Shareholder Update Vol. 2

We wanted to give our shareholders a further update on our progress in expanding ICTV’s retail and international footprint for several of our brands.   Our team has been working very hard throughout January and February on many of the retail initiatives that were discussed in our first shareholder update of 2016 (“ICTV 2016 Bucket List”).

This update will focus on three key areas:

  1. Launch of Quebec brick and mortar retail
  2. Update of our online e-tail distribution
  3. International distributor update for DermaWand, Ultimate Pedi, and Point Perfect Sprinkler

 

Quebec Retail Launch

French Quebec has been a strong direct response market for DermaWand since 2013.    During the summer of 2015, ICTV began negotiating with a few chain stores in Quebec where we believed DermaWand could be successful.  We are pleased to report that in February our first DermaWand orders shipped to two chains in Quebec.  The largest is Jean Coutu, which has 360 franchised locations in New Brunswick, Ontario and Quebec.

We are also pleased to report that the initial sales have gone so well that we have already received two more purchase orders from both retailers, totaling close to $100,000 CAD.   In order to support these retailers, we plan to run a small number of 30 second TV spots, which will identify the retailers and drive customers into their stores.

This is exciting for two reasons; first we have for a long time wanted to prove that DermaWand could be successful in the right brick and mortar retail environment, and this appear to have done that.   Secondly, it has and will open up the door for more of our brands.   Already we have received orders for one of our DermaVital products, our Preface Treatment, which will ship to Jean Coutu in March.   Our team is currently working on other brick and mortar retail opportunities in North America that we believe will have similar success to our Quebec experience.

 

E-tail Distribution

DermaWand continues to have strong success on the Bed Bath & Beyond website.   Recently, BBB expanded the DermaWand listing to their Canadian e-commerce site.   Additionally, we continue to progress toward having several of our brands on the JC Penny and Walmart websites.

Several members of our marketing team will be attending the International Home and Housewares show in Chicago, March 5-8.   ICTV will have a booth displaying all of our brands, and will be hosting meetings with several major retail distributors, with the goal of adding more online (and eventually in store) distribution.   If you happen to be in Chicago during the show, feel free to come visit us at booth 13156 in the Lakeside Hall at the McCormick Center.

 

International Distribution

DermaWand continues to remain very strong with our international distributor network.   Just last week our VP of Sales, Doug Crouthers attended the Electronic Retailing Associations winter conference in Orlando, Florida.   Doug met with 34 of our distributors, several of which placed container orders of DermaWand at the show.  Also, we learned at the conference that DermaWand held the number one spot of all products in the Latino Media Services network, whose media services brings together many of the top DRTV distributors in Latin America with the world’s strongest suppliers of direct response products.

We are continuing to work on opening up markets for DermaWand in Japan and England. Though online sales are permitted in Japan, more work is needed to pass Japan’s very strict electromagnetic current regulations in order to sell DermaWand in retail stores.  As for England, we are moving along nicely towards getting approval in 2016.

In regards to new brands, we have obtained several test orders for our new Ultimate Pedi by DermaWand.  We expect 3,500 units to ship in March, and distributors will then test market the Ultimate Pedi with our recently produced 15 minute infomercial.   In addition, Doug reported that many distributors at the ERA were very excited about test marketing the Jidue when our Jidue infomercial is completed in March.

Finally, our Point Perfect Sprinkler may be the surprise product of the spring with almost 25,000 units ordered so far in Eastern Europe and France.   Several other distributors are evaluating the product, and we expect more orders to come in as we head toward summer.

 

Closing Thoughts

We are very pleased with the start to 2016, and look forward to our next earnings call on Wednesday, March 23, 2016 at 4:30PM Eastern.   Call in details will be provided in a press release in the coming weeks.   Thank you for continued support.

 

Sincerely,

rr signature

Rich Ransom

President

ICTV Brands, Inc.

 

 

 

Forward-Looking Statements

Forward-Looking Statements. This communication contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, including but not limited to the discussion under “Risk Factors” therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.

 

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