Australian Convenience Store News & C-Store Exhibitions

Australians are finally realising that 'sunny side up' is not smart. ACSN reports that C-stores are perfectly placed to benefit from the need for ultra-violet protection.

In years gone by, Aussies grew up with the idea that 'brown is best', but slowly the message is getting through that under-done is better.

Excessive sun exposure has a direct link to melanoma and Australia has one of the highest rates of the disease in the world. In the last 15 years or so, the medical message has started to penetrate the community consciousness and most of us are now well-versed in the concept of 'slip, slop, slap'.

A growing market
As a result, there is now a plethora of products of every size, shape and consistency to provide protection. While pharmacies have been the traditional outlet, grocery stores and now C-stores are getting in on what is a growing market.

"Convenience buyers are very important to us because if people are on their way somewhere and they realise they've forgotten their sunscreen, they will make the purchase when they stop to buy petrol," says Daniel Walker, sales manager for Australian Therapeutics Suppliers. ATS distributes the Sun Control range of lip balms, sunscreens and a two-in-one sunscreen/insect repellent.

"We haven't traditionally had good route distribution but it is something we want to build strongly in the future because it is such a logical outlet for the product," says Melissa Doherty, trade category manager for GlaxoSmithKline. GSK's only suncare product is LIP-EZE, which has the official endorsement of the Skin and Cancer Foundation.

"A product like LIP-EZE is very much an impulse buy. People buy them and keep one or two at home, one at work and one in the car. They'll have a number of them on the go at once. It's the type of product that if you put it in front of people they'll buy it, so we are keen to branch more into convenience for that reason."

Matthew Harris is senior brand manager for Faulding Health Care, which produces Banana Boat (the largest suncare brand in Australia) and the new Banta range, which is pitched at the youth market.

"In the last 12 months there's been substantial growth in the suncare market. In grocery it grew 21 per cent, spurred on by a pretty hot summer and the fact the majors are opening up space for wider ranges. I don't have figures on route, but given the weather, I would say it would be a similar story."

New "trendy" & multi-purpose products
Mr Harris says schools have played a major role in the education process, convincing young Australians of the need for sunscreen. As those 'children' leave school and make their own purchasing decisions, they're looking for a 'trendier' alternative to the many family-oriented products on the market.

"People hate greasy sunscreens so Banta has five variants in the range, all non-greasy including a gel, and an oil-free face product. We've also launched a spray-on product which we think will do very well.

"We've taken the lead on the spray from the US where 30 per cent of their sunscreens are spray-on. Australia has traditionally used lotions or creams."

Other trends to keep an eye on are dual products, which the experts suggest have particular appeal for a C-store. The Sun Control range, for example, now includes a Combi-Stick.

"It's a tube of sunscreen with an attached lip balm which was a huge success on the snowfields during the winter, so should have similar appeal for the summer," says ATS's Daniel Walker.

"It's a 30g pack, so it's pocket-size. That makes it great news for the customer but it's also good for the C-store because it's a space saver - two products in one space, so less storage space and shelf space needed than for a sunscreen and a lip balm as separate products."

Reckitt Benckiser is the manufacturer of Australia's favourite insect repellent, Aerogard. Realising the appeal of a multi-purpose product, the Aerogard range now includes a lotion which combines insect repellent and sunscreen (Aerogard Two-In-One with Sunscreen).

"There are so many situations where people need both a sunscreen and an insect repellent but it's pretty obvious that buying, carrying and applying two separate products is inconvenient, uncomfortable, expensive and time-consuming," says Reckitt Benckiser's Shaun Ryan.

"More importantly, you have to wonder whether one is changing or negating the effects of the other, which is an important consideration for everyone, but particularly people with sensitive skin," says Mr Ryan, who is Reckitt Benckiser's national account manager/special markets.

"It's a non-greasy lotion that repels all the nasties and contains a 30-plus sunscreen, all in a 75ml pack. It's just so much more convenient and economical - and it's selling well for that reason."

