CASE VIEW ON

INDIAN SEXUAL WELLNESS INDUSTRY:

SECRETLY GROWING?
Interview
with
Ute Pauline Wiemer

Ute Pau
line We
Co-Fou
nder, L imer,
ovet
reats

Interviewed
by
Dr. Nagendra V. Chowdary
Building Indias largest intimate LIFESTYLE DESTINATION Ref. ECOMM-1-0008B/1
Lovetreats. We make sexual wellness products available for the July 2016
masses in a CLASSY, SEX POSITIVE SPACE.

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 Interview with Ute Pauline Wiemer Lovetreats Indian Sexual Wellness Industry: Secretly Growing?

Indian Sexual Wellness Industry:

Secretly Growing?
Ute Pauline Wiemer Lovetreats

Global Industry
1. What does the adult products industry or the sexual wellness industry constitute in
terms of product categories? Who are the major players? Can you furnish the
background on the birth of this industry? What specific human needs do you think
this industry was supposed to serve?
The adult products or sexual wellness industry includes products that promote sexual
health and pleasure. These can be sexual wellness products like condoms, lubricants or
intimate hygiene washes, as well as products meant to promote sexual pleasure such as
intimate toys for women, men, adult games, erotic lingerie, jewelry and accessories. Sexual
wellness products are meant to help consumers in experiencing sexual pleasure and
satisfaction in their sexuality and their sexual relationships, while promoting and enhancing
their health and safety.

THE ADULT PRODUCTS OR SEXUAL

WELLNESS INDUSTRY INCLUDES
PRODUCTS THAT PROMOTE SEXUAL

HEALTH AND PLEASURE.

The major players in India are traditional brands and retailers such as Moods, Kamasutra
and Durex who dominate the offline retail market. A few years ago, Indian online retailers
brought the sexual wellness category into the growing e-commerce market. Major Indian
e-commerce players in the sexual wellness industry include IMBesharam, Lovetreats.in
and ThatsPersonal.

2. How do you describe the global scenario of the sexual wellness industry?
Globally, the sexual wellness industry is growing fast and moving more and more from
niche to mainstream.

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Indian Sexual Wellness Industry: Secretly Growing? Interview with Ute Pauline Wiemer Lovetreats

3. Are there any global brands in some of the product categories in sexual wellness
industry?
There are global brands, especially product manufacturers. Some globally successful brands
include Fun Factory, Tenga, Malesation, SToys, Pjur, JoyDivision, Durex, Doc Johnson and
Beauments.

4. The global sexual wellness industry is expected to grow to $52 billion by 2020. Is this
not too low a number given the latent demand?
Given the fact that the majority of consumers of sexual wellness products such as intimate
toys are first time users, the market potential is huge. Seeing the trends of the category
moving more and more into the mainstream market and making a presence in emerging
markets like India, it is quite possible that the growth of the industry could exceed $52
billion by 2020.

IT IS QUITE POSSIBLE THAT THE

GROWTH OF THE INDUSTRY COULD

EXCEED $52 BILLION BY 2020.

5. Which are the countries where sexual wellness industry has been thriving within the
expected gamut? What according to you are the Critical Success Factors (CSFs) for the
same?
While we do not have an accurate data-based answer to this question, according to various
articles and reports so far, US, followed by Western Europe and China are the countries
where the sexual wellness industry has been thriving as per the expectations.

6. There has always been a misconception around sexual pleasure and porn. What
according to you is the difference between these two and how do you think an
appropriate awareness about sexual pleasure can lead to better industry prospects,
especially in emerging markets like India?
The main difference with regard to India is that porn is illegal, while sexual pleasure and
pleasure products are not. Sexual wellness products, although appropriate only for users
who are 18 years or older, do not necessarily have to come with the negative image,
sleaze and the objectification of women the porn industry is known for. At Lovetreats we

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 Interview with Ute Pauline Wiemer Lovetreats Indian Sexual Wellness Industry: Secretly Growing?

curate the products carefully to ensure that they are in line with the law and are classy and
appealing to both women and men. Having said that, we do see this misconception as a
challenge in our daily work.

