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Startup Resources and Investor Products from The Startup Garage

Industry Analysis

This section is an analysis of the industries in which the Company operates. Furthermore, information regarding
industry participants, general trends and regulatory and economic factors are presented.

INDUSTRY OVERVIEW

Industry Definition

Bamboo YogaPlay is categorized as part of the tourism industry
in Costa Rica, more specifically, the accommodation and food
services sector of the tourism industry. Costa Rica’s tourism is
one of the fastest growing economic sectors in the country, and
is expected to grow significantly in the western coastal region of
the country, where Bamboo YogaPlay is located.

The following table provides an overview of the accommodation and food services sector in Costa Rica:

COSTA RICA TOURISM INDUSTRY

Industry Size

Costa Rica is the most visited country in the Central American region, earning $2.2 billion per year from tourism. It
brought in over two million foreign visitors in 2008, about 436 visitors per thousand inhabitants. Most of its
visitors come from the United States and Europe. Following not far behind are Costa Rica’s neighboring countries
in Central America such as Nicaragua. Revenues from North America and European travelers alone created
expenditures of just over $1,000 per tourist in 2008.

There are 499 hotels located throughout Costa Rica. In the region of Puntarenas, where Bamboo YogaPlay is
located, there are 90 hotels.4

History & Geography

Beginning 1987 tourists came pouring in from Europe and America, reaching 2.29 million foreign visitors in 2008.
In 2008 tourism contributed 7.2% of the country’s GDP and 22.7% of foreign exchange generated by all exports.5

Costa Rica quickly became known for its natural reserves and national parks as well as a top travel destination for
eco‐tourism beginning of the 1990s. The country has a system of national parks and natural reservations covering
28% of the country’s land.

Costa Rica is one of the most environmentally rich countries in the world. Despite its small size, the country has
high levels of biological diversity with some 12,000 species of plants, 1,239 species of butterflies, 838 species of
birds, 440 species of reptiles and amphibians and 232 species of mammals. Costa Rica is famous amongst tourists,
scientists and governments alike for its world‐class national park system. There are approximately three dozen
parks composed of national parks, biological reserves, wildlife refuges, monuments and recreational areas. These
make up almost 12% of Costa Rica’s landmass.6

Costa Rica is located in Central America, bordered by Nicaragua to the North and Panama to the South with the
Pacific Ocean to the West and Caribbean Sea to the East. Since Costa Rica’s recognition as a top travel destination
in 1999, it has earned more foreign exchange than its top agricultural products combined, valued at more than
1.92 billion dollars a year.7

Local Government Regulations and Development

The Costa Rican government has put an emphasis on keeping the environment healthy in order to ensure its ability
to provide its services as a tourist site. In 1995, a law drafted by the Costa Rica Tourism Institute (ICT) was signed
into legislation, creating the Sustainability Certification Program (CST) for tourist ventures. It categorizes and
distinguishes the establishments that demonstrate sustainability within their operations, which respects the
management of natural, cultural, and social resources. SETENA (Secretarua Texnica Naconal Ambiental), a
government agency, was established to study the land before any construction can be authorized.8

Developed in 1996, “Bandera Azul Ecológica” (Ecological Blue Flag) is intended to promote ecological
developments in order to counteract the negative effects of mass tourism. The program promotes the local costal
community to assemble against pollution and to help protect the environment. This insures the maintenance of
quality beaches, seawater, access and quality of drinking water by overseeing water and waste management,
security and environmental education. Depending on their eco‐friendliness, an establishment may be awarded up
to four leaves (stars).

Establishments with high CST and Blue Flag ratings are highly publicized to potential visitors. In 2009, 61 out of 81
applicants won this distinction and just two obtained the highest rating. Bamboo aims to receive four leaves
(stars) to earn the highest distinction available.

Industry Participants

The participants in the tourism industry in Costa Rica consist of two different types of accommodations.9 The
higher forms of accommodations are the hotels and the resorts, and make up of most of the industry in Costa Rica.
These offer higher quality rooms with air conditioning, private bathrooms, fresh linens, laundry service and an
onsite restaurant for guests. Additional services that hotels may offer include health spas, beauty salons,
swimming pools and fitness centers.

