The Organic Industry Profile
The world trade in organic natural products is dominated by the
United States, the European Union (EU) and Japan. Recent market research
has shown that consumer demand is growing rapidly in these major markets
and the share of organic products is expected to reach 5% - 10% of total
food sales by the year 2005.
Organic Market (2001) Retail sales (USD$B) Current growth rate
Europe 9.2B - 22%
USA 9.4B - 19%
Japan 3.1B - 21%
During the 1970’s growing consumer interest in natural health and
nutrition and increasing awareness in preserving the natural environment
stimulated the development of the organic industry. This movement has been
given significant impetus as a result of Bovine Spongiform Encephalopathy
(BSE or Mad cows disease), dioxin contamination and controversies posed by
Genetically Modified Organisms (GMO’s).
A key factor for growth during the mid 1990’s in both the
EU and USA is that mainstream supermarkets have committed themselves to
stocking organic products and making it a serious objective to promote a
complete range of organic grocery products grown and produced without
synthetic chemicals. A second factor has been the
introduction of uniform standards for organic production. Standards for
organic certification are now covered in the USA by the USDA, in Japan by
JAS and in Europe by the EEC 2092/91. The Soil Association in the UK
exceeds the EEC standard. Back to Top
Who buys
Natural Organic Products
Baby boomers started turning 50 in the mid-1990’s and have
been demanding products to help them retain their youth and vitality while
preventing conditions that usually accompany aging. 20% of consumers are
already committed to what they perceive as natural products and these
organic and natural personal care buyers are also becoming more aware of
labelling inconsistencies Back to Top
ONE Group Member Profile
ONE Group is attracting Members who are interested in the
benefits of consumables without compromise. They want to build their own
home-based business and want the products they are promoting to have
integrity and be certified as being safe and natural. They are also
attracted to the ONE Group Multi-Channel Enterprise model, which offers
flexibility of working hours and unlimited residual income potential with
expansion opportunities into overseas markets.
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The Organic Pricing Profile
To penetrate the market quickly and efficiently,
competitive pricing is essential. Offering a product that is Certified
Organic at a similar price to a “natural” product will establish ONE Group
products as the best value for money option in this rapidly growing
industry. Research has shown that 68%
of any market segment will only buy a new product if it is competitively
priced, which will also keep the price within the reach of as many people
as possible. The favourable exchange rate will give ONE Group a
significant price advantage in our initial target market of the USA and
subsequently the UK in 2004.
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The Organic Market
The current trend in natural personal care is toward
organics and currently ONE Group has THE ONLY certified organic range of
skin and body care products available. With legal requirements being established
internationally for organic products, an exciting window of opportunity is
open for ONE Group Members over the next three years.
In April 2002, the Soil Association in the UK released its new organic
standards for body
care items. As of August 2002, the same also applies in
Japan. In both those markets, ONE Group has
THE ONLY legitimate products.
From 21st October 2002, due to a United States Department of Agriculture (USDA)
ruling, ONE Group has THE ONLY skin care brand that can legally use the USDA organic logo on its packaging.
Worldwide, the AUD$50 Billion organic industry has grown at
a rate of 23% per annum compounded for the last eight years. In the USA
during 1998, 5% of all new food products introduced into the market were
certified
organic
and this trend is continuing; yet the organic sector
currently makes up only 1% of food sales in the industrialised world.
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Globally, sales in the personal care market including
"Natural" Personal Care reached USD$122 billion in 2000 and are growing at
1.6%. In the USA, the entire Health and Beauty Care market is almost
USD$40 billion and is experiencing 3.4% growth.
In contrast, the trend towards natural ingredients is
running through every segment of personal care with sales in the USA in
this area, reaching USD$1.56 billion in 2001and growing at 10%. This
segment is expected to grow 6% - 7% annually over the next few years.
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The ONE Group product range is really a
lifestyle
extension
for those already eating organic products and/or for those
who want pure, environmentally conscious products. For this reason the
best place to begin our international expansion is in the “organic
capital” of the world, California, and more specifically, Southern
California. We will use this as base to expand into other organic markets
around the world. Specifically the UK dues to high demand and the Soil
Association Standards as mentioned above.
California is the world’s 7th largest economy.
What are now known as the National Standards for organics in the USA, were
originally known as the “Californian Standards”, indicating the major
influence California has had on the organic industry in the USA.
The US market for organic products exceeds US$10 billion
per annum over 40% of which is in California. As a clear indication of the
substantial market for organics in Southern California, many
Organic/Natural retailers have monthly sales of USD$1 million monthly
compared to an Australian Organic/Natural retailer with sales of around
USD$50,000 monthly. Back to Top
ONE
Group plans to capture significant share of the market for genuine
organic products in the next three years
of operation.
Certified Organic Products...
Developed in Australia;
The
ONE
Group range
of products are independently
certified by Australian Certified Organic (ACO),
a wholly
owed subsidiary of the Biological Farmers of Australia (BFA), to the
highest international standards.
Currently having the
world’s
first &
only certified organic
skin,
body and
oral care products
creates a
significant marketing opportunity for the Company
and its Members.
Products that contain
absolutely
no
synthetic chemicals are exactly what today’s health
conscience consumers are seeking. In addition to the 50 products already
developed, ONE Group has been awarded an Australian Federal Government
Grant of AUD$100,000 to develop the world’s first certified organic
cosmetics, which will include lip cremes, mascaras, blushes and
foundations etc. This new exciting range was launched in August 2003.
