Fake toenails are surprise success in unpredictable nail care segment

Drug Store News,  Oct 10, 2005  by Antoinette Alexander

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Driven in part by innovation and consumers' desire for at-home manicures and pedicures, the artificial nail category is experiencing growth and manufacturers are taking notice.

However, nail color continues to lack fanfare-the category has experienced a decline because of a lack of excitement and a trend toward natural-looking nails. According to Information Resources Inc., the nail-polish segment slipped 2.1 percent to $151.3 million in drug for the 52 weeks ended Sept. 4.

This compares with the artificial nail category, which rose 0.8 percent to $57.5 million at drug for the same period.

One surprise success within the artificial-nail care category in recent years is artificial toenails. While the thought of artificial toenails may seem unappealing to some, many consumers have taken quite a liking to them. The artificial toenails not only provide consumers with a quick and easy way to obtain a flawless-looking pedicure, but have enabled those with unsightly toenail conditions--like avid runners--to wear open-toed shoes without feeling embarrassed.

Pacific World Corp. is seeing success with artificial toenails, which launched more than a year ago. The segment is accounting for roughly 7 percent of category sales.

Pacific World is looking to expand its Perfect Pedicure artificial toenails under the Revlon brand and will target younger consumers by introducing artificial toenails, dubbed Dazzle Toes and Party Toes, to its newly acquired Fing'rs brand. The Nailene division also will expand its offering of artificial toenails.

Kiss Products also has seen success with its artificial toenails, which it introduced to the nail care category in 2003 and soon after added an easy-to-grab tab on the end for easier application. They currently represent about 6 percent of total category sales, Tallon noted.

This year, Kiss Products introduced Matching Tips and Toes, a kit that offers matching artificial toe and fingernails for $7.99--representing a 25 percent discount compared with buying two separate kits.

However, opportunities still exist within the artificial fingernail segment.

For 2006, Kiss Products is rolling out in January a new line called Pink by Kiss, which is geared toward 'tween girls. Products in the collection, which will be priced between $2.99 and $4.99, will consist of nail art and self-stick nails for easy and safe application.

We are trying to get that user into the category a little bit earlier, and when she is shopping with mom, there is something there that is a mom-approved item, said Grace Tallon, vice president of marketing for Kiss Products.

Kiss Products also will extend the offering within Real Life nails under its Broadway brand. In January, the company will add an additional French manicure nail kit and toenails. The suggested retail price is $5.99 each.

Looking to tap into the artificial nail category is W.E. Basset Co., known for its Trim brand of implements and other personal care items. The company revealed earlier this year that it is entering the artificial nail category with the 24-SKU Comfy Fit line.

Nail implements/accessories may have slipped 2.4 percent to $85.5 million for the most recent 52 weeks, according to IRI, but manufacturers continue to see great growth potential whether it is due to more consumers watching their dollars amid times of economic uncertainty and skyrocketing oil prices or because they simply prefer the comforts of their own home versus a salon.

Whatever the reason, manufacturers see quality and innovation as key drivers to sales growth for mass.

The area of significant growth is around the pedicure segment," said Art Malen, executive vice president of marketing and sales for Tweezerman International. "It has taken off as pedicures have become more of a year-round phenomenon versus seasonal."

New items to hit shelves in January include Slide and Hide, which is a one-piece callus shaver and rasp for about $10, and the new File Mate, which is a two-sided file that includes a plastic case to cover it when not in use. The file will be available in a bucket program for $4 and also will be available carded with an extra file for $5.

Also seeing great potential within pedicure products, Del Laboratories Sally Hansen brand in January will launch a new line called Just Feet. The collection of pampering, spa-inspired treatments will include more than 100 SKUs. Some of the products include Spa Foot Pumice Creme for $6.50, NightTime Heel Repair Wrap for $6.50, Painful Toe Relief Gel for $4.95, No More Fungus Spray for $4.95, Corn and Callus Trimmer for $7.25 and Gel Cushion Toe Spacers for $2.50.

Revlon's new product lineup for 2006 includes the new Expert Effect Pedicure Collection, which includes seven SKUs. Working with an ergonomic research and engineering firm, Revlon has designed the products to be geared toward self-use, addressing the fact that often implements are not ergonomically designed for self-use and instead are designed for salon professionals to use on customers. There's also a new pedicure kit that is designed for travel or salon use. The suggested retail prices typically will range between $5.99 and $10.