Should Competitor’s Start Supplement Companies?
Ask this question to Mr. Olympia, Ronnie Coleman, and he might tell you “yeah buddy!” However, I believe every competitor who starts their own supplement company feels the pressure from day one. Not everyone is cut out to be a businessman—and that’s ok. But trying to start a business in an industry that is already oversaturated by trying to leverage your name hasn’t seemed to go over too well. But that’s not to say it can’t happen with a lot of work and a little luck.
The industry of over-saturation and thin margins
The supplement industry is a multi-billion-dollar industry. Everyone and their brother gets into it hoping they can hit the jackpot and sell a ton of product. However, the bulk of the industry is probably coming from around 10 brands. Of these said 10 brands, are any of them owned by a competitor such as a bodybuilder? Nope. Not even close. You have guys like Kevin Levrone who’s doing amazing overseas with his brand, but has zero presence over here in the states (he’s looking to change that though). Taking your line overseas (or starting it there) in my opinion is the best thing you could do at this point. The US is pretty much tapped out at this point. Only a small percentage of new start-up supplement companies last past 3 years.
Everyone is working off of extremely small margins in hopes that they can show profits at the end of the year. The protein market is the worst it’s ever been with brands making the smallest margins off of one of the bestselling items out there. They continue to push their proteins hoping that they can make up their lost margins through their other pills and powders.
A name that means nothing in today’s supplement business
Here in the states, you have guys like Jay Cutler, Ronnie Coleman, Kai Greene, Lee Labrada, Phil Heath, Rich Gaspari, Dorian Yates, Flex Wheeler, and Arnold Schwarzenegger (just to name a few) all fighting for placement on retail shelves and e-commerce websites. The problem is, none of these brands are doing exceptionally well, despite these athletes traveling all over the place making appearances to promote their respective lines. Gaspari was extremely large for quite a while and then took a nose dive and was eventually purchased by another supplement company hoping to give it CPR and bring it back to life.
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