TV goods show promise
The economy doesn’t seem to be hurting the As Seen On TV category. A.J. Khubani, CEO of Telebrands, said the company’s business is ahead 20% in 2011 over the previous year, and fourth-quarter sales were up 30%.
“One major drug chain told us that as a nonpharmacy revenue producer, the category is second only to the OTC cold and flu category,” Khubani said. That’s why chain drug retailers continue to devote more space to the category — and not just in the most profitable fourth quarter.
Two of Telebrands’ fourth-quarter launches, the Lint Lizard vacuum attachment and the OrGreenic 9-in. frying pan, are expected to be hits for the first half of 2012.
“Based on TV data and early retail numbers, those items from Telebrands — as well as IdeaVillage’s Magic Bullet and PediSpin, Ontel’s Slushy Magic and Clean Step mat, and Spark Innovators’ Salon Express — should be top sellers in the first and second quarters of 2012,” said Mike Govindani, president of Screen2Store, which represents top vendors in the industry.
Jordan Pine, president of SciMark Corp., also expected the Salon Express nail decorating kit and Telebrands’ Lint Lizard to be top performers. He bet that Trendy Top, a shapewear item from Amazing Products, also will have strong sales.
Pine said rather than following one trend in a specific category, sales in the category will be fueled by unique products at value prices. “As the Pillow Pet frenzy winds down in 2011, marketers will ... start looking for the next hot category,” he said.
Khubani said kitchen items and pet products have been particularly strong areas for Telebrands. “Half of our revenue in 2011 came from pet products,” he said.
Products retailing for $10, $15 and $20 are the most popular price points, but the $10 spot is the biggest category mover.
The article above is part of the DSN Category Review Series. For the complete As Seen On TV Buy-In Report, including extensive charts, data and more analysis, click here.