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INDIA Horwath HTL Health and Wellness Issue 1 - INDIA TM Health and Wellness Special Market Report Issue 1 - INDIA Horwath HTL Health and Wellness Issue 1 - INDIA HORWATH HTL HEALTH AND WELLNESS INTRODUCTION Horwath HTL Health and Wellness India stands at the forefront of today’s global spa and wellness market, alluring domestic and international is the newly conceived division of visitors alike with the time-honored traditions of Horwath HTL, specializing in the Ayurveda and yoga and high quality, affordable medical tourism. development of destination retreats, lifestyle and wellness centers, Now poised to become the fifth largest consumer bathhouses, resort, hotel, medical, market globally by 2020, India demonstrates all the demographic advantages of an ideal market and day spas, and health and fitness for leading international spa and wellness brands. clubs globally. At present, the country boasts a 350-million strong middle class, a notably large youth population Founded by Ingo Schweder, Horwath HTL Health & (50% of which are under the age of 25), rising Wellness provides a range of wellness focused project levels of disposable income, and associated increases consulting, including market research and feasibility in overall aspiration and experimentation, as well studies, brand and concept development, and as obesity, related health issues, and health executive recruitment. consciousness (PricewaterhouseCoopers, 2012) GOCO Hospitality, also founded by Ingo Schweder, These factors, in conjunction with a growing number is a specialty management company concentrated of low-cost domestic airlines, like SpiceJet and IndiGo, on similar types of health and wellness facilities, suggest that demand for all things wellness and spa is including mixed-use wellness communities, resorts, expected to grow in the coming years. and hotel spas, with over 20 projects in countries across the globe. www.horwathhtl.com TM Horwath HTL Health and Wellness Issue 1 - INDIA CONSUMER TRENDS PricewaterhouseCoopers (2012) defined the The idea of ‘wellness’ has become increasingly modern Indian wellness consumer as belonging ingrained in conventional notions of what constitutes to one of four distinct segments. a healthy lifestyle, complementing existing scientific and medical approaches to health. Thus, the global Forming the base is a substantial mass of individuals spa industry has responded by innovating a broad known as “passives” who total over 700 million, spectrum of offerings that can fulfill increasingly do not follow health and wellness trends, and are savvy consumer demands. In India, the concept of largely financially restricted from partaking in them. ‘wellness’ has been interwoven into various aspects of local culture through the traditions and practice “Beginners” constitute 150 to 200 million individuals of Ayurveda and yoga, which originated in the foothills and demonstrate initial steps towards preventative of the Himalayas. care and improvement of appearance. Today, domestic and international tourists flock to “Actives” make up a segment of 15-25 million, are the southwestern region of Kerala for specialized known to follow health and wellness information, will Ayurvedic treatments. Interestingly, yoga remains pay premium dollar for products that claim benefits, relatively uncommercialized in India, as compared and typically exhibit some brand loyalty. to other popular yoga destinations such as Hong Kong, Shanghai, Tokyo, and Singapore, which have Finally, the smallest segment, known as “believers” seen new studios open in abundance. and totaling one to two million self-selected individuals, are early adopters who demonstrate Against the backdrop of a deeply ingrained traditional extensive awareness on the subject and demand wellness culture, the preferences and attitudes of results-driven solutions. modern Indian spa consumers are now evolving. They are savvier about the quality and value of Believers and actives represent the fastest growing products and services they purchase and more open segment of the market; however, beginners and to experimenting with new and different offerings. passives, totaling nearly 98% of the population, comprise the largest volume opportunity. Not only do they visit spas for hair maintenance, nail grooming, skin care, and beauty treatments, but, with Unique growth opportunities exist for all four greater societal awareness about stress, obesity, and consumer segments; however, offerings must be other serious health issues, guests are looking to spas unambiguously tailored and marketed to the individual for evidence-based, results-driven solutions. needs and demands of each. The Indian government has even assumed a supportive International health and wellness tourists, particularly role in the health and wellness