One of the leading brands in back care stocked in over 1,000 stores, including Boots and CVS Pharmacy.
Business overview
| Location | Altrincham, United Kingdom |
|---|---|
| Social media | |
| Website | uk.backpainhelp.com/ |
| Sectors | Healthcare Mixed Digital/Non-Digital Mixed B2B/B2C |
| Company number | 07531194 |
| Incorporation date | 16 Feb 2011 |
Idea
Introduction
Handsome a fast growing consumer healthcare company. We are on a mission to become the leading consumer brand in back care through our brand BAC< BackPainHelp.
The brand offers a comprehensive range of award winning products from pain relief and posture management all of which enable our consumers to lead an active lifestyle. We design and develop all our products to be the highest quality, to function best in class and also to look fantastic and be non medical in appearance. Developed in association with the London Spine Clinic, it is what makes the brand trusted and it becoming an increasingly popular choice for consumers. With three global operating units already established in Europe, US and Greater China and with a respected, experienced and professional management team we believe we are well placed to achieve our vision to be the world’s No.1 back care brand.
Intended impact
Back Pain is a big societal issue, costing £1.6 billion total healthcare costs per year. It's the 2nd most common reason for sickness related time off work, (stress being No1): with over 4.8 million sick days annually and 80% of the adult population in the UK suffer from back pain at some stage in their lives. Back pain is debilitating both physically and emotionally.
We believe there is a massive opportunity to take a brand leadership position in the market and become the go to brand: Back Care = BAC< BackPainHelp.
We are really happy with the great feedback that we have received for our products and the 5-star outcomes that we have received from our customers. 85% of our customers have told us the product they used helped relieve their back pain. 88% found their posture was improved and 88% would recommend us to a friend. Furthermore, 98% of customers agreed that they would come back to us for further help and advice in the future.
Substantial accomplishments to date
• February 2011: After incorporation, we spent 2 years designing and developing the BAC< BackPainHelp 5 zone system and our unique product range.
• August 2013: Passed BSI audits and granted ISO13485 Medical Device Certification for Handsome Ltd.
• September 2013: Trial launched in Boots.
• April 2014: After a successful trial, we agreed with Boots 12 month exclusivity and rolled out nationally in over 500 stores.
• May 2014: We won the prestigious DA&D award for the Shoulder Brace in the Consumer Product Design category.
• December 2014: We launched BackPainHelp.com in the UK to sell direct to our consumers.
• October 2015: We launched in Lloyds Pharmacy in the UK and CVS Pharmacy in the US.
• November 2015: Handsome Healthcare Corporation was established in Chicago, Illinois as a wholly owned subsidiary, launching our US operation.
• January 2016: We won the IF Design Awards for our innovative Neck Brace and Backboard products.
• December 2016: Handsome Healthcare Ltd was established in Hong Kong, as a wholly owned subsidiary, launching our Greater China operation.
• April 2017: We completed the implementation of a new best in class operating system: 'Netsuite Global One View' to provide a robust financial and operating system to future proof the business growth.
• June 2017: All operational set up complete in Greater China, including logistics, warehousing, and the major online sales platforms, Tmall.com and JD.com.
• August 2017: A community of over 44,000 Facebook fans.
Monetisation strategy
Our business model is simple, we design & develop BAC< BackPainHelp products, we manufacture them via our fantastic partners and we are happy to say that most of them are made here in the UK. We then sell in the following ways:
• Online via our own e-commerce platform backpainhelp.com in UK and US.
• Online via major shopping platforms: Amazon, Tmall, JD.com.
• Online via dedicated product site in Germany, Spain, France.
BAC< BackPainHelp is very well suited to e-commerce because of the nature of the products (product education, need-based purchases based on search & social media awareness).
• Supply to Retail (UK and USA) to well know retailers: Boots, Lloyds, Harrods and CVS Pharmacy.
Use of proceeds
The raise is to predominately cover working capital, specifically:
- Stock 50%
- Overheads 25%
- Marketing 25%.
Please note, the company has two institutional investors from previous rounds who hold A Preference shares. On return of capital, the A Shareholders would receive a preferential return equal to 1x their original investment, in priority to other shareholders. Secondly, the Ordinary Shares and B Shares would receive the amount invested in respect of those shares back and then any remaining proceeds would then be distributed amongst all shareholders pro rata. Preference shareholders also have the right to convert to ordinary shares.
Market
Target market
Consumer healthcare is a growing market, as in back pain. Both are helped by macro consumer trends of self diagnosis / self-help, a reduction in government healthcare spending, ageing population, increasing levels of obesity, desk working and a poor work-life balance. We conclude that these factors are opening up demand for products, brands and education that enable a more hands-on approach to treating and preventing back pain.
Our customers are ‘self-helpers’. They understand that they need to take their own responsibility to relieve their back pain, to improve their posture and to use a product which will assist them lead an active lifestyle. Our customers don’t want to keep popping pills, spending £40-£50 a time having manual therapy such as chiropractic, plus their GP isn't helping. They are prepared to ask their friends for recommendations, search the internet and build up their own tool kit of products and education that will help them.
Characteristics of target market
Using Government Health Statistics, as much as 80% of the adult population in the UK suffer from back pain at some stage in their lives. Whilst back pain may not be a life threatening condition, it constitutes a major public health problem in the UK and other Western industrialised societies and exhibits epidemic proportions. During a twelve month period almost 16.5 million people in the UK will be suffering from back pain. Both men and women suffer from it equally. Back Pain has a major economic effect on both NHS spend, and sick related time off work, with back pain being the 2nd largest reason for sick related absence from work after stress. The cost is not only economic but also emotional and physically debilitating for the sufferer. Many sufferers of back pain leave it to their own initiative to resolve the problem, and there is a growing trend for natural, drug free, non-systemic treatments. BAC< BackPainHelp offers all this.
Marketing strategy
The market for BAC<BackPainHelp.com is global. We have already shipped to over 45 countries. Our marketing strategy is simple. Target 'self helpers' who want to help themselves and relieve their pain and improve their posture. We then utilise our in house digital marketing team to develop engaging ways to communicate the benefits of our products, to educate them and create awareness. Segmenting the market based upon need for each of the different products. So for example we could target someone who sufferers from Neck Pain or Migraines. We introduce the benefits of the Neck Brace to help relieve their discomfort. We then also aim to cross sell and create awareness of our other products to supplement the use of the neck brace, e.g Dual action Massager to help relieve tension in the neck and apply topical relief cream. Or we create awareness of products that could help them avoid Neck Pain, e.g use our Posture Stand or Standing Desk to improve your workstation ergonomics.
Competition strategy
Many people who suffer from back pain 'pop a pill' and take an oral analgesic ( £360m market in the UK). We beleive that there is a growing trend away from taking pills, and that chronic back pain sufferers develop and build their own 'toolkit' of products that they turn to to help relieve their pain. This is were we come in. BAC< BackPainHelp products are designed to be different because we offer a product range targeting each of the 5 areas of the back which back pain occurs. We call these areas 'zones' and how you treat back pain in zone 1 (top of your spine), is very different how you treat pain in zone 5 (very bottom of your spine). In addition we have a range of posture management products. Therefore not only can we help relieve your back pain but we can help improve your posture and therefore help prevent back pain occurring. To our knowledge, there is no other brand that designs and develops products in the same way as we do and has a range of products for each area of the back.
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