In an exclusive interview, Naturally Plus discusses their cutting-edge approach to health and wellness, highlighting their use of Biozoom's carotenoid checker to enhance customer experience, their robust feedback integration system, and meticulous quality standards.
Over the past 25-30 years, Japan has seen the rise of regional manufacturing competitors such as China, Korea, and Taiwan, who have replicated the Japanese model of success but done so at a cheaper cost. However, despite this, many Japanese firms remain leaders in niche global fields like the health supplements industry. Examples include firms like Yakult, which hold a 60% market share in pretty much every market they are in. Can you explain some of the competitive advantages of Japanese firms that have allowed them to maintain such high global market shares despite regional competition?
The efforts made by past generations in Japan have created a situation where Japan is known worldwide for its high-quality and reliable products. The Made in Japan brand has helped firms grow overseas. By leveraging the reliability that Japanese products are known for, we have expanded around East and Southeast Asia. Naturally Plus kept the US expansion for later since we were quite skeptical about the market; there already exists a huge supplement market, and we weren’t sure if the Made in Japan brand was applicable there. To my surprise, the Made in Japan brand was very well received by the US market, especially a particular product of ours, Izumio. Consumers there suggested avoiding a factory in the US since the Made in Japan philosophy was why they selected the products in the first place. This is a hydrogen-infused beverage, so the transportation costs are high. However, despite this, customers want to keep the Made in Japan element.
Japan’s population is known to be rapidly aging and shrinking at the same time. In addition, it is the country with the longest life expectancy in the world at about 85 years old. The diet habits are often quoted as a contributing factor to this longevity. What makes the Japanese diet superior to other diets around the world? How does your firm contribute to this longevity?
As you rightly mentioned, the average lifespan of Japanese people continues to increase, and Japan is known as one of the world's leading countries in longevity. The reason for the healthy longevity of Japanese people is believed to stem from distinctive dietary habits, different from those of Westerners. It could be attributed to a national inclination towards fermented foods like miso and pickles, light seasoning, consumption of seaweed and fish, and a balanced intake of meat. However, recently, there is a notable increase in lifestyle-related diseases due to the Westernization of diets, and some argue that it's only a matter of time before longevity is affected.
In this context, when we founded Naturally Plus in 1999, we focused on "carotenoids" even before they were widely recognized. Back then, β-carotene (known as pro-vitamin A, converted to vitamin A as needed in the body) was the mainstream carotenoid, but we also saw potential in other carotenoids. We pioneered a new frontier by developing a "multi-carotenoid" supplement that blends multiple types of carotenoids in balanced proportions. At the time of our founding, the general awareness of carotenoids was not very high; people often asked, "What are carotenoids?"
Despite this, when people discovered "Super Lutein," it changed lives, and word of mouth spread rapidly. We were inundated with tens of thousands of orders coming in through our toll-free number, to the point where we couldn't keep up with the phone calls. It was all through the power of word of mouth. Many people continue to express gratitude for experiencing positive changes in their vision. After all, improved vision significantly contributes to quality of life and instills vitality.
Additionally, we have developed and introduced products supporting health, such as hydrogen-infused water, into the world. In this sense, we take pride in contributing significantly to "healthy aging," or what one might call "healthy longevity."
The health food-related market reached a valuation of USD 124 billion in 2023 and is expected to grow annually by 9%, reaching about USD 232 billion by 2030. This growth is explained by increased consumer awareness of balanced lifestyle diets with the end goal of living longer lives. How do you foresee the next 12 months for your business and what opportunities does this health-conscious mentality present for Naturally Plus?
In Japan, the notion of "if you're feeling unwell, just go to the hospital" used to be prevalent, and until recently, many people couldn't differentiate between supplements and medication. However, with the increasing health consciousness in recent times, supplements have become more readily accepted and mainstream than before. Naturally Plus has a customer base primarily consisting of individuals in their 50s to 70s, a generation that places great importance on health. A notable characteristic is that many of them enjoy a healthy life expectancy, defined as the period during which they can live without restrictions in daily life due to health issues.
