A small pill big sources of revenue: vitamin industry into a crisis, "Ever Victorious General"

The financial crisis sweeping, so that the entire U.S. business community have struggled to live with. However, on further bad market conditions, there are always the "gold" hidden in the sand is brilliant though. VMS is one of the outstanding. Do not read this small company that sells the most common vitamin retailer, and its success, the United States and the world business community is concerned, may both be called a textbook model --

Regardless of the economic recession has not ended, Americans of the importance of vitamins has never been weakened.

By the end of October, when the U.S. government announced that the recession has been gradually end, Americans most want to know is, who is the crisis of "Ever Victorious generals." Which is in a crisis the industry still make a fortune - in addition to McDonald's and the arms manufacturers Freedom Group - I have found most likely to make money was still a vitamin sales chain, and their mode of development should really learn by other retailers.

It is difficult to imagine in such a severe economic crisis in some sectors of the business is still brisk. As we all know in this crisis, "the most injury" to the number of retail, credit, sluggish retail environment has almost frozen. However, according to "The Wall Street Journal" reporter Linen Ke Wan reports, from two years ago, there is a sale in 45 states, various types of wood flooring for small businesses called Lumber Liquidators business is very hot, and jumping, "Fobs Sri Lanka, "ranked first in the nation's best small companies. Said the retailer had never been elected, why the sudden emergence of the crisis but, it seems that it also has its survival. The trick is to extend the store hours of operation, by extracting a commission to motivate staff, and the appropriate marketing skills to make business performance despite growth in the housing market collapse.

Vitamin dependency

More people could not believe that, as of the end of October, was founded in the 70s last century, the U.S. chain of Nutrition Corporation Vitamin Shoppe (VMS), has a store in New York from the very beginning to develop into today's 434 stores. The chain began in July from 150 million U.S. dollars fund-raising began to apply for IPO (IPO), and October 29 initial public offering of new shares to become ready in the near future IPO listed on the first three retail companies a leading position a. The New Jersey-based Vitamin Shoppe's most striking is that the total assets of only 250 billion U.S. dollars, but has become the first two years, the traditional retailers listed. The so-called "traditional retailers" refers to have a physical store retailers, and e-commerce retailers, as opposed to present all of the shares of the company held by private equity firms. In fact, this is not surprise, the U.S. retailer is not involved in IPO market for two years, and now how to restrain against unemployment? Retailers are now preparing to re-test IPO market, there are a number of retail companies plan to market in the near future through the IPO, because the stock market has been strong recently, and the prospects for consumer spending is being changed for the better.

VMS companies can profit in a crisis, thanks to several factors. First, this is the world's leading social theorist Richard Florida's "great restart" concept related. He firmly believes that human creativity is the driving force behind economic growth, because our unprecedented economic growth began to rely on the expansion of human capacity. Americans are increasingly concerned about their health problems, for example, they are increasingly like those who removed the previous life of bad or expensive habit, not only learn to cut down on smoking and drink less soda, but also begin to reduce to Starbucks and convenience stores number of times, in their minds, the vitamin is a life-saving straw; Second, the American health insurance plans are also earth-shaking changes taking place in a number of prescription drugs and treatment are beginning to pay, many people can only be used as an alternative to vitamin and supplements. This is something we can be the largest U.S. chain Wal-Mart and Walgreens pharmacy sales records to see that they have openly admitted that U.S. sales of vitamin and vitality.

The role of baby boomers

The reason is very wang chain store sales of VMS, but also benefited from another historical masterpiece, that is, the baby boom after World War II. These babies are already grown up and are now placed in over-nutrition has been troubled by the shadow of obesity. Vitamin become their necessities of life. According to "nutrition industry magazine," data analysis, 2001 to 2008 period, as the same supplies vitamin sales of 4.9% annual rate of increase last year alone grew by 6.2%, is expected to grow this year will be 5.8%. This magazine report said: "We believe that promoting the vitamin industry is the source of rising sales to those aged 50 or so people, including baby-boomer population, they have to seek ways to improve health status, hoping to to find a drug or treatment to fight disease. "

Since 2007, many of the assets of the retail businesses are shrinking, but the Vitamin Shoppe has continued to grow. Alone from 2005 to 2008 for the enhanced opened 171 new stores, sales rose to 436.5 million U.S. dollars from 6.015 U.S. dollars, an increase of about 38%. Nielsen research company's latest data also shows that large-scale production and retailer of vitamin, the United States natural treasures of the second quarter of this year sales growth of 9.8%, with 442 branches it has grown into the world's largest dietary supplement companies. To be sure, the company also needs a high sales of the stock market's clever use. In 2002 by private equity to buy VMS, although not a natural treasure and the nation's largest health food chain GNC as successful, but recent developments can be seen, VMS are trying to follow up. Went to the Christmas selling season season, I believe this is absolutely a good time to issue new shares to retailers, because with or without money, people will increasingly popular demand for vitamins.