Health Supplements

Salon operators who don’t believe their salons are true retail stores probably aren’t making as much money as their competitors. Most salons sell lotions, with great results, but the real success stories take place in the salons that sell ancillary items, beachwear, T-shirts, etc., as well as lotions. These items work because they blend well with indoor tanning. With all the potential retail sales boosters aimed at indoor tanners, health supplements might just be the best complement of all.

In the past decade, the health-supplements market has tripled—from $5 billion in 1991 to $15 billion in 2001—and has drawn more attention than any other component of the alternative medicine revolution in the United States. It has gotten to a point where ginseng, ginkgo biloba and Echinacea are so popular that Snapple is using them to sell drinks.

"It’s very important that operators understand that they are there to sell merchandise," says one industry supplier of health supplements and indoor tanning lotions. "Of course you want to sell the tans, but the real profit comes from selling any type of accessory merchandise. Health supplements just happen to be a perfect fit because the average person who tans is familiar with or has thought about taking health supplements."

It seems simple, but the world of healthy living is far from that. Unlike beachwear and candles, most health supplements are FDA-regulated items. Forget about the trendy stuff like vitamin C and E or Saint John’s wort. Consumers can get them cheap at supermarkets and drug stores. Te key to this market is niche items.

The health-supplement market has boomed since the passage of the Dietary Supplement Health and Education Act (DSHEA), and the ability to better educate consumers about supplements.

"The largest segment of our population—the baby boomers—has reached middle age and is looking for solutions that will slow the aging process and ameliorate the signs of that process," says Tracy Taylor, director of communications for the National Nutritional Foods Association (NNFA). "More specialty products are being developed to address these needs."

For the past several years, it had been predicted that the market had reached maturation, yet there has been a steady 4-percent to 5-percent growth each year. Also, as more research validates the therapeutic benefits of health supplements, their use will continue to increase, albeit not at the exponential rate of the immediate post-DSHEA years, Taylor says.

"Health supplements or dietary supplements are food supplements, not drugs—this is a very important distinction—and are strictly regulated by the Food and Drug Administration [FDA]," she says. "In 1994, the federal government passed specific legislation governing dietary supplements. The legislation, the DSHEA, regulates how manufacturers promote their products, and requires companies in the field to adhere to other broad-reaching regulatory guidelines. Makers of dietary supplements must derive their products from substances that are considered safe."