2. Executive Summary
Indian spa market valued at INR 6.1 bn in 2008; Expected to grow at 60% 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
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
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
Floriana Group • Nivea India Pvt. Ltd
Nivea India Pvt. Ltd
• Golden Palms Spa • MSpa International • XpressSpa
SPA INDUSTRY – INDIA.PPT 2
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 3,000 bn
INR bn
•In comparison, India’s ~2,300 spas generated 40
40.0
revenues of INR 6.1 bn in 2008 60%
30 25.0
•Most popular Spa therapies across India are
Ayurvedic massage, Thai massage, Swedish 20 15.6
massage and German body treatment 9.8
10 6.1
•1000 new spas are expected by 2011 at an 0
investment of INR 15 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% 30%
annually Destination Large setup in Body treatments,
Spa remote locations
remote locations aromatic rubs
aromatic rubs
Prevalent in large Body treatments,
Resort Spa
70% hotels aromatic rubs
Female
Hydrotherapy and
Small setups across
Medical Spa
p various surgical
g
the country
the country
procedures
SPA INDUSTRY – INDIA.PPT 4
5. Spa industry centered in Kerela with spa resorts coming in other
regions
Market Overview Geographical Presence
• Kerala is a well known destination for Ayurvedic
rejuvenation and therapeutic treatments
Large number of ayurveda massage centers have come up
in this state
These establishments have been developed as tourist N
destination across the State Delhi, Chandigarh,
Punjab
• N th I di h
North India has also witnessed major spa
l it d j
development in the country
Delhi, Chandigarh and states like Punjab have
seen a steady economic growth compared to W
other regions in the country
th i i th t Mumbai , Pune,
M b i P
Ahmadabad
• Spa industry is also booming in Mumbai in
About 40% of the
Maharashtra as the city is a well established tourism tourism revenue in
destination and large number of financial institutions Kerela is from
and corporate houses are present in the city
d t h t i th it health resorts
health resorts
S
Kerala,
• Apart from metros, Tier II cities like Pune, Bangalore
Ahmedabad, Surat and Jaipur have also seen in
growth in day spas and wellness resorts
SPA INDUSTRY – INDIA.PPT 5
6. Growth in spas provides opportunities to affiliated industries of
products, equipment, consultancy and services
Spa Products
• Major spa chains develop signature products using
their own expertise
their own expertise
• Botanical and marine ingredients are preferred in India
over factory made products
Affiliated
Industries
Spa Equipment & Supplies Spa Interior
•MMost of the equipment is imported including
f h i i i d i l di • Interior design and ambiences the soul of a spa are
Interior design and ambiences, the soul of a spa, are
miscellaneous supplies like towels, spa garments, done by specialists
manicure/pedicure supplies, candles, bedding, • From placing of the oils to lighting and staff dress code
brushes, gloves, healing stones etc is handled professionally
• Equipment is mostly imported from countries like • Third party assistance or consulting is required for
Italy, USA, UK and Australia
Italy USA UK and Australia planning, design and set up
l i d i d t
SPA INDUSTRY – INDIA.PPT 6
7. Spa industry has interdependence with industries such as
hospitality, tourism, and various health & wellness segments
Enabled Spa Industries
Spa Related Hospitality & Tourism
Spa‐Related Hospitality & Tourism
Spa‐Related Real Estate
Core Spa Industries
Spa Facility Operations
Spa Capital Investments Spa Ecosystem
p
Spa Education
Spa Consulting
Lifestyle Associated Industries
Spa Media, Associations & Events
Beauty & Beauty Products Industry
Fitness & Fitness Products Industry
Beauty & Wellness Medicine Industry
Healthy Foods & Nutrition Industry
Healthy Foods & Nutrition Industry
SPA INDUSTRY – INDIA.PPT 7
9. 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 9
10. High return on investments and the strong growth in India as a
medical tourist destination are major drivers in the market
High Profitability Impact
• Profit margins in the industry range from 40‐60% which has acted as an incentive for players to
expand existing capacity and for the new entrants to capitalize on the high return on
investments
i t t
Investment Required Break‐even Period
Cost vary based on location,
Ranges from INR 6 14 mn
Ranges from INR 6‐14 mn Ranges from 12‐18 months
g
services offered etc
i ff d
Growth in Medical Tourism Impact
• Medical tourism in India is growing at the rate of 30% p.a.