Motels, bed and breakfasts and hostels are the other form of accommodation more geared for the budgeted
traveler. They may lack some the amenities that the hotels and resorts mentioned above offer, such as an onsite
restaurant, air conditioning, laundry services and continental breakfasts. In hostels, bathrooms are shared and
there is usually an onsite kitchen in which guests may cook your own meals.

Bamboo YogaPlay is part of the “hotels and resorts” segment of the industry, providing air‐conditioned hotel
rooms, a restaurant, yoga studio, swimming pool and health spa services.

INDUSTRY TRENDS AND GROWTH

International Tourism

The tourism industry in Costa Rica has seen growth in all areas over the past two decades. Despite having been
one of the world’s fastest growing economic sectors, its worldwide revenues declined slightly due to the global
recession. In 2009, international tourist arrivals worldwide are estimated to have declined by 4% to 880 million.
Yet, in 2010, it is forecasted that the industry will grow again by 3% to 4% as the global economy begins to recover.
The World Tourism Organization (UNWTO) expects international arrivals around the world to grow to at least 1.5
billion people in the next 10 years.

Currency Exchange

It is not uncommon to pay in US dollars in the tourism industry in Costa Rica. The strengthening of the Costa Rican
Colon in relation to the US Dollar has resulted in a 4% increase in Costa Rican consumer prices, which is largely due
to the weakened position of the US Dollar caused by the recession.10 While this brings up the cost for Costa Rican
businesses to provide services, it also combines with the 9% increase in tourist arrivals and 6.5% increase in tourist
revenue to suggest a strengthening, stable Costa Rican economy that will support the growth of the tourism
industry over the next several years. As of 2010 more than $200 million in hotel projects have been initiated on
the western coastline of Costa Rica.11 This investment is another strong sign that the Costa Rican tourism industry
growth is expected to continue, especially on the West Coast of the country.

Market & Economic Factors

The global recession caused a decrease in arrivals to Costa Rica all around the world. However, the growth in
popularity of eco‐tourism, among other trends, has led to an increase in tourism in Costa Rica over the last several
years. Tourist arrivals in Costa Rica have increased from 1.72 million in 2006 to 2.15 million in 2008, and 2.29
million in 2009. In spite of the recession, the market is expected to grow 8% per year through 2014.12

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Industry Overview

Symbiosis falls under the Cloud Computing Industry as a Software as a Service Provider (SaaS) as well as a CRM Provider. These industries are booming, and with new technological developments and a growing relevance in global markets, these industries are ripe for Symbiosis’ emergence.

INDUSTRY SNAPSHOT

  • The SaaS market will reach $22.1B in the U.S. by 2015
  • The CRM industry totaled $12B globally in 2011 and is expected to continue to grow over the next five years.
  • The development of SaaS technology allows for CRM software to be produced at low costs, with minimal upfront expenses and rapid implementation.
  • According to a global survey of CEOs conducted by Gartner, the majority of CEOs cited CRM as the most important area of investment to improve their business over the next five years.

Cloud Computing Industry

In the past decade, there have been numerous changes in the way business is conducted online. Previously, software was an integral part of any business operation, as it was standard for numerous industries yes still customizable. Unfortunately, software is a costly investment and often requires multiple updates, which can make it difficult and costly for Company’s to stay on top of technological trends. As the IT industry continually advances, traditional software simply cannot keep up, there are too many changes, sites, needs and instant connections for software to run efficiently in the current business world. Given the technological advancements of the cloud, Symbiosis is poised to enter the market as an innovative alternative to current alternatives while ensuring that the Company remains relevant as the industry continues to evolve.

Cloud computing has become the most cost effective and efficient development in how businesses utilize software and conduct everyday tasks and business. Public cloud computing can be broken down into the following subsectors:

SaaS Industry

While many cloud computing businesses offer time and money saving processes and services, the Software as a Service (SaaS) sector in particular has been the fastest growing and most popular in the cloud. As a result, Symbiosis’ entrance in the market is timely, well-positioning the Company to grow along with the industry.

