Most professional Hair Care brands are hesitant to launch direct-to-consumer e-commerce because of their relationship with salons. 41% issue warnings on products denying responsibility for authenticity and quality if bought from a non-partner salon retailer, limiting their distribution scope. Loxa offers e-commerce without cutting stylist commissions. Stylists can set their clients up with a “Hairscription” to receive personalized recommendations, and the customers can buy from the Loxa site and credit their stylist. The service helps stylists suggests products beyond brands their salons carry and trim inventory costs. 36% of professional brands in L2’s Digital IQ Index: Hair Care & Color participate on Loxa.
The venture has been successful so far. Though salon services and Hair Care products grew by jut 2.3% in 2013, BSG sales grew by 5.1%. American Crew has embraced the platform even further, placing retargeted ads on Facebook that direct to Loxabeauty.com.