WeightWatchers 2013 Annual Report Download - page 29

Item 1A. Risk Factors
You should consider carefully, in addition to the other information contained in this Annual Report on
Form 10-K and the exhibits hereto, the following risk factors in evaluating our business. Our business, financial
condition or results of operations could be materially adversely affected by any of these risks. The following
discussion of risks is not all inclusive but is designed to highlight what we believe are the most significant risks
that we face. Additional risks and uncertainties, not presently known to us or that we currently deem immaterial,
may also impair our business, financial condition or results of operations.
Competition from other weight management industry participants or the development of more effective or
more favorably perceived weight management methods could result in decreased demand for our services
and products.
The weight management industry is highly competitive. We compete against a wide range of providers of
weight management services and products. Our competitors include: self-help weight management regimens and
other self-help weight management products, services and publications, such as books, magazines and websites;
commercial weight management programs; Internet, free mobile and other weight management applications,
activity monitors and other electronic weight management approaches; dietary supplements and meal
replacement products; weight management services administered by doctors, nutritionists and dieticians; surgical
procedures; the pharmaceutical industry; government agencies and non-profit groups that offer weight
management services; and fitness centers. Additional competitors may emerge as new or different products or
methods of weight management are developed and marketed. More effective or more favorably perceived diet
and weight management methods, including pharmaceutical treatments, fat and sugar substitutes or other
technological and scientific advancements in weight management methods, also may be developed. This
competition may reduce demand for our services and products.
The purchasing decisions of weight management customers are highly subjective and can be influenced by
many factors, such as brand image, marketing programs, cost and perception of the efficacy of the service and
product offerings. Moreover, customers can, and frequently do, change weight management approaches easily
and at little cost. For example, our revenue was adversely affected by increased popularity and media exposure of
low-carbohydrate diets in 2003 and 2004, and more recently, by the popularity of mobile technology, which has
led to increased trial of free mobile and other weight management applications and activity monitors. Any
decrease in demand for our services and products may adversely affect our business, financial condition or
results of operations.
If we do not continue to develop innovative new services and products or if our services and products do
not continue to appeal to the market, or if we are unable to successfully expand into new channels of
distribution, our business may suffer.
The weight management industry is subject to changing customer demands based, in large part, on the
efficacy and popular appeal of weight management programs. The popularity of weight management programs is
dependent, in part, on their ease of use and channels of distribution. Our future success depends on our ability to
continue to develop and market new, innovative services and products and to enhance our existing services and
products, each on a timely basis to respond to new and evolving customer demands, achieve market acceptance
and keep pace with new nutritional, weight management, technological and other developments. We may not be
successful in developing, introducing on a timely basis or marketing any new or enhanced services and products,
and we cannot assure you that any new or enhanced services or products will appeal to the market. Our future
success also will depend, in part, on our ability to successfully distribute our products and services through
appealing channels of distribution, such as mobile. Our failure to develop new services and products and to
enhance our existing services and products, the failure of our services and products to continue to appeal to the
market or the failure to expand into appealing new channels of distribution, could have an adverse impact on our
ability to attract and retain members and subscribers and thus adversely affect our business, financial condition or
results of operations.
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