Convenience & Impulse Retailing Article
Category: Health & Beauty
Issue: Jan/Feb 2005
Slop, Smooth, Slide
For sun protection this year, your customers will slop on sunscreen, smooth on lip balm, and slide on a pair of sunglasses. You can sell them all three and make a sunny profit.
As our long hot summers get longer and hotter, sun protection products are becoming ‘must haves’ in convenience. Although sales take off when the school holidays start in December, consumers know they need sun protection all year round. This high level of consumer awareness is easily transformed into high-margin sales by choosing the best range, price points and display.
Your sunscreen range needs to suit your demographic, and it is important to stock recognised brands. Sea &Ski has been saving skin for almost 50 years. According to Newspoll data, 77% of consumers in the 35-49 age group recognise the brand. Australian Therapeutic Supplies (ATS) purchased the brand in June 2004 and, among other changes, has put together a range specifically for the convenience channel.
“We recommend four variants: SPF 30+ regular for everyday use; Kids which has a little bit of zinc and is good for sensitive skin; one with insect repellant which suits many workers; and sports/outdoor with extra sweat resistance,” says Daniel Jordan, National Sales and Marketing Manager, ATS.
Aaron Collins, Banana Boat Brand Manager with Playtex Products which supplies the internationally-recognised Banana Boat brand, offers similar advice: “To cover most people, carry a range that includes Kids, Ultra for workers, Sport with sweat resistance, and Sensitive.”
You may wish to modify your range depending on your location. Banana Boat Surf is a new product that gives instant protection (ie no need to wait 15 minutes before heading for the sun). It will be heavily promoted this year with outdoor media, sampling and magazine advertising.
Under the current standard, sunscreens can be labelled either SPF 15+ or SPF 30+.
“You need to stock SPF 30+,” says Brian Topham, Managing Director, South Pacific Sunscreens. “People tend to look for water-resistant sunscreens with the highest SPF.”
Australian consumers are reasonably confident in the quality of sunscreen products because all suppliers must comply with the Australian Standard. Standards Australia will be reviewing the standard in 2005 and is expected to require UVA and UVB (i.e. broad spectrum) protection in response to recent research implicating type A ultraviolet in DNA damage and cancer. Banana Boat sunscreens are SPF 30+, broad spectrum (with UVA and UVB protection) and water-resistant up to four hours.
Specifically for the route and convenience channel, ATS has introduced a 125 ml pack of Sea &Ski that retails just under the critical $10 price point.
“This pack size and price combination suits the convenience buyer,” says Daniel Jordan.
Similarly, Banana Boat variants are available in 90 gram tubes that retail for less than $10.
These packs suit impulse buyers who realise, as their driving arm heats up, that they have forgotten the sunscreen. Other impulse buyers might need reminding, so you need to locate a sunscreen range where it can be seen. The South Pacific range is available in a counter display that is only 12 inches wide and 18 inches high and holds 35 items, ranging from a roll-on to a one-litre pump pack.
“Some families wear lots of sunscreen and keep pump packs next to the pool and in the car, and they are looking for value,” says Brian Topham.
Sea &Ski and Banana Boat also supply compact counter units that include lip balms.
“Lips are important and lip balm should be ranged all year round,” says Daniel Jordan.
Lips are also vulnerable to outbreaks of cold sores which can be triggered by ultraviolet light, sun burn and the change of seasons. That is why your sun protection range should include a cold sore treatment. Sales of Zovirax, the market leader, grew 76% in the convenience channel in 2004.
“Because cold sores can strike without warning, consumers look for Zovirax at convenient locations,” says David O'Brien, Trade Marketing Manager, Glaxo SmithKline. “They will pay a premium price for a premium product, and the average retail price in convenience is $17.90 compared to $15 RRP in grocery.”
The effects of sun (and wind) are felt long after the sun goes down. Aaron Collins recommends including a couple of after-sun products such as Banana Boat Aloe Vera spray or gel. The 250 ml spray and 110 gram gel both retail under $10, that critical price point.
Don’t forget the sunnies
There was a time when inexpensive sunglasses were seen as ‘cheap’ rather than ‘good value’. Thankfully, those days are gone. Sunglasses are now an accepted, even expected, product in C-Stores. The keys to sales are a range of fashionable and quality items that comply with Australian Standards; the right price point, easy access and a well-presented display.
Fashionable, good-quality sunglasses retail for around $20. Sea Shark sunglasses retail for $15.95 (standard) and between $19.95 and $24.95 for polarised. The trend towards polarised sunglasses continues, accounting for more than half of all sales. AIP Distributors Solar 2 Polar range retails in a similar price bracket, at $15 (standard) and between $25 and $30 for polarised. The gross profit is outstanding ‚ between 55% and 200%!
If you choose a reputable supplier you don’t have to do much to earn this return. Compliance with product quality and labelling standards is important.
“All Miller Red sunglasses are fully and independently tested,” says Nathan Koina, Marketing Manager, Miller Red Pty Ltd. “Our sunglasses meet strict Australian standards for UV protection,“ says Sandra Maher, National Sales Manager, Trio Trading.
“All our products are tested in Australia, and now they are as good as the expensive brands,” adds Chris Sargent, Managing Director, AIP Distributors.
Look out for the new labelling requirements that come into effect in April 2005. Even though it is the supplier’s responsibility, retailers need to check. Red X, Sea Shark and Solar 2 Polar sunglasses either already meet the standard or will do well before then.
“Retailers should insist their sunglass supplier produce independent written proof of compliance with such laws,” says Nathan Koina.
As well as compliance with all regulation, sunglasses should also survive scrutiny by the fashion police. There is no accounting for taste, so you should rely on your supplier to choose a range. You should choose a supplier that stocks the latest fashion, knows what sells in your area and can adapt the range to suit.
“Some styles, such as the black plastic wrap, sell everywhere all year round,” says Chris Sargent.
“But, that is only part of the market. This year, big ‘Elvis Presley’ frames are in. They might look ridiculous but they are selling very well. Next year, it will be sun visors that are worn like sunglasses. They are big in Europe at the moment.”
A C-Store is unlikely to carry a full range ‚ Trio Trading has 600 designs ‚ and suppliers recommend around 140 pairs and at least 40 styles. You can expect your supplier to visit you regularly with new stock and accept returns. Your supplier should also provide and manage the stand. The stand should be attractive with a good mirror and storage. Place the stand near the door for maximum exposure (though security might be an issue), or near the console.
Between visits, keep the stand fully stocked and tidy. If the stand is half-full, customers think that all the good ones are gone and that they are missing out on the latest style. In sunglasses, compliance is essential but appearance is everything.

| Australian Standard AS 1067 | |
|---|---|
| Sunglass manufacturers must substantiate their claims about UV protection through the use of a new classification system, including new safety warnings. The five ratings of sunglass lens are based on the amount of light they absorb, with “0” providing some protection from UV radiation and sun glare, and ‘4’ a high level of protection. The new lens categories are: | |
| 0 | Fashion spectacles: providing some protection from UV radiation but no reduction in sun glare. |
| 1 | Fashion spectacles: providing protection from UV radiation and limited reduction of sun glare ‚ NOT SUITABLE FOR DRIVING AT NIGHT. |
| 2 | Sunglasses for general use: providing good protection from UV radiation and sun glare. |
| 3 | Sunglasses providing extra protection from UV radiation and sun glare. |
| 4 | Sunglasses providing a high level of protection from UV radiation and sun glare ‚ MUST NOT BE USED WHEN DRIVING. |
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