g g p
More than 272,000 foreign patients in 2007
Medical tourism expected to be a USD 50 bn industry by 2012
• Medical tourists typically combine medical treatment with travel and vacation in the country
• Spas become an ideal destination for medical tourists to relax and rejuvenate pre‐ and post‐
operation stays
• Assocham expects ayurvedic and medical tourism to be boosted by Commonwealth Games
Large foreign clientele during the games are expected to spend between INR 10,000‐35,000 per head
Profits of spa industry are expected to reach INR 8 bn by 2012
Investments worth INR 35 bn expected to be made in spa industry by 2012
SPA INDUSTRY – INDIA.PPT 10
11. Upper middle class segment in India is largely driving the spa
market
Large Consumer Base Impact
• With economic growth driving incomes, the purchasing power will increase significantly across
all consumer groups creating one of the largest consumer groups globally
• Middle and upper classes which are more likely to demand quality life will find spa care
Middle and upper classes, which are more likely to demand quality life, will find spa care
increasingly affordable
Total No. of Household (mn) Per household annual Aggregate Annual Disposable
281 income (INR ‘000) Income (INR tn) 90
244 3%
12% Core target
g 24%
207 2% 1%
23% consumer
5% 1% 1% 34%
Globals >1000 groups 23%
44% 44
43% Strivers 500‐1000 15%
9%
33% Seekers 200‐500 24 9% 34%
34%
Aspirers 90 200
90‐200 7%
49%
30% 49% 13% 33% 15%
18% Deprived <90
23% 9% 3%
2005 2015 2025 2005 2015 2025
Lifestyle of Consumers Impact
• Changing lifestyle and increase in stress level among the young professionals have increased the
demand for new modes of entertainment and relaxation
• Spas have emerges as one of the growing modes of relaxation among working professional who
want to de‐stress from their hectic lifestyle
•PPeople consider spas as a cost‐effective and less time‐consuming alternative to vacations
l id t ff ti dl ti i lt ti t ti
SPA INDUSTRY – INDIA.PPT 11
12. Strong government initiatives especially from the Kerala
government towards promoting tourism
Government Initiatives Impact
• The State government of Kerala has taken certain initiatives to encourage Ayurvedic spas and
resorts as a tourist destination
• Spa's in Kerala receive government approval when they are set up
• Certifications are awarded based on the services offered
• Ayurveda centers which are approved/certified by the State Department of Tourism are
Eligible for claiming 10% state investment subsidy or electric tariff concession
Only these centers are considered during publicity and promotional activities through print and electronic
media by the Department
• Kerela government has even partnered with large private players in order to develop resort
spa’s
SPA INDUSTRY – INDIA.PPT 12
13. Lack of skilled or trained personnel and lack of standards are
major challenges faced by the spa industry
Lack of Trained Personnel Impact
• The industry is facing a huge demand‐supply gap as the demand for spa professionals and
therapists expected to be about 3,00,000 by 2012
• Training provided to local staff is not up to global standards due to lack of training institutes
• Some people are averse to choosing spas as a profession
Lack of Standards & Accreditation
Lack of Standards & Accreditation Impact
• The main challenge for spa industry in India is the lack of a body or association that sets
standards, accreditation of spas and training institutes
• No standard associations exists to address issues and grievances of the industry
• Industry lacks uniformity in treatments and conformity with correct procedures
Industry lacks uniformity in treatments and conformity with correct procedures
SPA INDUSTRY – INDIA.PPT 13
15. 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 15
16. Strong growth in spas offering medical services and the
development observed in certain specified locations
Growth in Medispas
• Players in the industry are expanding the portfolio of services by introducing medispas
which allow customers to avail various medical services
S i
Services offered include quick botox, lunchtime peel, nip‐and‐tuck liposuction, nose surgery, face lifts,
ff d i l d i kb l hi l i d k li i f lif
otoplasty (ear surgery), rhinoplasty and laser treatments
• Some such establishments are
A+ medispa in Delhi , owned by Mayar Group, which has a separate cosmetic dentistry department
The Mayar Group is planning to open 14 Medispa’s across the country at an investment of INR 4 bn by
y p p g p p y y
2010 under its wholly own subsidiary Mayar Health Resorts Limited
Spa Losis Medispa was launched in Feb 2009 with hi‐tech equipment
Key Trends Kaya is an upcoming establishment providing wrinkle reduction, fillers, facelifts, sclerotherapy and laser
hair treatment services
• Medispas are expected to grow at the rate of 23% p a
Medispas are expected to grow at the rate of 23% p.a.
