Why Buying a Franchise of Health Supplement is Worth Investing
Health Supplement Franchise: A Profitable Venture
With the increased awareness of the importance of health and fitness, the demand for anything relating to fitness has been active.
Today, health supplements are playing an important role to not only the fitness freaks but also the common individuals. With the fear of Covid, everyone has realised the need for immunity as well as fitness. This is how health supplements are also witnessing an increasing demand.
The health supplement industry is unorganised since there are a lot of individual players who get material directly from suppliers. There have been several cases of fake products of health supplements in this industry. It is therefore seen that people prefer to choose a trustworthy brand.
The industry has a niche market and the end-users are mainly athletes, bodybuilders, recreational users, and lifestyle users. The sports nutrition market is expected to grow at a CAGR of 10.58% in 2020-2027.
It is always good in dealing with an organised retailer. They give a continuous supply of a wide range of products where a specific brand and quantity of product could be obtained. The main advantage of choosing an organised retailer of health supplements is that customers believe the brand that has true products and dealers. No one wants any compromise on the quality of products especially in the case of consumables relating to health.
Health XP: A Trustworthy Health Supplement Brand
Health XP is one of the fastest growing online and offline nutritional supplement stores. It aims at providing affordable and reliable supplements and wellness products to help fitness enthusiasts obtain the nutritional supplements that they need.
It was started in the year 2014 where it sold its products at online portals like Amazon and Snapdeal. In 2017, it started its e-commerce website where it acted as a platform for all official international health supplement brands.
Health XP sells products of two categories i.e. one is the sports supplements for fitness enthusiasts to achieve their goals and the other is nutraceuticals consisting of multivitamins and nutrition for overall growth.
Why Choose Health XP?
Health XP has over 50 international brands, over 30 Indian brands with 5 lakh customers across India. It has more than 2000 SKUs. Currently, it has its stores in Mumbai, Lucknow, Ahmedabad, Meerut, Chandrapur, and Asansol.
Health XP is a single platform for all fitness needs with a full range of products. It focuses on ease of delivery and makes sure of stock availability.
What makes Health XP different from other individuals in the industry is the quality of products it serves its customers. The products are directly procured from manufacturers and international brands. It has tied up with official importers and manufacturers. All the products have an official hologram and labels of importers and manufacturers. Health XP also manufactures its own products. It has over 250 SKUs of its brand that cater to different customers.
The brand has a lot of tie-ups with the gyms which is the primary source of income for health supplements.
Franchising a Health XP store would require an investment of Rs 7 to 10 lakhs. The estimated payback period is from 6 months to a year. The brand charges a license fee of Rs 10,000 per month for a year.
According to the company, a store with an area of 200 sq ft is required to maintain a stock of Rs 7 to 8 lakhs. The franchise fee is 2 lakhs. The duration of the bond is 5 Years.
The earning for a month is estimated to be over a lakh and the partner gets up to a 50% margin. The stock that is not moving out is taken back by the brand before expiry.
When a prospective franchisee is skeptical about choosing to franchise with Health XP or starting an individual health supplement store, it should be noteworthy that the profit margins are much higher in franchising with Health XP as they also have self-manufactured products. The products when imported directly give a smaller margin and it would also be difficult to get smaller requirements.
Support to Franchisees
On the marketing side, the brand conducts gym sampling and seminars at gyms to communicate to people about wholesome health. It also supports the franchisee with Google search ads to locate their store. The brand transfers any leads that are close to a franchise to the franchisee.
The brand supports the franchisee with the inventory mix by providing specific software.
The company helps individuals and fitness enthusiasts to enter into supplement business by providing not only the expertise and the experience they have built in the past 6 years but also helping the partners achieve sales by providing a wide range of products including whey proteins, mass gainers, and ancillary products of top international and Indian brands.
The company is keen on expanding in tier 2 and tier 3 cities because they expect a higher sale in these cities where authenticity plays an important role because of fake product availability.
Edited By: Vaishnavi Gupta