The Soap Resource Center - Still Untapped

The Present Situation

 

There is a considerable number of consumers for whom buying soap is an anxiety-filled exercise. They worry about the potential effects a soap may have on their skin.

 As a result, they conduct research, seeking reviews, trust signals, objective opinions, and anything else that will help them select the most suitable soap. This is especially true for "new age" natural soaps made from ingredients ranging from guava leaves to rice.

 

Below are the average search numbers for phrases related to soaps in the month of January 2024.

 

Phrase	Volumes
kojic acid soap	1400
dove soap	1100
rice soap	1000
ingredients for sea moss soap	900
turmeric soap	700
goat milk soap	600
kojie san soap	600
tumeric soap	500
oilatum soap	500
dettol soap	500
rice soap benefits	500
black soap	450
asantee soap	400
kojic soap benefits	400
turmeric soap benefits	350
tetmosol soap	350
imperial leather soap	350
geisha black soap	350
benefits of rice soap	350
papaya soap	350
carambola soap	350
bar soap	350
geisha soap	300
tamarind and goat milk soap	300
benefits of turmeric soap	250
bathing soap	200
kojic soap side effects	200
side effects of rice soap on face	200
geisha black soap benefits	200
which soap is best for pimples and dark spots	150
how to know fake asantee soap	80
how long does rice soap take to work	80
which soap is best for pimples and oily skin	60
which dettol soap is best for face	60

 

Every month, there are over 20,000 searches for soap-related phrases. Most of these searches lead to manufacturer websites selling soaps or general merchandise information websites.

However, there is currently no authoritative and objective source of information or an aggregated shop selling all types of soaps.

 

Could there be a centralized, objective place to provide the answers and all types of soaps in one place?

 

Context

ü  There are presently tens of soaps in the market. There is no one-stop place where consumers can objectively compare and purchase different soaps.

ü  Every soap is marketed differently. Consumers with very specialized soap needs are unsure which is most likely to be suitable for their particular needs.

ü  Most soaps are marketed as being good or the best for different solutions.

ü  Consumers rely on trial and error to find a soap that is appropriate for their particular condition.

ü  There is an emergence of many independent soap makers, some with high-quality soaps that consumers aren’t aware of.

ü  Consumers are searching for information about the effect or suitability of various soaps for their specific needs.

ü  The information is fragmented. There isn’t a comprehensive platform with information on the different ingredients and potential benefits of all soaps.

ü  There is also no one-stop platform for soaps, providing objective information and serving as a shopping directory.

ü  There are tens of manufacturers.

ü  Heavy investment in advertising by large manufacturers.

ü  There is a gradual growth of natural soaps.

ü  Consumers are willing to pay a premium for soaps that solve particular problems.

ü  New soap brands emerge every month.

ü  There is an increasing consciousness among a section of consumers about the effectiveness and ingredients of various soaps.

ü  Soaps are positioned as appropriate for particular conditions.

ü  Consumers conscious of their skin are increasingly questioning soaps.

ü  A section of urban consumers is shifting to natural soaps.

ü  More consumers are seeking information on various soaps.

ü  Consumers are willing to pay a premium for soaps they believe will solve specific problems.

ü  Consumers are confused by new-age natural soaps, unsure of their effectiveness.

ü  Consumers rely on the internet for information.

ü  There is an increasing trend of consumers shopping online.

 

The Opportunity

The opportunity lies in establishing an online soap shop and directory. The shop will stock the largest variety of soaps in the country and serve as a repository for information on various soaps and their ingredients.

The website will encourage user reviews to eventually build a bank of reviews from consumers who have used different soaps. The shop should make it easy for consumers to compare two types of soaps side by side, such as turmeric soap and rice soap.

An alternative is to create an objective directory of soaps and their ingredients in Kenya. The aim is to attract a specific kind of consumer and generate revenue through advertisement or affiliate programs.

Advantages over existing options include:

- Shopping by need, price, ingredient, manufacturer, and type of soap.

- Information repository.

- Independent reviews.

- Single platform for soap comparisons and shopping.

- Objectivity.

These enhancements aim to improve the clarity and coherence of the text.

 

How It Would Work

ü  Research and collect information on as many soaps available in the market.

ü  Key points will include the active ingredients, characteristics of the ingredients, the soap's claims, and an objective assessment of their likely effects on the skin.

ü  Identify the various manufacturers and suppliers of the soaps.

ü  Build a website that is information-heavy and includes details of each ingredient.

ü  The website should feature comparison tools, search functions, and options for user reviews.

ü  Establish a shop selling the soaps directly or provide affiliate links to merchants or manufacturers.

ü  The aim is to become the go-to place for all things related to soaps.

 

 

Possible Product

An all-rounded website that provides information on various kinds of soaps. Key information will include ingredients and their characteristics. Additionally, the website will feature a shop where consumers can purchase various soaps.

Alternatively, an information-only directory website could be developed. This directory would list details of various soaps but would not include a shop. Instead, it would provide links to merchants and manufacturers, earning commissions on sales.

Another option is to offer premium features for a fee, such as side-by-side comparisons or enhanced search functionality.

Characteristics of the Product

Objective:

·         Provides unbiased and factual information without bias towards specific brands or manufacturers.

·         Ensures transparency in product descriptions, specifications, and reviews.

·         Offers clear and concise information to aid informed decision-making by consumers.

Easy to use:

·         Intuitive interface designed for seamless navigation and effortless interaction.

·         Simplified search and browsing functionalities.