Real Estate Players diversifying into Spa and Resorts Markets
• Growing opportunities in the leisure segment has acted as an impetus for real estate players
to enter the market
to enter the market
Brigade group plans on investing INR 1 bn to set up a premium health spa in Chikmagalur off Bangalore
Value Designbuild plans on developing spa’s along with leisure homes in Srirangapatnam (Karnataka)
Sobha Developers plans on investing INR 8.5 bn on an ayurvedic spa located in Thrissur which is
expected to be operational by May 2011
Omaxe formed an association with Thai Privilege Spa to establish and operate 10 outlets across India
SPA INDUSTRY – INDIA.PPT 16
17. Large scale entry by foreign players and the establishment of
independent spa’s being viewed as a profitable venture
Foreign Players entering the Market
• International players are foraying into the Indian market and capitalizing on the growth
prospects
• Angsana Resorts and Spa Thai Privilege Spa Company and Banyan Tree Hotels and Resorts
Angsana Resorts and Spa, Thai Privilege Spa Company and Banyan Tree Hotels and Resorts
are foreign players that have entered India
• Many other major international players are also planning to enter the Indian market
MSpa International from Thailand
Aman Resorts from Singapore
XpresSpa from the US
Pevonia Botanica from the US
Key Trends
Targeting Teens and Men
• Spas and cosmetic clinics to roll out specific treatments for pre‐teens and teens
• Many spas offer acne‐treatment facials for both girls and boys, teen‐focused massages
Dinacharya course at Sanjeeva medical spa at Vedic Village Kolkata offer specific treatments for pre
Dinacharya course at Sanjeeva medical spa at Vedic Village, Kolkata offer specific treatments for pre‐
teens and teens
• For men wellness treatments–like Champissage (head massage) and full‐body massage are
some of the most common services
SPA INDUSTRY – INDIA.PPT 17
19. 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 ~2300
spas across the country Global players
p y
•Most of the major spa’s have been developed 30%
in association with large hotels or players in
the hotel industry themselves have expanded
their services to encompass spa services
p p 70%
Luxury hotels like Taj, Oberoi, Hyatt & Le Meridian Domestic players
run spa chains in their hotels
•Destination spas are competing for both local Entry Route for Foreign Players
and foreign customers
and foreign customers
•Many standalone day and destination spas are Market Entry Route
being set‐up in major cities
CMYK Health Boutique, Four Fountains Spa, is
such a major establishment
such a major establishment Enter as a stand alone Tie‐up with hotels/
/
Nivea India Pvt. Ltd plans on opening a chain of brand resorts
spas across India
•Domestic entrants are abound in the market • Body Spa International
• MSpa International tied
Consultants Pvt. Ltd.
