Health is new mantra now a days and that is why we see so many Ayurveda. Organic. Natural products. Nutraceuticals etc. around the shelves.
With Health disorders catching up and India becoming diabetic as well cancer capital of the world, the market for such products is bound to boom very swiftly.
As per ASSOCHAM. McKinney and other consulting organizations report, By 2020 Indian nutraceutical market is expected to touch 2 Billion, about 1.5 billion for ORGANICS, About USD 2 billion plus for Ayurveda, and so on. Patanjali, Himalya, Dabur, Sri Sri products etc. all have proved a point in this direction.
Green tea has emerged clearly one of the core winners in this category.
In My view this segment in FMCG category can be termed as NANO Segment- (Natural. Ayurvedic.Neutraceutical. Organic) and this is where Modern day retailing will see at least 100% rise in sales as well display space in next 3 years.
To my understanding and knowledge when we started ORGANIC movement in this country about 2 decades back, No one ever imagined that there will be ORGANIC retail chains in cities like Bangalore and Chennai and Hyderabad. Today there are over 130 organic stores in the country and South India constitutes alone whooping 70% in this.
However Organic store alone can’t bring profitability. It has be combination of Health and Organic. That is why I am suggesting that present day Retail must capture NANO WAVE and capitalize.
An organic cum health store will on average require 400-500 square feet retail space, one Billing software and carts. There can be 4 sections each showcasing one of the NANO Category.
To my mind there will be 400-500 SKU which will be the core of NANO Store. In total about 1000 SKU Maximum. The average investment required is about 6 lakhs including rakes etc . The expected ROI will be in range of 18-20% p.a. net after meeting all expenses from Day of inspection. Break even can be easily reached in 2 years time.
If one can combine online and off line in this NANO Store then returns will be faster.
So instead of opening a regular KIRYANA I will suggest new age entrepreneurs to try and capture this new segment.