How to invest in health and win?
The desire of a large number of people for healthy food, environmentally friendly and sports products naturally generates proposals in the industry trend of “beauty, environmental friendliness and health.” What are the prospects for the development of investment projects in this direction?
According to research by experts, every year the number of people who are considered middle class by average family income is growing. According to studies conducted by Ernst & Young, in 15 years, by 2030, the number of people belonging to the middle class will reach almost 5 billion. The maximum growth will be observed in Asia – about 65% of the entire world number of people in the middle class will be concentrated there.
How to invest in health and win?
What is the difference between the middle class and the working class and the lower class? Of course, attention to yourself, to your health, to sports and leisure. It is expected that in 10-15 years there will be another round of increase in the profitability of the goods and services sector in the Health & Fitness category. So how can investors correctly invest and make money on this round of “health and sport”?
First, you need to carefully read the shares of companies that are market leaders. Among the companies it is necessary to select those that are strong in their industry and are committed to conducting international politics and conquering international markets.
In order to adequately assess the situation on the stock market in one and a half to two decades, it should be remembered that current youth and adolescents are the future representatives of the middle class.
To answer the question “What is interesting for young people now?”, It’s enough to know about the existence of the Internet and that most of the information about sports, healthy lifestyles, fashion brands and trends is received from the virtual space.
A simple analysis of the sports market, for example, at the request of sport followers on Instagram and the Google search engine, shows that Nike is the leader in this segment. The company management conducts competent marketing moves, thinks through advertising campaigns, and follows fashion trends in sports.
Particularly indicative is the example that Nike managed to conclude contracts with six of the ten most popular players at the 2014 World Cup. Fierce Nike competitors, Adidas and Puma, managed to get only three and one players from the top ten, respectively.
How to invest in health and win?
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With the advent of Cristiano Ronaldo in advertising, football fans around the world started talking about Nike. Given the sales and popularity of the company in the Asian sector, we can safely talk about the total popularity of Nike.
In addition to the already mentioned giant players, the Health & Fitness sector boasts niche companies. Thus, the market for yoga and related products for yoga is very popular among the current middle class. The Yoga Journal speaks of more than 30% of readers who have an average family income of more than $ 100,000.
According to last year, 2013, residents of the United States spent goods in the yoga segment, more than 27 billion dollars. In 2013, more than $ 27 billion was spent on related yoga products in the United States. Lululemon from Canada was the top seller. True, most of the funds were spent only by the female sex, since the orientation of men to yoga, although it has a tendency to increase, does not exceed 20% of the total number of buyers.
How to invest in health and win?
Lululemon shares in the past two years have been very popular among investors, but by June of this year fell in price by 50%. However, Lululemon continues to operate and has already opened retail outlets in both Asia and Europe. In London, 30 times more people gathered than expected to open this brand, and instead of 300 people, as many as 10 thousand came.
In addition to sporting goods, organic goods like muesli, tofu cheese, veggie and raw food directions are of interest to lovers of a healthy and sporting lifestyle.
Over the past ten years, investment in companies producing organic products has almost tripled – from 11 billion dollars in 2004 to 30 billion dollars in 2013. This market segment grew and developed twice as fast as all other food products.
The market leader is the Whole Foods product network, which develops annually, attracts new investors, opens new stores in the United States and relies on the younger generation, which will probably maintain brand loyalty at a more mature age.
