challenges brands in this industry face right now is product diversion by large online retailers, particularly on Google. Both Amazon and Drugstore.com, for example, purchase against professional Hair Care & Color brand terms at a rate of 74 percent and 43 percent, respectively–despite not being authorized distributors. Brands’ failure to get involved and attract customers to their e-commerce sites hurts their bottom lines significantly. For those still without e-commerce functionality, many have chosen to integrate with partnering third-party retailers on their own sites. About 20 percent of brands still direct customers away from their sites to a retail partner’s product page for conversion. Just three use an on-site cart to hand off to the retailer for checkout and fulfillment.
For more insights and to view the full rankings, download an excerpt of the study here. Also, be sure to watch our original animated video below and to check the blog throughout the coming weeks for additional report-related posts.