An important move in suncare protection of recent times is the upgrading of the protection factor. The Australian standard was lifted from 15-plus to 30-plus in line with international standards, and all products mentioned here are 30+. While the switch has increased the cost of the product because the active ingredients had to be changed or intensified, it has not had a detrimental effect on sales, because the average Australian is so much more aware of sun damage and wants to use the best protection possible.

Even better news is that the price rise on suncare products has not affected margins. As they are usually in the 30-40 per cent range, it's worth ensuring that you have plenty of stock and the products are working for you during the months of stronger demand.

Very much an impulse product
"Everyone wants their products on the front counter," laughs Faulding's Matthew Harris, "but this is very much an impulse purchase and a seasonal one, so it makes sense to highlight it.

"People popping into a C-store are on their way to the beach or doing something outdoors, and they suddenly realise they've forgotten their sunscreen when they race in to buy petrol.

"We think it makes more sense to have a small free-standing location for the summer months. Having it on the shelves is great but it really has to be in their face if they're going to grab it, so a secondary one-off site is great. Whereas something like lip balms are easier for the front counter - they're cheap and they're an all-year-round product with all-year-benefit to the operator as well as the customer," Mr Harris says.

"People will go looking for a suncare product if they realise they need it," says ATS's Mr Walker, "but it makes sense to use available point-of-sale material to show where it's located.

"I'm a great believer in the umbrellas-out-on-a-rainy-day approach. If the weather is hot, move some products into a very visible position, somewhere in line-of-sight as they walk in to pay for petrol.

"It is mainly a seasonal product, unless you're located near places that would require it constantly, such as ski fields or a popular beach or fishing spot, so take advantage of the hot weather.

"Put it somewhere obvious and you're reminding the customers they should be protecting themselves, and giving yourself the best chance of making some sales - and a two-in-one product like ours makes a lot of sense to your customers," Mr Walker says.

"Customers will appreciate the convenience of two products in one but it makes a lot of sense for the operator too because there's less storage space or display space needed. The main thing is to have it somewhere prominent so people see it.

"Ours is a well-known brand so people trust it, but they still need to see it. We have a cardboard display unit which holds 12 packs and can be cable-tied to an off-location display or a counter area - any impulse point-of-sale placement is ideal. Our product is obviously not as seasonal as a single-purpose product, so the sales will go on past the usual season."

"You need to prompt people to buy. If you put it in front of them they'll think 'that's right, I need some of that'," says GlaxoSmithKline's Ms Doherty.

"It's particularly true with our product. People don't usually have LIP-EZE on their shopping list, but if they see it they might suddenly realise their lips feel dry and be prompted to purchase.

"It's not a very expensive product, so they'll grab one, and the fact that it's so small means it is easy to put on the counter or somewhere prominent where people will see it. The usual margins are there, but it's volume that really counts."

To make this easier, GlaxoSmithKline does a mixed pack with the three variants (Regular, Mint, Strawberry) in a pre-pack display unit, or individually carded, so they can be placed in a small but prominent site.

There are a lot of products out there, so many that several experts described the market as saturated. That being said, the product range is always changing and improving and those same experts cannot see the likelihood of a drop in demand.

Choose your range wisely
The difficult thing for the operator is deciding which products to go for, what sizes and where to put them. The experts suggest picking convenient size products - something that fits easily in the glovebox or the beachbag, rather than a family-size bottle - and having a broad range of popular products.

Leading brands that are heavily advertised are obvious choices - individual operators gain flow-on benefits from the money being spent raising consumer awareness. Faulding's Matthew Harris confirms that his company will be spending more than $2 million advertising Banana Boat and Banta this summer.

The dual-use product segment seems certain to succeed because they work so well for the consumer and also for the retailer who doesn't need to be stuck with excess stock and minimal shelf or floor space.

Sites affiliated with the larger chains will start to see a trend towards the full one-stop shop concept. It includes a new health-and-beauty planogram designed for products such as suncare, and provision for highlighting those products during the summer months.

Our experts suggest there will be plenty of promotion and back-up during the hot weather and advise operators to talk to their distributors for advice on how to maximise their opportunities.