Couple creates Web site to pursue wellness market

BOULDER — In today’s world, the effects of stress on mental as well as physical well-being are becoming more widely recognized.

According to the Mind/Body Medical Institute at Harvard University, 60 percent to 90 percent of all medical office visits in the United States are for stress-related disorders. As a result, it seems relaxation is as critical as exercise and a well-balanced diet to Americans who seek long-term health.

To capitalize on this growing awareness for the need to mix relaxation into everyday life, Boulder-based parent company, Kate & Company, launched RelaxandBreathe.com, a Web site offering a subscription service for relaxation reminders and an online store that sells stress-reducing products.

President Kate Harding, a certified biofeedback therapist and nurse practitioner with more than 30 years experience, and her husband, Jim Halbruegger, co-founded Kate & Company. Launching on Jan. 20, the couple primarily used personal savings to fund the $400,000 startup cost.

Prior to starting Kate & Company, Harding founded the Boulder Biofeedback Center, where she treated clients and observed how they consistently struggled to incorporate self-care techniques into everyday life. After noticing this trend for several years, the idea for RelaxandBreathe.com came to Harding in 2002.

?I noticed that (clients) would relax in the office, but when they were back in their usual environment — with all the busyness and craziness — it would be more difficult to remember to relax,? Harding said.

Before introducing the site, Kate & Company conducted market research to test the viability of the idea. From this, they learned that significant potential existed in the market they wished to tap.

?Our marketplace has been defined as the LOHAS (lifestyles of health and sustainability) market. It is estimated as a $230 billion marketplace with 63 million consumers,? said Jennifer Wolfe, vice president of brand management.

The reasons behind its booming potential can be attributed to a number of factors.

?It’s an industry that is growing and continues to grow as we have this infusion of cultures into our landscape,? Wolfe said. ?Acupuncture, yoga, massage and other similar types of approaches are shifting from being considered fringe to being more mainstream. There used to be a ?no-pain, no-gain’ attitude. But now we’re focusing more on a softer approach to living and focusing on quality of life.?

Kate & Company anticipates that the site’s revenue will come from a mixture of sources, including consumer and commercial subscriptions, proprietary media, site sponsorships and its online store.

At the core of the site is a membership-driven, Relaxation Reminder service powered by QueOn, a proprietary software application developed specifically to support the need for relaxation practices. Through QueOn, RelaxandBreathe.com members receive reminders to relax and can participate in relaxation exercises. Members also establish their own customized reminder delivery schedule and select their desired delivery channel, including e-mail, cell phone and Instant Messenger.

?The reminder service can be purchased for individuals, as well as given as gifts, and corporations can also purchase it for their employees,? Wolfe said.

As another means to generate revenue, Kate & Company has produced a ?Relax and Breathe, Volume I? compact disk that is being sold through its online store and in Borders Bookstores. Harding also anticipates CD sales to selected health-care and wellness providers.

?We already have one dentist who is interested in buying the CD and giving it to patients to help them with their treatment,? Harding said.

Subsequent CD compilations, she added, will provide support for various conditions such as temporomandibular joint disorders (jaw clenching and grinding), headaches and weight loss. She hopes to have additional CDs available for release by this spring or early summer.

Through its online store, RelaxandBreathe.com sells items that complement the well-being services and informative articles already offered on the site. To date, the store has between 10 to 15 items ranging from a Zen alarm clock to thermal therapy pads; however, Wolfe anticipates that other goods will be offered soon through the store or by ?click throughs? to select partner sites.

?We will look to partner with additional stores to expand the products offered and may look at licensing our own products,? said Wolfe. Such items could include herbal wraps, pillows, headphones, and additional relaxation support accessories for the workplace and for home. ?(The store) is in an evolutionary stage.?

Though the company initially remains focused on growing within Colorado, Harding and Wolfe expect to launch a national marketing effort by the end of the year. Based on their existing financial model, Kate & Company is on track to be a profitable operation by the second half of its second year.

Going forward, Kate & Company will look to forge strategic partnerships with other companies when it seems they can bring an added value to customers, Wolfe said. Kate & Company’s long-term goal is to be a $30 million to $50 million company within five years.

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