Market valuation: Vinnd’s turnover projected estimation by 2022
According to World Health Organization, there are more than 2 billion people that are considered to be overweight. It is one-third World’s population. Weight loss and weight management is no doubt, but the hot segment of the global wellness market.
Our estimations show that Vinnd’s Serviceable Obtainable Market (SOM) size is projected to be $23,368,773,255 USD, which is only 1% of Served Available Market. You may think that projections are crazy.
“How big is your target market?” is a question often asked by our investors. Usually, investors want to invest in large and drastically growing markets. Most entrepreneurs hesitate when answering this question. VCs will throw terms like TAM, SAM, and SOM at an entrepreneur.
We have presented our market valuation according to those metrics approved by such VC’s like Andreessen Horowitz and Sequoia Capital. There is no need to be intimidated by these abbreviations. We will give a quick recap of what these terms mean.
We use the term marketing often, but we rarely talk about markets, the groups of people we market to. What does our market look like?
The Potential Available Market (PAM) is the total population who have interest in acquiring your product or service. According to Nielson’s Global Wellness and Health Report, there are 49% of the global community trying to constantly lose their weight. This gives us potential market for whom we may market our product.
Total Addressable Market (TAM) is a quick metric of the revenue opportunity available for a product or service.
Served Available Market (SAM) refers to the slice of TAM that indicates the specific solution. For example, if the Total Available Market for all weight losers then Served Available Market refers to those who lose weight by dieting. 75% percent of “weight losers” prefer dieting over other methods to manage their weight, which means more than 2 billion people would potentially buy our product on within our price policy.
Serviceable Obtainable Market (SOM) by definition refers to what percentage of SAM plans to achieve. Working with weight management and weight loss, where prevalently market’s purchasing power depends on how companies message fits the mentality of entry point market, it is hard to predict anticipated market share. We played safe and took into account only entry point market values, which build up only 1% percent of SAM.
Find out more about how Vinnd plans to achieve its SOM by 2020 in our upcoming blog post.