Our company offers high-quality supplements such as Super Lutein, a multi-carotenoid supplement, Izumio hydrogen-infused water, and Super Euglena, a paramylon supplement, all of which support our customers' healthy lifestyles. We are confident that the increasing health consciousness and longevity in society greatly support our business.
Furthermore, one of our strengths lies in functional food labeling. Since the government initiated the notification system for functional food labeling in April 2015, the number of notifications exceeded 3,700 by the end of 2020, indicating significantly increased consumer awareness. We have submitted notifications for both Super Lutein and Super Euglena, and they were accepted last year. Previously, we couldn't clearly express the benefits of the supplement due to FDA regulations, but with functional food labeling, we can now articulate their benefits, making it easier to appeal to consumers. We perceive this as a significant business opportunity.
You mentioned not only the importance of supplements but also the education on how to use these supplements. Your flagship product is your Multicarotenoid MIRTO Plus Super Lutein, a product that utilizes research recommended by Dr. Frederic Kachik, a leading carotenoid researcher. This product is educating consumers on the importance of carotenoids, especially in markets where supplementation may not be mainstream. What are the synergies between the Mirtogenol and the carotenoid ingredients within your products? What are some of the specific benefits consumers can see from the combined action of the Mirtogenol and the carotenoids? What strategies are you employing to educate consumers about these specific products?
This is the eighth generation of our Super Lutein Series, and it is constantly being updated. All of our products are based on the research of Dr. Kachik, particularly his thesis papers and lab data. We started with a market launch in 1999 with our multi-carotenoid supplement. Initially, we had a strategy that revolved around measuring the eyesight of consumers and then asking them to take our supplement. After they returned, they would report back the results and have the test again, proving that the supplements really work. This strategy was able to prove to people the effects of a shortage of carotenoids.
The mindset of 1999 was that once your eyesight goes bad, there is nothing you can do about it. If you catch a cold, you go to the hospital, but if your eyesight goes bad, you don’t. We are proud to say that we actually created the word “eyecare” in the Japanese market with our multi-carotenoid supplement. There is an increasing number of people with bad eyesight due to overexposure to harmful sources such as blue light. I emphasize this during my lectures, and it is also evident in many books that we sacrifice our health for the sake of convenience.
Our product became very popular as it impacted eye fatigue. In addition, other eye-related disorders have been impacted as a result of this multi-carotenoid supplement.
Different types of carotenoids exist in different body parts, such as the eyes, the vagina, the brain, and the prostate. We have been able to determine which body parts require which carotenoids. This is why my grandmother always used to tell me to eat my vegetables with various colors, such as reds, oranges, and greens. Carotenoids have different colors, so eating different-colored vegetables means you’re taking in different carotenoids. We have been conducting R&D by changing the carotenoids and the amounts.
As you mentioned, Super Lutein Mirto Plus is our flagship product, and we recommend it for almost any health condition. It really is a broad-spectrum one-stop solution. Carotenoids stay within their designated body parts and become protectors. With a shortage of carotenoids in your body, there is a higher risk of being affected by diseases or injuries. In your eyes, lutein is most prevalent in your macular region. We are able to promote healthy eyes by targeting this macular region.
One of our long-time partners, KEMIN, conducted a nationwide survey. They measured the density of the macular pigment using a device, MPOD (Macular Pigment Optical Density). 0.2 is the common score for that test. Dr. Kachik has said that 0.5 is the safety average. We have a growing membership in the US market, so when we measured their eyesight, the average was 0.56. This data actually shows how effective our product is, but carotenoids are the type of supplement that you have to consume daily for them to be effective. A shortage leads to disorders, so continual consumption is necessary.
About 3 to 4 years ago, we introduced a unique device that measures carotenoid levels developed by Biozoom, a German optical equipment manufacturer. This move likely made a significant contribution to enhancing customer product experience. Using this carotenoid checker allows for the assessment of carotenoid levels in the skin, offering a direct, innovative way to engage customers with their health and the benefits of our products. It connects to your smartphone, and you can check your carotenoid levels in as quick as 30 seconds. There are very specific regulations in Japan, so we cannot claim efficacy verbally. That is why we use these devices and numerical data to prove that our product really works. This is another way we educate our consumers.
