Press & News

Impact Products Ships 4 Millionth Turban Towel, Reveals How Smart China Manufacturing Revived 'Dead' TV Item

HONG KONG, June 25, 2008 - Impact Products Ltd. today announced another major milestone: Its four millionth turban towel shipped. While that number alone is noteworthy, what's even more remarkable is that the once-popular TV item was considered "dead" when Impact Products took over production four years ago.

Sold under several brand names, including Smart Inventions' "Turbie Twist" and "Twisty Towel," and Home Shopping Network's "Toni Towel," the turban-style, quick-dry hair wrap caught on with female consumers in the early part of the decade. But by 2004, after selling several million units, the product seemed near the end of its lifecycle.

The biggest challenge was that the towels were being purchased from Pakistan at rising costs that threatened already thin margins. Another challenge was that the towels arrived in bulk and had to be packed out in the United States, an added step that further increased costs and slowed lead times. A final challenge was a strict quota on cotton towels, which limited the amount of product that could be imported into the United States.

"With its ever-increasing costs and tighter margins, the item should have died there," said Impact President Bill Quarless. Instead, smart China manufacturing allowed Impact's clients to get another four years and four million units out of the item.

"What happened is we figured out how to save $1.50 per set by consolidating the production and shipping complete retail sets from China," Quarless explained. "That may not sound like a lot of money, but keep in mind this product was retailing for $9.99. It made all the difference in the world."

"It got even better when we were able to get the hair wraps re-classified as 'headgear,' which has no quota and very little duty," he continued. "In the end, we improved the existing quality, lowered costs and shipped complete product ready for retail shelves, saving our client almost $3 million."

The product continues to be a strong seller, and Impact Products anticipates shipping another million pieces this year, Quarless said.

About Impact Products

Impact Products (www.impactproducts.com) is a China manufacturing and production management firm that specializes in the development and production of DRTV products. American-owned and Hong Kong-based, the company has established a reputation for delivering competitive prices without sacrificing quality. The company has an extensive network of Asian partners that gives it the ability to manufacture a wide variety of items, from fitness and electronics to household and kitchen products. For more information on Impact Products contact the Hong Kong office at (852) 2139-3961, via e-mail at info@impactproducts.com or visit www.impactproducts.com.