Presentation at FICCI conference

1. INVESTMENT IN WELLNESS INDUSTRY
FICCI Wellness 2010
Mumbai, August 25, 2010
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2. WELLNESS: A HUGE GROWTH
OPPORTUNITY
• Industry estimate: Rs. 11,000 Crore
• Growing at 30 - 35% per annum
Rs. 3,500
Crore
Incremental Business
per annum!

3. HOUSEHOLDS WITH INCOME> RS. 50 LAKH
GREW 8 TIMES IN THE PAST DECADE
Number of households (figures in ‘000)
1600
1400 4 lakh households
141 > Rs. 50 L income
1200 255
1000
10,000+
800
5,001 - 10,000
600 52
103 1,037 2,001 - 5,000
400
20
200 40 454
201
0
2001-02 2005-06 2009-10
SOURCE: NACAER
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4. INDIA: TOP 10 HEALTH PROBLEMS
Frequent colds/flu 41%
Headaches/Migraines 40%
Stress 37%
Gastrointestinal/digestive problems 37%
Anemia (iron deficiency) 34%
Sleep problems 34%
Joint health problems 34%
Diabetes 33%
Bone health/strength 33%
Tiredness, lack of energy 33%
SOURCE: HEALTH FOCUS INTERNATIONAL
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5. INDIA: OPPORTUNITIES FOR WELLNESS
Frequent colds/flu 41%
Headaches/Migraines 40%
Stress 37%
Gastrointestinal/digestive problems 37%
Anemia (iron deficiency) 34%
Sleep problems 34%
Joint health problems 34%
Diabetes 33%
Bone health/strength 33%
Tiredness, lack of energy 33%
SOURCE: HEALTH FOCUS INTERNATIONAL
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6. “LOSS OF CONTROL” FEELING:
OPPORTUNITY FOR WELLNESS INDUSTRY
Change
Strongly agree/agree 2000 2003 2005 2008 ‘08 vs.
‘00
My short-term health depends on
95% 87% 86% 81% -14
how well I take care of myself
As long as I take care of my heath
day-to-day, the long term will take 90% 87% 83% 69% -21
care of itself
I have a great deal of control over my
89% 72% 77% 67% -22
future health
My stress levels can be managed by
93% 83% 82% 60% -33
me
If I take the right actions, I have a
85% 66% 78% 56% -29
good chance of avoiding cancer
SOURCE: HEALTH FOCUS INTERNATIONAL
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7. SPAS, GYMS & SALONS –
WORTH INVESTING?
• Estimated SPA rooms (organized sector): 2,000 – 2,500
• Estimated number of gyms: 5,000
• Availability will undoubtedly double in next 3 – 5 years.
• Is it worth investing?
– Rs. 1.5 to 2.5 crores for a gym
– Rs. 30 – 50 lakhs for a fitness & slimming center
– Rs. 12 – 25 lakhs for a day spa/ beauty salon
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8. BUILD A LONG TERM MODEL OF SUCCESS
• Just being there is not a guarantee for
success
• Competition will get stronger
• For investment to payback – focus on the
business structure & strategy
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9. THE PILLARS OF SUCCESS
Service
Branding
Quality
Loyalty Pricing
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10. SUCCESS STRATEGIES - 1
Motivate
Train Monitor
Service
Quality
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11. SUCCESS STRATEGIES - 2
Reward
Cross-
Service
sell
Loyalty
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12. SUCCESS STRATEGIES - 3
Unique
Proposition
Target Brand
Segment Experience
Branding
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13. SUCCESS STRATEGIES - 4
Competition
Special
Target
Offers/
Segment
Deals
Pricing
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14. THANK YOU
PRANESH.MISRA@BRANDSCAPESWORLDWIDE.COM
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