To underscore the fact that men’s wellness niche is raw gold waiting to be tapped, Hims, a startup based in San Francisco dealing in men’s wellness products was able to raise a whopping $40 million funds from IVP and Redpoint Ventures alone. The figure was gotten from a very reliable source that is familiar with the deal. So, this isn’t a mere hearsay. In addition, the source also valued Hims at a staggering $200 million without the funds received from the two firms mentioned above.
What will really blow you away is the fact that Hims was just established in late 2017 and it has already sold around $10 million worth of products for erectile dysfunction and for baldness. Since it deals only in men’s products, Hims is sometimes referred to as “Goop for men”.
The success of Hims within such a short timeframe is a proof of how lucrative a direct-to-consume sales can be, especially the ones that exclusively online. It is a testimony that selling products that are really in demand coupled with a brand that is optimized for social media and the use of an effective digital marketing strategy will quickly transform a startup into a million-dollar empire.
Other successful brands that adopted direct-to-consumer sales of their products are:
- Ritual that deals in vitamins
- Quip that deals in electric toothbrushes
- Candid that deals in braces
- Nurx for birth control pills
- Curology for acne products
- Hubble for contact lenses
- Warby Parker that deals in online glasses
In fact, now, there is an online direct-to-consumer brand for virtually all products. Due to the quick success of Hims, you may assume that it is probably the only company operating within men’s wellness niche. Contrary to your thought, it has competitors. It is competing with Roman, a startup for treating erectile dysfunction and Keeps, a startup that treats hair loss in men. The point is, if Hims can rake in such an amount of sales within such a short period despite having competitors, then the niche is a real goldmine.
Conclusively, it is necessary to also mention that Hims had previously raised a sum of $7 million from SV Angel, Forerunner Ventures, and Thrive Capital altogether. This is a clear sign that men’s wellness niche has tremendous prospects.