As a basic tool for deriving sparse representation of a color image from its atomic-decomposition with a redundant dictionary, the authors have recently proposed a new kind of shrinkage technique, viz. color shrinkage, which utilizes inter-channel color dependence directly in the three primary color space. Among various schemes of color shrinkage, this paper particularly presents the soft color-shrinkage and the hard color-shrinkage, natural extensions of the classic soft-shrinkage and the classic hard-shrinkage respectively, and shows their advantages over the existing shrinkage approaches where the classic shrinkage techniques are applied after a color transformation such as the opponent color transformation. Moreover, this paper presents the applications of our color-shrinkage schemes to color-image processing in the redundant tight-frame transform domain, and shows their superiority over the existing shrinkage approaches.