The wellness industry in India is poised to touch Rs 1,00,000 crore (Rs 1 trillion) by 2015, with a compounded annual growth rate of 15-17 per cent, from about Rs 70,000 crore in 2012.
The Entrepreneurship Summit 2014, organised by Franchise India Holdings Ltd on 11th – 12th October, 2014 at Pragati Maidan in New Delhi, was a wake-up call for those who are or aspire to create a niche for themselves in the Beauty and Wellness sector. The enriching session focused on the factors contributing towards the fast growth of the Beauty and Wellness retailing.
The panellist in the session included – Chackochen Mathai, GM- Business Development, Trends in Vogue Pvt Ltd, a Cavinkare Group Company; G Ramachandran, Director- Promoter, Gold’s Gym India; Biju Antony, Head- Marketing, Baccarose Perfumes and Beauty Products, Intercraft Trading Pvt Ltd and Bollywood Actor and Fitness Enthusiast, Harman Baweja.
The discussion began with the general talks about the scope and nature of the beauty and wellness sector. Taking the stage, the first panellist Chackochen Mathai said, “Beauty and wellness go hand in hand and the sector is growing.” He further added, “We’ve seen tremendous changes in beauty and wellness space in the last ten years. More and more business is venturing into the beauty industry, a lot of brands are coming in and the size of the market is changing. A regular beauty business is done by a beautician in a village or a location which is changing and they are looking at branded salons. We’ve also seen the unorganised sector growing. We have two brands, Limelite and Green Trends and I can see that the change is happening.”
According to a Business Standard report, the wellness industry in India is poised to touch Rs 1,00,000 crore (Rs 1 trillion) by 2015, with a compounded annual growth rate of 15-17 per cent, from about Rs 70,000 crore in 2012. The report has unveiled the facts picked from a joint study conducted by the industry body Federation of Indian Chambers of Commerce and Industry (FICCI) and global consulting firm PricewaterhouseCoopers (PwC).
Further to the discussion, G Ramachandran of Gold's Gym shared some facts from a Pricewaterhouse Coopers (PwC), unveiling the expected growth of the B&W industry by 2015. He said, “This industry is growing by leaps and bounds. If you look at the Pricewaterhouse Coopers’ estimate, we expect this industry to be Rs 1 lakh crore by the year 2015 from Rs 70,000 crore currently. If you further split Rs 1 lakh crore, the beauty sector is positioned at Rs 49,000-50,000 crore. Of which, Rs 25,000 crore is occupied by fitness, health and other regular therapies, while the remaining Rs 25,000 crore is occupied by other alternative therapies.”
Meanwhile, talking about the scope of franchise model in the industry, Ramachandran said, “To the credit of Gaurav and Ritu Marya, Founders of Franchise India Holdings, the way they have ensured the people are getting attracted towards franchising as a concept is astonishing. It is unbelievable to see the number of people who are coming towards franchising.”
With the rise in consumption and willingness to spend, the demand for franchise is growing in India. The facts pertaining to this sudden rise in demand includes – rising income and purchasing power of the middle class, growing preference for branded and quality products clubbed with increased global exposure.
The discussion was concluded as Biju Antony brought focus towards the area where our B&W industry is lacking. He clearly noted that the industry is facing a dearth of skilled manpower and training institutes for the beauty session. Antony said, “Training on duty is an area which is untouched and has a huge opportunity. It will lead us to far more ahead in comparison with any other country. Consumers need to be trained as they invest a huge amount of money on the purchase of the products. I think there is a need and dearth of a good training institute. I know, on the hair side, a lot of institutes are existing, but on the beauty side, i.e., on the make-up artists' side, there is a lot of scope for training and inviting global and local brands to the institutes to present their demo. This will result in makeup artists and nail technicians providing better services and at the same time, helping the industry grow.”
According to a Business Standard report, wellness services in India are projected to generate more than three million jobs by 2015. Thus to cash-in more, it is essential to touch the untouched areas and bring out maximum exposure and growth prospects to expand the beauty and wellness business in India.