Madison Reed’s Journey With Retail And Hair Color Bars

In the dynamic realm of beauty and hair care, Madison Reed stands out as a pioneering force, reshaping industry norms through strategic integration of digital convenience and traditional salon experiences. The brand is known for its at-home hair dyes, but its growth is particularly evident in the expansion of its Hair Color Bars, which have increased sevenfold since 2020.

The U.S. hair care industry is currently about $16 billion, with a projected growth to almost $20 billion by 2028, and hair colorants make up about 16% of the hair care market. In a world increasingly dominated by digital natives, Madison Reed understands the importance of meeting consumers online with its product and in person in salons. “We always knew that we’d have to go into physical locations because we would be missing half the total addressable market if we didn’t. We have a salon-quality product, which allows people to do it at home if they choose to, but it also allows us to have what we call Hair Color Bars,” stated Amy Errett, CEO and founder of Madison Reed.

The expansion of Hair Color Bars underscores Madison Reed’s commitment to a physical retail strategy, now numbering 87 across the U.S. These physical spaces serve as an extension of the brand’s ethos, providing clients with personalized consultations, expert color services, and the expertise of highly trained professionals.

Consistency Across Services And Channels

Setting itself apart from the more than 150,000 salons across the US, Madison Reed strongly emphasizes consistency. The brand’s commitment to diversity is reflected in its workforce, with 80% women and 67% black, indigenous, and other people of color. Madison Reed’s dedication to creating a positive working environment aligns with its goal of uplifting the hairstyling profession.

“We treat our colorists very well. Our team members are the key to our success in those stores, and we look to uplift the industry. So, we pay the colorists two to three times more than they make anywhere else, and they have access to healthcare benefits and more career opportunities,” stated Errett.

Consistency is not just a buzzword for Madison Reed but a commitment to quality. The brand’s professional hair color products ensure a reliable and uniform result, allowing customers to visit any Hair Color Bar without compromising their desired outcome. This commitment to delivering a consistent experience is crucial to Madison Reed’s growing success and sets it apart from competitors.

However, it has a similar goal to concepts like DryBar and Blo Blow Bar. While each concept brings strengths, Madison Reed stands out with its comprehensive approach. DryBar and Blo Blow are known for their specialized focus on blowouts. On the other hand, Madison Reed takes a holistic approach, combining coloring and blowouts. In addition, its unique coloring products are available for at-home use. This duality caters to a broader spectrum of customer needs, offering the flexibility to achieve salon-quality results at home or indulge in the personalized services of a Hair Color Bar.

Technological Innovation For Seamless Experiences

Madison Reed leverages technology to enhance customer and stylist experiences. A custom-built app for colorists ensures a personalized experience for every guest, with CRM data shared across locations. Over 30% of appointments are booked via the mobile app, indicating the mobile nature of the brand’s customers. In addition, stylists, although they are well-versed in the products they use, can use the app to track customers and help educate them.

This marriage of technology and personalization contributes to Madison Reed’s unique selling proposition, offering a seamless and tailored experience that sets it apart in a competitive market. It’s a proposition widely adopted in the health and beauty service sector. Therabody Reset, a service arm of Therabody products, boasts a similar benefit to its various locations. HeyDay, a facial bar that’s opened over 20 franchise locations this year, also relies on its technology to create a seamless customer experience across the country.

Madison Reed’s technology also helps it make intelligent and innovative decisions beyond its Color Bars. With a presence on over 1600 Walmart
WMT
shelves and collaborations with retail giants like Ulta and Target
TGT
, the brand strategically leverages retail partnerships to amplify its reach. According to Errett, “When we have more than two hair color bars in a region, the Ulta stores in that same region do two times better than they do anywhere else in the country.” Therefore, as much as the wholesale partnerships help the Color Bars, the vice versa is also true. The mutually beneficial relationship between Hair Color Bars and retail partners enhances Madison Reed’s multifaceted retail strategy.

Growth And Holiday Plans

As the brand expands its physical footprint, it increases exposure and provides more touchpoints for customers. Madison Reed understands that the more the brand shows up, the greater its efficacy in a highly considered purchase category.

The holiday time is also a pivotal moment for the brand. It saw exceptional results over the Thanksgiving weekend, with over 50% of sales coming from its Limitless customers. Limitless is a premier membership tier the brand launched in April that customers have highly adopted. “We continue to lean into Limitless and evolve the program based on guest feedback and insights. For example, some of our loyal guests have shared that they’d prefer to receive their yearly color all at once, vs. having to manage a subscription, so we created a way where they can save, earn, and get rewarded with a ten-box annual membership program launching in early January. We are giving our guests all their hair color at once annually,” shared Errett.

Madison Reed’s holistic growth strategy positions it as a formidable player in the beauty industry. With many wholesale partners and plans to surpass 100 Hair Color Bars by 2024, it is committed to sustained and strategic expansion. Its product has been proven to be reliable, its service is uniquely consistent, and technology has been built to support its growth. With a focus on seamless execution, Madison Reed is not merely keeping pace with the evolving beauty landscape but is setting the standard for a new era of beauty commerce.