Implements on profit's cutting edge, help drive health nail care growth

Drug Store News, Sept 30, 1991

Implements on profit's cutting edge, help drive healthy nail care growth

Just as expert craftsmen work wonders with the tools of their trade, savvy retailers make the best of their implements. Nail implements.

This cosmetics segment is gaining stature as a lucrative, high impulse essential. Displayed often in high visibility locations, and sometimes at checkstands, implements effectively remind time-pressed women of this daily grooming need.

Working women and men need well-manicured and well-groomed nails for a professional image, and other women appreciate the look. Yet 19 out of 20 women in the U.S. have never had a professional manicure; they do it themselves. Implements grow 10% annually.

Implements are a $170 million-plus business. Drug stores control more than 50% of that because they work hard to build the identity of strong nail care sections within their cosmetics departments. Indeed, drug stores are coming off a year in which many forecast 20%-plus nail care growth and more than 1 in 3 say they are willing to expand nail care display space.

The beauty of implements is they sell on their own with little consultation needed from cosmeticians or trained clerks, who are often beseiged by shoppers.

A permanent self-service home, with well-organized planograms as part of a nail care display, is most effective. secondary locations work well too because implements are bought often on impulse, are packaged attractively and noted for quality.

Indeed, Revlon, the dominant brand, offers a lifetime guarantee on all its metal implements and turn up to 12 times a year. Revlon, a highly trusted cosmetics resource and the third most recognizable brand name in the world, helps chain drug merchants position implements as a highly profitable add-on sale.

Revlon, in a recent 12-month period, solidified its leads in seven important nail-care categories: emery boards, nail files, nail clips, tweezers, scissors and nippers and buffers. Revlon growth consistently outpaces the category and competitors.

In drug stores, for example, Revlon share ranges from 65% to 85 % among different nail care categories. Towne-Oiler statistics through September 1990 show that: * Revlon commands an overall 40.9% share of U.S. category dollar volume - virtually twice its nearest competitor. Across the seven top categories, Revlon's No. 1 volume shares range from 35.8% to 54.0%. * In emery boards, Revlon's 41.8% share outdistances its nearest competitor by 16 percentage points; in nail files, the lead is 18.3 percentage points. * In tweezers, buffers, scissors and nippers, Revlon outsells all other brand combined. * In nail clips, Revlon sales virtually double those of its nearest competitor.

In addition, Revlon offers other successful targeted lines: * The 7-SKU Care For Kids line continues to grow rapidly ( 50% in 1990) and yield incremental profits for drug store baby departments.

In January 1991, Revlon introduced a line of combs and brushes. The line, to be supported with an F.S.I., national magazine advertising, mail-away refunds and bounceback coupons, offers today's retailer the ability to upgrade their profits. Early sales results look very promising with accounts reordering the first month.

Revlon will drive demand for all lines in 1991 through floor racks, hanging racks of assorted sizes, co-op advertising, custom pre-packs, bonus packs and mail-away rebates.