M ANAGEMENT F EASIBILITY

P R O M O T E RS D E T A IL S :
The management philosophy of our Spa is based on respect for each of our fellow employees,
respect for every customer, and individual responsibility. Our Spa’s success is dependent on the warmth
and uniqueness of its atmosphere which is generated by a fun-loving and caring employee. The
management team will consist of the owner i.e. me and my partner. We will hire only those whom
demonstrate the qualities necessary for working in a nurturing environment, and the willingness to
move forward in study of energetic principals if not already so trained. We will be hiring the ultimate
"people persons."

O RG A NI Z A T I O N H I E R A R C H Y :

Our initial team consists of 14 employees, inclusive of a general manager and an assistant
manager (i.e. me and my partner), both of whom will be active stylists/therapists.

Employees will be in from the two store divisions of spa and salon. On the salon side there will
be 10 stylists and one or two receptionists. There will be room for expansion to 12-15 stylists and
three receptionists. The spa side will consist of three massage therapists, one energy therapist,
one nail specialist, and one receptionist. There will be room for expansion to five to seven
massage therapists, and two to three energy therapists.

M ARKETING F EASIBILITY

T A RG E T M A R KE T :
Our target market will be divided by salon customers and spa customers. Salon customers will
be from every age and gender; however, since the salon and spa will be in direct association with each
other, we expect that the spa market segment will greatly affect the salon market segment. Thusly, our
target market segment will be male and female professionals and retirees, from the age of 25 to 45,
with individual and household incomes greater than Rs. 25,000.
The members of these market segments have luxury money on hand, and lead professional
lives filled with stress at a consistent level. All persons usually need hair styling regardless of income
level, and make the effort to find the money available to style their "look."People love to pamper
themselves, especially people who have achieved a small level of professional success.

M A R KE T P OT E N T I A L :
The spa industry in India is still pretty small but it is picking up. With the current growth and
influx of international companies and globalization, soon, resort spas will give way to day spas and spas
will become part of a daily routine and not a holiday luxury.
Cities like Mumbai are an upcoming market for spa operators. With Mumbai being a tourist
attraction and the hype of bollywood, many spa, beauty and fashion operators are building their base
there. Many investors are looking to move into India because India’s an untapped market with bountiful
opportunities and what’s more, business language in India is being conducted in English, an added-
advantage.
Local brands occupy about 70% of the beauty & spa market. Also, with India’s growing executive
class, and with the increasing purchasing power, foreign brands see India as a cache. Foreign brands also
present an element of glamour and quality.

I ND U S T RY A N AL Y S I S :

With an increasing number of lifestyle related diseases and a realization that prevention is
better than cure; the acceptance of spa and wellness industry in India is much higher than in the
western world. Moreover, the need to look good is another major factor contributing to the sudden
spurt. Currently over 2,300 spas are operational in the country, this shows the booming rate of growth
of Indian wellness industry. According to an independent market research, the spa and wellness industry
in India have a market size of Rs 11,000 crore. Going through market potential of spa industry, setting up
a spa and wellness center is considered as a profitable business venture nowadays.

At present, India has around 20-25 major spa centers, most of them in the Southern states of Kerala and
Karnataka. With over 700 spas predicted to open their doors in the next 2-5 years, there’s no doubt that
the spa industry in India is growing fast. While the spa market in India is still a modest sliver of the
overall $60-billion-plus global spa economy, India is poised to attract significantly more western tourists
(particularly on the medical/wellness/travel front) as well as continue to develop its own vibrant,
indigenous spa market at a heady pace.

The basic points that one should keep in mind while setting up a spa includes:
 Emphasize our name and unique services through advertising.
 Focus on the convenience of our location.
 Build community relationships through unique and quality service, friendly and caring
atmosphere, and establishing absolute dependability of our services.
Strengths/Drivers:
 High Profitability
 Growth in Medical Tourism
 Large Consumer Base
 Lifestyle of Consumer
 SWAI (Spa and Wellness Association of India) initiatives

Challenges to face/Weakness:
 Although the spa and wellness business is profitable, there are some challenges. Spa and
wellness is more about people interaction than machinery and hardware but in India there is no
formal criterion for spa and wellness education, so the biggest challenge is to find, train and
retain talent to operate the spa and service the customers.

 Knowing the breakeven point provides a clear picture of what is needed to generate in revenue
to stay in business. Generally breakeven time for a spa business should be between 6 to 12
months, but if a spa does not break even in that time period, it probably never will. However,
one must expect to spend heavily on initial marketing in order to create the required customer
base and that might delay the break even a bit. 

Opportunities:
Huge opportunity for new Spa’s to open as there are more places without Spa’s then those
having one. More people are becoming aware day by day, so the number of Spa Goers increasing every
day. More number of Indians taking Spa experiences as overseas travel becoming more & more due to
the Business opportunities for India globally increasing. This is resulting in these people looking for
similar experience back home. More & more International Spa’s coming to India, creating greater job
opportunities in this industry. Many International Spa operators are incorporating Ayurvedic treatments
in the Spa’s operated by them, creating greater scope for the Therapists & the Practitioners. World is
looking to India in sharing their expertise.

Threats/Competition:

 The Spa Market is highly fragmented across the country

 Most of the spas’ have been developed in association with large hotels or players in the hotel
industry themselves have expanded their services to encompass spa services.
 Destination Spas are competing for both local and foreign customers.
 Domestic entrants are abound in the market with plans for multiple locations concentrated in
tier-I and tier-II cities.

P R OD U C T AND SERVICES:
Products:

 Basalt stones
 Epsom salts
 Massage tables/spa beds
 Essential oils
  Aromatic candles
 Clay masks
 Flowers
 Steam cabinets
 Hydrotherapy tubs
 Massage stone heaters

Services:

 Thai yoga massage (it’s a dry treatment with loose clothes on; typically called the lazy mans
yoga)
 Neck and shoulder massage (again dry therapy)
 Facials and body treatments, e.g. dead skin exfoliation, skin brightening, anti pigmentation,
deep tissues massage, Swedish massage etc, (mix of dry and wet treatments)
 Dry floatation therapy with aroma therapy
 Aroma therapy treatment and massage
 Hand and Feet Services
 Retailing of extremely high quality skin and beauty products with good margins