Spa Industry - India - Sample


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The Spa industry has observed strong growth and is expected to grow dynamically in the future. The rise in the annual disposable income among individuals coupled with the growing level of health awareness has created strong opportunities for existing and new entrants in this sector.

The report begins with an overview of the industry indicating market size and growth. The various types of spa and the treatments offered have been highlighted. The report marks the major geographical destinations in India and highlights the opportunities available for other industries affiliated to the spa market.

An analysis of the drivers explains factors contributing to the huge potential based on the high profitability, growth in medical tourism, a large consumer base, the existing lifestyle of consumers and government initiative. The key challenges identified include the lack of trained personnel and the lack of standards & accreditation.

The key trends discussed are the growth in medispas, real estate players diversifying into spa and resorts markets, foreign players entering the market, players targeting teens and men. Competition section identifies the major domestic and foreign players in the Indian market including the geographical presence, services offered and business outlook for each player. The report mentions about the new players planning to foray into the market and also covers the other key developments in the industry.

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Spa Industry - India - Sample

  1. 1. Spa Industry - India June 2009
  2. 2. 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 SPA INDUSTRY – INDIA . PPT 2
  3. 3. •Market Overview •Drivers & Challenges •Trends •Competition •Key Developments SPA INDUSTRY – INDIA . PPT 3
  4. 4. 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 SPA INDUSTRY – INDIA . PPT 4
  5. 5. 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
  6. 6. 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
  7. 7. 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” SPA INDUSTRY – INDIA . PPT 7
  8. 8. Thank you for the attention The Spa Industry – India report is a part of Netscribes’ Hospitality Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA Gagan Uppal Phone: +65 9651 6382 Phone: +91 98364 71499 E-Mail: E-Mail: About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. This report is published for general information only. Although high standards have been used in preparing this report, Netscribes (India) Pvt. Ltd. or Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and no part may be reproduced without prior written permission. SPA INDUSTRY – INDIA . PPT 8