Customers have a lot of concerns and questions, which we at Lovetreats, address through
our blog, customer support chat, email and phone. Calcutta High Court Ruling on July 29th
2011, confirmed that obscenity charges against adult games or sex toys are not legally
sustainable. Recently we partnered with the well-known US-based company Make Love
Not Porn who cooperate with us in creating content and educating the Indian audience
about the difference between porn and real world sex and pleasure.

CALCUTTA HIGH COURT RULING ON

JULY 29th 2011, CONFIRMED THAT
OBSCENITY CHARGES AGAINST ADULT
GAMES OR SEX TOYS ARE NOT LEGALLY

SUSTAINABLE.

Sexual Wellness Industry in India

1. What is your take on the status of the sexual wellness industry in India, in terms of
the market size, the market potential, number of players, expected penetration and
reach, etc.?
The Indian intimate lifestyle or sexual wellness market has huge untapped potential.
However, it is quickly picking up speed. New players are entering the market every month,
and international brands and investors have recognized the potential for accelerated growth,
calling India the New China when it comes to the sexual wellness category. Recent court
rulings in favor of the distribution and import of sexual wellness products such as adult
toys have also increased confidence into the category. In my opinion, the market potential
by far exceeds the expected $52 billion in 2020, given that many product categories such
as adult toys and pelvic floor trainers are just being introduced into the Indian market and
there is huge untapped potential, for example, when it comes to female buyers.

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Indian Sexual Wellness Industry: Secretly Growing? Interview with Ute Pauline Wiemer Lovetreats

2. Indian sexual wellness industry is miniscule at best when compared with global sexual
wellness industry, especially in the US, UK, Australia, South Africa, Sri Lanka, etc. What
can be the possible reasons for this abysmal growth?
In my experience, the main reasons that keep first time users from exploring the sexual
wellness category are related to myths and taboos. Many consumers are misinformed
about the legality of sexual wellness products and falsely assume the products illegal,
even though sex toys for example, vibrating penis rings by Moods and Durex are openly
sold in pharmacies and drug stores all over India. In addition, there is a lack of awareness
about how and why to use sexual wellness products. Information is not easily available to
consumers, as the sales staff in pharmacies and drug stores are often not capable or
comfortable answering questions related to sexual health and pleasure.

3. Do you see positive trends in Indian sexual wellness industry in the last few years? If
yes, what could be the possible reasons for this uptrend?
The Indian sexual wellness market is steadily growing year-on-year. Growth drivers for the
Indian sexual wellness market include the adaptation of e-commerce, which offers a

INTERNATIONAL BRANDS AND

INVESTORS HAVE RECOGNIZED THE
POTENTIAL FOR ACCELERATED
GROWTH, CALLING INDIA THE NEW
CHINA WHEN IT COMES TO THE SEXUAL

WELLNESS CATEGORY.

discreet and confidential shopping experience. The industry is also seeing increasing sales
from female customers, as well as customers from tier-2 and tier-3 cities, proving that the
category is steadily moving from niche to mainstream.

4. What according to you can be the Critical Success Factors that can catapult Indian
sexual wellness industrys growth?
In my opinion (1) quality of products as well as (2) customer service are the critical success
factors here.

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 Interview with Ute Pauline Wiemer Lovetreats Indian Sexual Wellness Industry: Secretly Growing?

(1) At Lovetreats, for example, we only sell products from the best international brands
and stay away from cheap items with questionable quality. Even though this results
in premium pricing, I strongly believe that the only way to gain customers trust and
make them comfortable and confident enough to explore the category, is to never
compromise on quality.

