Transcript Big opportunity.ppt

Fat Americans = fastest
growing consumer segment
 Entrepreneurial opportunity

› Tim Barry
 Frustration over shortage of seatbelt extenders
 Developed Extend-Its.com
 Shipped 10,000+ belt extenders at $60 to $70 a pop
 Also launched Scale-It.com and
SuperSizeWorld.com

Government statistics show:
› 60 million+ Americans qualify as obese
› 28 million more expected by 2013
› Not just low-income neighborhoods packing
on pounds at McDonald's

Researchers at University of Iowa found:
› Obesity rates rising most rapidly among
urbanites earning $60,000+

Market research firm Mintel estimates:
› U.S. sales of women's plus-size apparel
jumped 50% past five years $32 billion

American business forced to rethink
business
› From sofas, mattresses, toilets and cars to
clothes and nightclubs

The opportunities seem unlimited and
surefire
(1962-1980) - Americans' body sizes
remained fairly stable
 (1980-present) - Nearly 1/3 of adult men
and 1/3+ of adult women are obese

› Obese = body mass index of 30 or higher

Very little chance the trend will reverse
itself

At first, most department stores and top
retailers had little to offer larger
customers
› Lane Bryant early mover into plus-size market
 By 2000, 690+ stores and $930 million in sales
› Charming Shoppes (Catherine Plus Sizes and
Fashion Bug) following year $335 million in
sales
Now women wearing sizes 14+ make up
more than half of the overall market
 Plus-size apparel is the fastest-growing
segment of the clothing industry
 Many retailers now launching plus-size
lines

› Old Navy
› Wal-Mart
› Hot Topic’s Torrid

The prize for retailers isn't just increased
sales but also loyal customers
› Less price-sensitive

“A plus-size woman sticks with a brand
she likes, and she doesn't mind paying
full price for it.“ Barry Zelman, general manager of
specialty retail

Levy
› Big John Toilet Seat
 19-inch throne made of
reinforced plastic
 Demand doubled over
last six months

Brayton International
› World's largest office
furniture maker
 waiting-room chairs
designed for heavier
builds in 2003
 looking to add wider,
sturdier office chairs in
response to growing
demand

Nemschoff
› Privately held maker of health-care
equipment
 Offered extra-large furniture years ago
appearing like standard chairs
 Followed up with newer, wider models
 Nemschhoff's early mistep reflects difficulties in
marketing to the obese

Julio Rincon
› Freedom Paradise
 World's first "fat friendly"
resort in Cancun,
Mexico
 Spent $2 million outfitting
the place
 Seldom vacancy rate
below 50 percent
 Renamed Maya Tankah,
and opened place to
everyone
 rooms are now full

Butterfly Lounge
› Size acceptance nightspot in Costa Mesa,
California
› High stools set around elevated tables make
seating easier
› Almost everyone weighs 250+ pounds
› Club is profitable and drawing crowds of
300+ on weekends
› “Ninety percent of the folks here have tried
everything to be thin”. “At some point you've
just got to live.” says one male customer who's come
to the Butterfly after reading about it on the Web
Are marketers and entrepreneurs
actually promoting obesity by making
products that cater to the needs of
larger people?
 Which social responsibility is more
important: promoting a healthy lifestyle
or accommodating everyone, big or
small?


Crawford, Krysten (June 5, 2006). The big
opportunity. Business 2.0 Magazine,
Available:
http://money.cnn.com/magazines/busin
ess2/business2_archive/2006/06/01/8378
500/index.htm [1/6/10]