D2C Wellness: Opportunities and Monetization

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Issue #11

Direct-to-consumer (D2C) wellness

Direct-to-consumer (D2C) wellness space is exploding. Companies are changing healthcare by building, marketing, and selling wellness products directly to end consumers, without intermediaries. Consumers can access diagnosis, self-testing kits, clinical consultation, prescription, and medication online.

Today, we’ll examine companies that provide D2C wellness offerings for the body, mind, emotion, and social aspects of well-being. And reveal exciting whitespace where new players can capitalize and monetize.

Key trends

(1) Personalization of health:

  • Companies are catering to product needs at an individual level, rather than one-size-fits-all solutions.
  • Found prescribes weight-loss medication based on the assessment of your biology such as genetics, microbes & metabolism.
  • ZOE offers at-home test kits to analyze blood fat and blood sugar responses, and recommend diet plans.

(2) Rise of holistic wellness:

  • New companies are using a “whole-body” solution to optimize health.
  • Parsley Health offers holistic medicine healing.
  • Noom leverages psychology treatment for long-lasting weight loss.

(3) Science-based treatment:

  • Companies are leveraging science-based and research-backed wellness solutions to deliver long-term results.
  • Rise fixes sleep issues by studying sleep debt and circadian rhythm.
  • Care/of assesses your biology to find the right vitamin and protein powder that works.

more…

(🔒 Full version) +4 key trends in the wellness space. These insights will help you capture specific customer needs:

🔑 (4/7) How should new startups respond to D2C marketing especially when you’re creating landing pages for idea testing & validation? (including 2 company examples)

🔑 (5/7) This new model can help wellness startups expand their revenue streams. (including 2 company examples)

🔑 (6/7) What type of value propositions most new D2C healthcare startups are focusing on? (including 2 company examples)

🔑 (7/7) Consumers are responding to wellness products differently today and how companies are spotting this trend as an opportunity to introduce new offerings in the market? (including 2 company examples)

Players by categories & niches

(1) Weight care:

  • Noom (weight-loss program designed by psychologists)
  • Found (prescription and coaching)
  • Oviva (personalized support from an expert)
  • Calibrate (digital metabolic health)

(2) Beauty care:

(3) Personalized nutrition:

(4) Sleep care:

more…

(🔒 Full version) Discover profitable niches in the wellness space and how to differentiate your offerings:

  • 🔑 Total 79 company examples across different segments
  • 🔑 Total 10 business categories in the D2C personal health space
  • 🔑 Specific sub-categories within each segment, i.e. the one you see at (1) Weight care

What problems do they solve?

A business only becomes profitable when they solve real problems (need) faced by a large group of people (demand). This section unlocks the valid problems in the wellness space, and how you can use them as market validation to build something people want:

(1) Address targeted needs at an individual level.

  • It’s hard to figure out the right supplements and doses without the right lab work.
  • Most personalized nutrition solutions like Gini, ZOE, Gutxy solve this problem.
  • They provide online assessment, self-testing kits, micronutrient testing, and personalized recommendations on vitamin products or dietary programs.

(🔒 Full version) +3 more problems existing players are solving. Understanding these problem statements will help you build something people want. You’ll also learn:

🔑 (2/4) 90% of diets fail and how companies are solving this problem?

🔑 (3/4) How to monetize by solving psychological fears among consumers?

🔑 (4/4) How to monetize a wellness business by reducing frictions?

Business models

The majority of D2C health companies are layering different business models to create multiple revenue streams:

(1) B2C eCommerce:

  • Many players in this space have established an online store, sold physical products, and delivered prescription, skincare, mattress, or multivitamin-in-a-box to customers’ doorstep.

(2) Subscription:

  • Deliver monthly subscription boxes or a bundle of products plus services to customers.

(🔒 Full version):

  • 🔑 +8 more pricing examples on how companies monetize wellness products for consumers
  • 🔑 How to create additional revenue streams as a wellness startup?
  • 🔑 What kinds of businesses charge $1,600+ for an online virtual program?

Why now?

This section explores: where is the market demand, where the future of health is heading, and answers the “why now” questions (most important slide in your pitch deck!) for your investors:

(1) Prominent signal boosts will raise investors’ interest in the D2C health space.

(2) Consumers’ behaviors are changing.

  • They want healthcare solutions that deliver on-demand experiences, provide self-diagnose tools; are transparent, authentic, accessible (price and convenience factor).
  • Therefore, D2C healthcare is well-positioned for this shifting user's needs.

(🔒 Full version) +4 more market evidence to prove the demand for D2C wellness businesses. You’ll unlock:

🔑 (3/6) Key driver that will give rise to D2C wellness startups

🔑 (4/6) How to capture the growing millennial wellness market in 2021 and beyond?

🔑 (5/6) What do consumers prefer and expect in the future of health tech?

🔑 (6/6) What features will become more common in D2C wellness solutions?

Business opportunities

(🔒 Full version) 3 specific product ideas and business opportunities that are solving problems. You’ll unlock:

🔑 (1/3) Creator economy meets Healthcare tech

🔑 (2/3) D2C healthcare niche opportunity

🔑 (3/3) B2B solution in the healthcare industry

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