Basic hair care devices power up personal appliance sales

Drug Store News,  Jan 3, 1994  

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Drug stores are moving away from offering high-end items in the personal appliance category and are instead relying on basic hair care appliances to drive sales.

"There is no single item on the market that stands out," says Ray Hoy, director of marketing for Eagleville, Pa.-based I Got It At Gary's. "There's no Epilady," referring to the automatic hair removal device that was very popular several seasons ago. "We are staying with dryers, electric razors and other basic items."

Basic does not mean entirely low-end, however. Eurostyle and increased-wattage hair dryers, which retail for between $15 and $25, are driving the hair appliance category, according to buyers.

"The Eurostyle dryers, which have a sleeker, more upscale look, are really driving this category," says Chuck Gautreaux, buyer at New Orleans-based K&B. "Dryers with higher wattage are also becoming more popular."

Don Vanecek, buyer at Manhattan-based Chain Drug Marketing Associates, agrees. "The 1600-watt units are the strength of the category," he says. "Now that many of those dryers are retailing for under $20, they are outperforming lower-watt, professional dryers."

Cold shots, lint filters

Other features are also energizing the blow dryer category. While not new this season, cold-shot dryers, which shoot cold air on the hair at the end of the styling process to "freeze" the style, are still very popular.

Removable lint filters, which can actually prolong the life of a dryer, are also becoming more popular.

While diffuser attachments still appeal to customers with curly hair, buyers say diffuser dryers themselves have seen their day. The trend seems to be toward more powerful dryers that offer a number of options.

In curling irons, larger barrels, ranging from 1 1/4 to 1 1/2 inches, are the new trend. Windmere and Clairol irons are cited by retailers as popular items.

Instant-heat irons, which are hot within 60 seconds, are another trend.

Clairol has also developed heated hair clips that provide lift for short hair. The Quick Lift clips retail for $27.99.

No more middle ground

While the prices of higher-performance dryers are rising, prices at the lower end of the price spectrum are dropping.

"The market is really splitting. Dryers with more features are going for $15 to $25," says Lee Knuth, product manager for the Vidal Sassoon line of dryers at Helen of Troy. "The bottom end of the dryer market is trending downward. Basic dryers are really coming down in price, to between $10 and $15." The company introduced a high-end line of Revlon-licensed dryers and curling irons last year--they retail between $8 and $25.

To satisfy the low end of the category, some retailers are bringing in imported merchandise, while others depend on special offers on branded merchandise.

At Genovese, "We have also gone into highly promotional low end import dryers that we retail for $9.99," says Irv Livon, vice president of merchandising for the Melville, N.Y.-based chain.

"We don't use imports to fill the lower-price niche," says K&B's Gautreaux. "We use special deals from branded manufacturers."

Gary's Hoy says branded merchandise from Helen of Troy, Clairol and Conair continue to have brand appeal to consumers.

Said the CDMA's Vanecek: "I still see name-brand professional dryers that can retail at a highly promotional $13.99 or $14.99." And promotion is the key word for these items. "It's a real competitive market," says Vanecek. "Retailers are pulling 20 percent margins on the products or less if they are on promotion."

"This is not a high-margin department," says Genovese's Livon. "You get a high gross dollar, but the gross margin is not great. You really have to be promotionally priced."

Retailers see increased sales at Mother's Day and during Back To School, and some do a good job promoting travel dryers during the summer.

"We do a dynamite business at Back To School with hair dryers, curlers and other personal care appliances," says Gary's Hoy. "We are trying to make a grab at Mother's Day." Hoy adds that the chain runs ads for the merchandise in circulars 12 to 14 times a year.

Another retailer says he has a strong B-T-S business and sees growth of travel dryers during the summer months when people are heading for vacations and summer homes. "We feature travel dryers on promotion during the summer--sometimes in the seasonal set," he says.

Fourth quarter rules

While retailers say personal care products are a year-round business, the best selling season is during the fourth quarter. Most retailers cross-merchandise the department on an endcap and promote the items regularly in circulars during the holiday season.

"We keep personal care appliances in a permanent section near hair care, and take an endcap for the Christmas season," says one retailer.