The Hindu Business Line : In the pink of health

If you are one of those people who love the idea of using health and nutritional supplements to fix everything from a wrinkle to an aching joint , then welcome to the world of nutraceuticals! Driven by the intense need to look and feel good, the herb al and health supplements are gaining ground on the direct selling plank. Direct selling companies which want a slice of this pie are wooing customers with myriad offers and enhanced product lines.

According to P. Sanker, Chairman, Indian Direct Selling Association of India, and Director (Corporate and Legal Affairs), Amway India, said, “Products which address conditions associated with aging, as well as those that support gender-specific health concerns, are the order of the day. The self-care industry is becoming more acceptable and with the passage of time, it will become more regulated. The direct-selling industry is benefiting from the shift in the consumers’ attitudes.”

The wellness market is growing and products that are plant and vegetable derivatives are finding space in homes as their use is perceived as compensating for nutritional deficiencies. A cursory glance through the catalogues reveals a whole bouquet of products catering to weight control, stamina-building, menopause management and even aphrodisiacs. Globally, the size of the nutraceutical and dietary supplements market is estimated to be $30 billion. In India, it is estimated between Rs 1,100 crore and Rs 1,500 crore, with an annual growth rate of 40 per cent. Amway India, a key player in the personal grooming sphere, is repositioning its brand as a health supplement company. The company, which has been steadily increasing its product line and variants to keep up with market demands, said that its flagship health drink Nutrilite is finding takers not just in metros but also in semi-urban areas. Besides Nutrilite, Amway has 16 healthcare products in the Indian market under the nutrition and wellness category. Currently, Nutrilite contributes to as much as 50 per cent of the company’s total turnover and the company is enlarging its distributor circle with newer sales force.

Another major player in the nutraceutical business is HerbaLife International India, also a direct-selling company. Says Shekhar Sethu, its Managing Director, “Our products need personal attention. The direct selling platform is an ideal set-up.” HerbaLife has around 25 products, including the popular Formula1. Sethu says, “There is lot of misunderstanding in the consumers’ minds. A huge amount of awareness is needed to push up the sales graphs. As a company, we are lobbying for clear-cut government regulation for this sector to grow and keep fly-by night operators at bay.” On whether the products met all regulatory norms, he said all the nutraceutical products had approvals from the USFDA.

According to Amarnath Sengupta, Country Manager, Daehsan India Trading, a subsidiary of Daehsan Holdings Sdn Bhd, Malaysia, “Wellness products are also becoming popular because they have been proven to boost the immune system, correct metabolism and also act as stressbusters.” The company, whose flagship product is Ganoderma mushroom, said the product has its benefits as an antioxidant and metabolism booster. “These products consist of adaptogens which are not known to cause any side-effects or allergies in people.” Companies, for their part, are also conducting extensive training modules to create increase awareness level in their distributors. These training programmes range from certificate programmes to a day-long crash course. With most of these health supplements priced Rs 500 onwards, do companies find it challenging to sell these products through the direct selling platform? Says Hemant Singh, Chief Executive Officer, Modicare, “A personal recommendation is very important for the product to be accepted by a consumer. A direct selling company provides that. And when a consumer is convinced that the product is a do-gooder, then they accept the price at which it comes.”

Modicare has six products under its belt. “We are looking to introduce four more products in the wellness category. Consumer preferences are changing and we want to inch closer to them. Our strategy is to approach the warm markets first and subsequently enter the cold markets,” he added.

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