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Fat Americans = fastest growing consumer segment
Entrepreneurial opportunity› Tim Barry
Frustration over shortage of seatbelt extenders
Developed Extend-Its.com Shipped 10,000+ belt extenders at $60 to $70 a pop
Also launched Scale-It.com and SuperSizeWorld.com
Government statistics show:› 60 million+ Americans qualify as obese › 28 million more expected by 2013› Not just low-income neighborhoods
packing on pounds at McDonald's Researchers at University of Iowa
found:› Obesity rates rising most rapidly among
urbanites earning $60,000+
Market research firm Mintel estimates: › U.S. sales of women's plus-size apparel
jumped 50% past five years $32 billion American business forced to rethink
business › From sofas, mattresses, toilets and cars to
clothes and nightclubs The opportunities seem unlimited and
surefire
(1962-1980) - Americans' body sizes remained fairly stable
(1980-present) - Nearly 1/3 of adult men and 1/3+ of adult women are obese› Obese = body mass index of 30 or higher
Very little chance the trend will reverse itself
At first, most department stores and top retailers had little to offer larger customers› Lane Bryant early mover into plus-size
market By 2000, 690+ stores and $930 million in
sales
› Charming Shoppes (Catherine Plus Sizes and Fashion Bug) following year $335 million in sales
Now women wearing sizes 14+ make up more than half of the overall market
Plus-size apparel is the fastest-growing segment of the clothing industry
Many retailers now launching plus-size lines› Old Navy› Wal-Mart› Hot Topic’s Torrid
The prize for retailers isn't just increased sales but also loyal customers › Less price-sensitive
“A plus-size woman sticks with a brand she likes, and she doesn't mind paying full price for it.“ Barry Zelman, general manager of specialty retail
Levy› Big John Toilet Seat
19-inch throne made of reinforced plastic
Demand doubled over last six months
Brayton International› World's largest office
furniture maker waiting-room chairs
designed for heavier builds in 2003
looking to add wider, sturdier office chairs in response to growing demand
Nemschoff› Privately held maker of health-care
equipment Offered extra-large furniture years ago
appearing like standard chairs Followed up with newer, wider models Nemschhoff's early mistep reflects
difficulties in marketing to the obese
Julio Rincon› Freedom Paradise
World's first "fat friendly" resort in Cancun, Mexico
Spent $2 million outfitting the place
Seldom vacancy rate below 50 percent
Renamed Maya Tankah, and opened place to everyone rooms are now full
Butterfly Lounge› Size acceptance nightspot in Costa Mesa,
California› High stools set around elevated tables
make seating easier› Almost everyone weighs 250+ pounds› Club is profitable and drawing crowds of
300+ on weekends
› “Ninety percent of the folks here have tried everything to be thin”. “At some point you've just got to live.” says one male customer who's come to the Butterfly after reading about it on the Web
Are marketers and entrepreneurs actually promoting obesity by making products that cater to the needs of larger people?
Which social responsibility is more important: promoting a healthy lifestyle or accommodating everyone, big or small?
Crawford, Krysten (June 5, 2006). The big opportunity. Business 2.0 Magazine, Available: http://money.cnn.com/magazines/business2/business2_archive/2006/06/01/8378500/index.htm [1/6/10]