Report

Healthcare, Beauty & Wellness Franchising Report Launched

The Indian health and wellness market is estimated to around Rs 25 billion with a year-on-year growth of over 25 per cent

Franchise India Holdings Limited, in association with Francorp and Medium Healthcare Consulting Pvt Ltd launched a report on healthcare, wellness and beauty franchising. Said Gaurav Marya, President, Franchise India Holdings Limited, "This report would serve as a reference guide for all the healthcare companies looking at the potential of franchising."

India has always been considered a dynamic entrepreneurial pool with the traditional business acumen that is inherited across the Indian pedigree. The report states that there is clearly conspicuous attractiveness in the Indian market conditions at present. Prevailing franchising wave bring with itself a lot of excitement as well as innovation in terms of the way business is done in the country.

In India, there are around 1,200 franchisors, with more than 1,25,000 franchise units, which represent slightly more than three per cent of business. Yet this small percentage generates around 30 per cent of revenues in retail and service across the Indian economy. The franchising industry in India is currently growing at an annual rate of 30-35 per cent. According to Franchise India's research, national and international franchisors today employs around one million people in India.

According to the report, the Indian health and wellness market is estimated to be around Rs 25 billion with a year-on-year growth of over 25 per cent. Consumer purchase habits and preferences have gradually evolved and healthcare market's traditional equilibrium is changing to present a dynamic market loaded with opportunities. This led to an increase in demand for health and wellness products and services. The retail surge in India has also contributed to the growth of entire wellness Industry.

According to the report, the spa and wellness industry in India is estimated be Rs 11, 000 crore with a growth rate of 25-35 per cent, as per an audited report done by consulting firm Ernst & Young for FICCI. The total number of spas in the country is 2,300 of which 70 per cent of spas are run by local brands, that has generated annual revenues of around US$ 384 million. In the next four years, 700 new spas, both homegrown and international brands will open in India to meet the growing demand. Nearly 3 lakh therapists will be required in the Indian spa industry by 2012. Destination / hotel spas is another growing category where spas can contribute up to 15 per cent of hotel's revenue and in some cases is the second fastest income generator in the hotel after rooms.

At present, India has around 20-25 major spa centers, most of them are spread in the southern states such as Kerala, Karnataka and Tamil Nadu where these spas also give a characteristic tie with medical tourism as part of the recuperative holiday. Today, spa penetration is a mere five to 10 per cent. In fact, there is very little development in the four and five-star segment without a spa, because of the higher profit by almost 40-60 per cent as against one without a spa, the report states.

EH News Bureau