Spa Industry - India
June 2009

Executive Summary
Indian spa market valued at INR X bn in 2008; Expected to grow at x% p.a. till 2012
Major growth has been witnessed in Kerala, North India and Maharashtra
Market Growth in spas provides opportunities to affiliated industries of products, equipment, consultancy
and services
Drivers Challenges
High profitability Lack of trained personnel
Medical tourism Lack of standards & accreditation
Drivers &
Large consumer base
Challenges
Lifestyle of consumers
Government initiatives
Growth in medispas
Real estate players diversifying into spa and resorts markets
Trends Foreign players entering the market
Targeting teens and men
The market is highly fragmented with many domestic and global players
Global players have 30% market share in the Indian spa market
Domestic Foreign Expected Entrants
Competition • CMYK Health Boutique • Body Spa International
Consultants Pvt. Ltd.
• Franchise India Holding
• Floriana Group • Nivea India Pvt. Ltd
• Golden Palms Spa • MSpa International • XpressSpa
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•Market Overview
•Drivers & Challenges
•Trends
•Competition
•Key Developments
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Spa industry in India is at a nascent stage but growing rapidly
with a wider range of formats available
Market Overview Market Size & Growth
•Global spa market is valued at INR X bn
INR bn
•In comparison, India’s ~x spas generated 40
Z
revenues of INR Y bn in 2008 x%
30 Y
•Most popular Spa therapies across India are
Ayurvedic massage, Thai massage, Swedish 20 X
massage and German body treatment W
10 V
•1000 new spas are expected by 20-- at an 0
investment of INR X bn 2008 2009e 2010e 2011e 2012e
Revenue Split (Gender – wise) Spa Types and Treatments
Spa Type Location Spa Treatment
Male
Male customers
Small setups across Facials, massages,
increasing by Day Spa
the country manicures & pedicures
almost 80% Y%
annually Destination Large setup in Body treatments,
Spa remote locations aromatic rubs
Prevalent in large Body treatments,
Resort Spa
X% hotels aromatic rubs
Female
Hydrotherapy and
Small setups across
Medical Spa various surgical
the country
procedures
Source: IBEF “Global spa majors planning to set up shop and pamper India”, Sep 2008; Gcimagazine “Indian Spas” Jun 2007; Times of India “Ministry plans to regulate spas,
invites guidelines from industry”, Apr 2008
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Drivers & Challenges
Drivers
High Profitability
Challenges
Lack of Trained Personnel
Growth in Medical Tourism
Large Consumer Base Lack of Standards & Accreditation
Lifestyle of Consumers
Government Initiatives
SPA INDUSTRY – INDIA . PPT 5

Key Trends
Targeting Teens and Men Growth in Medispas
Key
Trends
Foreign Players entering the Real Estate Players diversifying
Market into Spa and Resorts Markets
SPA INDUSTRY – INDIA . PPT 6

Highly fragmented market with few market leaders, which
primarily are chains run by luxury hotels
Competition Market share: Domestic vs. Global
•The market is highly fragmented with ~x spas
across the country Global players
•Most of the major spa’s have been developed Y%
in association with large hotels or players in
the hotel industry themselves have expanded
their services to encompass spa services X%
Luxury hotels like XYZ, ABC run spa chains in their Domestic players
hotels
•Destination spas are competing for both local Entry Route for Foreign Players
and foreign customers
•Many standalone day and destination spas are Market Entry Route
being set-up in major cities
AA and BB are such major establishments
ABC Ltd plans on opening a chain of spas across Enter as a stand alone Tie-up with hotels/
India brand resorts
•Domestic entrants are abound in the market
with plans for multiple locations concentrated • ABC Pvt. Ltd. • UV Ltd tied up with AB
in tier- I and tier - II cities • XYZ Ltd Ltd
Sources: Business standard “Global spa majors planning to set up shop and pamper India” Sep 2008; mapsoftheworld “best spas in India”
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