(2) We also offer exceptional real-time customer support via chat, phone, WhatsApp and
email and make ourselves available for any questions or concerns our customers
might have. In my experience, this has helped immensely in encouraging first time
users to explore the sexual wellness category.

5. One of the major stumbling blocks, apart from culture, has been legal restrictions on
distribution, marketing and sales of sexual wellness products in India (Section 292
and Section 294 of the IPC). How do you see the legal stronghold affecting, especially
with the confusing definition and interpretation of obscenity, the Indian Sexual
Wellness Industry?
Recent court rulings such as the Calcutta High Court Ruling on July 29th 2011 which
confirmed that obscenity charges against adult games or sex toys are not legally
sustainable, have made the interpretation of obscenity more clear and favorable for the
sexual wellness industry. However, a detailed and reliable curation process, when it comes
to picking adequate products for the Indian market, is necessary.

MANY CONSUMERS ARE MISINFORMED

ABOUT THE LEGALITY OF SEXUAL
WELLNESS PRODUCTS AND FALSELY
ASSUME THE PRODUCTS ILLEGAL

6. There clearly seems to be a vicious cycle operating in the Indian Sexual Wellness
Industry from the viewpoint of legal, societal and cultural sanctions, i.e., as long as
the consumer ends up buying these products discreetly, the industrys growth (as
with the players operational freedom) also seems to be restricted. How do you
envisage this vicious cycle being converted into a virtuous cycle?
At Lovetreats, we see a 25% month-on-month growth in sales purely from word of mouth
and referrals. Of course, customers want to shop discreetly. Perhaps they do not want

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Indian Sexual Wellness Industry: Secretly Growing? Interview with Ute Pauline Wiemer Lovetreats

their neighbors, colleagues or relatives to know exactly which intimate products they buy
online. Nevertheless, that does not mean they do not share a recommendation with close
friends or their partner.

7. What are the major product categories that are flying off the shelves in Indian Sexual
Wellness Industry? What can be the reasons for the same?
Condoms, lubricants and sexy lingerie. The first two are consumables and thus purchased
multiple times in a year by one customer. Lingerie is generally seeing strong growth in the
Indian market.

THE ONLY WAY TO GAIN CUSTOMERS

TRUST AND MAKE THEM COMFORTABLE
AND CONFIDENT ENOUGH TO EXPLORE
THE CATEGORY, IS TO NEVER

COMPROMISE ON QUALITY

8. What has been the role of e-commerce in the growth of Sexual Wellness Industry in
India?
E-commerce is one of the major growth drivers for the Indian sexual wellness industry, as
it allows for a discreet and confidential shopping experience, and makes items, which are
just being introduced to the Indian market and are thus still niche items, such as intimate
toys, available for the masses.

9. What are the global best practices that you think the Indian industry should adopt?
A positive sex and body approach in which people are encouraged to explore their sexuality
in a positive way, rather than trying to cash in on peoples fears and insecurities.

10. How well do you think Indian Sexual Wellness Industry is funded? How do you rate
the potential investors excitement for investment in this industry?
Indian sexual wellness start-ups have yet failed to secure VC funding. However, the category
is trending with investors in other markets and it is safe to assume this trend will spill over
to India eventually.

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 Interview with Ute Pauline Wiemer Lovetreats Indian Sexual Wellness Industry: Secretly Growing?

11. Is there any case for repositioning the industry through sex clinics, counselling centers,
etc.?
Initiatives like counselling centers should definitely be promoted and supported, regardless
of the state of the sexual wellness industry. In fact, we collaborated with an online
counselling service specialized in sexual health and sexuality related issues, in order to be
able to offer a holistic service to our customers. Sexual wellness products must never aim
to replace counselling or medical treatment. Rather than something that can solve problems,
they should be seen as pleasure enhancing lifestyle products.

AT LOVETREATS, WE SEE A 25% MONTH-

ON-MONTH GROWTH IN SALES PURELY
FROM WORD OF MOUTH AND
REFERRALS.

