Page 14 - NTIT Solutions, LLC: “Go Locker”

Market Opportunity Analysis The increasing prevalence of sedentary lifestyles, longer working hours, and the consumption of fast and processed foods is contributing to a rising obesity rate and illnesses due to lack of exercise. However consumers are now more aware than ever of the effects of an unhealthy lifestyle, and are doing more to stay in shape and exercise. The growth in the at-home fitness industry is driven by these trends and rising gym and health club membership fees that have made personal gyms more popular. Ab Machine hopes to capitalize on these trends by providing the ultimate abdominal exercise experience, providing a full-dimensional, unrestricted core workout solution, all in a portable and compact small device solution. Growing Disposable Income A. Disposable Income Representing the amount of money consumers have to spend, per capital disposable income is a strong indicator for forecasting future consumer spending. Disposable income per capita in the United States is expected to grow to $42.8 thousand by 2020, representing a 2.2% Compound Annual Growth Rate (CAGR) from $36.8 thousand in 2013. General trends such a positive job growth and lower savings, will play a role in macroeconomic improvements to the economy leading to the expected increase in disposable income (Bureau of Labor Statistics 2014) Per Capita Disposable Income ($ in thousands) $44 $42.8 $43 $41.9 $42 $41.0 $41 $40.1 $40 $39.2 $39 $38.4 $37.6 $38 $36.1 $36.2 $36.4 $36.5 $36.6 $36.8 $37 $36 $35 $34 2008 2009 2010 2011 2012 2013 2014E 2015E 2016E 2017E 2018E 2019E 2020E Source: Bureau of Labor Statistics via IBISWorld (2014) 14