6A – Identifying Opportunities in Economic & Regulatory Trends
Opportunity 1: Manufacture or supply biodegradable single-use products
a) According to Transparency Market Research, the biodegradable plastic bags market is expected to grow with the compound annual growth rate of 6.9% over the period of 2017-2022 (https://www.transparencymarketresearch.com/pressrelease/biodegradable-plastic-bags-sacks-market.htm). These single-use bags may be made out of entirely different materials such as root vegetable, thus plastic can be eliminated in the entire process of manufacturing these single-use bags. More than ever, the global community is aware of the environmental implication of using plastic bags. And more consumers are making an effort to make less plastic waste while they shop, one of the ways for consumers to make this effort is to bring reusable grocery bags to markets.
b) More and more cities, states and countries are creating a regulation to ban or to tax the usage of plastic bags. New York may pass a law that bans single-use plastic bags,(https://www.nytimes.com/2019/01/22/nyregion/newyorktoday/cuomo-plastic-bags.html) and the government of South Korea banned plastic bags on major supermarkets (https://www.cnn.com/2018/12/31/asia/south-korea-plastic-bag-ban-intl/index.html). There seems to be a drift towards this matter not only in the U.S. but also in other countries as well.
c) Most likely, the potential customers are going to be major grocery chains such as Safeway, Walmart, Whole Foods, and Publix. Other varieties of retail stores that use plastic bags can also be potential customers.
d) When it comes to supplying the product, it may be more beneficial to purchase from a third party manufacturer. Because being a supplier, there may be less of a barrier to entering the market, however, for manufacturing, it takes considerable time and capital to make a final product as this is a newly invented product.
Why?: Because more and more people want to go green, and there are still many cities and countries that have not adopted plastic bag alternatives. Personally, I've experienced this often in the city where I live, I always forget to bring reusable grocery bags and I return home with excess plastic bags, where I feel guilty of throwing it out. Many young consumers are leaning in the direction of being more environmentally conscious and those consumers are more likely to support a franchise with the same belief.
Opportunity 2: Cannabis in Florida
a) Florida's governor, Ron DeSantis, who was recently elected wants to adjust the existing cannabis laws in Florida. His plan is to abolish vertical integration would allow retailers to sell any products they choose whereas currently, retailers can only sell products they manufacture. https://www.forbes.com/sites/sarabrittanysomerset/2019/01/25/florida-cannabis-market-is-getting-rid-of-vertical-integration/#8e9c189cd3cb
b) Currently, there are very few licensed dispensaries in Florida and there are many people using medicinal marijuana. This regulation changes, it will allow individually licensed dispensaries to acquire products easier without manufacturing the cannabis. This is a good time to enter a medical marijuana retail business because one does not have to produce cannabis anymore in order to operate a dispensary retail business.
c) Medical marijuana patients in Florida
d) Despite the high cost of attaining a licensed marijuana retailer in Florida, these new regulations would allow more individuals retailers to meet the needs of the many medicinal marijuana users in Florida.
Why: I've seen many people wanting to move away from dangerous and addictive pharmaceutical drugs along with many elderly people while living in Florida. There are many potential medical marijuana customers in Florida because of the high numbers of senior citizens who use cannabis for their chronic pain or other conditions.
Opportunity 3: Automation in Retail Service
a) According to Digitaljournal.com, the industry of automated kiosk in places such as airports, malls, and retail stores, and fast-food restaurants are expected to grow to about 19 Billion USD by 2023. http://www.digitaljournal.com/pr/4121689
b) The No. 1 benefit of installing automated retail kiosks is that owners have fewer employee wages to pay. Although owners have to invest in purchasing the automated machine, in the long run, it will save them money.
c) Fastfood restaurants, airports, retail stores
d) Many retail stores already adopted automation technology commercially, and it's been proven by the leading companies that specialize in developing an automation system
Why: In recent years, there has been rapidly growing numbers of self serve kiosks in major retail stores and restaurants such as Panera Bread, Mcdonals, Amazon-Go, and Walmart with self-checkout. This trend is not only in America but also happening in other countries like Korea. During my recent trip to Korea, I experienced few fully-automated vendors without a human presence such as a convenience store where you must swipe your credit card to enter the store and a coffee shop where an automated machine makes you a customized coffee. If this trend catches up in the U.S., there is an opportunity to exploit this technology.
