New Business Model for Nutraceutical Industry

New Business Model for Nutraceutical Industry

Executive Summary:

The nutraceutical industry, including herbal products in Malaysia is worth in excess of RM 2 billion. Most of the nutraceutical products are currently being marketed through either retail or network marketing channels. However, the retail model is fraught with intense competition, constant price war and reducing profit margin to both the distributors, wholesalers and retailers themselves.

Network marketing channel, on the other hand, suffers from exorbitant pricing due to multiple level of downline over-riding. Online sales of nutraceutical products in this region, is unfortunately, still immature and slow. A new business model that avert all the problems associated with the current conventional models is seriously needed for long-term success and sustainability. In addition, the new business model will provide 5 key advantages to both the consumers and business owner:

Key Advantage No.1 : Tremendous Savings & Convenience to Customers (products are sold at 40-50% lower than retail price)
Key Advantage No.2 : Greater Profit Margin for Business Owners (at least additional 10-20% more than existing competitors)
Key Advantage No.3 : Low Operational Cost
Key Advantage No.4 : Powerful Marketing Strategies for Massive Consumer Conversion
Key Advantage No.5 : Avert all Problems and Challenges Associated with Current Conventional Models (Competition Becomes Irrelevant)