Stores stock up on 'As Seen On TV'

There's a lot to like about the As Seen On TV category. It has a sell-through rate between 10% and 20%. Margins also are in the double-digits. Best of all, the products that make it to retail shelves are proven winners.

"Our market model is very sound," said AJ Khubani, CEO of TeleBrands. "As a group of companies, we test market hundreds of products on television, then bring the top 10 to retail. Drug chains are only getting the products that are most successful. They are consumer-tested with a known demand and significant advertising support."

Sales in the segment are up 20% over last year, and Khubani said growth could be even stronger this year. Retailers have responded to the success of the category by giving what was once an in-and-out category a permanent home year-round in the center of the store.

The secret to maximizing sales in the segment is to get in while the products are hot and move the items fast. "These products have a short lifecycle, so retailers have to react quickly to be on top," Khubani said.