The Intellectual Property for all skin, hair, body, oral care and cosmetic
products is owned by ONE Group, and the entire range
is manufactured in-house. Back to
Top
Competition Organic/Natural Market
The marketplace for ONE Group’s products is intensely competitive. The
line between "natural" and conventional personal care has become blurred,
with mainstream health and
beauty care companies and prestige cosmetic companies now
selling products with some ingredients historically only found in the aisles of
health food stores. Many mainstream manufacturers of personal/body care
products use botanicals and some are now using a few organic ingredients.
This is evidence that the company (One Group) is
progressing in the right direction at the right time. One Group believes
that the deliberate strategy of educational network marketing it has adopted,
together with a superior product line, provides the right mix to
successfully penetrate the fast growing organic/natural market in the USA
(and United Kingdom).
Annual Sales of the Major U.S. "Natural" Personal Care
Companies
$40 - $50 Million -
Levlad Inc. (Natures Gate) Aubrey Organics
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$30 - $40 Million -
Tom's of Maine
$20 - $30 Million -
Burt's Bees, Jason Natural Cosmetics
$10 - $20 Million -
Kiss My Face, Dr. Bronners, Zia Natural Skincare, Dr.
Hauschka, Avalon Natural Products Inc.,
Frontier (Aura Cacia
$5 - $10 Million -
Abkit Inc. (Camocare), Giovanni Hair Care, Borlind of
Germany Inc., Rachel Perry Inc., Reviva Labs Inc.
$3 - $5 Million -
Desert Essence (Country Life), Better Botanicals, Orjene
Company Inc. Masada, ShiKai, Weleda Inc., Pure and Basic Products, Ecco
Bella Botanicals, EO Products, Hain Celestial Group
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Source: Nutrition Business Journal
The US Marketing Strategy
Anticipated Initial Results for the Project
750 Representatives.
1,500 Preferred Customers
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Ongoing Growth
Through the implementation of its unique Multi-Channel
Enterprise system, ONE Group’s sales have increased 12% – 40% monthly
since February 2003. Company executives believe this momentum can also be
achieved in overseas markets after an initial “start-up” period.
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Risk Analysis...
Risk Strategy
Sales projections prove wrong. The projections are based on
conservative figures of a well-researched marketplace with tested products
so it is considered a minimal risk. Being a new market entrant. Provided
there is a significant point of difference, a new market entrant can
capitalise on being ‘new’. Supply deficiencies occur.
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Our policy
-
To buy from the source rather than through distributors
as our volumes increase
-
To identify at least two sources of supply for each
ingredient
-
To establish exclusive supply arrangements.
Evolving international regulations:
As is currently the case – stay abreast of all
international regulations in the organic industry.
Competitive “organic claim” Emphasise third party logo
requirements & traceability. Look-a-likes.
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Summary
ONE Group believes it is time to begin operations in the
USA due to the many favourable market factors and so will begin activities
in September 2003 as briefly explained in this document. If you are
interested in participating in these expansion activities, please complete
the
FREE Online Application form and submit for more details of this
opportunity.
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The
Marketing Plan
ONE Group believes the most effective way
to move superior 100% certified organic natural products into the market place is
via a Distributor Network organisation. The compensation plan is set up as
a multi step plan with a large payout of 25% on the first level and a
further 15% on the second. Qualifying distributors are paid down to the
fifth level with provision for generous leadership bonus over-rides.
Approximately 70% of the wholesale price of the product is available to
the distribution network with various incentives and intermediate rewards.
Complete details of the plan are available on request.
CLICK HERE for more details.
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Online Distributor Support
The
www.health-report.co.uk and
www.hallgold.com
websites are frequently visited by surfers with a keen interest in safe
non-toxic personal care products which are free of potentially dangerous
synthetic chemicals. Consumers are turning to the Internet to source safe
natural and organic body care products which means the traffic received on
both websites is almost 100 percent targeted resulting in a large number
of regular and genuine enquiries for safe organic products and the
business opportunity.
We
(HallGold International
Independent Distributors)
have developed an online duplicable system that distributors can tap into
and learn from as they go. Seamless sponsoring using the company generated
Associate sites will enable entrepreneurial representatives to build a
global business.
Network marketing using the power of the
Internet to generate customers and business opportunity leads is THE NEW generation networking.
At the moment we are concentrating on opening up the USA market and
expanding the Australian market. Other markets such as the UK (2004) and Europe
will follow once the company is well established in the North American
marketplace.
We are currently seeking three key people
in the US to help handle the constant flow of customer and business leads we generate.
It is important from a business builders point of view to register ASAP to
ensure you are on board with this ground floor opportunity as we establish
the network in the USA.
If you have a keen interest in safe natural products - would
like to use them - an established work ethic and would like to earn a
substantial income whilst working from home - it is important you make
contact with us as soon as possible. The Marketing Plan is structured
to reward Distributors with a first level downline of three wide. All
spillover goes downline to the key people who are prepared to work the
business.
CLICK HERE for more details of the opportunity
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If you have any questions, please call Geoff Goldie
on 44 1409 241 745 UK or email
onegroup@60k.co.uk
More Information
CLICK HERE
Sources of Information
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�
www.green-trade-net.de
�
www.naturalbusiness.com
�
Nutrition Business Journal
�
Datamonitor Report on organic foods
�
Euromonitor International (Chicago)
