Professional Documents
Culture Documents
Divya C
hauhan
Co-foun
der, its ,
pleaZur
e
Interviewed
by
Divya Chauhan, Co-founder, itspleaZure, LOVES TO TAKE UP Dr. Nagendra V. Chowdary
CHALLENGES. Her first entrepreneurial venture itspleaZure an Ref. ECOMM-1-0008B/3
online store for adult products, which aims to HELP COUPLES ADD July 2016
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?
Sexual Wellness Industry, also known as adult products industry is related to sexuality and
intimacy. It includes the products, which will increase intimacy and sexual experience like
condoms, erotic lingerie, lubricants, sex toys, supplements, hygienic items, etc. Few of the
major names in this industry are Ansell, Reckitt Benckiser, Church &, Dwight, etc.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Divya Chauhan
2. How do you describe the global scenario of the Sexual Wellness Industry?
Globally, the Sexual Wellness Industry is culturally evolved and more acceptable by the
society. There are few countries like Netherlands, Sweden, Brazil, etc., where these products
are readily available through retail outlets and online retailers. In few countries, an entire
market is dedicated to sexual wellness products. In addition to this, few countries like the
US and Canada have few courses on sexual practices and methods. In countries like India,
most of the sexual products are either banned or not available in the open market. But still
increase in education and exposure about these products combined with their discreet
delivery, is boosting sexual wellness industry in markets similar to India. But the most
important factor is the laws and regulations around this industry. While in some countries,
law is helping this industry to grow, in other countries, most laws and regulations are
against the industry, hampering its growth significantly.
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?
The industry is expected to grow at CAGR of 7% during 20162020. The overall global
growth of the industry does not depend solely on the demand of these products. There are
other factors like the governing laws in various countries, level of education about the
products and their importance. Although there is huge demand for these products, supply
is constantly challenged by the above two factors. Having said that, with improved social
acceptance, education levels and increasing digitalization, it will surpass the targets by
10%15%.
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Interview with Divya Chauhan Indian Sexual Wellness Industry: Secretly Growing?
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 for the same?
The US it contributes 29% of the estimation in 2020 ($15 billion out of $52 billion
estimations in 2020). The US sexual wellness market is likely to grow at a CAGR of 9%
during the period 20162020.
Factors that are contributing to the growth of the sexual wellness market in the US include
increased customer acceptance, increasing demand from older female consumers, growing
popularity of sexual devices among LGBT consumers and rising popularity of e-commerce.
The industry has changed over the last decade, driven by a change in cultural values and
the anonymity of the Internet.
TO SEX.
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 grey area when it comes to the understanding of sexual pleasure and porn.
Many people think after using the intimate products, their performance will be equivalent
to the stars in porn. People need to understand that porn stars practice what they do
through different mediums. Porn is all about sex and no emotions.
Sexual pleasure is about satisfying your partner physically and mentally. The whole process
includes passion, understanding among partners, experimentation and intercourse.
People have to be given right education that porn is not equal to sex. In addition, we need
to make them understand the value of communication between themselves before using
intimacy products. Once they understand these two points, they will get to know the
difference between porn and sexual pleasure.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Divya Chauhan
THE MARKET GROWTH.
Although, the industry grew by a whopping 194% to $453 million in 2 years (2015), the
product contribution did not show much change 52% of the total market share was still
from online condom sales (approx. $234 million). Erotic lingerie and lubricant sales from
online stores were the other two major contributors to the sexual wellness market in 2015,
contributing 30% and 18% respectively. The future of the Sexual Wellness Industry looks
quite promising in India. Given the industrys past performance (20142015) and the growing
demand for products of pleasure, experts estimate the industry to grow by 50% YOY in
2016, by 32% YOY in 2017, and by an astounding 81% in 2020.
In the last couple of years in India, the Sexual Wellness Industry has shown steady growth
and the trend is expected to continue in the future. The launch of online stores, like
itspleaZure, ThatsPersonal, IMBesharam, etc., have helped bring the industry to the
frontline. In an article published in 2014, profiling these players, the online portals have
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Interview with Divya Chauhan 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?
