Sexual Healing: How Market Challenges Can Help You Evolve Your Brand & Find Deeper Consumer Connection
By Jill Di Donato, Brand Storyteller, Editorial Director
Every Thursday, THE BOARD BRIEFING brings you curated industry insights directly from our experts to your inbox.
Let’s talk about sex— the sexual wellness industry, which the market has taken for quite a ride. After initial enthusiasm from retailers like Sephora and Target, the sector is getting shadow-banned on social channels, disrupting a traditional digital marketing funnel. Brands are now pivoting to tech and health-focussed messaging in order to land with a broader consumer base.
This BOARD BRIEFING unpacks the current state of the sexual wellness industry—looking at what worked initially, what challenges arose, and how brands are taking these challenges and turning them into opportunities. This isn’t just a lesson in changing tactics. When you build your brand to adeptly navigate market ebbs and flows, you position yourself to ultimately achieve brand success.
Ahead, three members of THE BOARD, Rebecca Bartlett (Principal & Executive Creative Director @ Bartlett Brands | Innovation Brand Builder | Early Stage Investor), Dominique Gagnon ( Brand Venture Architect | Emerging White Space Strategist | Formerly Principal Brand Builder of DEINDE, Caldera + Lab, Isbel + Co), and Kirsten Ludwig (Kirsten Ludwig Founder @ IN GOOD CO | Creative Leader, Brand Builder + Advisor ) tell Jill Di Donato what we can learn from the challenges and opportunities they’ve observed firsthand.
What Worked Initially:
Early Trend Spotting
In the swiftly evolving landscape of consumer health, the rise of FemTech marks a significant cultural and commercial pivot. This burgeoning sector reflects a deeper societal embrace of women’s health issues, transforming private conversations into public opportunities for empowerment and entrepreneurship.
Gagnon highlighted the early indicators of this shift, observing significant opportunities as discussions around women's sexual health moved from private to public spheres. These changing dynamics underscore the potential for new business ventures as women openly invest in their health needs.
Ludwig also recognized the powerful confluence of female empowerment and self-care, noting how major retailers like Sephora and Target were quick to capitalize on these resonating values. This strategic alignment by prominent stores not only validated the trend but also amplified its reach and impact within the marketplace.
Product-Based Businesses
Gagnon noted a clear preference for backing product-based ventures. "Investors historically favor product-based sexual wellness businesses over service or tech, due to perceived proven monetization potential," she explains. This preference isn't necessarily driven by a strong problem/solution fit but rather by a traditional pattern of profitability seen in established companies such as Adam & Eve and Lovehoney.
New entrants in the FemTech and sexual wellness space must consider how their business models align with investor expectations and industry precedents, potentially guiding their strategic decisions towards areas with a more established track record for financial returns.
Challenges in FemTech and Sexual Wellness
The journey of scaling, investor biases, and operational hurdles presents a complex landscape for companies looking to grow and succeed.
Scaling Challenges: Bartlett highlights the difficulties faced by brands even when they achieve initial success. Despite securing national distribution at Target and establishing a healthy direct-to-consumer (DTC) business, Bartlett notes, "Scaling has been difficult." This challenge underscores the gap between initial market entry and sustained market growth, a hurdle many in the industry face.
Stigma from Male Investors: Bartlett further addresses the gender dynamics that affect funding, particularly for brands focusing on women's health and pleasure during perimenopause and menopause. "The stigma of the category has hurt their ability to raise the necessary funds to scale quickly," she explains, pointing out the discomfort and lack of understanding among predominantly male investors. This disconnect not only stifles innovation but also limits access to crucial capital for growth.
Product-Based Business Challenges: Gagnon discusses specific issues facing product-based sexual wellness brands. She points out, "The data suggests that the average woman owns only one vibrator and does not often replace it." This purchasing pattern poses significant challenges for these brands, including limited repeat purchases, lower lifetime value (LTV), and slower retail turnover compared to other beauty categories.
Censorship on Social Platforms: Ludwig sheds light on the digital marketing challenges that arise from censorship on social platforms. The constraints imposed by these platforms force brands to refine their messaging. Ludwig observes, "The pivot to tech and health messaging isn't just dodging censorship, it's actually sharpening brand focus." This environment pushes brands to communicate more effectively and focus on what truly matters to their customers.
Opportunities in FemTech and Sexual Wellness
In the realm of FemTech and sexual wellness, emerging opportunities underscore the potential for significant evolution and impact. Leaders in the industry recognize the shift towards more comprehensive solutions and the strategic redefinition of brand narratives.
Service & Tech Solutions: "I applaud those working to transition to health-based service or tech-based solutions, as our consumer problems in this space require more than a product to serve well." Gagon shared. This approach not only diversifies the offerings but also aligns them more closely with the nuanced needs of consumers, suggesting a broader scope for addressing sexual wellness.
Evolve Brand Story: Ludwig advises brands to deeply root their stories in human needs, suggesting that building direct community relationships and strategically partnering with adjacent categories can greatly enhance brand impact. She states, "The winners won't be those playing defense against restrictions, but those who use these challenges to create more meaningful connections." What may seem like an obstacle today represents a vital opportunity for brands to forge deeper bonds with their audiences tomorrow.
She further adds, “The sexual wellness industry shows us that great brands transcend category challenges.” This perspective encourages brands to view industry hurdles not just as barriers, but as catalysts for innovation and deeper engagement.
Conclusion: The dialogue around opportunities in FemTech and sexual wellness reveals a landscape ripe for transformative approaches. As the industry continues to grow, the integration of tech and service solutions, along with a reimagined brand narrative that resonates on a human level, stands to redefine how companies connect with and empower their consumers. For businesses in this space, the future holds promising prospects for those ready to leverage these insights into actionable strategies that transcend traditional limitations and tap into the real and evolving needs of their market.
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