Hot spots to watch in skin and bath

Drug Store News, April 3, 1995 by Lisa I. Fried

Wouldn't it be great if you could predict the next series of blockbuster niches in hair, skin and bath care?

No, you don't need a crystal ball. Drug Store News asked several HBC buyers around the country to identify the fastest growing niches (specialized subcategories) within their chains for the hair, skin and bath categories. After the buyers pointed out the hot niches/products, we followed up with manufacturers, to find out their opinions about what's driving sales and what they're doing to keep the momentum going.

Damage control

Concerned about the damage that blow drying, perms, hair color and the sun are wreaking on their hair, more women are turning to a host of products for help.

Neutrogena Heat Safe, introduced two years ago to prevent blow-dry dry-out, is one such product buyers cited for strong sales. Last spring the company added a version for fine/thin hair, and now it predicts that a new subcategory in hair care will emerge.

"We are seeing huge growth and expect the competition to be right behind us," said Wendy Resin, associate marketing manager, Neutrogena. Development of this new category is good news for retailers, she said because "it's not taking away from any other category in hair care."

To date, drug store buyers are merchandising the product in several places: near other Neutrogena hair products or in the hair spray or conditioning section. However, stores merchandising it on display are selling the most because it's an impulse item, Resin reported.

Hair care buyers, concerned about dwindling profit margins in the category, are particularly pleased with strong sales of professional hair products from John Frieda Professional Hair Care and Lori Davis. Both of these companies were founded by hairdressers.

"The squeeze is on for profits, and drug stores are looking for more professional products," said James McMillan, vice president of sales for John Frieda Professional Hair Care. This company considers drug stores its core distribution channel and ships 75 percent of its Frizz-Ease and John Frieda lines through the channel.

Last year the company launched two conditioners, and ongoing on-pack promotions are building awareness of the new products. In January, the Hair Serum package, with a free, on-pack 2.2-ounce daily conditioner, sold out in three weeks, McMillan said. The next on-pack Hair Serum offer ships in a few weeks (it includes a 1.5-ounce maximum conditioning treatment), and the company is considering creating an on-pack promotion for the new spray-on version of its Hair Serum this summer.

Hair care is hot

Mane & Tail is still a hot item at drug chains. Botanical products, thickening lotions/serums and men's hair color are the other hot niche hair care products, buyers said. Hair extensions, a relatively new item for drug stores, is another potentially hot category, according to a buyer for a southern chain.

The craze surrounding skin care products formulated with alpha-hydroxy acids shows no sign of slowing, reported several buyers, who are particularly pleased with sales of Alpha Hydrox and L'Oreal's recently launched Plenitude Excel-3 lines. The challenge for buyers now is fitting all these products on the shelves.

"Once you get a certain amount of proliferation, it's hard to tell the differences between products," said Paul Carlson, beauty care buyer for Snyder, which carries AHA-based products from at least eight manufacturers. If a manufacturer comes in with a new product with an AHA in it, I immediately ask, `What are you doing differently?'" Unfortunately increased product proliferation is making it difficult for smaller manufacturers to enter the market. "I want to know how well a company can leverage consumer awareness of the brand" before adding a new AHA-based product, Carlson said.

Snyder, which operates many stores in rural areas, is also reporting strong sales from Redex' Udder Cream, a heavy duty skin protectant originally used by farmers and other outdoor workers. The chain has been carrying the two products for about a year and reports solid sales despite limited advertising. "Like Mane and Tail, they appear to be catching on by word of mouth," Carlson said.

Skin care products made from natural ingredients are also performing well. One buyer pointed to Freeman's Beautiful Skin line as a hot group of products. Freeman, which has been aggressively growing this line in the past four years, just started shipping four new additions -Pineapple and Papaya Foaming Enzyme Facial Wash, Sugar Cane & Guava Alpha-Hydroxy Body Lotion, Aloe Vera & Elderflower Sensitive Skin Body Lotion and.. Vitamin E & Ginkgo Intensified Body Lotion.

Its Sugar Cane and Guava Alpha-Hydroxy Peel-Off Mask, introduced only last year, is already the company's fifth best seller, according to Larry Freeman, chief executive officer and founder.

Freeman, which has seen strong sales performance from sweepstakes promotions, is launching a new one in June. The Natural Beauty Spa Sweepstakes will be promoted on special merchandising towers, floorstands and power wings, and advertised in Glamour, Vogue, Mademoiselle and Vanity Fair.