Summer 2010

Splashy Sales By Sue Marquette Poremba

The delicious array of bath and body products ensures there’s just the right product for everybody. From “fruit frappes” to hot new products for men, find out what makes this product category such a scentsational (and enduring) hit in every gift shop.

Retailer Tom Martin has a philosophy that works well for his store: Don’t mess with a proven seller. At his store, Mountain Village Décor in Gatlinburg, TN, these proven sellers are bath and body products. Martin sells Caren Products—hand, foot, and body treatments—displaying them on shelves with special lighting and accents.

Owners Tom and Carlene Martin report that the bath and body products might not fit in with the overall theme of the store—home décor—but they sell very well. They have formed a consistent product category for the Martins. The repeat business these products bring, also helps.

Steady success

The Martins are not the only retailers finding success with bath and body products. Many have found that they are a steady and reliable category—one that has held up well during the recession.

After all a bath and body product doesn’t break the bank—it’s an affordable luxury at a time when customers might not be able to go to a spa or a salon often. “Bath and body products are all about pampering,” says Susan Bernardo, marketing and communications manager for Upper Canada Soap of Mississauga, Ont. “Consumers do not want to spend a lot of money in an economic downturn. It’s much more practical to treat yourself with a product that will pamper you at home.”

Sherry Kelly, president of Caren Products, in Roswell, GA, echoes this sentiment bringing up what is popularly known as the lipstick effect. The theory is that consumers are more willing to buy less expensive luxury goods in an economic crisis. “Everybody wants their skin to look good, and they want to do something that makes them feel good. Back in World War II, the number one product was red lipstick because people wanted to look good. I think people still want to take care of themselves, [inexpensively] no matter what the economy is.”

Caren Products produce aloe vera-based bath and body products. The products are called treatments and were originally designed for patients undergoing chemotherapy and radiation. But the treatments for hands, feet, and body caught on for a broader audience after the packaging was redesigned. Kelly says the products now sell in high-end gift shops including hospital gift shops.

Demographic breakdown

Women over the age of 25 are the primary customers of bath and body products. Rachel Sutherland, representative for Greenleaf Gifts, based in Spartansburg, SC, says it’s the type of product that is shared between generations. “Many young professional women are introduced to the products by their parents,” she says.

Because of their original intent, Caren Products treatments tend to skew toward an older clientele. However, other bath and body vendors are finding a new demographic for their products—tweens. Just as adults find these products an affordable luxury in today’s marketplace, young girls find that bath and body products not only fit their limited budget but also provide a splash of fashion that can easily be shared among friends. Also, because girls in this age group spend a lot of time utilizing social media, they aren’t shy about talking about products and fragrances they like—and don’t—online.

“What’s interesting is this shabby chic theme younger generations have bought into,” says Sutherland. Traditionally, she adds, bath and body products were found in hospital gift shops, drug stores, and department stores. Tweens, however, have redirected the marketing outlook. “It’s changed our retail base, moving into smaller, trendy stores and fun boutiques.”

What men want

Greenleaf Gifts has been in business since 1975, so the company has seen how the industry has changed over the past three decades. The product line includes body creams, bath salts, body scrubs, lotions, and hand sanitizers. In addition to the growing tween market, Sutherland says bath and body products for men are also gaining strength.

Men are more concerned with functionality of their body products, Sutherland says. Fragrance is the major difference between products marketed for men and those geared toward women. “Musk, mint, and eucalyptus are scents that appeal to men,” she says, “but I think there is a trend moving to unisex.”

Factor in fragrance

Fragrance is the number one driving factor in the purchase of bath and body products, says Ben Bennett, creative director of Hatch Beauty in Santa Monica, CA.

“Like the hook of a pop song, you can almost immediately determine if you like a fragrance from its first whiff, so giving customers an opportunity to smell the product is important,” he says. According to Bennett, citruses, sheer florals, berries, and gourmet fragrances always enjoy wide appeal. Scented gifts are useful to showcase holidays and seasonal offerings. Florals like white jasmine and cherry blossom are great for spring, while citruses like pink grapefruit or tropical lime and mandarins are fantastic summer scents. Spicy fragrances and edible or “gourmand” fragrances like warm vanilla or spiced tea often see a lift during the fall and holiday seasons.

Bernardo, of Upper Canada Soap, agrees that fragrance is a key driver in the consumer’s purchasing decision. “Generally, the first thing a consumer will do is open a bottle of lotion to smell it,” she points out. She adds that food-related fragrances seem to be really popular right now. The “super” fruits food craze seems to have crossed over into bath and body products and Upper Canada Soap’s newest Fruit Frappe line reflects the trend.

Natural selection

Feeding the consumer demand for natural and organic products, wholesalers of bath and body products now offer a variety of formulations that meet these requirements.

Natural products, explains Timothy Dowd, senior analyst with Packaged Facts, are ones where the ingredients derived from nature. Some products, such as soap, can be “nearly natural,” made with many natural ingredients but using chemical stabilizers. Packaged Facts is a market research firm based in Rockville, MD.

“There is a lot of haziness with the [labels] natural and organic,” Dowd adds. Even just a few years ago, there was no organic certification for bath and body products—instead this category had to rely on food certifications. In other words, organic bath and body products were made with organic ingredients that passed organic food certifications. These days, the NSF/ANSI standard 305 is targeted at the bath and body industry. The standard states a label that claims” contains organic ingredients” has to have at least 70% of the product’s content come from organic ingredients. “That standard became effective in 2009,” Dowd says, admitting that the standard is voluntary.

“Gift shop owners and buyers have to decide how they want to position themselves when it comes to natural and organic products,” Dowd says, “and they may have to educate themselves on the topic.” Since a product can be natural without being organic, a way to help consumers recognize the differences is to separate them within the store. “Customers get frustrated if they have to read too many labels,” Dowd points out.

Displays seal deals

Tried and tested display ideas in gift retail work for bath and body products too. Don’t do linear, Dowd says. Instead, vignettes help sell product better. Showcasing entire lines from one company (or arranging by theme or color) as opposed to individuals here and there, also helps.

Albert Nichols, founder of elizabethW, says that bath and body items do not belong on the bottom shelf. “Nor should they be kept behind glass cabinets. The customer needs to touch and feel and get excited about these fabulous gifts.” Having testers available for customers is highly recommended.

There is also universal agreement that the more familiar retailers are with the products, the better they sell. “It’s all about education,” says Kelly. “Gift shop owners need to explain the product to their customers.” To make sure their retailers are able to do so, Caren Products sends an employee to provide in-store training for the shop’s staff. Other vendors will provide samples for the shop’s staff to try, so they are able to share their personal experiences with the products, with customers.

Scentsational gifts

The variety of choices and the broad appeal of the category mean there is something for everybody in bath and body, Bennett says. “The personal care category is often decorated and packaged to showcase scents, seasons or holidays,” he says. “Overall bath and body gifts are easy to give because everyone loves receiving them.”

In the long run, it all comes back to the joy of having that small luxury to enjoy or to share with friends and families, especially when finances are tight.

“The pampering nature of bath and body care products makes them a key component of the gift market,” Bernardo says. “[What’s more], the beautiful packaging and appearance of personal care items have taken on home décor elements, contributing greatly to their giftability,” she adds.

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Sue Marquette Poremba

Sue Marquette Poremba is a freelance writer based in State College, PA. She specializes in technology, engineering, energy, and IT security topics. She has also published over a dozen essays and is the author of a book about the Philadelphia Phillies.