Beruflich Dokumente
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Samir S
CEO, Th araiya,
atsPer sonal.c
om
Interviewed
by
Dr. Nagendra V. Chowdary
Thatspersonal.com is Indias first personal products destination, Ref. ECOMM-1-0008B/2
where you can find the WORLDS BEST PERSONAL AND INTIMATE July 2016
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
Global Industry
1. What is adult products industry or the Sexual Wellness Industry? What does it
constitute in terms of product categories? Who are the major players? Can you give
us the background about the birth of this industry? What specific human needs do
you think this industry was supposed to serve?
A sex shop (also called adult shop, erotic shop or adult bookstore) is a retailer that sells
products related to adult sexual or erotic entertainment, such as vibrators, lingerie, clothing,
pornography and other related products. The industry is slowly moving away from the
adult or erotic positioning to more of a sexual health and wellness kind. It is also
moving towards a standard FMCG business with more distribution and retail channels like
super markets, pharmacies, vending machines and convenience stores stocking and selling
these products.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
that are extremely well-known because of their association with this industry for a very
long period of time. Lovehoney with their brand licensing initiatives like Fifty Shades of
Grey and Motionhead seems to have a lot of merit in terms of creating brands in this
industry.
Western Europe has been a pioneer of this industry from the days of Beate Uhse-Rotermund,
who started the first sex shop in the world, to the current market scenario. Beate Uhse AG
is a German industry group with focus on selling adult entertainment in the form of sex
toys, lingerie, clothing and pornography. It was founded by former German war-time pilot
and sex pioneer Beate Uhse-Rotermund in 1946 and started out as a distributor of pamphlets
on family planning called Schrift X (roughly: Writing X or Paper X) which was a major
success. 1
SCENARIO.
2. How do you describe the global scenario of the Sexual Wellness Industry?
One of the most interesting developments that I see is that product innovation and
differentiation is fairly limited. Lack of large scale investment dollars in this industry, coupled
with quick replication of products has led to a situation where innovative brands are getting
less time to reap the benefits of their innovation. Additionally, traditional Chinese OEM
and ODM manufacturers are now trying to build their own brands while on the flip side,
leading distributors are also building their own brands via private label manufacturers,
leading to a situation of increased competition. On the positive side, I believe the
e-commerce revolution has led to a substantial growth of the business, this category being
a natural fit for business.2
1
Matthias Poehl, Around the World with Samir Saraiya, http://www.ean-online.com/insights/around-
the-world-with-samir-saraiya/, October 15th 2015 (accessed date: August 19th 2016); Sex Shop,
https://en.wikipedia.org/wiki/Sex_shop (accessed date: August 19th 2016); Beate Uhse AG, https://
en.wikipedia.org/wiki/Beate_Uhse_AG (accessed date: August 19th 2016)
2
Ibid.
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
3. Are there any global brands in some of the product categories in Sexual Wellness
Industry?
Fifty Shades of Grey, LELO, and We-Vibe are some of the brands in this industry that are
known across the world. Then there are other legacy brands like Hustler and Penthouse
that are extremely well-known because of their association with this industry for a very
long period of time. Lovehoney with their brand licensing initiatives like Fifty Shades of
Grey and Motionhead seems to have a lot of merit in terms of creating brands in this
industry.3
4. The global Sexual Wellness Industry is expected to grow to $52 billion by 2020. Isnt
this too low a number given the latent demand?
Consumers are becoming more savvy than they used to be, as the presentation of product
content in various forms like ratings, reviews and videos has increased by leaps and bounds
which has led to greater awareness about sex-toys and their usage. Consumers have evolved
and are much more knowledgeable about the sex toy industry than before, which is a great
sign of the industry moving towards maturity.4
3
Around the World with Samir Saraiya, op.cit.
4
Ibid.
5
Ibid.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
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?
There is a clear differentiation between sexual pleasure and porn. While porn is meant for
individuals, products of sexual pleasure are sexual wellness products for men, women and
couples. Products meant for sexual pleasure work the same way people seek help of
sexologists and gynecologists for sexual wellness. These products use patented formulae
which are meant for revitalizing the body, be it in India or anywhere else in the world. For
instance, be it Germany or India, people use hair colour for cosmetic purposes. Similarly,
be it India or Germany, people use products of sexual pleasure for sexual wellness. While
I am not against porn, it can be described as the highest level of obscenity.
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
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?
I am not sure about Sri Lanka but as compared to countries such as the US, UK, Germany,
Netherlands, etc., Indian Sexual Wellness Industry is definitely miniscule. We are far behind
those markets. For instance, in the US, the industry started sometime during the 1970s, so
we are almost 40 years behind them.
The industry basically started with the aim of informing women about child birth. The
industry has flourished in these countries because of the ability of the government to
accept it and frame government legislation accordingly.
