A Fantastic Business Model
A Fantastic Business ModelDid you know that in the hair Industry hairdresser's value & listen out for the latest trends through word of mouth? it keeps them all in tune with what's new, what celebrities are wearing & what styles celebrities are showing off at the red carpet premiers and award ceremonies.Many customers when choosing a hair style will refer to a celebrity in the magazines which salons buy to help aide the customers and the hair stylist.There's a lot of talking going on between the hairdresser and his/her clients & so many times you will hear the name of a celebrity and what they wore or weddings and how the hair was styled.Hairdressers also listen to each other because they all understand the same language in regards to styling, colouring, cutting, perming and so on.The customers listen to their hairdresser's because they know their clients personality, their hair, habits, gossip & their lifestyle & that's why they know how to bring out the best in their clients.So when it comes to recommending a product or service which will benefit the clients, 99% of the time the clients will take their advice and buy into whatever is recommend.When ghd, launched their new straightening tool in 2001, it was the hairdressers who went out in their millions to buy one in order to make their job easier and produce better results for their clients & to keep the hair well maintained all the clients took the advice of their hairdressers and also bought the product.This proved something special about the Hair Industry and demonstrates why today the Industry is still thriving despite the financial crisis.Here is the short story of how ghd became a multi million pound Brand in less than 6 yrs.Good Hair Day, commonly referred to as ghd, is a manufacturer of hair care products. It is based in Bradford, UK.The company was founded in January 2001 by Martin Penny, Gary Douglas and Robert Powls, who collaborated to purchase the rights to produce a particular style of hair straightening iron from a South Korean inventor. The company initially sold its own products exclusively through hair salons. In the first two years, the company did no advertising. By the end of their second year, revenues for the business stood at £12million, against a forecast of between £3million and £4million.In 2004, the company entered the North American market, with total worldwide sales generating £37million in revenue. In 2006, the Jemella Group, which owned the ghd brand, was bought by Lloyds Development Capita for £55m. It was sold on just 11 months later to Montagu Private Equity for £160million. ghd claimed not to have undertaken any advertising in the first two years of operation, instead relying on the recommendations of the salons that sold the brand's products and word of mouth. In 2003, the company launched its first televised advertising campaign, becoming the sponsor of British reality TV show The Salon. The company has also featured prominently on Australia's Next Top Model. The brand has attracted endorsements from celebrities such as Victoria Beckham, Madonna, Gwyneth Paltrow and Jennifer Aniston who are all users of ghd products. Now that that's happened, its time for something new & refreshing and every hairdresser around the world is as ready as ever because whatever makes the hairdressers job easier yet produces great results, you can be absolutely sure that their customers will feel the same way & buy into whatever it is as well.This makes it a Fantastic Business Model.