Page 68 - AVN July 2017

FEATURE
BY THE NUMBERS
Eldorado shares data on
adult retail stores
Everyone knows that sex sells, but how much are we
really raking in? According to the IBISWorld Industry
Report for Adult Stores in the U.S., our industry is
pulling in a whopping $9 billion a year in revenue, with
an annual growth of 0.5 percent.
Less “Pearl Clutching,” More Toy Shopping
Over the past five years, growing social acceptance and
the “mainstreaming” of sex toys in the media has boosted
demand. The success of movies such as Fifty Shades of Grey
and the emergence of sex paraphernalia in mainstream
retailers like Walmart, Target and CVS has helped to reduce
the stigma of shopping in adult stores. In addition, this
cultural liberalization toward sex has empowered a growing
number of women to shop for sex toys, to the point where
women account for around 60 percent of all adult store
industry sales.
Vibrators Get All the Buzzzzzz ...
Even though this report covers stores that sell both retail
sex paraphernalia as well as erotica (such as pornographic
DVDs and magazines), the sale of sex toys accounts for
nearly 80 percent of adult stores’ industry revenue. The
largest sellers in 2016 were vibrators (19.2 percent of sales)
followed by rubber penises (16 percent) and lubrication
products (14 percent).
Vibrator sales have increased in the past few years mainly
because of their availability in other retail outlets. The
one product that is decreasing in sales is adult content
movies and magazines. This is due to the availability of free
pornographic content online.
The Good News and the Other News
Looking to the future, the adult store industry is
projected to benefit from rising disposable income through
the next five years. This additional income, in addition to
the social acceptance of sex toys, will increase spending on
adult sex paraphernalia and further boost industry sales.
The only deterrent to this growth is the rise of
e-commerce sites that offer a wider variety of sex toys
and can ship them conveniently and confidentially to a
customer’s house. But in light of these online sales, there
are many customers who prefer to see the products in
person and will keep shopping at their local adult store.
FEATURE | By Allison Travers
What Does This Mean for You?
While things are looking pretty bright, adult toy
e-commerce sites can definitely give you a run for the
money. In fact, e-commerce sales are expected to increase
by 10.6 percent annually over the next five years. That is
impressive growth compared to the projected 0.5 percent
growth for the brick and mortar adult stores. In order to
compete with these websites, you’re going to need to take a
look at expanding your customer service outreach. You need
to give your clients a unique and personal experience they
can’t get online.
68 | AVN.com | 7.17
LOOKING TO THE FUTURE
THE ADULT STORE INDUSTRY IS
PROJECTED TO BENEFIT FROM RISING
DISPOSABLE INCOME THROUGH THE
NEXT FIVE YEARS.
1. Really know your products and be able to answer questions about each one. When customers buy online, they
may not know what they’re getting and end up having to return their purchase, disappointed. If they come
to you, you can act as their personal shopper, steering them to the products that meet their unique needs
and letting them know how to use and care for the product.
2. Be a reliable and confidential health education resource for your customers. Not everyone wants to discuss
STIs or “best sex positions” with their family physician. By staying educated on sex health, you can be a
resource for your customers who really need someone to talk to about sensitive matters. Eldorado offers
an e-learning program for our clients called Elevate U. This easy-to-use online educational program
provides you with a certification in sex health education and will give you a competitive edge against your
online competition.
3. Make sure your selection is diverse and high quality. Customers may go online because of the wide selection
available, or they may buy a vibrator at a drugstore because it’s cheap and convenient. So when your
competition zigs, you should zag. Curate a selection of the best-selling and highest rated products and
provide a diverse enough selection to appeal to every niche out there without cramming a lot of cheap
products in.
So this is the state of our industry. Opportunity abounds but it helps to know where we are in this
ever-changing landscape. Hopefully this will give you insight into how to grow and run your business
more efficiently. And remember, your partners at Eldorado Trading Company are here to help you succeed
as well.
This article by Allison Travers, marketing director for adult distributor Eldorado Trading Co., originally appeared
in the adult distributor’s monthly newsletter. IBISWorld is a leading publisher of business intelligence; the report is
available for purchase at IBISWorld.com/industry/adult-stores.html.