The main reason behind the industrys abysmal growth in India is the lack of appropriate
government legislation. Even culturally, sex has been a tabooed topic in India. Not that the
market for sex toys did not exist in India until recently. The underground market or the grey
market has been there in India.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
Definitely, challenge are there as these are products which cannot be advertised on TV
and there are no adult stores also in India, so it becomes difficult to convey the message
to the prospective customers.
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?
India has a lot of potential, but still nascent in terms of market size. While the market is
still very small, it is growing at a rapid pace and we expect critical mass in 2017. We
believe that brands that enter India today will have a considerable market share with very
little marketing investment when critical mass arrives. Brands that come in later will have
to substantially spend on marketing and brand building to catch up.6
6
Around the World with Samir Saraiya, op.cit.
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
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 (Sections 292
and 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?
I would say there has been a lot of progress on the legal front in India in the last couple of
years. The laws related to the topic were written 100 years ago and circumstances have
changed over time. Now, the courts also seem to have understood and one of the biggest
changes to have happened is the ruling that watching porn within four walls is not illegal.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
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?
Definitely there are legal, societal and cultural sanctions which makes the customers buy
these products discreetly. However, like several other industries, even the Sexual Wellness
Industry would have to find a way to overcome these challenges.
For instance, when Hindustan Lever wanted to introduce its Kwality Walls range of ice
creams in India, it was faced with legal hurdles as ice-cream manufacturing in India was
dominated by the local non-organized sector and as per the laws a company could not
manufacture ice-creams. Hindustan Lever therefore launched its products as Frozen
Desserts and not as ice creams, overcoming the legal hurdle.
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
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?
The major product categories in India are lubricants, male performance, sexy lingerie,
edible fun, condoms & others, womens hygiene and arousal, mens inner wear and pleasure
rings.7
8. What has been the role of e-commerce in the growth of Sexual Wellness Industry in
India?
E-commerce has definitely played a significant role in growth of Sexual Wellness Industry
in India. For any industry, both the offline and the online channels exist. For instance, in
apparel, while online is growing fast, the lions share is that of the offline channel. Similarly,
for mobile phones, the offline channel has a much larger share than the online channel.
However, for the Sexual Wellness Industry, the share of online channel is 100%, not counting
the grey market of course.
7
India Exposed!, http://www.thatspersonal.com/pdfdownload/ThatsPersonalResearch
Report2015.pdf, December 2015 (accessed date August 19th 2016)
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
9. What are the global best practices that you think the Indian industry should adopt?
Some of the global best practices that India should adopt include:
1. Opening up of physical (brick and mortar) adult shops. They are very powerful in
creating awareness about the product. Customers can learn about the product in a
comfortable setting assisted by in-store customer support executives. The customers
can also give their reviews in real time which is a challenge in an online-only
environment.
2. In developed countries, players in the Sexual Wellness Industry are also reaching out
to their customers through the medical fraternity wherein medical practitioners
prescribe the use of these products for sexual wellness
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
11. Is there any case for repositioning the industry through sex clinics, counselling centers,
etc.?
Yes, there can be a case for repositioning. It is all about making it conducive for the customer
to try and buy the products. ThatsPersonal has been working around content and trying out
innovative methods to make things conducive for the customer. Sex clinics, counselling
centres, etc., can be important channels to create that conducive environment.
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?
Definitely. These products are trying to solve a problem on the one hand and also trying to
spice up the sex life of individuals on the other. There are amazing products which may
seem unreal but they are available in the market and help solve problems arising out of
situations such as long distance relationships. For instance, there is a product called PULSE
from Hot Octopuss and it can be used as a couples sex toy.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
I shared my idea with a few friends and everyone was eclectic about it. When I started
meeting people to take it further, I was overwhelmed with the response I got. They were
ready to be partners and investors. Our greatest challenge was maintaining privacy of the
consumer, which would have been possible only through e-Commerce. Our second
challenge was the social stigma attached to anything related to sex. Hence, the need to
come up with an innovative measure to give utmost privacy to our customers was the
prime factor for us to venture into e-Commerce.
2. Did you have any operational challenges, for instance, in registering the company,
getting office space, getting the right talent, etc., in establishing ThatsPersonal.com?
If yes, what were they and how could you overcome them? What has been your
approach to address those challenges?
Luckily, we did not have any operational challenges in establishing ThatsPersonal.com
whether it was in terms of registering the company, getting office space or even in attracting
talent. Every day I receive nearly 20 resumes seeking job opportunity with ThatsPersonal.
We faced challenges which any business would face in starting up, not simply because we
operated in the Sexual Wellness Industry.
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
To build this market, we are investing a lot of money in product education as most Indians
are unaware of what these products are and why they should use them. Since sex is a huge
taboo subject, we need to make it conducive for Indians to buy. Hence, we are constantly
innovating the privacy and discreet delivery aspect of the e-commerce business.
