Wednesday, September 29, 2010

Emerging Market Segments & Trends: Part III

Online Vertical Collaboration
Present The Alternative

After the boom in organic food and beverages market, the next segment which is on the growth curve is the segment for organic cosmetics and health products. In fact, with awareness spreading accross the countries and in most of the cross section of economies worldwide, there is a soar in demand for organic and all natural non-food products also.

The market per se for organic and all natural cosmetics and health products is not new in India. [Refer to my article published in August 2010 - Early Riders: Part I, Master The Knowledge & Unravel The Dogma].  Shehnaz Husein has been the pioneer in presenting the alternative solution to cosmetics and healthcare products via Ayurveda. It is the rate of growth shown by this segment that opens up entrepreneurial opportunities which can be pursued.

As a fundamental of the market economy, niches are created in the market for organic and all natural non-food products. Few niches which i can think of within the segment of organic and all natural cosmetics, helthcare products and other non-food products are:

1. Household cleaning products
2. Cosmetics for men
3. Cosmetics for women
4. Cosmetics for babies and children below 12 years
5. Healthcare and therapeutic products for common ailments like cold & cough, joint pains, muscle strains, acne, mild respiratory allergies, stress & tension etc.

    Fig: Niche Market Segments

    The list above is not exhaustive and if proper categorization is done, then there could be many more fields that can be added. Each of these fields could well start as a niche entrepreneurial opportunity, with the scalability to engulf other fields as well. There can be an increase vertically and horizontally for the products that can be offered.

    The niche for herbal or organic cosmetics is already flooded with brands like Biotique, Shehnaz Husain herbals, Dabur, VLCC to name a few. This segment alone stood at an estimated $2.5 billion in 2008 and is expected to grow at seven per cent, according to an analysis of the sector. Add to the demand and willingness to go for organic cosmetics, the concept of 'total well being', you get to an opportunity to introduce the services for total well being solutions - right from facial, manicure to offering packages which include diet control, destressing activities, such as yoga, spas and jaccuzzi.

    Reflect further and add growing acceptance of online retail concept in India. You shall see a business model evolve, which is a function of all such variables. So we have:

    OrganicAndAllNaturalNonFoodProducts.com = f {Web 2.0/Web 3.0; demand for organic and all natural cosmetics, health care products, other non-food products; demographics; growing importance for fashion & grooming}. You could also include increase in disposable income, as one more variable.

    The above factors can multiply and make this market a potential full of niches to be addressed. I had a chance to get interview of Maura Chari who has nurtured one such business model, and the name of her venture is Wellnessocean.com. Return back in a few days to read her entrepreneurial story.


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