Spa Industry - India

June 2009

Executive Summary
Indian spa market valued at INR X bn in 2008; Expected to grow at x% p.a. till 2012 Major growth has been witnessed in Kerala, North India and Maharashtra Growth in spas provides opportunities to affiliated industries of products, equipment, consultancy and services

Market

Drivers

Challenges

Drivers & Challenges

High profitability Medical tourism Large consumer base Lifestyle of consumers Government initiatives

Trends

Growth in medispas Real estate players diversifying into spa and resorts markets Foreign players entering the market Targeting teens and men The market is highly fragmented with many domestic and global players Global players have 30% market share in the Indian spa market
Domestic Foreign Body Spa International Consultants Pvt. Ltd. MSpa International Expected Entrants Franchise India Holding Nivea India Pvt. Ltd XpressSpa

E L P M A S
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Lack of trained personnel Lack of standards & accreditation

Competition

CMYK Health Boutique Floriana Group Golden Palms Spa

Market Overview Drivers & Challenges Trends Competition Key Developments

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Spa industry in India is at a nascent stage but growing rapidly with a wider range of formats available
Market Overview
Global spa market is valued at INR X bn In comparison, Indias ~x spas generated revenues of INR Y bn in 2008 Most popular Spa therapies across India are Ayurvedic massage, Thai massage, Swedish massage and German body treatment 1000 new spas are expected by 20-- at an investment of INR X bn

Market Size & Growth

INR bn

40
x%

Z Y X V W

30 20 10

Revenue Split (Gender wise)

Male customers increasing by almost 80% annually Male Y%

E L P M A S
0
X% Female
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2008

2009e

2010e

2011e

2012e

Spa Types and Treatments

Spa Type Day Spa Location Small setups across the country Large setup in remote locations Prevalent in large hotels Small setups across the country Spa Treatment Facials, massages, manicures & pedicures Body treatments, aromatic rubs Body treatments, aromatic rubs Hydrotherapy and various surgical procedures

Destination Spa Resort Spa

Medical Spa

Source: IBEF Global spa majors planning to set up shop and pamper India, Sep 2008; Gcimagazine Indian Spas Jun 2007; Times of India Ministry plans to regulate spas, invites guidelines from industry, Apr 2008

Drivers & Challenges

Drivers
High Profitability Growth in Medical Tourism Large Consumer Base Lifestyle of Consumers Government Initiatives

Challenges
Lack of Trained Personnel Lack of Standards & Accreditation

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Key Trends

Targeting Teens and Men

Growth in Medispas

Key Trends

Foreign Players entering the Market

Real Estate Players diversifying into Spa and Resorts Markets

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Highly fragmented market with few market leaders, which primarily are chains run by luxury hotels
Competition
The market is highly fragmented with ~x spas across the country Most of the major spas have been developed in association with large hotels or players in the hotel industry themselves have expanded their services to encompass spa services

Market share: Domestic vs. Global

Global players Y%

Luxury hotels like XYZ, ABC run spa chains in their hotels

Destination spas are competing for both local and foreign customers Many standalone day and destination spas are being set-up in major cities
AA and BB are such major establishments ABC Ltd plans on opening a chain of spas across India

E L P M A S
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X% Domestic players

Entry Route for Foreign Players

Market Entry Route

Enter as a stand alone brand

Tie-up with hotels/ resorts

Domestic entrants are abound in the market with plans for multiple locations concentrated in tier- I and tier - II cities

ABC Pvt. Ltd. XYZ Ltd

UV Ltd tied up with AB Ltd

Sources: Business standard Global spa majors planning to set up shop and pamper India Sep 2008; mapsoftheworld best spas in India

Thank you for the attention

The Spa Industry report is a part of Research on Indias Hospitality Industry Series. For more detailed information or customized research requirements please contact: Natasha Mehta, CFA
Phone: E-Mail: +65 8448 0449 natasha.mehta@netscribes.com

Gagan Uppal
Phone: E-Mail: +91 98364 71499 gagan.uppal@netscribes.com

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SPA INDUSTRY INDIA.PPT