In India, we have more than 900 million mobile subscribers compared to just 80 million
broadband subscribers, hence its always a challenge to build our experience to operate
on a mobile screen, which may not necessarily be a smart phone.8
3. At a very personal level, how difficult was it to convince your near and dear ones to
pursue such a line of business? And, do you think, it would have been all the more
daunting and demanding for a woman to go through the convincing part?
Believe me, it was a very difficult decision as I was extremely worried about the society
and what they would think of me and my family. I did have many sleepless nights. However,
the investor community loved the idea and so did my immediate friend circle. Both kept
pushing me to take the plunge and I finally reached a point of no return. After we launched
and received some initial success, I was happy, calm and confident and today I am happy
with my decision.
8
Ariana Rodriguez, Q&A: Indian Pleasure Products Market to Reach $1.6B by 2020, http://
www.xbiz.com/news/191246, February 17th 2016 (accessed date: August 19th 2016)
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
THATSPERSONAL IS EVENTUALLY
LOOKING AT A MADE IN INDIA
PRODUCT RANGE, WHICH WOULD BE
CUSTOMIZED AS PER INDIAN DEMAND.
6. When was ThatsPersonal.com 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?
ThatsPersonal was started in 2013 and the company has been growing steadily since
then.
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
7. What have been the top-selling product categories (out of lubricants, sexy lingerie,
gifts, condoms, etc.) since inception?
Based on our research, the top-selling product categories (in descending order) are
lubricants, male performance, sexy lingerie, edible fun, condoms and others, womens
hygiene and arousal, mens inner wear and pleasure rings.9
8. What has been your observation and insights of Indian consumer behavior with
reference to the following?
Based on research by ThatsPersonal10,
a. Average age 48% of the customers were in the age brackets of 2534 years.
b. Preference for a product/brand While lubricants is the most purchased category of
products for men, it is sexy lingerie for women.
c. Preference for packaging Discreet packaging
d. Preference for delivery mode and delivery time Discreet shipping and Self pick-up
from a couriers office
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
Valentines Day Biggest monthly sales in the year; 2.5 times the monthly average
Navratri Sales from Gujarat tripled over the monthly average
Wedding Seasons Average order value rises to INR3100
Exam Season March records the lowest sales
9. Given the impediments from IPC Sections 292 and 294, one of the biggest challenges
for ThatsPersonal.com 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 whats your plan of action to overcome this
challenge?
There have been challenges with marketing and distribution with respect to the legality of
the products. Challenges arise particularly due to the age factor of the online user.
ThatsPersonal clearly advises the user to close the website if s/he is under 18 years of
age. While putting up content online on Google or Facebook, one has to have the knowledge
as to what can be advertised and what cannot be advertised.
11
India Exposed!, op.cit.
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Interview with Samir Saraiya Indian Sexual Wellness Industry: Secretly Growing?
11. Do you get customer feedback? If yes, how do you get the feedback and how do you
process the feedback for business purpose?
Yes, we do get customer feedback. In fact, we were surprised that people are so open in
giving feedback. ThatsPersonal thrives on customer feedback. However, understanding
that feedback is most critical in our line of business. Owning to cultural issues in Asia in
general and in India in particular, it is very important to build trust in customers and
differentiate from competition. ThatsPersonal uses several tools for processing the feedback
and for Customer Relationship Management.
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?
These are the critical elements for any business, not just a sexual wellness company. Any
company would make a plan which guides it in its business in the immediate future. For
instance, in building Burj Khalifa, there must have been a plan and a strategy. However, in
reality, the plans and strategies must have changed depending on the challenges they
faced. Similarly, for a company in the Sexual Wellness Industry, there will be plans but they
will keep evolving based on the situations faced by the company in reality.
THATSPERSONAL THRIVES ON
CUSTOMER FEEDBACK. HOWEVER,
UNDERSTANDING THAT FEEDBACK IS
MOST CRITICAL IN OUR LINE OF
BUSINESS.
13. What factors do you think can propel the growth of Sexual Wellness Industry in India?
Some of the main factors that I think can propel the growth of the Sexual Wellness Industry
in India are:
1. Clarity on legislation, as it is a big impediment at the moment
2. Improvement in other factors such as custom duties levied on these products
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Samir Saraiya
3. Acceptance of these products by the society People are becoming more open to try
these products. For instance, earlier, in India, alcohol consumption was considered as
a taboo. But now, it has been accepted by the society. Likewise, with time, the society
is likely to accept the usage of sexual wellness products.
14. What is ThatsPersonal.coms plan of action to increase the sales and a better consumer
connect?
ThatsPersonals plan of action is to build the market and grow the market as pioneers,
demystifying the products, explaining about the products, promoting repeat usage of the
products, etc. The company is also working on the content distribution and creating
awareness front. The company wants to create an awareness as to how it is different from
others. For all these, there is a plan of action but it needs execution.
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