Indian day spas in Bangalore achieve high year on year annual growth
by Helen Andrews | 02 Sep 2014
Spas in Bangalore neighbourhoods attribute their success to the disposable income of local clientele / Charisma Spa
Spa owners in the cosmopolitan Indian locality of Koramangala, Bangalore, are raking in healthy profits, with year-on-year annual growth ranging between 30 to more than 50 per cent.
Last August, PricewaterhouseCoopers (PwC) predicted that the Indian wellness industry would reach a market size of INR1 trillion (US$16.5bn, €12.6bn, £10bn) in the next two years and an article in the Spa Business Handbook 2014 illustrates how this growth can be achieved.
According to an article in the Economic Times, The Confederation of Indian Industries (CII) reports that the Indian beauty and cosmetics market stands at US$950m (€724m, £575m) and is growing at 15-20 per cent annually. Branded names and new entries in the sector are drawing large crowds in Koramangala in particular.
One such spa in Koramangala, founded in 2011, has had year-on-year growth of more than 30 per cent. The Four Fountain Spa was initiated with a seed investment of around 50 Lakh (INR5m, US$83,000, €63,000, £50,000).
“Spa is popularly perceived as an occasion for indulgence and the concept is still not widely considered to be a necessity,” Pawar, owner of The Four Fountain Spa, told the paper. “The scene at Koramangala is very different. Corporates and employees of technology companies inhabiting the suburb constitute 70 per cent of our clientele. This segment’s disposable incomes are high and so spending on relaxation in a spa is more of a recurring necessity than a luxury for them,” Pawar added.
Offering four categories of personalised services: detoxification, immunity booster treatments, beauty and de-stressing therapies, the spa has approximately 300 subscribers.
Another spa, the Charisma Spa, became operational 14 years ago, having initially invested RS2crore (US$330,000, €251,000, £199,000) in its business. The break-even point was reached after 18 months and its year-on-year growth is more than 50 per cent. The spa welcomes roughly 100 visitors a month and the average spend is anywhere between INR1,000 (US$17, €13, £10) to INR15,000 (US$250, €190, £150).
The Charisma Spa plans to open up branches in the next two years in other high-end neighbourhoods of Bangalore, including Jayanagar and Indiranagar.
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FEATURE: Asia Research – Gearing Up For Growth
Spa owners in the cosmopolitan Indian locality of Koramangala, Bangalore, are raking in healthy profits, with year-on-year annual growth ranging between 30 to more than 50 per cent. Last August, PricewaterhouseCoopers (PwC) predicted that the Indian wellness industry would reach a market size of INR1 trillion (US$16.5bn, €12.6bn, £10bn) in the next two years and an article in the Spa Business Handbook 2014 illustrates how this growth can be achieved.
SAB,SWC
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