The Present Situation:
You want
to buy your 70-year-old mother a cool gift. You have an idea of what he would
appreciate, but you are looking for an item with some sort of kick—not just the
usual you have been buying.
You brainstorm on your own or with a friend
and at that moment wish there was a place where you could find a curated list
and gift suggestions for those of his age.
But
it's not simply about gifts. Sometimes, you simply want to make their lives
better with everyday items. Bathroom grips and anti-slip products, for
instance, or bathing chairs and elevated toilet seats. It could also be about
health products like knee supports, heel cushions, elbow support, and the like.
There
is no one place you can go to get all these products, and even a variety of
them, with great support. Shopping for these is a very fragmented exercise.
Can
this process be improved, and then profitably so?
Context
-
As
humans beings get older, their bodies changes.
-
Their
habits, socialization and general life outlook also changes.
-
Because
of this they tend to have particular preferences and needs.
-
Presently
shopping for senior citizens’ products is fragmented.
-
A
consumer has to shop from various vendors for the items they want.
-
At
times the items are not senior citizen specific, rather they are products which
can have the characteristics that are ideal for the senior citizens.
-
And
where the products are senior citizen specific they aren’t easily found; the
consumer doesn’t know of their existence or where to get them.
-
This
is not limited to physical products, but also service like insurance.
-
There
is no shop positioning for senior products.
-
A
majority of senior citizens and even their families are not aware of the
existence of products specific to their needs.
-
Children
are increasingly playing a big part in purchase.
-
Kenya’s
population over 60 years is 2,400,000
-
Whereas
there are several options for senior citizens in terms of welfare, service,
homes and to an extent health there is no well-established senior citizens’
products shop. Everyday items for fun, health or better day to day living.
-
A
significant number can pay a premium for suitable items.
-
The
urban senior citizen increasingly tech savvy. They desire safe, healthy
comfortable life.
The Opportunity
The opportunity is in
establishing a shop in Kenya that offers a wide variety of products
specifically targeted at senior citizens (60+ years).
·
The
shop will stand out by sourcing, aggregating and selling products that are
suitable for senior citizens.
·
The
target market will be the senior citizens themselves but also their children,
relatives and friends who may wish to get them an appropriate product.
The
advantage over the alternative will be:
-
Positioning
as the place for senior citizen’s products.
-
Curating
appropriate items
-
Wide
variety of products even those not presently found in the country
-
Nationwide
reach through ecommerce
How It Would Work
·
Conduct
research on a variety of products that would be appropriate for senior
citizens.
·
Source
the products locally or by importing.
·
Develop
a website through which to sell the products.
·
Market
the website.
·
Fulfill
orders and arrange delivery.
·
A
physical shop is optional, although having a storage and operational center is
a plus.
Characteristics of the Product
·
Core
items essential for senior citizens.
·
Wide
variety across different categories, balancing choice with ease of
decision-making.
·
Stock
products based on customer needs and feedback.
·
Provide
excellent customer service.
·
Non-patronizing
approach.
·
User-friendly
website.
·
Flexibility
to order through any platform: website, phone, WhatsApp, social media, etc.
·
Expert
assistance available for decision-making and advice as needed.
Product Possibilities
·
An
online only senior citizen products shop.
·
A
physical and online senior citizen products shop.
What Exists
Players
-
Homes for the aged
-
NGOs supporting the aged
-
Chemists selling medicines for
senior citizens
-
Non pharmaceutical equipment
sellers
-
Beauty and cosmetic shops
-
Fashion shops
-
Insurance companies
-
Hardware shops selling products
like anti slip tiles.
-
Other merchandise sellers
Products
-
Household products
-
Medical products
-
Non pharmaceutical equipment
-
Financial products
More technical classification
products:
-
Wellness products:
-
Bathroom and safety
-
Mobility
-
Gifts
-
Home & Living
Process
Skeletal (Drop
shopping)
- Identify senior citizen
suitable products in the local market.
- Research suppliers, prices,
and terms.
- Purchase samples of the
relatively low-priced items.
- Build the website.
- List all potential products
based on supplier research, with appropriate markup.
- Market the website.
- Upon receiving orders, source
the products from previously identified suppliers and arrange delivery.
All In
- Research a wide variety of
appropriate senior citizen products both locally and internationally.
- Identify suppliers and source
products. (For high-ticket products available locally, source them on order,
for example, wheelchairs).
- Build the website.
- List all the products.
- Market the website.
- Receive orders and arrange
delivery.
Marketing
-
Marketing
targeted at the senior citizens and also their children
-
Google
ad words
-
Content
-
Social
media
-
Search
Engine Optimization
Fun,
reassuring, captivating, non-patronizing. and interesting marketing
Challenges
·
Sourcing
appropriate products within desirable timelines and prices, especially when
dealing with international suppliers or specialized items.