First and foremost issue is the mindset in Indian society. As sex is considered as taboo,
people are not very open to the concept. Although now changes can be seen, it will take
time to reach where the US, European and other markets are. We have found women being
more open about talking and understanding about the different products which will help
industry to grow in future.
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 industry in India has doubled since 2013 from $220 million to $450 million in 2015.
The future of the Sexual Wellness Industry looks quite promising in India. Given the industrys
past performance (20142015) and the growing demand for products of pleasure, experts
1
Divya Chauhan, Decoding the Online Sexual Wellness Industry in India, https://inc42.com/resources/
indias-online-sexual-wellness-industry/, March 31st 2016 (accessed date: August 16th 2016)
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Divya Chauhan
estimate the industry to grow by 50% Y-O-Y in 2016, by 32% Y-O-Y in 2017, and by an
astounding 81% in 2020.2
The increasing trend is due to various factors such as:
People travelling abroad and getting aware about these products
Convenience and privacy offered by online stores, and availability of international
brands (easy availability of high quality products in India due to launch of online
stores)
The changing societal attitude towards sex, active participation of women in
conversations regarding sexual wellness (both as consumers of the products and as
business owners)
The growing awareness and acceptance of sex as an integral part of your being and
personal relationships
Most importantly the realization that sexual pleasure is different from porn
2
Decoding the Online Sexual Wellness Industry in India, op.cit.
3
Ibid.
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Interview with Divya Chauhan 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 Indian Penal Code). How do you see the legal stronghold affecting,
especially with the confusing definition and interpretation of obscenity, the Indian
Sexual Wellness Industry?
It is very difficult to operate in the adult segment in India right now due to the unclear
laws. There is lot of uncertainty.
These restrictions are not only making it difficult to mass market these products, but also
to reach offline consumers thus restricting the market growth.
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?
Most in-demand products include luxury condoms, lubricants and lingerie. Main reason is
the convenience and discreetness which online stores bring in.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Divya Chauhan
8. What has been the role of e-commerce in the growth of Sexual Wellness Industry in
India?
The online market allows people to browse freely and from the safe confines of their own
homes. It also allows them to shop with their partner both the partners can sit, explore
the products, discuss and choose together.
At itspleaZure, we provide the convenience of buying these products in an easy manner.
No judgement or comments from anyone. You can browse through the variety at your
discretion. We make sure that the product deliveries are 100% discreet. Plus we also offer
other couple intimacy products to keep your relationship naughty and alive.
4
Divya Chauhan, 4 global trends that Indian e-commerce sector should adopt, https://e27.co/4-
global-trends-indian-e-commerce-sector-adopt-20160331/, March 31st 2016 (access date: August
16th 2016)
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Interview with Divya Chauhan Indian Sexual Wellness Industry: Secretly Growing?
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?
Not much funded as of now. I do not see a lot of investor excitement as of now for this
industry as people are still not open minded enough to associate themselves with this
industry.
11. Is there any case for repositioning the industry through sex clinics, counselling centers,
etc.?
No. Not as of now
THE MOST COMMON PROBLEM.
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?
Of course, it can. These products are meant to stimulate intimacy between the couples.
There are many product options available, which are designed to help in increasing
communication and intimacy in couples. But just products are not enough to provide
pleasure. People need to first find out their partners likes and dislikes and share their
own. We want to create that channel of communication where people can easily share
their feelings with each other.
itspleaZure.com
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 itspleaZure.com?
It started at a gathering of friends including married/unmarried couples. Though almost
all were happy in their relationship, intimacy was the most common problem. Hence the
wish to create awareness of sexual wellbeing and help couples find sophisticated products
to improve intimacy in their relationships first got me thinking of joining this interesting
industry. The on-going Start up India movement also helped make the final decision.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Divya Chauhan
2. Did you have any operational challenges, for instance, in registering the company,
getting office space, getting the right talent, etc., in establishing itspleazure.com? If
yes, what were they and how could you overcome them? What has been your
approach to address those challenges?