movement by from the Middle East, are flocking to India in record promoting the domestic sale of health and wellness numbers. Growing 24% in 2011 and attracting nearly food and approving the Participatory Guarantee 45% of the world’s medical tourists on an annual basis, System (PGS) for Organic Farming, which has resulted the country’s medical tourism industry is thriving under in a flood of organic products now available in the the conditions of strong government support, low country. costs, advanced equipment, skilled practitioners, and large private investments. www.horwathhtl.com TM Horwath HTL Health and Wellness Issue 1 - INDIA Euromonitor International forecasts that health and PricewaterhouseCoopers (2012) valued India’s total wellness tourism is expected to experience a constant wellness market at USD $11 billion in 2011 and value CAGR of 22% from 2011 to 2016, with medical forecasted that it would surpass USD $18 billion tourism seeing a CAGR of 25% in constant value terms (INR 1 trillion) in the next four years. This projection over the same period. During this time, the spa market presents extensive opportunities for the wellness and is predicted to consistently assume over 50% of total spa market to imagine facilities that will not only serve health and wellness sales in the country. existing customers but also capture new segments by going beyond traditional spa services with more While females accounted for 70% of total demand in innovative, exclusive, and distinctive offerings, such 2011, there is a demonstrated increase in male as comprehensive female salons, male grooming consumers utilizing spa treatments and professional ateliers, and medical cosmetic services. grooming products, thus, demonstrating a significant opportunity for growth in this segment (Euromonitor Additionally, India’s travel and tourism sector is International, 2012). anticipated to demonstrate further growth as the country continues to host internationally-marketed THE OPPORTUNITY events, such as the 2011 Formula One Indian Both domestic and international visitation trends in Grand Prix, and initiate government-led campaigns India have demonstrated relatively steady growth over targeting tourists from select countries (Euromonitor the past 10 years, with domestic visits to all states and International, 2012). union territories of India reaching one billion and foreign visits reaching 21 million in 2012 (Ministry of Tourism, Government of India, 2012). Given these statistics, domestic tourism significantly dominates India’s travel and tourism industry, capturing 98% of the total volume in 2012. One of the major contributors to this industry is currently the wellness and spa market. www.horwathhtl.com TM Horwath HTL Health and Wellness Issue 1 - INDIA HOTEL SPAS Horwath HTL Health and Wellness believes that there for the immediate demographic surroundings of a is a strong opportunity to develop internationally- property is absolutely critical when developing all benchmarked hotel spas, as well as destination and aspects of the spa facility. In striving to differentiate day spas, that offer a full range of amenities similar oneself in a market with so many new entrants, savvy to those in spa-mature markets in the region, such hotel owners would do well to ensure that their spa is as Hong Kong and Singapore. Thermal bathing, not merely an “add-on” feature but rather an advanced beauty treatments, medispa services, and independently managed profit center on its own. male grooming are becoming increasingly popular around the world. However, India has yet to fully Hilton Hotels & Resorts (2012) recently commissioned explore application of these trends within its own a survey in which 45% of respondents indicated that spa and wellness market. the existence of a spa attracted them to a particular hotel, and 69% expressed that there was a good For example, in a recent case study of hotel spas in chance that they would use the spa during their stay. Mumbai, Horwath HTL Health and Wellness found that there was standardization across luxury facilities This opportunity is especially significant as within the city. Five-star hotel spas had five to six PricewaterhouseCoopers (2012) reports that there treatment rooms and offered 21 different massage, were approximately 114,000 hotel rooms spread body, facial, and hydrotherapy treatments, on average. across India’s various hotel categories in 2012, Most offered similar pricing structures and treatment which was an estimated 150,000 rooms short of menus, commonly including Ayurvedic treatments, what was required at that time. Thus, there is aromatherapy massages, body scrubs, and facials. huge potential for owners to capitalize on the These spas were generally profitable and membership development pipeline by designing
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