Study of Wellness and Spa Industry

Priyanshi Kukreja

Sanial Anand

Shruti Parasramka

Sohini Bhuwalka

Vardhini Krishna 

Presented by:

Executive Summary

• The wellness industry in India is at its growth stage and is gradually gaining popularity amongst the common people

• Spas have been working hard to sustain and grow their businesses, deploying a wide range of approaches to connect with and incentivize the consumer

• The industry has a lot of scope to flourish as the lifestyle of people is demanding a bend towards to wellness and fitness sector

 

Research purpose and objectives

 

To provide a rigorous investigation of the market and consumer forces driving the growth of wellness services and products.

To collect some of the first ever primary data from consumers about their views on wellness.

To highlight key areas of opportunity and intersection where the spa industry can take advantage of growth and partnership opportunities in myriad wellness- related sectors.

To provide recommendations on how spas – both as a collective industry and as individual business owners – can position themselves strategically to capitalize on growing wellness lifestyle trends.

   

Research Methodology 

The research was conducted in the following manner:

Collection of Secondary data through an extensive literature review of the major studies, reports, data, and qualitative assessments available on market trends in key wellness lifestyle sectors (such as health/medicine, beauty, fitness, etc.), as well as on the broader wellness industry and concept.

 

Limitations 

The following are the limitations of our study:

In order to maintain their confidentiality, the spas were unwilling to share their customer database. Hence, the profile of customers and customer details couldn’t be obtained

Due to monetary constraints, a number of paid online reports could not be obtained

Lack of man power confined our study.

Historical Background

India is currently enjoying a surge in the wellness industry, with international visitors attracted by quality and affordable medical tourism, and the alluring traditions and benefits of Ayurveda and yoga

With the rising uptake of domestic low-cost airlines and the middle class’ growing appetite for consumerism, the domestic demand for wellness and spa activities is expected to expand in the coming years.

Introduction

Defining Wellness • The American Heritage Medical Dictionary terms ‘wellness’ as a ‘condition of good physical, mental and emotional health, especially when maintained by an appropriate diet, exercise and other lifestyle modifications.’

• In India, traditional medicine and preventive practices have always stressed on ‘a healthy mind in a healthy body’. Accordingly, Indian traditional practices of ayurveda, yoga and meditation were aligned to deliver physical and internal well-being, mental peace and happiness. 

Wellness comprises the following five segments- • Beauty services and cosmetic

products• Fitness and cosmetic products• Nutrition • Alternate therapy• Rejuvenation Spas

 

The Wellness Eco System 

The wellness industry in India has evolved rapidly from its nascent unstructured beginning in the early 90s to a comprehensive ecosystem today including consumers, providers, adjacent industries, facilitators and Government. 

• Consumers mainly comprise a young population with rising income levels

• Providers offer wellness services and products to meet the hygiene, curative and enhancement needs of the consumer  

• Adjacent industries such as healthcare, media, retail, gaming, hospitality and education are capitalizing on the growth of the wellness sector to generate additional revenue streams, leverage existing competencies and offer a wider array of services/products to customers 

• Facilitators include employers, insurance companies and schools, who are likely to play a key role in encouraging and inculcating pro-wellness habits among consumers going forward •The Government wears multiple hats in its roles as a provider, facilitator, enabler and regulator in the industry

Consumers of the Wellness Industry

• The young population in India is the core target group

• India’s growing middle class

• Increase in discretionary spends is positive for the industry

• Growing number of lifestyle diseases makes wellness relevant today

SPAS• The ancient concept of spa revolved around the therapeutic powers of water fortified

with the powers of minerals

• Mineral springs in ancient times were renowned for their therapeutic values ,especially in Rome where hundreds of roman baths did double duty as bath houses and health centres

• Over the time, resorts and accommodation mushroomed around these springs where people congregated

• Where there were no natural springs, canny entrepreneurs built mind-body rejuvenation centres and fitted them with modern gadgets

• In the modern day spa, people can detox, distress and rejuvenate themselves without bothering to leave town.

Activity Segmentation

The industry has attracted a number of domestic entrants

and international players. Established players are pursuing

revenue maximisation through product and service

diversification. They are also exploring newer geographies.

Franchising is emerging as a popular option for scaling up.

Micro segmentation to develop better targeted value

propositions for consumers and commercialisation of

traditional Indian home remedies are other emerging trends

in this industry

Industry Trends

 

Key Trends

Competition in the Indian Spa Industry:

 

• The Indian spa industry is highly fragmented with spas across the country.

• As of now, around 70 per cent of the spa business is run by local brands, while the rest is taken over by international spa firms

• The industry is expected to witness exponential growth in the times to come and many domestic and international are setting up expansion plans

• International brands like MSpa international from Thailand, Aman resorts from Singapore and express spa from us are establishing a presence and planning to scale up

Findings and observations

The main problems are as follows:

Lack of Standards – there are no organisations currently.  

Lack of Accredited Training Institutes.   Lack of Accredited Spa’s.   Lack of Uniformity in Traditional Treatments - Every Spa one visits in India do the Traditional Treatments

differently, simple therapy like Ayurvedic Massage is done in different manner in different places, for example, Shirodhara is done at any time of the day, where as it is strictly contra indicated in the afternoons.

  No Association to Address Issues & Grievances of the Industry.   Lack of Government support in promotion of industry except in few cases.   Lack of Awareness in all strata’s of the society.  

Shady places working under the name of Massage joints giving a bad name to the profession & Industry.

  People not choosing the Spa Industry as a profession as they would choose any other off course due to

the bad name acquired by the Industry due to wrong doings by few.   Non-sharing, discreet & Orthodox attitude of some Ayurvedic Practitioners not wanting Ayurveda to be

used in Spa Industry.   Many Practitioners looking at Ayurveda as a Therapeutic Modality rather than Lifestyle Management

Modality.  The Indian spa industry, which is growing at around 20-30 per cent annually due to increased affluence

of people and lifestyle related ailments, is still unregulated and lacks trained therapists. India needs 20,000 trained therapists and there are over 2300 spas, and there are only 1000 trained therapists in India. 

Use of Non-Standardized products.

  

Analysis 

The new spa trends that will drive the Indian market are:• Medical Tourism – The Truth of an

Affordable Health Destination - Medical wellness and cosmetic med spas is a booming business as it fills certain critical gaps in the traditional health care system. Spas tie in with medical tourism as part of the “post-op” recuperative holiday.

• Many hotel/resort spas will recognize the new opportunity that medical tourism presents and market themselves as ideal pre- and post-operation stays 

Conclusion  

India’s fast-evolving wellness world presents many opportunities for spa developers, owners and operators. The time is ripe to take advantage of the growing attraction of India as a centre of wellness and medical tourism for both domestic and international spa-goers, however these activities should not just be limited to Kerala or the Himalayas, but also in urban areas where day spas can be promoted as oases of peace and relaxation.

 

Thank You!