Upscale depilatories at value price carve profit niche

Drug Store News, April 5, 1993

Depilatories, waxes and bleaches are one of the fastest growing category segments, with annual drug store sales at $44 million in 1992 and a 15 percent growth in dollar volume over the previous year. Drug stores have a 55 percent share of the total depilatories business.

That growth trend is expected to continue as consumers look for alternatives to shaving as a means for hair removal. As salon customers become more budget minded, many are finding that modern depilatories - no longer harsh products with unpleasant odors - offer them a way to get salon results home.

That's good news for retailers. While shaving creams and razors are highly price sensitive, depilatories, waxes and bleaches continue to earn 30 to 40 percent margins for retailers.

Inverness' line of hair removal products is helping drug retailers build their share of the market build their share of the market and hold their margins by answering the consumer demand for upscale salon-type products at value prices.

"The consumer wants better products. They want merchandise that will make it easier and more pleasant for them to remove unwanted air," said Inverness vice president of sales Arthur Pirrone.

Inverness' 17-SKU One Touch depilatory/appliance line offers the most complete range of superior hair removal products available at retail.

The line includes different types of products that enhance the hair removal process: cream hair remover, lotion hair remover, roll-on hair remover in both regular and sensitive formulation, bikini roll-on hair remover and both body and facial strip wax. The line also includes a cream hair bleach and a moisturizing after shaving gel.

This year One Touch added lotion hair removers to its line in two formulations,a baby oil formula and a jojoba and cocoa butter enriched formula both in a premium 7 oz. size.

All products are fragrance free and have recently been repackaged with an upscale department store-style look.

While the One Touch SKUs reflect this upscale image, they retail at lower price point than their competitors with inferior packaging.

Several One Touch bonus pack promotions are planned for 1993. "Last year, the products blew out of the stores when we ran promotions with retailers," said Pirrone. "While we do run seasonal promotions, the products offer high retailer margins all year round. They offer retailers a way to make a steady profit."

"The consumer wants a more pleasing and efficient hair removal experience, and retailers can capitalize on this by stocking and promoting One Touch products," said Pirrone. "The key to success is a complete mix of products tied in with eye-catching instore displays and cross merchandising with sun care products."

Inverness offers unique point-of-sale and display materials, including shelf talkers, floor stands and counter displays that assure maximum impact at the retail level and that educate consumers on how the products work.

Appliance sales

on the rise

Despite a lagging economy, sales of hair removal appliances remains strong at the retail level. In fact, consumers who previously had hair removal procedures performed in salons are now turning to effective and economical home treatments.

Inverness offers consumers a variety of options for those consumers and an opportunity for profits for retailers who carry the items.

Consumers who once paid $30 to $50 each time they had waxing done at a salon can purchase the One Touch Roll-On Waxer for under $30. The product, which produces solid margins at the retail level, has a track record of 2 to 3 turns a year.

Even better news is the turns produced by the add-on purchases refill items stimulate. Refills for the Inverness One Step appliance retail between $5.50 and $7.50, and generate six to seven turns a year carrying margins of 40 percent or higher.

Inverness promotes the appliance through POS materials, including shelf talkers, displays and with a $3 manufacturer rebate program.

In keeping with the company's place as the leader in hair removal, Inverness also manufacturers an at-home electrolysis kit in 2 models which operates on the same system as salon procedures. Once performed only at salons, electrolysis works by creating a mild current that travels o the base of the hair shaft killing the root and halting future growth permanently.

Inverness' Deluxe Home Electrolysis Kit, which retails for under $35 and the Personal Home Electrolysis Kit for under $25, are the only products of its kind available for home use. Inverness also makes replacement stylet tips for both appliances.

Inverness has entered the shaving gel segment with unique clear shave gel, Inverness Ultra-Lubricating Shaving Gel.

The product is the first ultra-lubricating, non-foaming shaving gel in the mass market. Similar department store products are retailed at prices 3-4 times higher.

Because it's non-foaming and non-alcohol based, the product dramatically reduces nicks and razor burn, relieves dryness and replaces moisture. The clear formula also allows the consumer to see the skin while shaving.