Could you tell us a little bit more about how you integrate customer feedback and product development? For example, do you leverage technology to gather consumer feedback and ensure that you have a continuous feedback loop to keep innovating?
We value the voice of our customers very much and consider it crucial for product development. We have multiple channels through which customers can provide feedback. One of these is our customer service hotline, where trained representatives listen to customer concerns and suggestions. Additionally, we conduct regular surveys and focus groups to gather more in-depth insights.
We also leverage technology extensively. Our website and mobile app have features that allow customers to rate and review our products. We analyze this data to identify trends and areas for improvement. Moreover, our Biozoom carotenoid checker not only provides valuable health information to our customers but also allows us to collect anonymized data on carotenoid levels. This data helps us understand the effectiveness of our products and guides future research and development.
Furthermore, we have a dedicated R&D team that collaborates closely with our marketing and customer service departments to ensure that the feedback loop is seamless. This integrated approach helps us stay ahead of the competition by continuously improving our products based on real-world usage and feedback.
Japan is known for its meticulous quality standards. How do you ensure the quality and safety of your products, especially when you are expanding into new markets with different regulations and consumer expectations?
Ensuring the quality and safety of our products is of utmost importance to us, and we take a comprehensive approach to maintain our high standards. We adhere to strict internal quality control processes and comply with all relevant regulations in the markets we operate in.
In Japan, we follow the Good Manufacturing Practice (GMP) standards, which cover all aspects of production, from raw material sourcing to final product packaging. We also conduct regular audits and inspections of our manufacturing facilities to ensure compliance.
When expanding into new markets, we take several steps to meet local regulations and consumer expectations. Firstly, we conduct thorough market research to understand the regulatory landscape and consumer preferences. We then adapt our products and packaging to meet these requirements. For example, we may modify the ingredient list, labeling, and dosage forms to comply with local laws and cultural preferences.
We also work closely with local regulatory bodies to ensure our products are approved and certified. This often involves submitting detailed documentation and undergoing rigorous testing. Additionally, we invest in local partnerships and collaborations to ensure smooth market entry and to gain insights into local consumer behavior.
Lastly, we prioritize transparency and communication with our customers. We provide detailed information about our products, including ingredient sourcing, manufacturing processes, and quality control measures. This helps build trust and confidence in our brand, which is essential when entering new markets.
What do you see as the biggest challenges and opportunities for Naturally Plus in the next 5 years?
The biggest challenges for Naturally Plus in the next 5 years will likely revolve around navigating the rapidly changing global market dynamics and consumer behavior. One of the main challenges is staying ahead of the competition in an increasingly crowded health and wellness market. We must continuously innovate and differentiate our products to maintain our competitive edge.
Another challenge is adapting to the diverse regulatory environments across different countries. Each market has its own set of regulations and requirements, which can be complex and time-consuming to navigate. We need to ensure that our products meet all regulatory standards while maintaining our high quality and safety benchmarks.
Additionally, the ongoing digital transformation presents both challenges and opportunities. We need to invest in digital technologies and infrastructure to enhance our online presence, streamline our operations, and improve customer engagement. This requires significant resources and strategic planning.
On the opportunity side, the growing global health consciousness and demand for high-quality supplements present a significant growth potential for Naturally Plus. We can leverage our strong brand reputation and proven product efficacy to expand into new markets and reach more consumers. The increasing popularity of e-commerce and digital health platforms also provides opportunities to reach a broader audience and offer personalized health solutions.
Furthermore, advances in scientific research and technology offer opportunities for product innovation. By staying at the forefront of research in areas like carotenoids and hydrogen-infused water, we can develop new and improved products that address emerging health needs.
Overall, while there are challenges ahead, the opportunities for growth and innovation are substantial. By staying true to our commitment to quality and leveraging our strengths, we are well-positioned to thrive in the evolving health and wellness market.
Can you define your company for us in just one sentence?
Naturally Plus is a company that is full of love.
For more details, see: https://www.naturally-plus.com/gl/en
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