SAAS Industry Analysis Sample Business Plan from The Startup Garage

The cloud-based software delivery model produces on demand software to clients and consumers utilizing the web by accessing programs that are centrally stored and hosted on the cloud. Having the ability to access software via the cloud saves companies time and money on hardware and software as well as any software maintenance support that previously would have been a large expense. The most popular uses of SaaS products and services include the many CRM related functions that Symbiosis focuses on: accounting, collaboration, customer relationship management, management information systems, enterprise resource planning, human resource management and content management software.

CRM Industry

Customer Relationship Management (CRM) is a business strategy directed to understand, anticipate and respond to the needs of an enterprise’s current and potential customers in order to grow the relationship value. Initially emerging as a database marketing tool, CRMs have benefited from waves of technological growth and now provide advanced tools for monitoring, tracking, analyzing and organizing customer relations.

Symbiosis offers the next wave of technological growth among CRMs by providing gamification features that increase user adoption rates while allowing the program to simultaneously serve as a loyalty program for customers, clients and referral partners. In summary, Symbiosis is effectively consolidating the various segments that currently compose the SaaS industry.


SAAS & CRM Industry Size and Trends

Industry Size

CRM, SaaS and the cloud computing industry as a whole is a subsector of the Data Processing and Hosting Services Industry, which was projected to total $81.3B in 2012 in the U.S. Leading research company Gartner estimates that the U.S. SaaS market in particular grew by 18% in 2012 to $14.5B and will continually expand to $22.1B by 2015. Lastly, the CRM industry totaled $12B in global revenues in 2011, a 13.5% increase from 2010.

This recent growth in the CRM, SaaS and cloud computing industries is extremely promising for Symbiosis with SaaS being the fastest growing area of enterprise cloud investment in 2012 and 88% of businesses indicating that they plan on having a SaaS solution in place within the next five years. Furthermore, according to a global survey of CEOs conducted by Gartner, the majority of CEOs cited CRM as the most important area of investment to improve their business over the next five years.

Industry Trends and Key Factors

Although SaaS is the most popular cloud computing service, industry shifts in how cloud computing is utilized will be an up and coming trend for the next few years. The more robust of a service package offering the Company can provide, including services that extend beyond the traditional CRM realm, the more likely it will be to weather out changes and evolutions within the industry. Combining products and services that drive down costs, spur innovation and open up new jobs and skill sets will be the fuel that will drive Symbiosis as a leader in the rapidly expanding cloud computing industry, beyond solely the CRM and SaaS segments. With the launch of Symbiosis’ CRM, tarantula gamification and customer loyalty platforms, the Company seeks to lead the technological evolution towards a cloud-based market consolidation.

Cloud Computing Industry Sample Business Plan from The Startup Garage

In addition to maintaining a constant pulse on the SaaS and CRM segments of the industry in particular, Symbiosis must also develop innovative solutions within the following segments in order to establish the company at the forefront of this cloud-based consolidation:


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Industry Analysis


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Industry Overview

This section is an analysis of the industries in which the Company operates. Furthermore, information regarding industry participants, general trends and regulatory and economic factors are presented.

Bamboo YogaPlay Industry Analysis

Industry Definition

Bamboo YogaPlay is categorized as part of the tourism industry in Costa Rica, more specifically, the accommodation and food services sector of the tourism industry. Costa Rica’s tourism is one of the fastest growing economic sectors in the country, and is expected to grow significantly in the western coastal region of the country, where Bamboo YogaPlay is located. The following table provides an overview of the accommodation and food services sector in Costa Rica:

Industry Overview
Name of Sector Accommodation and Food Services
Name of Industry Tourism
Industry Size $2.2 billion per year in Costa Rica
2.29 million visitors in 2009
Government regulations that affect Industry 1995 Certification for Sustainable Tourism Program (CST) by SETENA
1996 Ecological Blue Flag program

Costa Rica Tourism Industry

Industry Size

Costa Rica is the most visited country in the Central American region, earning $2.2 billion per year from tourism. It brought in over two million foreign visitors in 2008, about 436 visitors per thousand inhabitants. Most of its visitors come from the United States and Europe. Following not far behind are Costa Rica’s neighboring countries in Central America such as Nicaragua. Revenues from North America and European travelers alone created expenditures of just over $1,000 per tourist in 2008.

