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Indian market mature enough for nutritional products
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Monday, 07 December, 2009, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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 Fitness major Weider Germany GmbH has announced the introduction of its flagship body shaper product ‘Perfect Body Shake’ and Mega Mass 2000 in India.
The company claims that the Weider Perfect Body Shake is a combination of protein and L-Carnitine. Eine optimale Proteinversorgung unterstützt die Muskulatur darin ihr volles Potential zu entfalten und während des Trainings möglichst viel Körperfett zu verbrennen.And the Mega Mass 2000 has the right composition for providing the right mix of supplements for muscle building. An interview with Sven Schade, managing director of Weider Germany GmbH.
Why do you think this is the right time to enter the Indian market? Given the current downturn in the economy, do you think it’s a wise decision to enter the Indian market now?
We feel that the Indian market is mature enough for our products as the average age seems to be on a lower side, primarily consisting of youth as a majority of the population who are aware and conscious about fashion, lifestyle, health, fitness and nutrition. The business environment in the country also seems to be friendly now with low level of bureaucratic hurdles. Foreign investments in specific sectors have gone up which is a positive sign.
We are well aware of the market condition globally and our internal findings suggest that India is not affected in a manner in which the US & Europe is affected. Further, even in the time of recession the Indian GDP has not gone down as anticipated, compared to all other major countries. Indian GDP is still at an average of 5.5%. Market projections suggest that India and China are the two countries that will reach double digit figure post recession over and above other major countries. Hence, for a company like us it makes complete sense to enter now and consolidate our position post recession and take a leadership role.
What kind of products are you bringing to India?
We intend to bring nutritional food supplements especially protein based products which really boost the muscle building and help maintain the fitness level as well. We believe that our flagship products Super Mega Mass 2000, Premium Whey, Krea Genic Capsules, etc. will be well received by people across all age groups as it covers f.e. the protein deficiencies. Vegetarians generally take less protein due to their food habit and they, with aging, suffer from protein deficiencies. Our products will help them cover the protein deficiencies. We also intend to introduce muscle building and body building supplements which the users need to take before and after their routine exercise regime. We will also introduce a range of slimming products apart from protein and calcium based products for the old people who suffer from protein and calcium deficiencies.
What is your business model (selection of distributors, which cities, extent of availability of products)?
Our current business model for the Indian market is based on creating a good distribution channel network. For now we are targeting all major cities across regions. As soon as we have the network in place, we will introduce our products in a phased manner segment wise.
What is the approximate investment you are putting into the Indian market, in figures?
We do not have a concrete sum for our investment in India as finding of new distributors is always a big part in sharing our know-how in building up the brand WEIDER in a new country, education about the products etc. So it is more a question of time and of course engagement of which we want to spend a lot for the breakthrough in India.
Do you propose to set up shop in India and retail directly?
The way of selling our products is completely up to our distributor. No matter if he wants to sell over internet, body shops or sales representatives travelling around the country. We will give him the support we can afford to bring but we are not able or willing to sell directly to the end consumers by ourselves.
What are some of the myths / prejudices about bodybuilding supplements that you hope to demolish?
People in general tend to believe that muscle and body building supplements contains chemicals and drugs that enhance muscles very fast within days of usage. This is absolutely wrong and is a myth that we would like to burst. Muscle and body building supplements rather contain mix of nutritional substances like protein, special amino acids, creatine, various vitamins compositions, substances found in the body in high dosages, minerals like calcium and folic acid which are not at all harmful.
Name some of your clients?
As former athletes under the supervision of the master blaster Joe Weider of course stars like Arnold Schwarzenegger or “Hulk” Lou Ferrigno used the products from Weider. And of course other known people as politicians, famous movie actors and athletes from all kind of sports!
Is the company seeking any other tie-up?
We may go in for a tie-up once we enter the Indian market. It all depends as to how to educate people about our products. Our experience says that every market or region takes time and effort to develop. Once we are in India through our distribution network, we will have our marketing plan in place which we will evaluate and measure on a periodic basis.
Is there any plan to start production in India after exporting it for a while?
Once we see the market growing, we will take a call with regard to opening up of an Indian subsidiary or a manufacturing hub for the South East Asian market. This is completely based on the market growth over the years.
What kind of sales is the company expecting in the first year?
We are expecting a turnover of around 1.4 mio euro in the starting year for India.
What were the company's turnover/ revenue last year?
The turnover / revenue for the last year was 300 million euro for Weider Germany GmbH.
How big is the market for fitness products in India? How is it growing in percentage?
The market for fitness products seems to be huge in India because of the fact that majority of the population is youth who is conscious as well as aware of wellness, fitness and nutrition. Currently the market is growing at an average rate of 15 % per annum and is likely to grow at a faster rate from now because of the awareness campaigns being run by companies and growth of adoption among youths in tier 1 and tier 2 cities of India.
Who all need protein shakes? Do only bodybuilders need them? What about vegetarians, toddlers etc.? Why is the advertising always targeted at the bodybuilding crowd?
Protein is essential for growth and development and is a crucial component for everyone who wants to lead a healthy and active lifestyle.
Protein is not only for the bodybuilders; rather they are for all age groups. Vegetarians generally take less protein due to their food habit. Our products will help them cover the protein deficiencies.
Bodybuilding supplements are advertised keeping in mind the bodybuilding crowd. Nutritional food supplements are advertised keeping in mind all age groups. Product contents and uniqueness are mainly highlighted.
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