Wellness Industry 2018-05-24

Key Challenges Faced By Entrepreneurs In Wellness Industry

Wellness industry is one of the rapidly growing industries today. Still, an entrepreneurs faces the below key challenges in the wellness sector

By Content Writer
Key Challenges Faced By Entrepreneurs In Wellness Industry

Wellness as an industry is flourishing a big way in the country, but with success come challenges and this industry is no exception to it. Today wellness industry is facing few of the key challenges in regards to the skilled and talented manpower. Also, low entry barriers have made this sector largely unorganized, with dilution in the quality of services offered to the customers. Below are some of the challenges that are faced by entrepreneurs in the wellness industry.

Skilled manpower

With advancing technology,  comes the requirement for skilled and talented manpower. In the service industry especially in the field of healthcare & wellness, there is no replacement for human touch. When we talk about beauty salons, spas’ and alternative therapies the requirement of a skilled manpower has always being a scarcity. The rate at which this industry is growing, very soon it will be touching the figure of INR 1 trillion & with that comes the requirement of approximately one million additional skilled personnel over the next ten years. However, their availability is a concern. Effective monitoring of the industry is a challenge and initial attempts at quality accreditation have not been effective. Recruitment & retention of the skilled & talented manpower is posing a big challenge to the industry, lack of a universally accepted accreditation or standard of education affects the quality of training imparted in local academies. Few organisations offer reliable education with adequate practical training.

Largely unorganised sector

Due to the low-entry barriers, this industry had largely remained unorganized, creating a pricing pressure on the prevalent organized businesses in the domain. It is becoming difficult for a customer to differentiate between a good and a mediocre service provider. Wellness is a sensitive category as consumers invest their trust in the brand to protect and preserve their lives. The disparity in ambiance, differing service levels, and experience across outlets confuse the consumer. There are very few licensed personnel available in the industry and above that the checks enforcing usage of licensed staffs is negligible. The humungous size of the largely unorganized businesses in the industry, coupled with a range of product segmentation and customary services have made monitoring of the industry a complex and costly exercise. While the businesses in the industry are rapidly scaling up operations, this is often unstructured. Hence entrepreneurs are unable to operationalise their brand promise effectively.


National Accreditation Board for Hospitals & Healthcare Providers (NABH) which is a constituent board of Quality Council of India (QCI) has been providing Accreditation to Ayurveda Hospitals & Wellness centre which includes Spas, Ayurveda Centres, Yoga & Naturopathy Centres, Fitness Centres, and Skin Care Centres etc. Under the Scheme, "Mark of Excellence" would be provided to the accredited wellness centres distinguishing them from other non accredited entities. Currently, the entrepreneurs seem to be unaware of quality guidelines as the acceptance and penetration of QCI-NABH guidelines in wellness space is low. Even among those who are aware, an oft-cited reason for not getting accredited is that the guidelines are not customised to meet requirements of the specific industry category. Customers are yet to appreciate the distinction between accredited and non-accredited centre. This hampers the motivation of entrepreneurs to invest in getting their business accredited.

Managing increasing cost

The main component of a wellness industry is the input costs such as property rentals, manpower, consumables, equipments etc. Wide fluctuations and increase in raw material prices have resulted in increased consumable cost. It has also resulted in the increase in rental costs, especially in metros and cities. Other input costs have also risen considerably over the last few years impacting profitability and delivery standards of the industry. In a bid to manage costs, some entrepreneurs have started using sub-standard products and poor quality equipment endangering the health and safety of consumers.


star franchise india
Related opportunities
  • Others Food Service
    Keerthana & Parameshwari - Two homemakers came together to serve..
    Locations looking for expansion Karnataka
    Establishment year 2004
    Franchising Launch Date 2020
    Investment size Rs. 30lac - 50lac
    Space required 400
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Bangalore Karnataka
  • Consumer Electronics
    We are cutting edge high tech company ..
    Locations looking for expansion Gujarat
    Establishment year 2020
    Franchising Launch Date 2020
    Investment size
    Space required 00
    Franchise Outlets -NA-
    Franchise Type -NA-
    Headquater Wadhwancity Gujarat
  • ·         ALCOI provides appropriate fenestration s..
    Locations looking for expansion Haryana
    Establishment year 2008
    Franchising Launch Date 2020
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Gurgaon Haryana
  • Casual Dine Restaurants
    One of the best english pubs and lifestyle destination.  ..
    Locations looking for expansion Andhra pradesh
    Establishment year 1992
    Franchising Launch Date 2020
    Investment size Rs. 2 Cr. - 5 Cr
    Space required 5000
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Hyderabad Andhra pradesh
Insta-Subscribe to
The Franchising World
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts

ads ads ads ads