There are 499 hotels located throughout Costa Rica. In the region of Puntarenas, where Bamboo YogaPlay is located, there are 90 hotels.[1]

History & Geography

Beginning 1987 tourists came pouring in from Europe and America, reaching 2.29 million foreign visitors in 2008. In 2008 tourism contributed 7.2% of the country’s GDP and 22.7% of foreign exchange generated by all exports.[2]

Costa Rica quickly became known for its natural reserves and national parks as well as a top travel destination for eco-tourism beginning of the 1990s. The country has a system of national parks and natural reservations covering 28% of the country’s land.

Costa Rica is one of the most environmentally rich countries in the world. Despite its small size, the country has high levels of biological diversity with some 12,000 species of plants, 1,239 species of butterflies, 838 species of birds, 440 species of reptiles and amphibians and 232 species of mammals. Costa Rica is famous amongst tourists, scientists and governments alike for its world-class national park system. There are approximately three dozen parks composed of national parks, biological reserves, wildlife refuges, monuments and recreational areas. These make up almost 12% of Costa Rica’s landmass.[3]

Costa Rica is located in Central America, bordered by Nicaragua to the North and Panama to the South with the Pacific Ocean to the West and Caribbean Sea to the East. Since Costa Rica’s recognition as a top travel destination in 1999, it has earned more foreign exchange than its top agricultural products combined, valued at more than 1.92 billion dollars a year.[4]

Local Government Regulations and Development

The Costa Rican government has put an emphasis on keeping the environment healthy in order to ensure its ability to provide its services as a tourist site. In 1995, a law drafted by the Costa Rica Tourism Institute (ICT) was signed into legislation, creating the Sustainability Certification Program (CST) for tourist ventures. It categorizes and distinguishes the establishments that demonstrate sustainability within their operations, which respects the management of natural, cultural, and social resources. SETENA (Secretarua Texnica Naconal Ambiental), a government agency, was established to study the land before any construction can be authorized.[5]

Developed in 1996, “Bandera Azul Ecológica” (Ecological Blue Flag) is intended to promote ecological developments in order to counteract the negative effects of mass tourism. The program promotes the local costal community to assemble against pollution and to help protect the environment. This insures the maintenance of quality beaches, seawater, access and quality of drinking water by overseeing water and waste management, security and environmental education. Depending on their eco-friendliness, an establishment may be awarded up to four leaves (stars).

Establishments with high CST and Blue Flag ratings are highly publicized to potential visitors. In 2009, 61 out of 81 applicants won this distinction and just two obtained the highest rating. Bamboo aims to receive four leaves (stars) to earn the highest distinction available.

Industry Participants

The participants in the tourism industry in Costa Rica consist of two different types of accommodations.[6] The higher forms of accommodations are the hotels and the resorts, and make up of most of the industry in Costa Rica. These offer higher quality rooms with air conditioning, private bathrooms, fresh linens, laundry service and an onsite restaurant for guests. Additional services that hotels may offer include health spas, beauty salons, swimming pools and fitness centers.

Motels, bed and breakfasts and hostels are the other form of accommodation more geared for the budgeted traveler. They may lack some the amenities that the hotels and resorts mentioned above offer, such as an onsite restaurant, air conditioning, laundry services and continental breakfasts. In hostels, bathrooms are shared and there is usually an onsite kitchen in which guests may cook your own meals.

Bamboo YogaPlay is part of the “hotels and resorts” segment of the industry, providing air-conditioned hotel rooms, a restaurant, yoga studio, swimming pool and health spa services.


Industry Trends and Growth

International Tourism

The tourism industry in Costa Rica has seen growth in all areas over the past two decades. Despite having been one of the world’s fastest growing economic sectors, its worldwide revenues declined slightly due to the global recession. In 2009, international tourist arrivals worldwide are estimated to have declined by 4% to 880 million. Yet, in 2010, it is forecasted that the industry will grow again by 3% to 4% as the global economy begins to recover. The World Tourism Organization (UNWTO) expects international arrivals around the world to grow to at least 1.5 billion people in the next 10 years.

