Milestones – from sugars to communication

THiS started with a focus on sugar reduction. Sugar is sweet and tasty, but too much sugar leads to overweight and obesity, which are known risk factors for diabetes, high blood pressure, high levels of cholesterol, and cardiovascular diseases.

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Lucy Dahlgren founded Bayn AB to replace sugar with healthier natural alternatives such as Stevia. After nearly a decade at Bayn, striving for creating ‘farm-to-fork’-solutions for the industry, it was time for a change. Lucy wanted to use her experience to help entrepreneurs dedicated to health and wellbeing. She knew that it was difficult for a small company to enter the market. In addition to a good idea or product, a new business model was needed.

In the spring of 2018, Lucy leapt into the unknown. She began to develop a new model for protecting intellectual capital during the capitalisation process and a digital platform that secures the supply chain for health ingredients.

The cofounders Björn Fjellsäter, an international business strategist, and Arvid Karsvall, a communication and e-health scientist, shared this business idea with Lucy. Together they mapped out the market opportunities in China, and developed an integrated communication-commerce business model under the guidance of Professor Leif Edvinsson, a leading global voice in intellectual capital.

Business model – Communication eCommerce

THiS is now beyond sugar reduction. We have an ambitious task in front of us:

  • better health and wellbeing for the individual consumer
  • higher profits for health entrepreneurs and stockholders 
  • general economic and societal gains by a cultural movement

 

In the centre of it all is our unique business model “Communication eCommerce (CeC)”, which can be describes and an advanced type of C2B2C-solution (Consumer to Business to Consumer) where feedback loop is secured between customers and companies. Together, THiSCOOP® and THiSLIV® constitute a CeC system for all participants, from consumers to entrepreneurs and stock owners. And, via THiSLIV® we accelerate interaction and sales even further through a digitalised point-system for communication between different customers, and between customers and companies.

The challenge 

According to the WHO, obesity has tripled since 1975. Today, 2 billion people over 18 are overweight (with a BMI of at least 25). A majority of us now live in countries where overweight leads to more deaths than undernourishment. The societal cost for “just” overweight – not counting other lifestyle diseases – is measured to be about 350 billion USD and is expected to grow to 600 billion USD in a few years.

That is, billions of consumers around the world are looking for healthier alternatives, but too often they are without knowledge or guidance, while simultaneously being bombarded by commercials and even false information:

  • Consumers lack easy access to trusted products and services while being overwhelmed by unclear or even false health information
  • Logistics and business systems lack efficient distribution and sales of innovative products and product information
  • Without a trusted and targeted customer support, consumers have a low willingness to pay for expensive but relatively unknown health brands.

At the same time, producers of new and healthier products often have minimal contact with the actual buyers or end-users, and they are dependent on unknown or unreliable third parties to deliver goods, services, and information to new markets:

  • Entrepreneurs focus largely on revenue income, but lack resources and knowledge to value and secure their intellectual assets internationally 
  • Entrepreneurs have huge initial costs for acquiring the right resources and partners for cross-border logistics, administration, certification, and marketing
  • Founders may lose control over their expanding businesses when financial capital takes over voting power, diluting ownership and commitment

THiS solution

Research shows that chronic diseases can be prevented by systematic intervention. However, consumers and SMEs lack a platform that can aid them to communicate with each other, and that can provide goods and services for an affordable price tag.

The core business idea of THiS Group AB is to acquire and merge with other companies from a financial and competence perspective. This creates opportunities for controlled yet fast and wide market expansion. Through our CeC business model we offer entrepreneurs co-ownership and sustainable economics; instead of unprofitable competition between startup businesses, which is the norm at leading e-commerce platforms where the company/product with the fastest delivery and the lowest price tag are promoted over product quality and consumer trust.

Go-to-market strategy

Several producers and resellers already trade healthy products on the global market. There are also many corporate forums similar to THiSCOOP®. Amazon, for a well-known example, is one of the most profitable companies in the world. Like THiSCOOP® Amazon collects user data and can help brands and resellers to distribute products to many markets (but not worldwide as they are not in e.g. China). 

However, as Amazon is not focusing on healthy products and services, but on all kinds of goods, they are encouraging overconsumption, not a lifestyle change. In other words, via other e-commerce platforms, fast buying and shipping of products are in focus, not a sociable and sustainable use of products and services which will guarantee consumer health and high willingness to pay for premium products.

Therefore, a critical part of our business model is the implementation of the customer portal THiSLIV®, the portal or window to buyers and end-users at the big consumer markets. Via THiSLIV®, smaller and larger companies will be able to communicate and sell their brands with a focus on health benefits and cultural knowledge – in the local language and according to local regulations.

Market potential

We are living in a state of change. Consumers all around the world have new personal requirements for health and wellbeing, and they are looking for more affordable health products and information. At the same time, society and businesses are focusing more and more on circular economy and to be transparent about the whole chain from farm-to-fork, not just the physical shipping of products.

More particularly, the global FMCG market is estimated to grow to about a staggering 15362 billion USD in the year 2025, which means a yearly growth (CAGR) of 5,4 %. Asia and the Pacific region, e.g. China, Japan, India, South Korea, and Australia are estimated to grow even more, about 8 % a year. And, according to DKSH FMCG trends, the growth of e-commerce would create an even greater focus on healthier and premium products. In 2019, 1 billion new consumers were searching for health and lifestyle products, spending between 10 – 100 USD per day on these products. 

That is, new requirements and new markets such as China and Southeast Asia are about to overtake the older Western-centric e-commerce industry; while new generations of entrepreneurs and consumers (Millennials, Generation Y) have grown up with home delivery, mobile applications, and video communication. This means that new levels of value and cultural innovation will be required among producers and sellers of health and lifestyle brands.