www.storebrands.info | April 2015

Consumer InsightsMeet the needs of Asian Americans

Special ReportConnect with shoppers at the shelf

Capital ManagementReap the benefits of store brand consolidation

Change is in the

airBJ’s Wholesale Club

is transforming its

own brands program to deliver

the highest quality and value

to its members — and drive

increased loyalty to its

club locations.

Pete Poutre, senior vice president of food perishables and grocery; David Atkins, vice president of own brands; and Chris Neppl, executive vice president of merchandising and logistics

68 Store Brands / April 2015 / www.storebrands.info

Category Intelligence: Foot Care Products

also expand foot medications into other categories. For example, they could develop soap that could be used in the shower and take the place of a medicated cream, or a sock/slipper with medication or moisturiz-ers integrated into the fabric, Mintel says. Both would be a great way for retailers to appeal to the consumer’s desire for a convenient, no-mess solution.

And retailers might want to consider offering prod-ucts made with oils or natural and organic ingredients.

“Liquid over-the-counter products primarily formulated with oils tend to absorb faster in the skin,” says Ana de Oliveira, vice president of sales, Natureplex Pharmaceuticals, Olive Branch, Miss. “I see a growing popularity in these products, with a particular focus on natural products. Any label that claims the product to be ‘natural’ or ‘organic’ I believe will attract consumers, as will natural ingre-dients and oils with antibacterial qualities.”

Another way to expand the category meaningfully would be to offer medicated skincare products in different formula strengths, with “light” or “gentle” formulas positioned as ideal for treating skin in a preventative manner, Mintel says in its December report.

But regardless of how many foot care products retailers offer to their customers, de Oliveira cautions them to be careful when it comes to on-pack claims.

“Retailers should avoid claims of a ‘wonder cure,’ as often, no one treatment will take care of a problem,” she says. “And while a product can help, it may not cure the person if he is not taking proper care of himself.” SB

Source: IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers (including Walmart), military commissaries and select club and dollar retail chains, for the 52 weeks ending Jan. 25, 2015.

Foot care category performance

Dollar Sales (in millions)

Change vs. Year Ago

Dollar Share

Unit Sales (in millions)

Change vs. Year Ago

Avg. Price Per Unit

Athlete’s foot medication

Foot care devicesFoot care

Private Label

Private Label

Private Label

All Brands

All Brands

All Brands

$73.9

-3.1%

31.3%

13.5

-3.6%

$5.46

$16.1

+17.1%

11.0%

4.3

+19.4%

$3.75

$113.7

+8.5%

16.4%

28.9

+8.1%

$3.93

$236.4

+1.9%

100%

34.9

+0.2%

$6.77

$145.9

+2.6%

100%

25.6

-0.4%

$5.71

$695.0

+2.4%

100%

99.9

-3.1%

$6.95

Your Brand. Your Products.National Brand Equivalents: The time has come for

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remain competitive. Low priced bids on National Brand

Equivalents (NBE) does little to advance a product in

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Partnering with Greenblendz can provide all this and more.Visit www.greenblendz.com, call (248) 499-6051 or e-mail

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www.storebrands.info / April 2015 / Store Brands 69

Category Intelligence: Wet Wipes

place in several states, affecting such retailers as Minneapolis-based Target Corp. and Issaquah, Wash.-based Costco Wholesale Corp.

While the flushability problem isn’t exactly new, it’s only going to get worse, particularly as more of the focus shifts to the consumer end. According to a recent article in The New York Times, the city of New York is starting a public awareness campaign advising wipes users to throw them in the trash.

“The consumer voice around this issue is growing louder,” Nippert says. “By getting out ahead of this issue, retailers have the opportunity to build a positive store brand story.”

For wipes that won’t break apart, retailers should have clear, specific labeling on the package such as the “Do Not Flush” logo from the Association of the Nonwovens Fabrics Industry, Cary, N.C. But retailers also should understand that consumers want wipes that flush. One new technology innovation here is Haso’s Rapid Dissolve Technology, a substrate that enables wipes to dissolve as quickly as regular toilet paper. After demonstrating the technology at the 2014 Water Environment Federation’s Annual Technical Exhibition and Conference, Rob Villee, executive director at the Plainfield Area Regional Sewage Authority in Middlesex, N.J., proposed it as a potential solution for all wipes.

Make packaging ‘hand-friendly’Besides wanting wipes to be flushable, consumers also want them to be as easy to use as possible.

Convenience both at home and on the go drives wipes purchases,” says Jamie Rosenberg, global personal care analyst at Mintel.

So how could retailers enhance the convenience of store brand wipes? One means is through better packaging.

“Current consumer research conducted by leading manufacturers has uncovered dissatisfaction with current dispensers,” Nippert says, both of the flow pack and canister varieties, which often require the use of two hands and result in the unintended removal of more wipes than needed. Canisters, in particular, have caused the most consumer frustration, with their propensity to pinch

fingers and make it difficult to reinsert unused wipes. Packaging store brand wet wipes with a

hen it comes to household cleaning and personal, beauty

and baby care, few products offer the convenience of wet

wipes — and strong sales reflect consumers’ interest in

using them. According to data from global market research firm Mintel, wipes have been the fastest-growing segment of the U.S. surface cleaning market, with dollar sales here climbing 9.4 percent between 2012 and 2014 to reach $695 million.