Currency Exchange

It is not uncommon to pay in US dollars in the tourism industry in Costa Rica. The strengthening of the Costa Rican Colon in relation to the US Dollar has resulted in a 4% increase in Costa Rican consumer prices, which is largely due to the weakened position of the US Dollar caused by the recession.[7] While this brings up the cost for Costa Rican businesses to provide services, it also combines with the 9% increase in tourist arrivals and 6.5% increase in tourist revenue to suggest a strengthening, stable Costa Rican economy that will support the growth of the tourism industry over the next several years. As of 2010 more than $200 million in hotel projects have been initiated on the western coastline of Costa Rica.[8] This investment is another strong sign that the Costa Rican tourism industry growth is expected to continue, especially on the West Coast of the country.

Market & Economic Factors

The global recession caused a decrease in arrivals to Costa Rica all around the world. However, the growth in popularity of eco-tourism, among other trends, has led to an increase in tourism in Costa Rica over the last several years. Tourist arrivals in Costa Rica have increased from 1.72 million in 2006 to 2.15 million in 2008, and 2.29 million in 2009. In spite of the recession, the market is expected to grow 8% per year through 2014.[9]

 


[1] Costa Rica hotel Directory. VisitCostaRica. Web. July 2012.

[2] “Annual Report 2008.” Department of Economics ICT (2008). Institution of Tourism. Web. July 2011.

[3] “Costa Rica.” Mongabay. Web. July 2012.

[4] “Pais cierra el ano con Ilegada de 1,9 millones de touristas,” Naicon. 19 Dec 2007. Web. June 2012.

[5] “Sustainability CST.” Costa Rica. VisitCostaRica. Web. July 2012.

[6] United States Department of Labor. Occupational Outlook Handbook. Bureau of Labor Statistics. Web. July 2012.

[7] Williams, Adam. “Tourism Industry Battered by Exchange Rate High Colon Hits Hotels.” Tico Times. 5 November 2010. Web. July 2012.

[8] “North Pacific: A Perfect Blend.” Costa Rica Real Estate. Web. July 2012.

[9] “Costa Rica Tourism Report Q4 2010.” Companies and Markets. Web. July 2012.

 


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Industry Overview

Vintage Home and Residential Care falls under several industry classifications within the Homes for the Elderly Sector. This sector comprises of establishments primarily engaged in providing residential and personal care services for (1) the elderly or other persons who are unable to fully care for themselves and/or (2) the elderly or other persons who do not desire to live independently. The three industry classifications that pertain to Vintage are:

In total, the assisted living industry brought in revenues of $36.8 billion in 2009.

The demographic trends indicate that assisted living facilities have been growing and will continue to grow as an aging population, declining sizes of families, and demand for new and unique medical services and assistance are on the rise. The assisted living facility industry was hit by the economic recession, however, the industry still saw positive growth at 1% between 2008 and 2009. While the growth rate slowed significantly as compared to previous years, the positive growth demonstrates that this industry is somewhat recession proof as compared to most industries that experienced negative growth rates during the same period. Furthermore, the future of the assisted living facility industry looks bright as the senior population is expected to grow at 26% through 2040.

