Supplier strategies, aggressive marketing strengthen humidifier/vaporizer sales

Drug Store News, Jan 3, 1994

Sales of humidifiers and vaporizers remain strong at drug stores as chains aggressively merchandise the products as part of their home health care sets and as manufacturers such as Bionaire and Kaz work to bring excitement into what was once a sleepy category.

Terry Sandage, vice president of national accounts for Bionaire, estimates that sales of humidifiers (excluding ultrasonic models) and vaporizers total $45 million to $60 million each year.

In 1992, he estimates, 1.5 million evaporative, warm mist and console humidifiers were sold at retail. About twice as many vaporizers--some 3 million-were sold.

Suppliers aggressive

"We are taking a strong position against letting the category become a commodity category," says Marty Cohen, vice president of marketing at Kaz.

The company, which manufactures humidifiers and vaporizers that retail between $8 and $25, is using a multiprong marketing strategy: instant rebate couponing to the category, point of purchase literature to explain the benefits of the devices to consumers, continuing education on the products and TV advertising support.

"We have really focused on creating excitement within the category," says Cohen.

Cohen believes that display space is the most important aspect to selling the category. Promotion in circulars is a close second in terms of importance for creating a category that's viable.

Cohen suggests merchandising the items in the home health care set and on additional cough/cold endcap displays during the winter.

Many retailers are already using the strategy. "We keep the items in the cough/cold set and take an endcap during cold and flu season," says Irv Livon, vice president of merchandising at Melville, N.Y.-based Genovese.

Eagleville, Pa.-based I Got It At Gary's uses a similar technique, merchandising the items in the cough/cold OTC set near the pharmacy. "The items often need an explanation from the pharmacist in order to sell," says Raymond Hoy, director of marketing and public relations.

Don Vanecek, buyer at Manhattan-based Chain Drug Marketing Associates, recommends that chain associates merchandise the items with heating pads, massagers and other wellness, home health care-related items.

"These products have a strong selling period during Back To School and winter," he says.

Higher prices unpopular

Vanecek says that consumers are usually satisfied with models that retail for $20 or less. "People buy a unit for a specific reason, and they are usually satisfied with the lower-priced items," he says.

Sales of the higher-priced ultrasonic humidifiers have dropped to approximately 200,000 units annually, according to Bionaire's Sandage. Although the Food and Drug Administration never issued a statement on the devices, questions about bacteria forming in these models' demineralization cartridges contributed to the segment's collapse.

For the hot and cold models that are selling well, retailers and manufacturers estimate that margins range from 25 percent to 40 percent.

In fact, in a recent study done by Bionaire, Sandage says results showed the average wholesale price on vaporizers is coming down while the average wholesale price of the evaporative humidifier category, the strongest portion of the humidifier category, is rising. These products' simple technology and low price points are the driving factors behind their popularity, he adds.

The facts about humidifiers and vaporizers

Humidifiers and vaporizers are similar in technology but have key differences. Humidifiers hold more water, create more output (put more humidity into the air), use higher grade plastics and more expensive motors, and are therefore more expensive.

Here are the main types of humidifier and vaporizer products and how they work:

* Cool mist or evaporative humidifiers: The least expensive, these products retail between $29 and $59. They include a paper wick (much like a sponge) and a fan that blows air through the wick to evaporate moisture and release it into the air.

* Warm mist or boil technology humidifiers: These devices operate much like a tea kettle, creating moisture by boiling the water. The boiling also kills bacteria that may be present in the water. These devices retail for between $39 and $129.

* Slinger vaporizers: These inexpensive items, retailing between $9.99 and $24.99, include a wheel device that flings water into the air in droplets. Slingers are the lowest price and lowest technology vaporizors.

* Steamer vaporizers: Like their humidifier counterparts, these items, which retail for between $9.99 and $24.99, work much like a tea kettle. Water is heated by a heating element or electrodes.