On the mend

An aging and increasingly active shopper base is creating greater opportunities for sellers of first aid products. As more American consumers exercise and participate in outdoor activities, they are increasing their chances of injuries — which is leading to a greater demand for bandages and other wound-care items, notes Euromonitor International Inc., a London-based market research firm with U.S. offices in Chicago.

Older Americans, meanwhile, particularly seniors and people with chronic diseases who have wounds that are harder to heal, will require greater use of first aid items, Euromonitor notes in its December 2015 “Wound Care in the US” category briefing. Such consumers include the approximately 9 percent of Americans with diabetes, especially persons 65 years of age and older, who have the highest rates of the disorder.

Demographics changes also will likely boost category revenues, states global market research firm Mintel in its December 2014 “First Aid — US” report.

Ownership of first aid products is higher among older shoppers, and Mintel reports that the segment of persons between the ages of 65 and 75 will increase by 21 percent from 2014 to 2019, while the number of individuals age 75 and up will grow by 12 percent.

“Older consumers have thinner skin, making them more susceptible to injury,” Mintel states. “In addition, balance declines with age, so older consumers are prone to falls.”

Seek to overcome obstacles

Nevertheless, it will be a challenge for retailers and suppliers to generate and sustain strong category growth among all age groups, as the use of first aid products typically correlates to the rate of injury, Mintel notes.

Retail wound-care product sales grew by 3 percent in 2015 over the prior year, while sales of sticking plaster/adhesive bandages — the category driver — also rose by 3 percent to reach $556 million, Euromonitor reports.

First aid kits that contain a variety of wound care items, meanwhile, grew just 1 percent in 2015 to $22 million. The flat activity results from consumers’ perception that they rarely need a pre-set combination of goods and can easily replace items in existing kits, Euromonitor states

Also impacting activity are lower birth rates. While first aid product use is higher in households with children, that demographic is on the decline As a result Mintel suggests that suppliers and retailers seek to boost sales by engaging with non-white households which tend to have more children

Regardless of the shopper segment most consumers seeking first aid products have the common desire for solutions that will expedite the healing process, notes Colin Hall, executive vice president, sales and marketing, for Life Wear Technologies, a Pompano Beach, Fla.-based supplier of bandages, tapes and braces.

“If the current methods aren’t working, shoppers will seek out innovative items to get better results,” he notes.

This openness to new solutions creates strong opportunities for retailers’ private brand programs, Hall states. Offering cutting-edge store brand products, he notes, is a powerful way for merchants to differentiate their selections from the national brands. That includes developing items that are more functional and comfortable.

Shine a spotlight on store brands

Store brands also could stand out by incorporating packaging with bold, eye-catching colors and messages that differ from the national selections, Hall states.

For example, Life Tech uses higher-quality boxes with a metallic exterior to create the perception that its products are upscale and not just “me-too” offerings, he says, adding that it often is advantageous to have windows on boxes that enable shoppers to easily view the contents.

“Many consumers will open the package and inspect the first aid item before making a purchase, but the retailer first needs to catch their attention,” Hall says. “An alluring package generates that initial response.”

Indeed, there is typically a 70 to 75 percent sell-through rate when shoppers take products off the shelves and check out the materials, states Hal Burke, vice president of retail sales for Xttrium Laboratories Inc., a Mount Prospect, Ill.-based provider of skin antiseptics.

“Having a different color box will catch the eye of shoppers, and the graphics on the package should include a list of benefits that enable consumers to better understand product features,” adds Sharon Adoni, founder and CEO of Aid Tech Inc., a Closter, N.J.-based developer of bandages with breakable capsules that release fresh doses of medications during application.

In addition to creating catchy packages, retailers should spell out the functions of the different store brand first aid products, Hall states. Merchants could convey such information by situating flip books on shelves that list ailments and appropriate remedies along with shelf signage.

“Retailers are often dealing with customers who have a specific injury for the first time, making it difficult for the consumers to understand their needs,” Hall states. “It is important that shoppers are comfortable when making purchases from categories in which they have little familiarity.”

Garner support from product suppliers

While high-quality, innovative store brand items can be more attractive to shoppers than the national competitors’ offerings, an appealing price also can be a persuasive differentiator, especially when consumers are unfamiliar with a product, Hall says.

Developing appealing selections, meanwhile, typically requires retailers to forge a close partnership with their suppliers so each party has a clear understanding about the wants and needs of the different consumer segments, he adds.

Drawing attention to the newer private label options, however, can be challenging when national brands are dominating a category, Adoni notes. Sales strategies could include launching similar items at lower price points and aggressively marketing the items, she adds.

Retailers could make store brands more appealing, meanwhile, by including messages on boxes that compare product features to those of the more expensive national items; by offering selections in unique sizes; and by having pharmacists and other store personnel recommend the private label options and stress the benefits of keeping the products in medicine cabinets at all times, Burke states.

Promotions, including in-store displays that encourage shoppers to build their own first aid kits with private label selections, also can be effective, he notes.

Do develop first aid products that are more functional and comfortable than the national brands.

Don’t forget to provide shoppers with the information they need to choose and use the right products.