Based on in-person interviews conducted with 800 households in Indonesia, Youvit found that the multivitamins market is dominated by kids at 87%. To break into the kids segment, it is crucial for consumers to try the products. Retail is therefore as an essential part of offline engagement with consumers to build trust and credibility.
The firm explained a three-pronged approach: Enter the kids-dominated supplements sector, which makes up 57% of sales volume compared to the beauty (24%) and adult (19%) categories; use kids as the hook to convert household members, as customers often purchase kids' products before they buy the adult or beauty ranges; and build brand loyalty from a young age, increasing the chances of retaining them as they grow into adults.
“We believe this is the easiest way to enter the market. From there, we can build up the brand, as kids help convert customers to our other product ranges.
"The mother is typically the decision-maker, buying products for her kids and herself. By targeting kids, we gain entry into the household and appeal to the mother, who may then buy for herself and her husband.
"Additionally, the kids will grow up [trusting the brand that they’ve taken since young], so this approach is valuable in the long term,” said Wouter van der Kolk, co-founder and CEO of Youvit. He was speaking at our Growth Asia Summit held in Singapore from 16 to 18 July.
Founded in Indonesia in 2017, Youvit saw an opportunity to focus on preventive health and to be a pioneer, as they observed many incumbents were out of touch with the new generation of customers.
A shift in consumer behaviour
In the food category, there is a shift from indulgent to more functional products. As for supplements, people have been reactive, taking painkillers or supplements only when they are already sick.
However, more are adopting healthier lifestyles. This affects their use of supplements, where people are moving from reactive (taking supplements only when they feel unwell) to preventive (consuming supplements to boost immune health and prevent sickness).
“Pills in white and brown glass bottles are boring, not really sexy for the Millennial mum or the Gen Z. They also marketed these supplements as curative rather than preventive. So we felt there was room for innovation, to bring something new and exciting versus what was already there back then.
"Consumers get a lot of other nutrients like carbs, protein and fibre from their meals. but unfortunately, deficiencies in micronutrients are very high – about 90% of Indonesians do not eat enough fresh vegetables and fruits,” said van der Kolk.
“Temptations and responsibilities result in a start-stop relationship with healthy habits. So we make gummies delightful and exciting, something that you look forward to having every day. This works for kids too. They don’t like pills and tablets but they enjoy gummies.”
Youvit offers a complete range of vitamins, including supplements for omega-3 and a high dose of DHA, in just one gummy a day. This keeps it affordable for a wider customer base. They're available in strawberry, orange, and pineapple to appeal to kids.
Affordable nutrition in emerging markets
Youvit’s expansion strategies focus on emerging markets within APAC, which include Malaysia, Thailand, and the Philippines. It is working with Guardian and Watsons across the region and building online presence at the same time to target a new generation of consumers.
For emerging markets, consumers tend to prioritise taste and favour smaller pack sizes. Youvit’s 7-day packs are available from IDR 19,540 (USD 1.20) and its 30-day packs starts from IDR 77,346 (USD 4.75) – which acknowledges the budget constraints of mass-market consumers.
Secondly, in terms of consumer education and distribution, offline presence is crucial for building trust as it offers opportunities for sampling. Partnering with well-known retail chains also lends credibility to new or lesser-known brands.
As for level of awareness, compared to those in developed markets, consumers in emerging markets also tend to be less educated about supplements. This means simple product offerings that focus on the basics without using too many buzzwords.
The household survey also revealed that syrups and chewables are preferred supplement formats for kids.
“In the past year, 60% of consumers preferred syrups, 50% preferred chewables, and 26% preferred gummies. But the consumers tried the gummies and they love it. It’s only a matter of time that they will switch preferences,” said van der Kolk.
To meet the nutritional needs of kids, each Youvit multivitamin gummy contains 10 vitamins, zinc, and curcuma. For the DHA gummies, each one contains 50mg DHA, 8.4mg EPA, and 2mg ALA. All ingredients and its amounts are listed on pack, and they comply with recommended daily allowances. The active ingredients - vitamins, minerals, omega-3, and collagen - are sourced globally and the gummies are manufactured in Indonesia.
Earlier this year in June, Youvit launched the curcuma range which focuses on strengthening kids’ immunity. It costs IDR 9,900 (USD0.60) for a 7-day pack and contains vitamins C, D and B12, and zinc.
However, the firm is also keen to enter the slightly premium market. By August, the firm will launch the lutein range for eye health, targeting children affected by the blue light from digital devices.
This will retail at a higher price compared to its existing range. For a 7-day pack, the eye health gummies will cost IDR 29,900 (USD 1.85).
They will contain vitamins A, C, E, as well as lutein and zeaxanthin, carotenoids that protect the eyes from sunlight damage.
