A poor economy always ends up with an odd assortment of winners and losers. Those companies that feasted on a solid economy of ever-spending consumers are quickly falling out of favor. Those offering less expensive but quality products, however, are now finding sales on the move and good times where once they were marginal. Finding safe haven in these uncertain economic times may be difficult, but if investors look hard enough there are profits still to be made.
Vertical Branding Inc., a consumer products company, works to sell household, beauty and personal care products through its extensive wholesale, Internet, print and direct-response television marketing systems. The company also controls a small real estate holding in Connecticut.
Although the company operates at several different levels of the retail distribution chain, it is its position as a go-between for the manufacturer and retailer that has brought it success. The company views its role as a facilitator rather than merely a supplier, which has enabled it to achieve premium placement in the drugstores and mass merchants that it serves. Perhaps the best recognized placement display, that might identify the company’s products and successes, is the “As Seen on TV” display caps located in strategic locations within these retail outlets. Additionally, another often noticed channel that the company has taken advantage of is the wholesale selling of products often seen on direct response television – more often referred to as “infomercials.” In the second quarter 2008, the company’s best selling products include: SteamBuddy, Hercules Hook, ZorbEEZ, and the EZ Foldz Step Stool.
The company has been having solid successes in recent quarters as outlets are added and new products are brought under the company’s marketing and distribution control. Its primary direction, however, is to move beyond its current wholesaler status toward being a direct supplier to retailers. In either event, the company expects sales to find a solid footing in coming quarters as a weak economy drives customers toward its retail demographic. Where other major retailers are finding difficult times in this current economy, Vertical Branding Inc. is finding solid results and hopes of expansion.
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