12. Do you think a thriving sexual wellness industry in India can help curb the spike in
divorce rates, particularly vis--vis cases where sexual displeasure is cited as the reason
for divorce?
If at all, only by contributing to more open and honest conversations about sex and sexuality.
Generally, I strongly believe that sexual wellness products should not be promoted as
problem solving products, but rather as pleasure enhancing lifestyle products. Sexual
wellness products will never be suitable to replace counselling or therapy.

Lovetreats.in
1. What has been the trigger for starting a venture in a discrete operating space? What
were the compelling factors that prompted you to go ahead with Lovetreats.in?
Having lived and worked in both India as well as different Western countries, my
Co-founder Balaji T.V. and I both believed that the time was right to make sexual wellness
products available to Indian women and men in a safe, non-judgmental and sex positive
space. Before starting the business, we conducted interviews with over 100 Indian women
and men. The results of our survey showed that over 70% of the interviewees were curious
to try sexual wellness products, but did not know where to buy them safely and legally.

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Indian Sexual Wellness Industry: Secretly Growing? Interview with Ute Pauline Wiemer Lovetreats

2. Did you have any operational challenges, for instance, in registering the company,
getting office space, getting the right talent, etc., in establishing Lovetreats.in? If yes,
what were they and how could you overcome them? What has been your approach
to address those challenges?
We have not faced any major challenges so far. We were able to build a highly skilled and
motivated team that shares our vision to transform the Indian sexual wellness market and
make sexual health and pleasure products available to everyone in a non-intimidating and
safe space.

3. At a very personal level, how difficult was it to convince your near and dear ones to
pursue such a line of business? Moreover, being a woman, was it all the more daunting
and demanding for you to go through the convincing part?
Even though my family and friends were surprised (and some of them a little shocked) at
first, I found that all of them were very supportive and positive once they understood mine
and Balajis motivation and vision for Lovetreats. Many people in our personal network
now tell us that they find it very liberating and empowering to talk about topics related to
sex and sexuality without shame or judgment.

E-COMMERCE IS ONE OF THE MAJOR

GROWTH DRIVERS FOR THE INDIAN
SEXUAL WELLNESS INDUSTRY, AS IT
ALLOWS FOR A DISCREET AND

CONFIDENTIAL SHOPPING EXPERIENCE

4. How is Lovetreats.in funded? What is the composition of its total funding?

We are a bootstrapped company. We have started with our personal funds as well as a
small friends & family round in 2015.

5. What is Lovetreats.ins business model and revenue model in simple terms? Is it a

manufacturing-led model or a distribution (aggregator)-led model or is it a hybrid
model?
[Manufacturing-led model the company manufactures the products and sells them online;
Distribution/aggregator-led model the company does not manufacture the products. It is
only an aggregator and a seller; Hybrid model the company manufactures and sells its
products as well the products of other brands]

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 Interview with Ute Pauline Wiemer Lovetreats Indian Sexual Wellness Industry: Secretly Growing?

Distribution/aggregator-led model, with most of the products imported and some locally
sourced (for example, lingerie).

6. When was Lovetreats.in started and how has been its journey thus far, businesswise
i.e., the sales and the margins at a broad level? How have been the sales trends since
inception?
We launched Lovetreats.in in October 2015 and have seen revenue from day one. On
average, our sales are growing 35% month-on-month, with strong peaks during wedding
season and around Valentines Day. Since sexual wellness is not a discount-driven category,
the margins are suitable to build a sustainable business despite an average customer
acquisition cost, which is very typical for vertical e-commerce, slightly higher than for
horizontal e-commerce.

SEXUAL WELLNESS PRODUCTS MUST

NEVER AIM TO REPLACE COUNSELLING
OR MEDICAL TREATMENT.

