Catering to Addiction

Index : 1,959 | 1Yr : +17.06% | 1Mo : +1.99%

Category : Current Trends

Min Investment : 24,512

Sharpe Volatility Trend

Habits are easy to develop and hard to give up, especially if they are addictive. These companies recognize these opportunities and have built long lasting businesses around the concept of addiction. It is important to note that there is a very big loyalty factor when it comes to addictive substances and habits. Once a product or service manages to satisfy a user, the pull factor creates a natural inbound demand and repeat usage for long periods of time. This is especially true since the psychological need to satisfy the urge is frequent.

It is not that there is a lack of awareness about it. Addiction is a human behaviour and no population is immune from it. It afflicts people of all ages, races, classes and professions. Addiction can be of various degrees from mild to chronic. While it sounds sadistic to encash on these habits, it is not entirely true as these businesses intend to cater to the recreational use and not necessarily over-abuse.

Since they usually have long lasting socio-economic influence on populations, government regulations is the most important external factor to to keep a watch on. These businesses are recession free and have stable growth rates owing to unique consumption patterns.

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