ayurvedic spa.pdf

Spa Industry - India

June 2009

2SPA INDUSTRY – INDIA.PPT

SAMPLE

Executive Summary

Market

Drivers &

Challenges

Trends

Competition

� 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

�Growth in spas provides opportunities to affiliated industries of products, equipment, consultancy

and services

�Growth in medispas

�Real estate players diversifying into spa and resorts markets

�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

Drivers

�High profitability

�Medical tourism

� Large consumer base

� Lifestyle of consumers

�Government initiatives

Challenges

� Lack of trained personnel

� Lack of standards & accreditation

Domestic Foreign Expected Entrants

• CMYK Health Boutique

• Floriana Group

• Golden Palms Spa

• Body Spa International

Consultants Pvt. Ltd.

• MSpa International

• Franchise India Holding

• Nivea India Pvt. Ltd

• XpressSpa


•Market Overview

•Drivers & Challenges

•Trends

•Competition

•Key Developments


SAMPLE

Market Size & Growth

Spa industry in India is at a nascent stage but growing rapidly

with a wider range of formats available

•Global spa market is valued at INR X bn

•In comparison, India’s ~x spas generated

revenues of INR Y bn in 2008

•Most popular Spa therapies across India are

Ayurvedic massage, Thai massage, Swedish

massage and German body treatment

•1000 new spas are expected by 20-- at an

investment of INR X bn

Market Overview

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 Types and Treatments

0

10

20

30

40

V

2008

W

2009e 2010e

Y

2011e

Z

2012e

x%

X

INR bn

Revenue Split (Gender – wise)

Female

X%

Male

Y%

Male customers

increasing by

almost 80%

annually

Spa Type Location Spa Treatment

Day SpaSmall setups across

the country

Facials, massages,

manicures & pedicures

Destination

Spa

Large setup in

remote locations

Body treatments,

aromatic rubs

Resort SpaPrevalent in large

hotels

Body treatments,

aromatic rubs

Medical SpaSmall setups across

the country

Hydrotherapy and

various surgical

procedures


Drivers & Challenges

Drivers

High Profitability

Growth in Medical Tourism

Large Consumer Base

Lifestyle of Consumers

Government Initiatives

Challenges

Lack of Trained Personnel

Lack of Standards & Accreditation


Key Trends

Targeting Teens and Men Growth in Medispas

Foreign Players entering the Market

Real Estate Players diversifying into Spa and Resorts Markets

Key

Trends


SAMPLE

Highly fragmented market with few market leaders, which

primarily are chains run by luxury hotels

Competition Market share: Domestic vs. Global

Sources: Business standard “Global spa majors planning to set up shop and pamper India” Sep 2008; mapsoftheworld “best spas in India”

X%

Domestic players

Y%

Global players

•The market is highly fragmented with ~x spas

across the country

•Most of the major spa’s have been developed

in association with large hotels or players in

the hotel industry themselves have expanded

their services to encompass spa services

� Luxury hotels like XYZ, ABC run spa chains in their

hotels

•Destination spas are competing for both local

and foreign customers

•Many standalone day and destination spas are

being set-up in major cities

� AA and BB are such major establishments

�ABC Ltd plans on opening a chain of spas across

India

•Domestic entrants are abound in the market

with plans for multiple locations concentrated

in tier- I and tier - II cities

Enter as a stand alone

brand

Tie-up with hotels/

resorts

Market Entry Route

• ABC Pvt. Ltd.

• XYZ Ltd

• UV Ltd tied up with AB

Ltd

Market share: Domestic vs. Global

Entry Route for Foreign Players


Thank you for the attention

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ayurvedic spa.pdf