Gaiam Launches Magalog

According to a report from Boulder, CO-based Natural Business Communications and the Harleysville, PA-based Natural Marketing Institute, the lifestyle of health and sustainability (LOHAS) market generated $226.8 billion in sales in the U.S. last year. Multititle mailer Gaiam, which sells natural-living and eco-friendly products in its Real Goods, Harmony, Inner Balance, SelfCare, and Living Arts catalogs, already has a foothold in that market. But the Broomfield, CO-based marketer hopes to expand its market share with the June launch of its Gaiam Lifestyle magalog.

Gaiam distributed 15,000 copies of the magalog, says president/chief operating officer Lynn Powers. Several thousand copies of the 196-page book were mailed to house file names, and the rest were sold in newsstands and natural-food stores nationwide for $4.

Gaiam Lifestyle sells products that fall into such categories as Health & Wellness, Culture & Spirituality, Conscious Clothing, Natural Home, and Eco-Living. In addition to selling product, Gaiam Lifestyle features interviews and service articles related to the merchandise. The average price point is $40, and the average order has been $100. Best-sellers include videos and natural home products. The response rate so far exceeds 2%, Powers says.

The magalog isn’t Gaiam’s only attempt to gain a greater share of the LOHAS market. This fall the company is launching Gaiam Organics, a line of organic textiles that will include clothing for adults and infants, bedding, and bath goods.

Even prior to the launch of Gaiam Lifestyle, the company enjoyed a significant rise in sales. For the six months ending June 30, revenue was $39.7 million, a 66% jump from $23.9 million for the same period of 2000. (The company’s acquisitions of Real Goods and SelfCare during the past year contributed to the increase.) During the same time frame, net income more than doubled, to $971,431 from $403,744.

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