Fat Americans = fastest growing consumer segment Entrepreneurial opportunity › Tim Barry ...

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Transcript of Fat Americans = fastest growing consumer segment Entrepreneurial opportunity › Tim Barry ...

Page 1: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.
Page 2: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 3: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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+

Page 4: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 5: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

(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

Page 6: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 7: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 8: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 9: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

Levy› Big John Toilet Seat

19-inch throne made of reinforced plastic

Demand doubled over last six months

Page 10: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 11: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 12: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 13: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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

Page 14: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

› “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

Page 15: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.

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?

Page 16: Fat Americans = fastest growing consumer segment  Entrepreneurial opportunity › Tim Barry  Frustration over shortage of seatbelt extenders  Developed.
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Crawford, Krysten (June 5, 2006). The big opportunity. Business 2.0 Magazine, Available: http://money.cnn.com/magazines/business2/business2_archive/2006/06/01/8378500/index.htm [1/6/10]