CelebDirect (CELI.PK) is a direct-response celebrity incubator engaged in direct-response product marketing and celebrity placement/franchise opportunities. The company designs successful campaigns for marketing innovative consumer products it has licensed from inventors and others. These products are sold primarily through direct-to-consumer channels, as well as traditional retail outlets.
CelebDirect recently began marketing its first product, Muscle Flex, a multi-patent exercise device co-developed by Bob Wall, Muay Thai kickboxing champion Thomas Jones, and the world renowned Chuck Norris. The product will allow users to simultaneously increase strength, flexibility, and range of motion. CelebDirect has also recruited female fitness star Monica Brant and film star Wesley Snipes as celebrity endorsers of MuscleFlex.
In 2007, the US fitness equipment and apparel industry generated revenues of approximately $70 billion. This industry is expected to continue growing faster than the overall economy because of several factors. These factors would include the aging of the Baby Boomer generation and the increased understanding of the role fitness plays in preventing disease.
With the Muscle Flex product, CelebDirect is looking to tap into this market. The company has set a target of sales of 2,000 Muscle Flex units in 2008, and revenues of approximately $1 million. The company also anticipates reaching operating breakeven in the 4th quarter of 2008. Going forward, CelebDirect has set a target of quadrupling their sales growth over the next three to five years.
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