Industry Participants[1] Business Description Total Revenue (2009) Year Est. Link
Emeritus Corp. An assisted living company focused on providing high quality service and care at an affordable price for people needing extra help with the activities of daily living. $898.7 million 1993 www.emeritus.com
Sunrise Senior Living To champion quality of life for seniors in a home-like, resident-centered environment, unlikeexisting, more institutional options. 1981 www.sunriseseniorliving.com
Brookdale Senior Living Brookdale Senior Living communities provide active retirement living for thousands of residents, serving seniors and their families since 1978. $925.9 million 1978 www.brookdaleliving.com
Five Star Quality Care Five Star Quality Care, Inc. is a national healthcare and senior living services provider. Five Star has three major operating divisions: Five Star Senior Living, Five Star Rehabilitation Services, and Five Star Pharmacy Services. $774.4 million www.fivestarseniorliving.com
Assisted Living Concepts Assisted Living Concepts, Inc. (ALC) and its subsidiaries operate more than 200 communities which include licensed assisted living and senior living residences with capacity for over 9,000 older adults in 20 states in the United States. $228.7 million www.alcco.com
Merrill Gardens Merrill Gardens is committed to providing an alternative to traditional retirement housing. Merrill Gardens has grown from eight employees to over 2,600 and currently owns and operates 56 communities in 10 states. $165 million 1993 www.merrillgardens.com
HCR ManorCare HCR ManorCare is a leading provider of short- and long-term medical and rehabilitation care. Care is provided through a nationwide network of skilled nursing and rehabilitation centers, assisted living facilities, outpatient rehabilitation clinics, and hospice and home care agencies. www.hcr-manorcare.com
One Eighty-Leisure Care Leisure Care Management Services include community management and operations, community development, and general consulting services. They operate over 40 communities and nearly 7,000 units in the United States, Canada, India, and Mexico. www.leisurecare.com
Benchmark Assisted Living Benchmark Senior Living, based centrally out of Wellesley, Massachusetts, is the largest provider of Senior housing in the New England region. $233.6 million www.benchmarkquality.com
Hearthstone Senior Services Hearthstone offers Assisted Living, Alzheimers and dementia care Hospice Short-term stays to senior citizens. 1993 www.hsslp.com

 

Industry Participants

There are a few national level associations promoting business and operational excellence in assisted living communities while offering information at one place to the senior citizens. Some of these associations are:

 

Industry Trends & Growth[2]

About 1.5 million Americans live in assisted living facilities. That number is expected to double by 2030. According to the U.S. Census Bureau, the number of people in the United States between the ages of 65 and 84 will increase by almost 40% between 2010 and 2020.

As of 2006, retirement community residents were 69% female and 31% male, with the typical resident in an assisted living facility being an 85 year old female. People over 85 years old make up the largest percentage of people in assisted living facilities.

With Baby Boomers representing more than 70% of all of the financial assets in the United States, they are the main target market of this industry. Many communities try to create a home like environment rather than giving them a feeling that they are in the institutions. With this in mind amenities being offered in the future may be more upscale like commercial kitchens, beauty salons, spas, indoor pools and pet friendly communities.


[1] Top 40 Assisted Living Companies

[2] https://www.assistedlivingfacilities.com/


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Industry Overview

Size

The NAICS Code is 451110 – Sporting Goods Stores, subsector 454 – non store retailers. The SIC Code is 5941 – Exercise equipment stores. These two code numbers represent the industry classifications. The Sporting goods stores industry contains approximately 18,390 firms[1], that vary from online small stores to large nationwide organizations.

Industry Statistics

The Yoga Journal estimated that in 2008 Americans spent $5.7 billion a year on yoga classes and products, including equipment, clothing, vacations and media (DVDs, videos, books and magazines). This figure represents an increase of 87 percent compared to the previous study in 2004almost double of what was previously spent.[2]

The Bureau of Labor Statistics provides projection data for fitness trainers and aerobics instructors. It has projected that the 2008 employment figure of 261,100 will increase to 337, 900 by the year 2018. This includes an increase of 76,800 jobs available within the yoga sector and sums up to a 29% increase.2 The North American Studio Alliance (NAMSTA) estimates that there are approximately 70,000 yoga teachers in North America.[3] The yoga mat industry clearly will benefit with this projected increase of yoga professionals.

Yoga instructors now need specialized training in their particular method of exercise. There are several types of training programs for instructors that range from online programs to programs that give the title of Registered Yoga Teacher. Most yoga studios require teachers to complete a 200-500 hour program which helps to standardize the industry.[4] This allows yoga participants to feel more confident in the yoga studios and their instructors.

