The Indian wellness market is expected to reach a market size of more than 700 billion INR.
The wellness industry in India is witnessing a tremendous growth. The Indian market is expected to reach a market size of more than 700 billion INR. As consumers are increasingly spending more on wellness products and services, the wellness industry shows a bright future for businesses. To capitalize on this, companies are fine-tuning their business and operating model in order to drive sustained revenue growth and ensure profitability. Here are few strategies on how wellness brands can drive their revenue growth.
Wellness brands are adopting a balanced approach to scaling up. Franchising has been a common route to achieve rapid scale. However, companies are also exploring hybrid models and expanding the network of their own outlets in order to manage the challenges around the loss of control and brand dilution.
Addressing Diverse customer segment
One of the levers for revenue growth that wellness businesses use is the multi-brand strategy to address diverse customer segments. They are chalking out this strategy in order to target distinct customer segments, penetrate deeper into existing markets, and simultaneously diversify into newer markets.
Investing in building consumer awareness and trust:
Consumer awareness and trust plays a key role in the growth of the wellness products and services market as well as widening its consumer base. Players have taken up a number of initiatives to educate and improve consumer awareness regarding the benefits of wellness products and services, and are setting up mechanisms for pro-active consumer connect and feedback.
In order to drive profitability, wellness companies are diversifying their portfolio. In the wellness industry, products traditionally have had higher margins than services. Many wellness service players are offering a wide range of various products and services in order to improve business margins.
There is a strong inclination of consumers towards luxury and premium brands. Falguni Nayar, Founder & CEO, Nykaa, said, “The growth in luxury beauty & wellness purchases reflects the discerning nature of our customers who are ready to invest in the best products.”
Thus, wellness brands are adding premium products and services to their portfolio mix in a bid to shore up gross margins. However, this necessitates creating a distinct value proposition and investing in additional capabilities.