Opportunity 4: Creating VR Videos
a) With the release of VR technology, it has shown a potential to change the way disabled individuals learn. According to D2L.com, for learners with a disability, VR can provide access that they couldn't have before. Studies show skills acquired by handicapped individuals in VR environments can transfer to the real world. https://www.d2l.com/blog/gaad-how-virtual-reality-can-transform-the-way-people-with-disabilities-learn/
b) It's a new technology and it's still advancing a lot. And there is certainly demand in many genres from helping disabled learners to entertainment for all ages. There are many practical applications for this technology. It's 2019 and everyone is using more advanced technology.
c) Potential consumers are schools, facilities for the disabled, retirement community, and the general public.
d) It would be relatively easy to exploit it; as everyone becomes more exposed to today's new smart technology, concepts like VR have become very popular. Along with the entertainment value, there is also very important real-world applications.
Why: I've seen a handicapped person react to skiing for the first time on a VR on YouTube. It was a very emotional moment. I think making new technology accessible for everyone is important. For example, we live in a time where everyone is using smartphones, however, people who are blind and uses Brail for communication cannot use a smartphone. So, I want to make sure VR technology is accessible for people of any age or physical conditions.
a) According to Transparency Market Research, the biodegradable plastic bags market is expected to grow with the compound annual growth rate of 6.9% over the period of 2017-2022 (https://www.transparencymarketresearch.com/pressrelease/biodegradable-plastic-bags-sacks-market.htm). These single-use bags may be made out of entirely different materials such as root vegetable, thus plastic can be eliminated in the entire process of manufacturing these single-use bags. More than ever, the global community is aware of the environmental implication of using plastic bags. And more consumers are making an effort to make less plastic waste while they shop, one of the ways for consumers to make this effort is to bring reusable grocery bags to markets.
b) More and more cities, states and countries are creating a regulation to ban or to tax the usage of plastic bags. New York may pass a law that bans single-use plastic bags,(https://www.nytimes.com/2019/01/22/nyregion/newyorktoday/cuomo-plastic-bags.html) and the government of South Korea banned plastic bags on major supermarkets (https://www.cnn.com/2018/12/31/asia/south-korea-plastic-bag-ban-intl/index.html). There seems to be a drift towards this matter not only in the U.S. but also in other countries as well.
c) Most likely, the potential customers are going to be major grocery chains such as Safeway, Walmart, Whole Foods, and Publix. Other varieties of retail stores that use plastic bags can also be potential customers.
d) When it comes to supplying the product, it may be more beneficial to purchase from a third party manufacturer. Because being a supplier, there may be less of a barrier to entering the market, however, for manufacturing, it takes considerable time and capital to make a final product as this is a newly invented product.
Why?: Because more and more people want to go green, and there are still many cities and countries that have not adopted plastic bag alternatives. Personally, I've experienced this often in the city where I live, I always forget to bring reusable grocery bags and I return home with excess plastic bags, where I feel guilty of throwing it out. Many young consumers are leaning in the direction of being more environmentally conscious and those consumers are more likely to support a franchise with the same belief.
Opportunity 2: Cannabis in Florida
a) Florida's governor, Ron DeSantis, who was recently elected wants to adjust the existing cannabis laws in Florida. His plan is to abolish vertical integration would allow retailers to sell any products they choose whereas currently, retailers can only sell products they manufacture. https://www.forbes.com/sites/sarabrittanysomerset/2019/01/25/florida-cannabis-market-is-getting-rid-of-vertical-integration/#8e9c189cd3cb
b) Currently, there are very few licensed dispensaries in Florida and there are many people using medicinal marijuana. This regulation changes, it will allow individually licensed dispensaries to acquire products easier without manufacturing the cannabis. This is a good time to enter a medical marijuana retail business because one does not have to produce cannabis anymore in order to operate a dispensary retail business.
c) Medical marijuana patients in Florida
d) Despite the high cost of attaining a licensed marijuana retailer in Florida, these new regulations would allow more individuals retailers to meet the needs of the many medicinal marijuana users in Florida.