Some of the major challenges that I faced while setting up and launching itspleaZure are:
a. Payment Gateway: Majority of the payment gateways including banks and private
gateways refused to integrate with us due to the complexity and their misunderstanding
of regulations of the industry. We discussed with the senior management of EBS to
make them understand the legality of our company. Post this only, they decided to
integrate with us.
b. Finding the Vendors: While searching for companies/freelancers for various jobs like
SEO, designing, courier partner, we faced lot of inhibitions from people and companies
who were not ready to work.
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Interview with Divya Chauhan Indian Sexual Wellness Industry: Secretly Growing?
Some of the major challenges that I faced while setting up and launching itspleaZure,
which in the business parlance can be termed as barriers to entry for women in this industry
were:
Explaining your work/venture to family and friends It was challenging to explain and
gain support from immediate family members and close friends without long and tedious
discussions. The fact that in India, we do not have much of a conversation about the
subject with ones parents or elders in the family during our growing up years, made this
discussion all the more uncomfortable. Of course, their concern was not unfounded. My
family and friends found it extremely difficult to understand why I would want to leave a
well-set career to enter the mercurial entrepreneurial world and especially in an unorthodox
industry.
Making business introductions and networking I had to put in additional efforts to
introduce and discuss my business idea with others in the industry or with professional
consultants. There were times when I found it challenging to be taken seriously and to
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your business acumen. But, hiring a team is a completely different thing. Very few people
apply for the jobs in this industry, so getting quality people who understand the concept of
sexual wellness and can deal with the daily operations interacting with customers, media,
sales and marketing, and vendors, in a mature manner is a challenge.
I feel that all these challenges, along with many smaller ones, that women in this industry
come across in day-to-day operations can only be overcome with time and with an attitudinal
change in how the society views the industry. A more mature outlook and a healthy
discussion will go a long way in getting the industry the attention it deserves.5
5
Divya Chauhan, 5 Challenges I Faced While Launching an Ecommerce Venture for Adult Products,
https://inc42.com/resources/ecommerce-venture-for-adult-products/, February 27th 2016 (accessed
date: August 16th 2016)
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We want to create a hybrid model for itspleaZure, however, we dont want to compromise
on the customer experience. Hence, we are testing the waters before coming up with the
best mix without compromising customer experience.
6. When was itspleaZure.com started and how has been its journey thus far,
business-wise i.e., the sales and the margins at a broad level? How have been the sales
since inception?
itspleaZure had its beta launch in January 2016 for 3 months. We did multiple testing
ranging from shipping, IT issues, etc. On 29th March 2016, we officially launched itspleaZure.
The margins vary from 10% to 50% depending upon the category of the product. Since the
inception, we have seen almost 50% growth month-on-month in terms of sales and traffic.
7. What have been the top-selling product categories (out of lubricants, sexy lingerie,
gifts, condoms, etc.) since inception?
Lubricants are the highest demand generators 19% followed by lingerie 17%, edible
products 16% and massagers 10%
TRAFFIC.
8. What has been your observation and insights of Indian consumer behavior with
reference to the following?
a. Average age Target audience starts from 18 years. But average age of consumers
lies in the age group of 2555 years
b. Preference for a product/brand Since consumers are not very much aware of range
of products so brand loyalty is still present in this industry. But, in terms of products,
lubricants, edible products and massagers are preferred
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c. Preference for packaging People are very sensitive towards the packaging and
discreetness which makes packaging a very important part of our strategy. We have
seen lot of traffic going on to our shipping and packaging related pages and hence we
have designed our packaging accordingly. All our products go in tamper proof white
bags with no mention of products or company.
d. Preference for delivery mode and delivery time NA
e. Pricing behavior Indians are price sensitive consumers and they want to make the
maximum of every purchase and thats why we receive many calls where consumers
ask for additional discounts for the orders.
