Natural Products Insider

SEP-OCT 2017

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

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Page 148 of 160

140 INSIDER September/October 2017 SupplySide West People who read "Nutraceuticals: Opportunities & Beyond" in the July/August 2017 print issue of INSIDER, might have been left wondering how to look beyond and fi nd opportunity in the health and wellness space, and how to best approach the opportunities. Companies already participating in the space or from an adjacent industry, or ingredient suppliers, formulated product manufacturers and/or marketers can fi nd opportunity in this attractive market. Though the means of approach and execution may vary, the fi rst step usually begins with an understanding of the market followed by the ability to relate to and connect with customers. More specifi cally, brands must: Understand market trends. It is important to have a sense of what is on-trend, what is up-and-coming, and what is a passing fad. This awareness helps clarify where growth is coming from and its likelihood of being sustained. Know the product offerings in the market and how the market is segmented. This helps reveal gaps in offerings, generate ideas for differentiation or white space opportunities. Inspiration can come from other industries or other geographies. For example, Tespo, a liquid vitamin dispensing system with a subscription model, draws upon the Keurig coffee pod concept. Finding the Next Business Opportunity by Xuesong Li Benefits Protects acid-sensitive ingredients from stomach acid, dissolves quickly in neutral media, products such as Probiotic and Enzyme formulations are perfectly suitable Low moisture content, ideal for hydroscopic formulations Allergen and Gluten free, Non–GMO, Preservative free Kosher, Halal and Vegetarian Society certified Various sizes available US Patent 9452141 BioCaps Enterprises, Inc. 9698 Telstar Ave., #309, El Monte CA 91731 Tel: 626-575-2862 ●Toll free: 1-877-277-2882 ● WANT TO PROTECT YOUR ACID SENSITIVE INGREDIENTS FROM STOMACH ACID, BIO-VXR IS YOUR UTLIMATE CHOICE Competitive landscape is important to understand, but should not be the most critical factor in deciding whether and where to participate. Competition will always be present, and a healthy competitive environment is benefi cial to fostering growth among companies involved. Identify or even create unmet customer needs. An understanding of consumer lifestyle and behaviors is a necessity for formulated product manufacturers and/or marketers. It is equally important for ingredient suppliers to grasp whether they want to have sustained success and form partnerships rather than experience a more limited transactional relationship with fi nished product manufacturers and marketers. Consumer insights are valuable for ingredient suppliers when supporting their brands in activities, such as formulation or application development. In terms of developing options for growth, companies can think in the following framework, arranged in order of increasing disruption: Existing product/service offerings to existing customers Existing product/service offerings to new customers New product/service offerings to existing and/or new customers New distribution or access to customers New geographic regions New "playing fi eld" (e.g., vertical integration) There are a variety of ways to enable growth through these options including: licensing, alliances/partnerships, acquisitions and organic growth. Things to consider when developing a growth plan and choosing the extent of disruption include strategic fi t with overall business goals and positioning, synergy with the company's assets (including both tangible and intangible) and capabilities, and the potential risks and rewards. The list of considerations go on, but the key to successful growth is to always maintain the connection with customers and be true to core strengths that distinguish a brand from competitors. In today's dynamic world, the old Chinese saying reminds us to "counter fl uidity by remaining consistent." Xuesong Li is a director of the management consulting practice at the New Jersey headquarters of Kline & Co. ( She leads the team in providing business solutions to both global and local clients within the nutraceutical and beauty industry. Li has more than 12 years of experience in management consulting, working in both China and the United States. Her expertise includes market entry, business growth strategies, product and technology strategy, competitive intelligence, and merger and acquisition (M&A) support. Scan Here Hear more form Xuesong Li about entrepreneurship in the health and nutrition industry at SupplySide Central on Wednesday, Sept. 27 at 5 p.m.

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