Health, beauty, wellness and fitness are part of the same ecosystem but have independent functioning. This is due to people's strong belief in how they look and feel. With several opportunities and healthy returns, entrepreneurs have an option of moving f
TO run a barber's business is no more considered a taboo in the society. The contemporary barber's shops a.k.a salons are as vital as grocery stores and dentists. Across the nation there is a growing demand for beauty and health services. This demand is no more limited to metros. With franchise business model there is the presence of branded salons in a tier- III city too. Franchising has penetrated deeper now. From beauty salons to gyms to clinics to poly-clinics to blow-bars to diet clinics, franchise business model has not spared any business format and has made the majority of the health, beauty and wellness industry organised.
Trio of beauty, wellness and fitness
The Indian salon and spa industry is gaining momentum. Nowadays, people are cognisant of beauty and fitness. The awareness of and increase in disposable income has made the beauty industry stand tall. The 245 billion beauty services and cosmetics market continues to grow at a staggering 25 per cent CAGR set to generate 3 million new jobs. The franchise business model has eaten up the market share of mom and pop beauty parlours. Irrespective of diversified categories in each sector, unisex salons top the priority list of franchisees.
Majority of organised salon chains have diversified into spa category too. Increasing demand for the wellness category has even led to the opening of exclusive spa chains. The wellness industry in India has become a fad for investors. Growing at a rate of 20 per cent, it is projected to become Rs one trillion industry by 2015. So far, only 4 per cent expenditure of Indians goes into wellness. But there is a huge potential. According to a recent report, fitness and slimming products/ services and spas are growing at the fastest rates.
Wealth in health
The healthcare sector comprises sub-sectors like hospitals, pharmacists, polyclinics, diagnostic centres, specialty clinics, etc. According to estimates by rating agency Fitch, the sector is poised to grow to $100 billion by 2015 and further to $ 275.6 billion by 2020. The Indian healthcare industry was estimated at $ 40 billion in 2010 and is expected to reach to $ 280 billion by 2020. Looking at this potential and boom, healthcare providers have brought about a sea change in the industry. Brands like Apollo pharmacy, Dr Lalpath labs and a few others are mushrooming even in small towns. Whereas leading franchisors with deep pockets in the industry are expanding their empires in the nook and cranny of India.
For a detailed view of the industry, we bring to you in the ensuing pages of “On the Cover” section a snapshot of opportunities across health, beauty and wellness sectors. Have a glance and handpick the best opportunity. In this special issue, dedicated to health, beauty and wellness, we conducted a research based on survey of more than 100 franchisors in health, beauty and wellness sectors to assess the key trends, growth, opportunity and market size of each industry.