with plans for multiple locations concentrated
with plans for multiple locations concentrated • Le Meridien
up with Radisson Hotel
up with Radisson Hotel
in tier‐ I and tier ‐ II cities
SPA INDUSTRY – INDIA.PPT 19
20. Domestic Players (1/2)
Domestic Players Locations Type and Services Business Outlook
• Four Fountains Spa will set up 300 centers in
• Day spa prominent cities over next four years
• Koregaon Park,
CMYK Health
CMYK Health • Provides massages
Provides massages • Plans to expand to 12 day spas in Mumbai,
Plans to expand to 12 day spas in Mumbai,
Hadapsar and
H d d
Boutique Aundh in Pune (Sweedish and Thai), body Pune and Delhi by March end 2009
wraps, body polish, facials • Focusing on providing services at low prices
• Provide on‐location mobile spa services
• Plans to open 300 spas across cities under
p p
the brand "Lambency Chandan Sparsh“ by
• Ahmebadad • Day spa 2010
with Delhi, • Offer s massages, • Plans on investing INR 6 bn towards this
Mumbai and reflexology, body scrubs and
Floriana Group Bangalore units venture
wraps, body fat removal
expected to therapy using non‐invasive • Using FDA approved patent technology
Using FDA‐approved patent technology
open shortly scientific methods employed in the US, UK, France and Italy as
their USP
• Plans on growing through a franchisee model
• Pune and
Pune and •DDay spa • Set up Rudra Spa at Hinjewadi in Pune
Set‐up Rudra Spa at Hinjewadi in Pune
Mumbai, with • Plans to invest over INR 1 bn in another 12
four more in • Offers a wide range of hair,
Dholakia Group Mumbai and beauty and body hotels, boutiques and spas across India
one in treatments, massages, • Focusing on north India for expansionary
Ahmadabad scrubs, wraps and facials activities
Note: Above list is not exhaustive
SPA INDUSTRY – INDIA.PPT 20
21. Domestic Players (2/2)
Domestic Players Locations Type and Services Business Outlook
• Tehri‐Garhwal, • Destination spa
Uttaranchal • Treatment based on • Products used, especially oils, are blended by
Ananda Spa
p (
(Foot hills of ayurvedic science via herbal
y local suppliers for exclusive use
pp
Himalayas) scrubs, wraps and packs
• Medical spa • The spa “Amatrra” utilizes Astroscience and
• Body constitution analysis, Ayurveda for customized Spa regime
• New Delhi customized meditation, • The A+ Medispa provides cosmetic
p p
Mayar Health
Mayar Health
therapy, massages, body dermatology, aesthetic surgery and ayurveda
wraps and medical surgery treatment
Other domestic players
Domestic Players
Domestic Players Type and Services
Type and Services
• A resort spa located in Kumarakom
Coconut Lagoon
• Offers body massages, body scrubs, body wraps, facials, beauty treatments, complex herbal oil and paste therapies
• A resort spa located in Bangalore
Golden Palms Spa
• Offers Balinese Massage, Thai Massage, Royal Scalp Massage, foot massage and spa salon services
g , g , y p g , g p
Oberoi Hotels and • A resort spa located in Agra (Amarvilas Spa) and Ranthambore (Vanyavilas)
Resorts • Provides body massages, body scrubs, body wrap, ayurvedic treatments, beauty treatments
• A resort spa (Spa Aguada) located in Goa
Taj Group of Hotels • Provides Swedish rejuvenation program, biotique private spa collection, yoga, meditation, herbal and essential oil
massages, mineral water baths, mud baths and holistic scalp therapies
Note: Above list is not exhaustive
SPA INDUSTRY – INDIA.PPT 21
22. Foreign Players
Foreign Players Location Type and Services
Body Spa • Day spa
• Body Spa
International • Body treatments, body scrubs, body wraps, facial treatments, manicure
International, New
Consultants Pvt.
