Improving access to women’s health by introducing new types of menstrual products
Reusable menstrual product company Simhona utilized innovation and financial strategy to identify new markets to enter
Context
The global feminine hygiene products market was worth USD 21.6B in 2020, with the share of reusable products increasing every year as environmental and menstrual hygiene awareness increases.
In order to penetrate the growing reusable menstrual products market in the US, Simhona – a period underwear brand – hired Intellia to produce an extensive business plan and entry strategy.
The three major challenges that the venture faced were:
- Market entry feasibility
- Shift in consumer preferences
- Financial feasibility
The Intellia Approach
During Phase 1 of the project, Intellia conducted a market overview of the period underwear industry in the US.
This started off with a bottoms-up market sizing model that identified a USD 313M addressable market in 2020 which is expected to grow at a CAGR of 28% until 2025.
The market is dominated by four major players – Thinx, Modibodi, Ruby Love, and Knixwear – although 15+ smaller players also exist.
While analyzing players that have succeeded in this market, Intellia identified 6 critical success factors: body inclusivity, responsible manufacturing, consumer education, expansion of wholesale presence, targeted messaging to get consumer attention and the use of multiple advertisement channels.
After identifying a sizable addressable market and critical success factors, we moved on to Phase 2, the development of a business plan for Simhona.
A key focus was on the company’s marketing strategy since it is a D2C brand. Moreover, consumer attention and education were identified as critical success factors in the period underwear market. Intellia developed a product launch and marketing plan that covered leading practices in the sector.
Intellia also developed a financial plan that forecasted Simhona’s income statement and cash flow for five years. According to projections, the company would become profitable in its second year of operations.
Additionally, the business plan covered product details, organizational structure, and risks and mitigants.
Since period underwear is an emerging and somewhat under-documented market, Intellia conducted intensive primary research to gather and validate data. This included a detailed consumer preferences survey and interviews with industry leaders.
Although a prototype has already been developed, the business plan identified the need for a sizable investment to set up production and operations. Therefore, Phase 3 of the project focused on finding a way to finance the venture.
Crowdfunding was identified as the most viable funding option, because of the nature of the product, the size of the investment, and the success that competitors had achieved through this source. Intellia identified the top crowdfunding platforms Simhona could use while keeping in mind the company’s individual needs.
Impact
We identified a USD 13M gap between the demand for and supply of period underwear in the US, therefore making entry into the market feasible and potentially profitable, given the correct marketing and pricing strategies.
We also clarified Simhona’s priorities and decision-making for their optimal market entry.
However, we identified 15+ other small players that have been in the market for an average of 5 years but have not been able to increase their market share beyond 2%.
Therefore, Simhona is also considering the option to start its operations in the relatively unexplored GCC period underwear market and has hired Intellia to assess the feasibility of doing so.