How franchise model is fueling growth in Spa Culture of India?

Globally it is $100 billion business while in India it is hardly a $200 million business but is expanding at over 40% year over year.
How franchise model is fuelling growth in Spa Culture of India?

  When you feel washed out running around all week ‘Spa’ is one place which vouches ultimate  rejuvenation. In fact, there is a growing trend of saloons turning into spa centres in centre. If we can look at numbers, globally, Spa is thriving industry, according to a report published by leading market research agency Zion,  global spas and beauty salons market was valued at around USD 128.59 billion in 2017 and is expected to reach approximately USD 190.81 billion in 2024, growing at a CAGR of slightly above 5.80% between 2018 and 2024. Spas are continue to gain traction owing to rising standard of lifestyle and much evolved beauty treatments which are not available in salons.    

 India Picture 

 Through, Spa is an evolving industry in India, but it has long way to go if we compare it with mature markets such US, Europe. Highlighting the growth scenario in Indian Spa market Ritesh Reddy, CEO, O2 Spa said, “Globally it is $100 billion business while in India it is hardly a $200 million business but is expanding at over 40% year over year. Considering the fact that there were hardly any global players who have entered India and hardly any Indian players operating at scale I felt that it could be a great opportunity and the right field to enter.” 

 Reddy started his venture in 2008 after returning from US where he spent almost 11 years and observe the growth aspect in this business. Today, he operates 113 spas spread across 30 cities in India. “We currently serve over 45,000 customers every month and see a growth of over 35% YOY,” informed Reddy.   

 Sawadhee Traditional Thai Spa is a start-up in this segment. It is a standalone entity spread across 6000 sq.ft in the heart of South Delhi. Commenting on evalution of Spa business, Vibha Khanna Rastogi, Director of Sawadhee Traditional Thai Spa, said, “ Like every other business, the spa business is also evolving keeping in mind the customer of today. People are leading extremely stressful lives and are realizing the importance of taking time off to pamper themselves, and the spa industry is more equipped than ever before to cater to this need.”       

  Vibha got the idea to start a Spa venture when she and her husband both spa enthusiasts were scouting good standalone spa in Delhi which could provide with a complete indulgent spa experience.

    “Most of the Spas in Delhi (apart from 5-star hotels) are situated in busy markets, malls or by-lanes with cramped up rooms and do not give a sense of peace and tranquility, which is so essential for a good spa. So we decided to take upon ourselves to create a spa which provided such a wholesome experience,” informed Jain.        

 Operational hurdles  

 If you look at any business the most challenging part of any business is the number of things that cannot be standardised and spa business falls on the top of that order.  It is only category where there is a personal/physical touch between the customer and employee in any business. This itself is a huge huge challenge/responsibility as far as an organisation is concerned.  

“Installing very robust Systems and processes and also ensuring that the staff are continuously trained on right procedures and protocols for service delivery is critical. Considering the huge growth in the sector and also lack off too many organised players in this category it is typically for the small business entrepreneur it is absolutely unviable to invest heavily on training this I think is a huge operation challenge,” said Reddy.   

 Franchise ‘Connect’      

 In any evolved economy you’ll see a huge rise in franchising.  It’s a really beautiful trend that is catching up in India as well. For a new entrepreneur it is highly recommend to explore taking any franchise because you’re going to highly benefit from all the learnings and the dos and don’t‘s of business. 

 “However I recommend that whenever you’re making a decision of a potential franchise you should evaluate what value the franchisor brings to the table. Apart from being a recognisable brand they also must bring in very strong systems and processes, IT systems which would enable you to run your business in a seamless manner which is the primary purpose of taking a franchise,” said Reddy.  

Speaking further on same, Rastogi said, “Although franchising in the spa business has been on the rise, spa chains somehow have not been able to maintain very high standards of quality and uniformity. “








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