 

Features that allow comparisons, search by different attributes, user reviews, and such:

·         Advanced search filters to refine results based on specific criteria such as ingredients, price range, and user ratings.

·         Interactive comparison tools for side-by-side analysis of different products.

·         Integration of user-generated reviews and ratings to provide insights into product performance and customer satisfaction.

·         Customizable user profiles to personalize search preferences and receive tailored recommendations.

Aesthetically appealing:

·         Visually captivating design with modern layouts and attractive visuals.

·         Engaging multimedia content including images, videos, and infographics to enhance user experience.

 

Wide variety of information:

·         Comprehensive product listings covering a diverse range of soap types, brands, and variants.

·         In-depth product descriptions highlighting key features, benefits, and usage instructions.

·         Educational resources such as articles, guides, and tutorials on soap ingredients, benefits, and skincare tips.

·         Regularly updated content to reflect the latest trends, developments, and industry insights.

 

Revenue Model

·         Margins on the sale of soap.

·         Advertisements.

·         Affiliate fees.

·         Fees for premium services.

What Exists

Players

-          Large soap manufacturers

-          Medium scale manufacturers

-          Independent manufacturers

-          Importers

-          Various merchants

Products

-          Conventional soaps

-          Natural soaps

-          Toilet soaps

-          Laundry soaps

 

Merchants

Online

-          Various market places

-          Websites of different manufacturers

-          Online malls

Offline

-          Retail shops

-          Supermarkets

-          Beauty shops

-          Chemists

-          Other informal retailers

Process

ü  Research on soaps in the market.

ü  Profile the soaps.

ü  Decide on business model.

ü  Get prices and other supplier terms.

ü  Decide on soaps to stock (if stocking is the model)

ü  Decide on possible margins.

ü  Build website with the soaps listed.

ü  Research on the kind of information consumer is seeking.

ü  Create content related to the information.

ü  Launch.

ü  Could stock only the possible fast moving soaps and others acquire on order.

ü  Encourage users to leave reviews.

ü  Colloray could be a physical soap place shop.

Marketing

Requires creative exciting proactive marketing. 

-          Creative short video content

-          Search Engine Optimizations (SEO)– High potential based on what consumers are searching for

-          Google ad words

-          Facebook ads

-          Video platforms

-          Micro influencers

 

Back of the Envelope Calculations

Average Price of Soap – Kshs 150

Average margins per soap –  20 %

Soaps sold in a day -  200 (Projected on the current sales of some online merchants and keeping in mind the traffic this website will attract.) 

Total value of soaps – Kshs. (200 * Kshs. 150) = Kshs. 30000

Margins – Kshs.6000

The sales are projected on the current sales of some online merchants,

 

 

Challenges

·         Obtaining competitive prices from suppliers while.

·         Developing and maintaining a comprehensive information database on soap products, including ingredients, benefits, and user reviews.

·         Establishing consumer trust in the accuracy and reliability of the information provided on the platform.

·         Facilitating the collection and management of user reviews to ensure authenticity and usefulness.

·         Establishing and nurturing affiliate programs with a diverse range of manufacturers and vendors to expand product offerings and revenue streams.

 

Haters

 

Objection: There are so many soaps in the market; it's impossible to profile all of them.

Counter: It's not impossible. By our estimates, there are around 300 types of soaps in the market, a manageable number that can be profiled within two weeks.

Objection: A consumer is likely to purchase a soap at a go. Add the delivery costs and no one will buy soap online.

Counter: Wrong. Consumers are already buying soaps online. They are driven by more than price; it's about the strong emotion of what the soap will do for them.

That said, we will aim to be as efficient as possible, aiming to deliver at the minimum possible charges and offering free delivery when possible.

Objection: There are many information sources. There is no reason why consumers should visit your website.

Counter: It's not simply about the availability of information but how complete, curated, centralized, organized, and trustworthy it is. So instead of the consumer visiting eight websites to get a conclusive opinion about rice soap, she visits this authoritative website, specifically tailored to the Kenya context.

Objection: Consumers may be skeptical about purchasing soap online due to concerns about product quality and authenticity.

Counter: We are in it for the long term. We will source from reputable sources Additionally, we will provide detailed product descriptions, user reviews, and transparent information to help consumers make informed purchasing decisions confidently.

Objection: How do you plan to compete with established brick-and-mortar soap stores that offer personalized customer service and immediate product access?

Counter: While brick-and-mortar stores may offer personalized service, our online platform provides convenience, extensive product options, and the ability to compare products and prices easily.

Validation

·         Consumers already buying soaps online.

·         Online search volumes for matters soap and skin.

 

Resilience to Economic Downturn

Resilience to Economic Downturn: Soap, as an essential need, sees unlikely reductions in consumption even during economic downturns. In urban centers, consumers prioritize looking good as a sign of upward economic mobility.

Therefore, while spending on beauty products may decrease during an economic downturn, the reduction will not be significant enough to render a beauty soap selling business non-viable

Purchase frequency

Twice per month

Critical success factors

 

·         Richness of Information: Providing comprehensive and insightful information on soap so we become the go to for soap.

·         Objectivity: Provide objective credible information.

·         User-Generated Reviews: Encouraging and leveraging user-generated reviews can provide authentic feedback and foster a sense of community and realistic opinion about soaps.

·         Product Variety: Offering a wide and diverse range of soap products.

·         Competitive Pricing: Implementing competitive pricing strategies to match other ecommerce platforms.

·         Right Business Model: Choosing an appropriate business model that will help maximize revenue for our everything soap website.

What do you think ? Please leave a comment below.