Rahul Ganti

Arcadia Naturopathy Industry overview, Market & Competitive Landscape Rahul Ganti 16 Contents 1. 2. 3. 4. 5. Overview Define market-Total available market (size) Market Potential Market volume and value Trends 6. Customer analysis 7. Target customers 8. Segmentation 9. Growth by year (+/-) 10. Needs/pain points 11. Density by Location 12. Lifestyle/culture 13. Competitors 14. Direct & indirect 15. Competitor profiling 16. SWOT 17. Comprehensive Competitor Analysis Naturopathy Naturopathic medicine is a distinct primary health care profession, emphasizing prevention, treatment, and optimal health through the use of therapeutic methods and substances that encourage individuals’ inherent self-healing process. The practice of naturopathic medicine includes modern and traditional, scientific, and empirical methods People visit naturopathic practitioners for various health-related purposes, including primary care, overall well-being, and treatment of illnesses. In the United States, naturopathy is practiced by naturopathic physicians, traditional naturopaths, and other health care providers who also offer naturopathic services. What Naturopathic Practitioners Do Naturopathic practitioners use many different treatment approaches. Examples include: · · · · · · · · Dietary and lifestyle changes Stress reduction Herbs and other dietary supplements Homeopathy Manipulative therapies Exercise therapy Practitioner-guided detoxification Psychotherapy and counselling. Market Outlook Key Findings $2.8 Trillion U.S. Healthcare Market Threatened By Disruptive New Entrants Americans reportedly are spending $34 billion annually on alternative medicine protocols and products * 38% of adults 12 % of children use some form of complementary medicine* 957K adults used Naturopathy health approach in 2012, 2002-12-Linear growth is observed. Naturopathy market potential: Volume is about 8M with an estimated Value of $1344M Over 1000 licensed Naturopathic practitioners are serving the US market No Full scale digital platform for naturopaths yet evolved, but considerable web presense is observed Shift from Conventional to Digital treatment (Consumer Survey1) Consumers opted for the alternatives such as - Using a kit to test for strep at home - Having a digital photo of a rash evaluated by a physician online - Having chemotherapy administered at home. - 50% willing to opt for new services for a range of minor tests and procedures such as Examining a rash or checking vital signs at home with smart phone “As the health sector’s center of gravity shifts toward customers, savvy new players are moving fast to capitalize on the change,” said Vaughn Kauffman, principal, PwC Health Industries. Trends · · · · · · New entrants are poised to shake up the Industry Drawing billions of dollars in revenue from traditional healthcare organizations while building lucrative new markets. Within a decade, the health and wellness business will look and feel like other consumer-oriented, technology-enabled industries – retail, banking, publishing and music. Soon, healthcare will have its own Amazon.com-style, iconic, new economy brands. Healthcare revenue flows from government and employers through third-party payers, insulating consumers from true costs. In the future, purchasers – government, employers and individuals – will direct payment to the entities providing the best value, - Whether it is a clinical team or a sporting goods company - A nutrition counselor or a website. · Type of CAM (Complementary Alternative Medicine) Used in the Past 12 Months2 37 % used herbal products or dietary supplements. 22 % used massage therapy, chiropractic manipulation, or other bodywork. 9 % used mind/body practices. 5 % used naturopathy, acupuncture, and homeopathy. - 11% of those with some college education, - 6% who graduated from college and 3% with high school education or less CAM makes up 1.5% of the $2.2T3 in total health care expenditures. 1 http://www.pwc.com/us/en/press-releases/2014/healthcare-market-threatened-by-disruptive-newentrants.html *National Health Statistics Report 12: CAM-Use Am on Adults and Children: United States, 2007 2 AARP, NCCAM. Complementary and Alternative Medicine: What People Aged 50 and Older Discuss With Their Health Care Providers. Consumer Survey Report; April 13, 2010 On average, an adult spent $121.92 on visits to providers and paid $29.37 out of pocket per visit. People spent $14.8 B out of pocket to buy ‘no vitamin, no mineral, natural products’ -- a third of what is spent on pharmaceuticals. Naturopathy · · Seniors prefer conservative treatment approaches first4 - 25% Prefer a doctor that drugs or surgery alone - 75% Prefer doctor that prescribes natural therapies first and drugs or surgery second Lack of Medicare coverage prevents seniors from choosing NM - 23% consider seeing an ND if paying OOP - 77% consider seeing an ND if covered by Medicare - Estimated Naturopathy Market Total pop Considering the age groups of 5-69 which is about 84%5 Potential market (5%, based on 2012 survey) Market Volume Market Value=Volume*Average value (only visit) Average cost of each visit MV*AV Market Value Millions 320 268.8 8.064 8.064 $ % 84 5 120 1344 1344 Homeopathy · · · 3 4 U.S. retail sales of homeopathic and herbal remedies reached $6.4 billion in 2012, up almost 3% from 2011, and growing 16% over the past five years 30% of respondents who suffered from an ailment within the past year claim to have used a homeopathic or herbal remedy to treat it. Forecasted sales to increase to $7.5 billion by 2017 as more Americans become proactive about their health. 