History

Yoga has been around for thousands of years, but really took hold around the 1960s as more types of yoga become available for a wider variety of participants.[5] Today millions of people practice yoga. The trend is credited to people looking for natural remedies to health problems and individuals looking to improve their overall health and quality of life.[6]

Economic Factors

The recession has created a new segment of cash-strapped individuals, looking for inexpensive new ways to exercise. Yoga and cardio kickboxing were among the biggest gainers from 2008 to 2009. Purchases of yoga instructions, mats and supplies continue to increase in a health and money conscious market place.[7] During this economic down turn green businesses are still surviving. Many companies are seeing the green movement as a way to cut costs and improve their reputation. Businesses are using the movement to improve operations, foster innovation, engage employees and satisfy customers.[8] Online shopping is also becoming increasingly popular during the recession because consumers can research products in advance and find what they want at the least expensive price out there. [9]

Major Trade Organization Contributors

Industry Overview

Business description Target Market Revenues Year Established Link
Trade Organizations
International Yoga Association Membership association to help expand businesses and lower costs Various healing modalities businesses 1994 www.iyogaassociation.com
Universal Force International Naam Yoga Association Membership association that provides support, benefits and education in the yoga industry Teachers and professionals in the yoga industry www.naamyoga.com/association
Green Yoga Association A network, community and resource for doing yoga and being green. Yoga studios, instructors, participants and anyone looking to be more green www.greenyoga.org
Major companies
Gaiam Provider of information, goods and services to customers who value the environment, a sustainable economy, healthy lifestyles, and personal development Individuals that value the environment, sustainable economy, healthy lifestyle, alternative healthcare and personal development Approx. $48 million 1988 www.gaiam.com
Barefootyoga Personally designed products as tools to help achieve more peace and stillness through the practice of yoga when there is restlessness of the mind, intellect and spirit Anyone who practices yoga 1998 www.barefootyoga.com
Yoga-clothing.com Give customers the best selection of yoga clothing & accessories from the hottest brands at the great prices and high quality customer service New or experienced individuals who practice yoga https://www.yoga-clothing.com/
Lululemon Althetica Make technical athletic apparel for yoga, running, dancing, and most other sweaty pursuits Active women and men Approx $292 million 1998 https://www.lululemon.com/
Major Suppliers
Manduka High quality and performance yoga mats that are crafted using simple, enduring, natural, and whenever possible, renewable materials A company built by and for Yoga teachers and their students 2000 https://manduka.com/
JadeYoga Committed to making the worlds best performance, most eco-friendly yoga mats, providing the highest level of customer service and giving back to the earth with every product All individuals that practice yoga 2000 https://www.jadeyoga.com/

Industry Participants

In the yoga industry the size of organizations varies widely. Many of the larger organizations have both an online and mortar and brick store. This gives consumers a chance to see the products in person. For example large organizations include Luluemon Athletica and Prana, who have both online, and brick and mortar stores. Gaiam has only online stores. Other organizations tend to be smaller with only online stores. These stores usually sell a variety of products from various brands, focusing on lower costs and strong customer service. Some do have their own brand and often focus on a higher quality product that consumers are willing to pay for. These smaller companies include Yoga-Clothing.com, Barefoot Yoga.


Industry Trends & Growth

Yoga

The yoga industry continues to grow almost every year. According to the National Sporting Goods Association (NSGA), yoga has the second highest growth rate among sports and recreation activities. Following closely behind running/jogging, in 2008 yoga had a growth rate of 17.1% reaching about 16 million participants.[14]

Complementary and alternative medicine (CAM) has also become increasingly popular in the past several years. Based on data from 2007 approximately 38% of adults in the past 12 months spent 34 billion on CAM. Self care accounted for 22 billion of the market and 4 billion of that was spent on classes such as yoga and tai chi.[15]

Business Plan Industry Analysis

The U.S Census Report Health and Nutrition (Table 161) “Adults 18 years and over who used complementary and alternative medicine (CAM) in the past 12 months by selected type of therapy 2002 and 2007″ shows that between the years 2002-2007 there was a 26.8 percent increase from 10,386,000 to 13,172,000 in the usage of yoga practices. A 26.8 percent increase within the 5 year bracket shows that yoga is a growing industry and an increasingly common method of alternative medicine.[16]

Also, the Bureau of Labor Statistics expects that jobs for fitness workers are expected to increase much faster than the average for all occupations, because of continued job growth in health clubs, fitness facilities and other settings in which fitness workers are concentrated.[17]

Green

Green businesses are also becoming increasingly popular. Over the last three years (2004-2007) they have grown at a rate of 5% annually.[18]

Online

The online shopping industry is continuing to grow every year. The industry is expected to double over the next five years to 132 million users. A recent study also showed that 19% of internet users shop online at least once a week and this is expected to continue to grow.[19]

The online, green and yoga industries will allow them to get the information and products they need to find alternative methods to stay healthy, in shape and environmentally friendly.