Average ticket size is increasing continuously on a yearly basis. While it was only
INR1,300 in 2013, it is INR2,200 in 2016. The increase majorly is due to introduction
of new international brands from across the globe.
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Interview with Divya Chauhan Indian Sexual Wellness Industry: Secretly Growing?
9. Given the impediments from IPC Sections 292 and 294, one of the biggest challenges
for itspleaZure.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?
Both of these Sections state that any object/item/architecture cannot be displayed or
marketed in an obscene manner. Obscenity is very subjective in nature and its exact definition
is not mentioned anywhere but we have to be very careful in terms of products on our
website or the marketing efforts have to be in sync with these two Sections. We make sure
that none of our products is obscene.
Due to this restriction, many marketing routes like Google, Facebook and many other
online/offline mediums are barred for us. Hence, majority of our marketing has to come
through content, blogs, word-of-mouth and affiliation. The packaging also plays very
important part in the overall strategy. Since we are in intimate products industry, privacy is
very important for the customers. Hence, all our products go in tamper proof white bags
with no mention of products or company.
10. What are the current product categories that are sold on itspleaZure.com 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?
Currently, products are categorized in five main categories Women, Men, Lubricants,
Bedroom Play and Gifts. These are further classified into 25 sub-categories. Based on
sales trends, seasonality and consumer behavior, we are planning to add first timers and
hygiene categories in next 23 months.
Complete analysis is done fortnightly to review the performance of campaigns and flow of
products. It also helps us in deciding the amount of inventory to hold in stock.
11. Do you get customer feedback? If yes, how do you get the feedback and how do you
process the feedback for business purpose?
We have three options of getting customer feedback Social Media, Review on the product
at itspleaZure.com and Customer Feedback email.
In case of any complaint, maximum Turn-Around Time (TAT) is 2 hours. In case of query,
maximum TAT is 2 hours.
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Indian Sexual Wellness Industry: Secretly Growing? Interview with Divya Chauhan
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 four elements are important for most of the companies irrespective of the industry:
a. Product As of now, products are categorized in five main categories: Women, Men,
Lubricants, Bedroom Play and Gifts. These are further classified into 25 sub-categories.
We are trying to increase the product categories depth-and width-wise. It will give
our users better options of choosing the products of their choice and requirement.
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Interview with Divya Chauhan Indian Sexual Wellness Industry: Secretly Growing?
d. Finding Right Customers: Speaking of right customers, we cater to people only above
18 years of age and hence our marketing is also very niche in itself. Although, all
people above 18 years can become our target population but due to the factors such
as nature of the products, premium pricing and right mix of audience (to understand
the offerings), we focus more on people between 2545 years of age.
Furthermore, women are very important part of the mix for us since they are more open
about their sexuality and are willing to communicate their preferences more compared to
men. We receive lot of queries especially from women who are interested in experimenting
to enhance the experience for both partners.
13. What factors do you think can propel the growth of Sexual Wellness Industry in India?
As of now, it is estimated that by 2020, this industry will touch $2 billion. However, with
right education and exposure of these products, I am expecting it to become $2.5 billion
industry by 2020. We need to make the society more open and mature where it would be
acceptable to have a healthy dialogue around sex education, sexuality, sexual wellness,
personal relationships and other relationship related issues.
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14. What is itspleaZures plan of action to increase the sales and better consumer connects?
We are trying to increase the product categories depth-and width-wise. It will give our
users better options in choosing the products of their choice and requirement. Additionally,
since there is lack of awareness around products we try to provide 24-hour support through
call, Whatsapp and Skype for addressing customer queries. Going forward, along with
Metros and Tier-I, our plan is to target Tier-II and Tier-III markets where consumers have
high purchasing power, but either good quality products are not available or there is a
hesitation in buying sexual wellness products from pharmacies. If we can reach them in
the right manner, I think it will be a huge market to tap. But of course, as of now I foresee
lot of challenges due to marketing restrictions and connectivity issues, in reaching this
market.
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