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Jan, 07 2017

Top10 Spa Business Trends for 2017

Spas are upping their game by taking the franchising route. Here are some of the top trends that are helping the business grow

India has one of the fastest growing spa markets in the world. This sector has shown a steady growth and continues to get bigger with an 8 per cent CAGR year on year. Increase in disposable income, flourishing tourism and the rise of ayurveda are some of the top factors that have contributed to the growth of the spa business in India.

As the industry grows bigger, the existing brands as well as newer players entering the market also aspire to grow bigger. Taking the franchising route to make the most of the opportunities in this sector, spas are upping the game. With the market getting bigger and better, we get you top trends that are making the business grow.

A holistic tourism approach

As Asia is becoming the centre of wellness tourism, spa brands have started positioning themselves as holistic holiday resorts. These spa resorts provide not just treatments and massages, but also a sightseeing view, good food and other aspects of making a holiday perfect. While Ananda Spa in the Himalayas remains the leader, chains like Keva Ayurveda are coming up with resorts offering a complete wellness tourism experience.

Northward movement

Kerala and Karnataka dominate the spa industry in India as ayurveda has strong roots in these two states. However, some of the best spa experiences remain in the North. In fact, spa leaders in the southern regions like Kairali, Adara and Keva are looking at growth in the northern regions like Himachal Pradesh, Uttarakhand, etc.

Content-driven marketing

As spas look to capture opportunities in newer regions, content marketing is attracting customers and helping brands too. A good Website, a content-filled social media page and articles on different aspects of spa therapies and treatments are taking these brands to the newer markets.

Ayurvedic treatments

Ayurveda is the in-thing today. While Ayurveda brands are taking the spa route, spa brands are taking the Ayurvedic treatment route. According to AyurUniverse CEO Vijaykumar Karai, “Shathayu Ayurveda Wellness Centre, a 112-year-old global Ayurvedic brand, offers unique concepts with no direct competitors. Today the brand has established 16 clinics in Bangalore, Hyderabad and Pune and in international cities like Texas, US and Perth, Australia. The brand is expected to launch its first Ayurveda resort in the near future.”

Beyond rejuvenation

While rejuvenation is the ultimate purpose of a spa, but the consumer wants more. Spa chains are looking to provide not just rejuvenation therapies, but also weight loss treatments, skin treatments and hair treatments. 

Upping the wellness quotient

As hotels strive to up their wellness quotient in view to attract tourists, spa chains are tapping the opportunity, forming effective collaborations taking the hotel brand one notch up. Spa chains like O2 and Zazen have collaborations with premium hotels like Radisson Blu Ahmedabad and Kamath Hotels, respectively, for effectively grabbing a pie.

Using premium/custom made products

With growing awareness among customers, spa owners are becoming conscious about the kind of products they use. Six Senses Spa uses its facial treatment products from The Organic Pharmacy. “I had been unaware of the level of poisonous pesticides used in our food and the questionable ingredients used in cosmetics, I decided to use my herbal, homeopathic and pharmaceutical knowledge to create a shopping haven free from chemicals,” says The Organic Pharmacy Founder Margo Marrone.

Skilling Spa Professionals

The Indian spa market lacks skilled spa professionals. There is a gap between what the customer wants and what the spa professionals deliver. To bridge this gap, spa brands have taken to skilling these professionals not just for their own brands, but for the wellness industry as a whole. A case in point here is that of the O2 Skills Academy. Ritesh Mastipuram’s O2 Spa has, in collaboration with the Ministry of Skill Development and Entrepreneurship, taken up the task of skilling wellness professional making them industry ready.

International Spas entering India

In November 2016, Sanghvi Brands brought Clarins Spa to Goa in India. As India gets ready to be the next wellness destination, international spa brands are eyeing a share out of this market.

Learning from global spa markets

The global spa industry is estimated at $255 bn. Spas in India are catching up with global brands in this segment incorporating innovative therapies and treatments offered in other countries. Thai spas and training by Thailand’s spa professionals are being undertaken by Indian spas to deliver quality and build brand loyalty among consumers. 

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