Consultants Pvt. / pedicure, nail art / footcare, hair & scalp treatments, body masque and
/ pedicure, nail art / footcare, hair & scalp treatments, body masque and
Delhi salon services
Ltd.
• Revive Spa Center , • Resort spa
Le Meridien Cochin • Ayurvedic Spa offers various body massages, body scrubs, body wraps,
• Jaipur
p specialty baths, skin an hair treatments and facials
specialty baths skin an hair treatments and facials
•Radisson Hotel, • Resort Spa
MSpa
Alibaug under the • Hydrotherapy, massage treatments, wellness, aromatherapy,
International
brand Mandara detoxification, lifestyle management and salon services
• Agara, Chandigarh, •RResort and day spas
t dd
Pevonia Botanica Gurgaon, • Skin treatment therapies, massages, corrective care, detoxification,
Kumarakom, sunless tan, sun repair, scalp and hair treatment, exfoliation, exfoliants
Mumbai, New Delhi, and peels, body wraps, body polish, aromatherapy
Pune
Note: Above list is not exhaustive
SPA INDUSTRY – INDIA.PPT 22
23. Many new domestic and foreign players are planning to enter
the market
Players Business Outlook
Domestic Players
• Entered into a collaboration with Thailand‐based Spa Siam towards foraying into the market
• Pl
Plans to set up 75 spas across the country by 2013
t t 75 th t b 2013
Franchise India • Investments of INR 250 mn is expected towards establishing these spas
Holding • FIHL will provide local expertise, including consultancy, local operation support, retail
distribution base and support structure
• The spa will be managed by Spa Siam’s own staff from Thailand
• Proposes to launch its own spa “The Claridges Spa” at upcoming hotels in National Capital
Region (NCR) which is expected to be operational by the end of 2009 while the Mumbai
Claridges Hotels &
establishment is is scheduled to be operational by 2011
Resorts
• The spa is being developed in consultation with Spatality, an international spa management
company
• Plans to open “Nive House” spa chain as part of Nivea India’s independent operations in India
Nivea India Pvt. Ltd • Plans on using the expertise in the spa industry gained by their parent company Beiersdorf AG
which has spas in Germany, Dubai, and cities across Europe
Foreign Players
Aman Resorts from • Set up a chain of spa treatment centers across the country by joining hands with DLF, a leading
Singapore Indian realty developer
XpresSpa • USA based compan plans to set p a centre each at all the international airports in the co ntr
USA based company plans to set up a centre each at all the international airports in the country
Note: Above list is not exhaustive
SPA INDUSTRY – INDIA.PPT 23
25. Key Developments
Date Development
14‐May‐09 Kerala government forwarded an initiative towards developing this segment by partnering with the Delhi‐
based Bharat Hotels to jointly develop a five‐star beach resort, Lalit Resort and Spa, at Bekal in Kasargode
district. The Kerala State Industrial Development Corp (KSIDC) invested INR 250 mn towards this venture.
13‐May‐09 Blossom Kochhar Group of Companies is planning to enter the spa market with an initial plan to develop
200 spa’s across India by 2010 out of which 10 are expected to come up by April 2009. They plan on
focusing on the the State of Punjab.
12‐Sep‐08 MSpa International from Thailand, plans on establishing a number of spa centers in Pune, Mumbai and
New Delhi by 2013 towards capitalizing on the growing market.
15‐Jun‐08 An association was formed between the Taj Spas of the Taj Group of Hotels and Industrial Training
Institute in Guwahati for employment of skilled personnel for their establishment. Players are looking at
vocational training institutes for employment purposes.
31‐Mar‐08 Pevonia Botanica plans on investing approximately INR 200 mn in a spa institute and spa products. In
order to achieve all‐India presence the company plans on tying up with premier hotel groups and
boutique hotel spas.
SPA INDUSTRY – INDIA.PPT 25
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SPA INDUSTRY – INDIA.PPT 26