Industry Improvements and Developments

The green industry is continuing to grow in this economy because many organizations are using environmental improvements and innovations to get through lean times and give them a way to rebound as the economy improves. The green industry is continuing to educate the public, which is leading companies to not only move towards greener organizations, but to also share how their organization is effecting the environment. This allows consumers to make smarter choices about the products and services they will use.[20]

The online shopping industry is ever evolving. As more consumers shop online there are increased expectations on how user friendly websites are and the experience they have while shopping. Consumers are normally shopping sites looking for the best deal out there. This forces organizations to try to turn price hunters in to loyal followers to continue to increase revenues.[21]

The yoga industry, although growing, continues to face many misconceptions that make people cautious about taking part in this healthy practice. In December 2009, a survey was conducted on behalf of Yoga Alliance to identify those factors that may be inhibiting people from beginning a yoga practice. These factors include beliefs that yoga is religious, only flexible people can practice yoga and doubts that yoga is really exercise. Yoga Alliance is focused on increasing education about yoga, through online information and word of mouth, and establishing requirements for teachers and schools in order to help encourage new people to give it a try.[22]

Developments such as the recent Lululemon Athletica Inc. profit increase shows what is happening in the yoga sector. The Vancouver based company released better-than-expected 2009 fourth-quarter results and an upbeat outlook. Investors rewarded it by sending its stock to a 52-week high after it had quadrupled in value over the past year.[23] Yoga retailers are doing a great job in keeping customers satisfied with a variety of yoga commodities.

The yoga, green and online shopping industries will continue to thrive, according to the statistics and information that are currently available. As the industries continue to grow, yoga supplies will continue to be in high demand, more companies will move more toward green methods and online stores will continue to pop up. The market is expected to grow as individuals become more aware of eco-friendly yoga mats and the availability of them online.

To see how to write your own Industry Analysis, please visit our blog series, What is in a Business Plan?


[1] https://www.bls.gov/bls/industry.htm

[2] https://www.census.gov/popest/national/asrh/NC-EST2008/NC-EST2008-01.xls

[3] https://www.yogayoga.com/press/YYTTmove

[4] https://yoga.about.com/od/yogaenthusiast/a/teachertraining.htm

[5] https://www.americanyogaassociation.org/general.html

[6] https://hubpages.com/hub/history-of-yoga-and-meditation

[7] https://www.google.com/hostednews/ap/article/ALeqM5gKj_tonW47wRfetC6K8QC3b93fRAD9EOHI4G1

[8] https://www.greenbiz.com/news/2010/02/03/state-green-business-2010-alive-and-kicking?page=0%2C0

[9] https://www.imediaconnection.com/content/20510.asp

[10] https://www.census.gov/compendia/statab/2010edition.html

[11] https://www.yogaalliance.org/History.html

[12] https://www.yogajournal.com/global/2

[13] https://blog.gaiam.com/blog/top-10-yoga-trends-for-2009-are-they-here-to-stay

[14] https://www.snewsnet.com/cgi-bin/snews/14805.html

[15] https://findarticles.com/p/articles/mi_m0CYD/is_12_44/ai_n39401546/

[16] https://www.census.gov/prod/2009pubs/10statab/health.pdf

[17] U.S. Bureau of Labor Statistics

[18] https://www.forbes.com/2007/07/02/environment-economy-jobs-biz_cx_bw_0703green_greenjobs.html

[19] https://www.internetbasedmoms.com/net_selling.htm

[20] https://www.greenbiz.com/news/2010/02/03/state-green-business-2010-alive-and-kicking?page=0%2C0

[21] https://www.imediaconnection.com/content/20510.asp

[22] https://www.yogadayusa.org/pdf/YogaInsightSurvey2010.pdf

[23] https://www.theglobeandmail.com/report-on-business/lululemon-rides-out-recession-in-quality-fashion/article1512745


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