Ensure claims hold upTo continue to grow wipe sales on the store brand side, retail-ers need to be honest when it comes to flushability claims.

“The overwhelming trend in wet wipes right now is flushability,” says Chris Nippert, vice president of marketing at Norcross, Ga.-based Haso USA Inc.,

manufacturer of a wide variety of wipes products.Any Google News search of wet wipes will

bring up many stories of sewer systems being clogged by wet wipes — some of them labeled as flushable when they really aren’t. Wet wipes

that don’t disintegrate are an expensive headache for cities

nationwide, with Nippert noting that the city of

New York alone has spent $18 million

on removing them and repairing the damage. Moreover, lawsuits over private

brand-related flushability claims

have taken

Room for improvementStore brand wet wipes may already be top sellers, but accurate labeling,

convenient packaging and a wider variety could further enhance sales.

By Meghan Hogan

Doconsider

consumers’ desire for

flushability and honest claims

in wet wipe formulation.

Don’t ignore men when it comes to personal care wipes.

Category Intelligence: Wet Wipes

70 Store Brands / April 2015 / www.storebrands.info

dispensing system that eliminates such aggravations is a smart strategy for making shoppers happy, Nippert says, pointing to his company’s launch of Just 1 Technology, a system for flow packs allowing wipes to be removed one at a time with only one hand.

Rosenberg cites “push and wipe” systems as another packaging design that provides users with added convenience. And retailers might also want to take note of innovatively packaged national brand products such as the recently launched Bounty with Dawn paper towel product from Cincinnati-based Procter & Gamble — while not technically a wet wipe, it can be activated with water to work like one.

Reposition offeringsRetailers could also gain sales through marketing wipes to a larger base of shoppers, particularly in the personal care space.

“On-the-go wipes for hands and face are nothing new, but recently, brands have been creating a novel positioning that seems to be gaining traction with consumers,” Rosenberg says, citing the Gym Kit by Huntington Beach, Calif.-based Mio Skincare, which features wipes for both makeup removal and freshening up after a workout, as an example.

While many personal care wipes products are

targeted to women, retail-ers shouldn’t overlook men. Products such as Dude Wipes, manufactured by Chicago-based Dude Products, and Biz Wipes, produced by Santa Monica, Calif.-based Mangroomer, target male shoppers. And Rosenberg notes that “on-the-go single-wipe packaging that can easily be stuffed in a wallet” is a selling point for them, adding that when it comes to wipes intended for hygiene purposes, discre-tion is just as important to consumers as convenience.

Wipes aimed at a quick freshening up, suitable for both genders, are also an emerging trend.

“We have seen oversized bath wipe products created for the elderly or bedridden patients becoming popular with younger consumers who frequent outdoor festivals, concerts and events,” says Cali Carter, marketing coordinator at Chino, Calif.-based Diamond Wipes International Inc., a wet wipes converter. “The idea of portable products as a complete bathing solution is resonating with both of these demographics for their ease of use, variety of product offerings, convenience and efficiency.”

While many bathing wipes are currently marketed mainly as a portable hygiene solution, Rosenberg points out that consumer advice from some experts to cut back on daily showers because of the potential skin damage they can cause could mean more opportunities for sales growth.

“This provides a unique positioning for bathing wipes because it expands the usage occasions to replace daily bathing at home in order to protect the skin,” Rosenberg says. “This takes the wipes beyond the realm of strictly being an on-the-go solution.”

Retailers also should ensure that own-brand wet wipe packaging answers questions shoppers might have about a product they want to use on their skin.

“Products should be displayed and promoted to get their message across while informing and educating the consumer,” Carter says. “Offering details on the product line regime, suitable times to use a product during the day, and offering customized products for different skin types will appeal to consumers.”

Claims on store brand wipes packaging that address sustainability can also grab shoppers. Any eco-friendly claims should be specific, though.

“As consumers get more ingredient-savvy, they are seeking products with more concrete natural claims such as ‘organic,’” Carter says. “This claim provides a distinct certification that will appease consumers more than a generic ‘natural’ claim,” she says, adding that around 70 percent of Americans are interested in buying greener products. SB

Source: IRI, a Chicago-based market research firm. Total U.S. supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains, for the 52 weeks ending Jan. 25, 2015.

Wet wipe category performance

Dollar Sales (in millions)

Change vs. Year Ago

Dollar Share

Unit Sales (in millions)

Change vs. Year Ago

Avg. Price Per Unit

Moist towelettes Baby wipes

Private Label

Private Label

All Brands

All Brands

$208.1

+19.4%

41.4%

73.9

+13.5%

$2.82

$488.6

+1.3%

40.3%

124.5

+2.3%

$3.92

$503.0

+5.6%

100%

171.6

+1.4%

$2.93

$1,213.9

+4.4%

100%

303.3

+3.8%

$4.00

Doinvest in

packaging that enhances

convenience and ease of use.

Don’t miss the chance to promote novel wipe usage occasions such as shower replacement.