Recent messages have reviewed opportunity in the wellness industry. The U.S. equity market is in a 15 year downward cycle. When this cycle turns upwards again the big winners will be technologies and businesses that form the next economic wave. I believe that wellness will form a major part of that wave.
In fact economist and author, Paul Zane Pilzer, in his latest best selling book “The Wellness Revolution”, reckons this will be bigger even than social shifting technologies of the past two centuries such as the railroad, automobile, telephone, television, airplane, personal computer and internet). He points out the huge health problem in America and cites why the wellness industry will reach one billion consumers: the population of Japan, the U.S. and Western Europe.
Reading this book shows that there are four main attributes that an industry must have to become a universal social changing industry. These attributes are affordability, legs, continual consumption and time saving qualities.
Technology must be able to create affordability and get the price low enough so everyone can have the product. For example, my first Data General computer was the size of a refrigerator, had two disks the size of pizzas, a processing capacity of 64K and cost $75,000. Today computers with megabytes of processing and gigabytes of hard drive are around for a few thousand bucks.
If the price cannot fall, then a financing industry must emerge to make the product buyable (such as with cars and single family homes).
A product has legs when its benefits are so great that consumers immediately want it once they see others enjoying its benefits. Products with continual consumption create other business when they are sold….cars create gas stations and auto repair. Faxes, sell toners and ribbons. Computers create programming and the Internet, T.V. an entire advertising industry, etc.
Finally every great social economic wave saved time-from the railway, to the car, airplane, phone, T.V. to the computer.
Health care fits into everyone of these categories. You can see how the industry is just getting ready to boom as its prices begin to drop. Health food used to be really expensive and only available at health food stores. Now you can buy a broad range of vitamins, minerals, food supplements, organic meat, milk and vegetables and soy products at the supermarket. As for legs, I can use the food supplements BIRM – see https://garyascott.com/catalog/birm.html and Beyond Chelation – see https://garyascott.com/catalog/beyondchelation.html as examples. With no marketing whatsoever our sales have grown and grown strictly through reorders and word of mouth. Orders come in again and again with notes that read something like this, “My friend is taking your food supplement and says they feel so good and they look so much better”. Everyone wants to feel and look better!
Third, feeling good creates an upward spiral. If a person loses weight and feels good, he'll want to exercise or vice versa, if someone starts to exercise he'll soon want supplements to lose weight and increase performance. Every sale leads to another.
Finally, nothing takes up our time like feeling bad. Low energy saps our productivity. Missed work and continual visits to the doctor ruin our ability to get things done. Nothing creates better productivity than feeling good, having high energy and strength and living a long time. All these add time in our lives and time (as we will see in our message the day after tomorrow) is really what wealth is all about!
The health industry is growing in two sectors which we review in the eighth message on this subject tomorrow. Until then, good health and wealth to you. Gary