·
Navigating
regulatory challenges, particularly if considering selling pharmaceutical
products like medicines, which may require extensive licensing and compliance.
This is not a challenge if you are not selling pharmaceutical products.
·
Building
trust with potential customers at the initial stage, as senior citizens and
their families may be cautious when purchasing online or from a new business.
·
Managing
customer expectations regarding product quality, suitability, and support,
especially when catering to the specific needs of senior citizens.
·
Competition
from existing retailers or online platforms offering similar products.
·
Ensuring
accessibility and ease of use for the website and ordering process, considering
the potential challenges faced by some older individuals with technology.
·
Handling
customer inquiries, complaints, and returns efficiently and compassionately,
given the sensitive nature of products aimed at senior citizens.
Back-of-the-Envelope Calculations
·
Initial
Stock: Approximately Kshs. 400,000 (Based on supplier prices of essential
products for senior citizens. You can spend less if you going skeletal)
·
Website
Development: Estimated at Kshs. 80,000
·
Marketing
Expenses: Budgeted at Kshs. 50,000
·
Total
- Kshs. 530,000
If opting for a bigger
approach, the required capital could be significantly higher. This includes
expanding the range of products and importing items not available locally. For
a more extensive investment, consider stocking up to Kshs. 1,000,000 worth of
inventory.
Margins:
Based on current market
averages, anticipate a gross margin of around 30%. For instance, sales of Kshs.
500,000 would yield Kshs. 150,000 in gross profit.
Haters
Objection: Senior citizens in Kenya
don’t typically buy specialist products.
Counter: Firstly, there is currently no
dedicated marketplace for senior citizens, so it's not a matter of
unwillingness but rather lack of availability.
Secondly, with the increasing trend of
children wanting to provide the best for their parents, there is a growing
demand for products catering to senior needs.
Objection: Senior citizens in Kenya
resist being categorized into an "old" corner and won’t buy from
shops marketed specifically for the elderly.
Counter: Our marketing strategy will
focus on inclusivity and fun rather than emphasizing age. We believe there is
no shame in aging, and our approach will reflect this by avoiding patronizing
or ageist messaging.
Objection: It will be challenging to
source a wide range of senior citizen products in Kenya.
Counter: While sourcing a wide range of
products may pose initial challenges, there is already a significant number of
suitable products available locally. By positioning these products
appropriately for senior citizens, we can address this concern.
Additionally, advancements in importation
logistics make it relatively easier to import even small items via air freight.
We plan to start small, adapt, and expand our offerings accordingly.
Objection: The market for senior citizen
products is too niche to sustain a profitable business.
Counter: While the market may be
considered niche, the aging population in Kenya is steadily growing, creating a
sustainable demand for products catering to seniors. Further no one is serving this niche
appropriately.
Objection: Competing with established
retailers and online marketplaces will be difficult.
Counter: While established retailers
and online platforms may pose competition, they often lack a specialized focus
on senior citizen needs.
By offering a curated selection
of products specifically tailored to seniors and providing personalized
customer service, we can differentiate ourselves and attract customers seeking
dedicated solutions for aging-related challenges.
Objection: Senior citizens may prefer
traditional brick-and-mortar stores over online shopping.
Counter: While some seniors may prefer
in-person shopping experiences, there is a growing trend among older adults
towards adopting technology and embracing online shopping. By providing
user-friendly online platforms and offering assistance for those less familiar
with technology, we can bridge the gap and cater to diverse preferences within
the senior demographic.
Validation
·
Existing
purchase of senior citizen products.
·
Existence
of senior citizen products among different vendors as much as they are not
positioned as such.
Resilience to economic downturn
The essential nature of senior citizen products
lies in their facilitation of basic everyday living rather than being luxuries.
Therefore, these products are likely to withstand economic downturns.
Purchase frequency
Once every month.
Critical Success Factors
ü Product
Selection: Choosing the right mix of
products tailored to the needs and preferences of senior citizens.
ü Product
Variety: Offering a diverse range
of products to cater to different needs and preferences within the senior
citizen demographic.
ü Strategic
Positioning: Positioning
the brand and products in a way that resonates with senior citizens and
addresses their specific concerns.
ü Effective
Marketing: Implementing targeted
marketing strategies to reach and engage with the senior citizens’ market
effectively.
ü
Customer Feedback: Actively listening to customer feedback and
incorporating it into product selection, marketing strategies, and overall
business operations to enhance customer satisfaction and loyalty.
Inspiration
What do you think ? Please leave a comment below.
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