Why: I've seen many people wanting to move away from dangerous and addictive pharmaceutical drugs along with many elderly people while living in Florida. There are many potential medical marijuana customers in Florida because of the high numbers of senior citizens who use cannabis for their chronic pain or other conditions.
Opportunity 3: Automation in Retail Service
a) According to Digitaljournal.com, the industry of automated kiosk in places such as airports, malls, and retail stores, and fast-food restaurants are expected to grow to about 19 Billion USD by 2023. http://www.digitaljournal.com/pr/4121689
b) The No. 1 benefit of installing automated retail kiosks is that owners have fewer employee wages to pay. Although owners have to invest in purchasing the automated machine, in the long run, it will save them money.
c) Fastfood restaurants, airports, retail stores
d) Many retail stores already adopted automation technology commercially, and it's been proven by the leading companies that specialize in developing an automation system
Why: In recent years, there has been rapidly growing numbers of self serve kiosks in major retail stores and restaurants such as Panera Bread, Mcdonals, Amazon-Go, and Walmart with self-checkout. This trend is not only in America but also happening in other countries like Korea. During my recent trip to Korea, I experienced few fully-automated vendors without a human presence such as a convenience store where you must swipe your credit card to enter the store and a coffee shop where an automated machine makes you a customized coffee. If this trend catches up in the U.S., there is an opportunity to exploit this technology.
Opportunity 4: Creating VR Videos
a) With the release of VR technology, it has shown a potential to change the way disabled individuals learn. According to D2L.com, for learners with a disability, VR can provide access that they couldn't have before. Studies show skills acquired by handicapped individuals in VR environments can transfer to the real world. https://www.d2l.com/blog/gaad-how-virtual-reality-can-transform-the-way-people-with-disabilities-learn/
b) It's a new technology and it's still advancing a lot. And there is certainly demand in many genres from helping disabled learners to entertainment for all ages. There are many practical applications for this technology. It's 2019 and everyone is using more advanced technology.
c) Potential consumers are schools, facilities for the disabled, retirement community, and the general public.
d) It would be relatively easy to exploit it; as everyone becomes more exposed to today's new smart technology, concepts like VR have become very popular. Along with the entertainment value, there is also very important real-world applications.
Why: I've seen a handicapped person react to skiing for the first time on a VR on YouTube. It was a very emotional moment. I think making new technology accessible for everyone is important. For example, we live in a time where everyone is using smartphones, however, people who are blind and uses Brail for communication cannot use a smartphone. So, I want to make sure VR technology is accessible for people of any age or physical conditions.
ReplyDeleteHey Byung,
I also researched some regulatory changes related to marijuana. I find it interesting that legalizing medical marijuana has become a trend, followed by the legalization of recreational marijuana. The opportunity this provides new dispensaries and those who invest in this business is exciting to witness. I liked your conclusion that with the large population of elderly individuals in Florida, the demand for medical marijuana will increase.
Hey Byung,
ReplyDeleteYou were the first person who identified VR entertainment production to be an opportunity. It is definitely a interesting subject. I am still debating with myself if VR movies will be shown in a 360 cinema, or where everybody will have their own headset. I also choose to talk about marijuana as well.
Byong,
ReplyDeleteGreat post! I agree that biodegradable bags are a great economic trend in today’s society. More research shows how plastic is hazardous to the environment and the health of individuals. Recently, some counties banned plastic straws as I am impressed that we are taking a step forward in to saving our own environment. I am curious about the different innovations that people will come up with in the upcoming years revolving the elimination of plastic use.