The completion of the Anagen stage marks the transition of the hair into the Catagen stage. In this period the hair producing gland called sebaceous glands stops or reduces the release of sebum. This results into the stop or reduction of the growth of the hair. It lasts for a time period of 2-3 weeks after which the period of absolute breakdown of the hair begins. At this time, the formation of the club hair from the hair follicles take place which then get attached to the hair shaft. This dissuades the hair from receiving the nourishment through the means of blood. 

In this transition stage, around 4 per cent of the hair faces transitional changes at one time. At this period the hair follicle starts shrinking to about 1/6th of its normal size. The hair then become feeble and prepares itself for the next stage. After the passage of few weeks, the part of the hair becomes dead. During this while when all of the hair strands are dead, the formation of club hair takes place. The end of this stage is characterized by the complete diminishment of the hair roots. Further, dermal papilla gets detached and settles on the layers below the scalp.