2007 Total Healthcare market The study cited above was conducted by an independent market research firm Infosurv, sponsored by the AANP. Infoserv queried 384 individuals 65 years of age and older who live in states that license naturopathic physicians. The survey provides a margin of error of +/- 5 percentage points. 5 2015 Population census by age groups Customers Digital Outlook Over the next 25 years, the use of digital platforms and remote medical technology could save $197 B in U.S. medical cost Key findings6 · · · · · · 72 % of U.S. adults have gone online to seek healthcare information in the last year 40 % of patients have posted comments about personal health experiences 30 % have consulted online reviews of healthcare services Physicians now go online for 9 to 15 hours each week for professional reasons Eight in 10 online health inquiries start with a search engine Women more likely to search than men, most searches include - Specific deceases or medical problems 55% - Certain medical treatments or procedures 43% - Ways to lose or control weight 27% Generations (US pop) Millennials · · · 34% Baby boomers 29% Gen X 34% Millennials were the largest growing segment of people to use supplements: - In 2013, 68% reported that they took some type of supplement in the last 30 days, compared to 50% in 2009. - The supplement industry is an approximately $32.5 B market, according to the Nutrition Business Journal. Roughly 11% of Millennials used homeopathic medicine in 2013, up from 4 % in 2009 6% of baby boomers and 7% of Gen Xers reported using homeopathic medicine in 2013. Target Customers · · · 6 Americans suffering from chronic conditions, particularly musculoskeletal problems, most often seek Naturopathy Educated patients are more capable of identifying and researching possible alternative treatments Study Finds High Demand for Naturopathic Physicians Among Older Americans The results reported here come from a nationwide survey of 3,014 adults living in the United States, conducted by Princeton Survey Research Associates International · · Several studies suggest that women and middle-aged people are more inclined Women in general tend to seek healthcare more often than men Naturopathic Practice - A Comparison to Conventional Primary Care7 · · · · · · · Two-thirds of naturopathic patients are female and that the majority of patients are adults. Half of ND visits were paid for directly by patients. Approximately one-quarter of visits were covered by private insurance and the last quarter were discounted visits. The types of conditions seen by MDs and NDs overlap as much as 44% of the time. Many of the top diagnoses seen by MDs are also seen by NDs at a high frequency, but only 1 of the top 6 ND diagnoses are also seen commonly by MDs. Unsurprisingly, conventional primary care sees more routine examinations and infectious conditions. NDs appear to be seeing more chronic conditions, especially fatigue, musculoskeletal concerns, digestive concerns, and mental health concerns. Health approaches by characteristics 7 · Among U.S. adults aged 18 and over the percentage who used any complementary health approach in the past 12 months 2002 2005 2007 32.3% 35.5% 33.2% · Trends in the use of complementary health approaches by sex, age group, Hispanic or Latino origin and race, education, poverty status, and health insurance coverage. The newly published study is the largest of its kind and captured data from 5 years and a tremendous number of patient visits-source Adults aged 18 and over who used selected types of no vitamin, no mineral dietary supplements during the past 30 days: United States, 2007 and 2012 Competitors · · · There are over 1000 licensed Naturopathic doctors in the USA as per the report but no full scale digital naturopath solution providers in the market. There are good no. of healthcare tech start-ups booming in the supplements market Indirect/Conventional competitors are at great stand in the market with complete digital platforms but with limitations in the prescription part Link to the table SWOT-Proposed system Strength · · · · · Untapped market (Online) Unique algorithm driven application Customers/Patients outlook shifted towards Alternative/Naturopathic treatment Perpetual revenue/Promising market Digital treatment and prescription can be practiced since side effects are negligible Opportunity • 42% of seniors taking prescription drugs have concerns about potential side effects • Conventional medical routine visits have become very expensive • There are no full scale solutions with diagnosis, treatment and prescription • Conventional platforms cannot recommend treatment and prescription online, limited diagnose Weakness · · · Fewer patients have got Insurance coverage Only a third of the treatments &therapies are tested Low spent on Research Threat · · ---End--- The AMA continues to monopolize Western medicine and silence opponents AMA spent nearly $20 million on lobbying in 2014