7. What have been the top-selling product categories (out of lubricants, sexy lingerie,
gifts, condoms, etc.) since inception?
The top product categories for us at Lovetreats.in are intimate toys for women and men,
lubricants, soft bondage accessories and curated gift boxes.

8. What has been your observation and insights of Indian consumer behavior with
reference to the following?
a. Average age 2530
b. Preference for a product/brand Preference for imported products from Europe and
US
c. Preference for packaging Discreet packaging
d. Preference for delivery mode and delivery time Express shipping
e. Pricing behavior Average basket size: INR 2,300

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Indian Sexual Wellness Industry: Secretly Growing? Interview with Ute Pauline Wiemer Lovetreats

f. Profile of the customers (gender) 70% female, 30% male

g. Place of purchase Tier-1, Tier-2, Tier-3 cities 50% Tier-1, 30% Tier-2,
20% Tier-3
h. The seasonality of buying Peaks during wedding/honeymoon season and Valentines
Day. Drops during summer and holiday season

9. Given the impediments from IPC Section 292 and Section 294, one of the biggest
challenges for Lovetreats.in must have been marketing and distributing your products
as freely as you would have wished to. What has been your experience in marketing
and distributing such discreet products and what is your plan of action to overcome
this challenge?
During our legal research, we have evaluated recent rulings such as the Calcutta High
Court Ruling on July 29th 2011 which confirmed that obscenity charges against adult games
or sex toys are not legally sustainable. We follow a careful curation process to ensure that
every product we offer is legal to distribute in India. Thus, we are not facing any issues in
distributing the products freely. Of course, we ensure we only distribute to customers who
are 18 years or older.

THE RESULTS OF OUR SURVEY SHOWED

THAT OVER 70% OF THE INTERVIEWEES
WERE CURIOUS TO TRY SEXUAL
WELLNESS PRODUCTS

10. What are the current product categories sold on Lovetreats.in and what are the new
categories that you are proposing to introduce? How frequently do you review the
product categories based on the sales trends?
We add between 2050 new products every month, based on international trends as well
as sales trends we see on our own platform. Currently we offer intimate toys for women,
men and couples, condoms, lubricants, sexual health and hygiene products, lingerie, body
jewelry, soft bondage accessories, erotic games, curated gift boxes, pleasure enhancement
gels and creams.

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 Interview with Ute Pauline Wiemer Lovetreats Indian Sexual Wellness Industry: Secretly Growing?

11. Do you receive customer feedback? If yes, how do you get the feedback and how do
you process the feedback for business purpose?
We continuously ask our customers for feedback as well as product reviews. We receive
feedback via email, chat, WhatsApp and phone. We implement it immediately. Customers
directly post product reviews on our e-commerce site.

12. Is it correct to say that the four critical elements for any sexual wellness company are
the products (product categories and product lines width and depth), marketing
and sales promotion, distribution and finding the right customers? If yes, what has
been your experience in dealing with each one of them to put together a thriving
business architecture?
I would like to add a fifth element: customer support. This has been essential for us in
ensuring customers choose the right item, know how to use it correctly and get all of their
questions and concerns answered.

WE FOLLOW A CAREFUL CURATION

PROCESS TO ENSURE THAT EVERY
PRODUCT WE OFFER IS LEGAL TO
DISTRIBUTE IN INDIA.
13. What factors do you think can propel the growth of sexual wellness industry in India?
The opening of mainstream marketing channels such as Facebook or Google AdWords for
sexual health and wellness products in India could help in accelerating the industrys growth.

14. What is Lovetreats.ins plan of action to increase the sales and a better consumer
connect?
Our strategy is content driven. Through our blog, as well as videos and social media
activities, we raise consumer awareness and curiosity, and ensure customers are
well-informed before making a purchase decision. This encourages first time users to buy
and ensures that our customer satisfaction is extremely high. We also conduct home parties
during which customers can learn about Lovetreats.in and the different products we offer
in the privacy of their home and in a relaxed setting with their friends.

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