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Planet Money

How Black hair care grew Black power

29 min episode · 2 min read

Episode

29 min

Read time

2 min

Topics

Sales & Revenue, Product & Tech Trends

AI-Generated Summary

Key Takeaways

  • Market identification: George Johnson recognized Black consumers as an underserved profitable market in the 1950s, creating shelf-stable hair straightener Ultra Wave by solving the chemical emulsification problem that plagued existing products, then expanding market by market using profits from each city.
  • Cultural alignment strategy: Johnson Products shifted from hair straighteners to Afro Sheen moisturizer in the mid-1960s when civil rights movements rejected white beauty standards, then sponsored Soul Train in color television starting 1971, driving sales from $11.2 million to $39 million in four years.
  • Public disclosure risk: After going public in 1971, Johnson Products revealed detailed profit margins by product in annual reports to demonstrate transparency, inadvertently providing competitors like Revlon a blueprint to enter the Black hair care market and capture market share with superior resources.
  • Market timing failure: Johnson Products lost dominance by arriving late to the Jheri curl trend popularized by Michael Jackson's Thriller album, allowing competitors including a white inventor and other Black-owned companies to capture the market while Johnson's rushed product failed to match quality standards.

What It Covers

George and Joan Johnson built Johnson Products Company into the first Black-owned firm on the American Stock Exchange by creating Afro Sheen and Ultra Wave hair products, generating $39 million in sales by 1975 before losing market dominance.

Key Questions Answered

  • Market identification: George Johnson recognized Black consumers as an underserved profitable market in the 1950s, creating shelf-stable hair straightener Ultra Wave by solving the chemical emulsification problem that plagued existing products, then expanding market by market using profits from each city.
  • Cultural alignment strategy: Johnson Products shifted from hair straighteners to Afro Sheen moisturizer in the mid-1960s when civil rights movements rejected white beauty standards, then sponsored Soul Train in color television starting 1971, driving sales from $11.2 million to $39 million in four years.
  • Public disclosure risk: After going public in 1971, Johnson Products revealed detailed profit margins by product in annual reports to demonstrate transparency, inadvertently providing competitors like Revlon a blueprint to enter the Black hair care market and capture market share with superior resources.
  • Market timing failure: Johnson Products lost dominance by arriving late to the Jheri curl trend popularized by Michael Jackson's Thriller album, allowing competitors including a white inventor and other Black-owned companies to capture the market while Johnson's rushed product failed to match quality standards.

Notable Moment

Martin Luther King Jr. visited Johnson Products headquarters in 1966 during a fundraising crisis, looked at the 30,000 square foot facility filled with Black employees in lab coats and suits, then cried when Independence Bank provided a $100,000 loan for civil rights operations.

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Episode Transcript

This is Planet Money from NPR. There's this woman on TikTok who is so incredibly compelling. The next dress is from Zonda Rhodes, and I do have an iconic photo of my grandmother wearing it. So let me show you. Her name is Olivia Joan Galley. Like, so beautiful. She's a young black photographer. In all of these posts, Olivia Joan is trying on pieces from a heap of incredibly fancy vintage clothing on a couch. The beadwork is just impeccable. It all belonged to her grandmother. This dress weighs, like, 50 pounds. It is very heavy. There are shoes that cost more than some people's rent and have never even been worn. And then there are some very worn things. This used to be my grandmother's favorite top. It even has, like, a bunch of stains on it from when she spilled. And it still smells like her too, and she was my best friend and so, yeah, I'm running out of time. Okay. Bye. The thing that's so striking about Olivia Jones' post is that these are couture dresses. So her grandmother, a black woman, was wearing custom Chanel, Givenchy Yves Saint Laurent. This is for the wealthiest of the wealthy. Some of the same designers who dressed Audrey Hepburn, Jackie Kennedy, and princess Diana, dressing this black woman from the South Side Of Chicago. We called up Olivia Joan, and she told us that is why she's been posting these outfits of her grandmothers. You really did not see black men and women able to even afford designer pieces, but to see that my grandmother had such a deep rooted archival collection is the reason why I I really and kept talking about it. Olivia Jones says it even took her a long time to clock her grandparents' importance. Like, I remember my grandmother and I were watching The Crown, and she was like, oh, Oh, I was friends with the Queen's sister. And then I was just I was just like, oh, tell us, what what did you say? Who was your grandmother? Yeah. My grandmother is Joan Betty Henderson Johnson. Joan Johnson. And her grandfather? Who am I? I'm George E. Johnson. That's all. That most certainly is not all. George E. Johnson was Joan's husband, but he was also the maker of Afro Sheen, the most iconic black hair product of the twentieth century. And don't forget Afro Sheen's conditioner and hairdress, the best for conditioning and highlighting your hair. And what do you want? Nothing I can't get from Afro Sheen. Afro Sheen's blowout kit and conditioner and hairdress. Johnson's Afro Sheen, the largest selling products in the natural world. It's hard to overstate how Central Afro Sheen was the black culture and the rise of black business. And in a way, the story of the Johnsons company is how they melded those two. Because while Olivia Jones posts her TikToks so people will understand wealthy black entrepreneurs like her grandparents existed, for …

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Products

  • Afro SheenBy guest

    by Johnson Products Company

    George and Joan Johnson built Johnson Products Company into the first Black-owned firm on the American Stock Exchange by creating Afro Sheen and Ultra Wave hair products, generating $39 million in sales by 1975
  • Ultra WaveBy guest

    by Johnson Products Company

    creating shelf-stable hair straightener Ultra Wave by solving the chemical emulsification problem that plagued existing products, then expanding market by market using profits from each city

other

  • then sponsored Soul Train in color television starting 1971, driving sales from $11.2 million to $39 million in four years

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