UK Spa Market 2011 (Day Spas, Beauty, Pampering and Wellness)
Diagonal Reports, October 2011, Pages: 82
Wellness is the new consumer priority.
Spas, with their unique mix of therapies and treatments, outperform the beauty market.
Innovation drives spa growth and best performers show double digit sales growth.
Spas pioneered new beauty and wellness treatments. In doing so, they established new beauty and wellness priorities for consumers. In what is the most curious development, spas have become the best performers in the beauty market by delivering appearance enhancement as a part – even a bonus – of their core wellness package.
Spas meet a new consumer need for wellness and in the process have grown from zero to a business worth more than UK Stg billion in a decade. The spa offer may appear diffuse but there are three distinct and well established pillars and these are wellness therapies, beauty or appearance enhancement, and pampering treatments. The particular therapy emphasis, or treatment mix, can vary but the spa visit is an integral part of a wellness lifestyle.
At first glance, spas present a confusing range of the traditional and high tech because they have drawn on such disparate sources for their treatment and wellness therapies. At home they have borrowed from the beauty salon, alternative wellness practitioner, the dermatologist, medical and laser clinic. Abroad, they have picked from Asia to Scandinavia.
The resulting “spa offer” is unique and quite distinct from that of the sectors out of which it developed. This ability to adapt and integrate explains why different philosophies, seemingly incompatible, co-exist and underpin the core business. For example, pampering and wellness elements must be exclusively natural. Beauty, however, can be organic or natural or even a combination of the organic and the high tech or medical.
Massages and spas are now synonymous because the massage is the main spa therapy. Massages which energise, rejuvenate and deliver wellness to clients generate well over 50% of sales for the spa. The best selling massage, - the “deep tissue” or Swedish massage - relieves tension and stress.
Bodycare sets the spa apart from the traditional beauty salon. Spas now offer treatments, previously only available for the face, which beautify the body. The most popular “facials for the body” are massages, wraps and scrubs which cleanse, exfoliate and refine the skin.
Spas have grown exponentially by delivering beauty from within, that is wellness cum appearance-enhancement. Additionally, stand-alone beauty treatments also generate significant revenues for spas. It is anti-ageing skin care which is the main driver of demand for beauty in spas. It must be noted that different types of spas (day, hotel, med) provide quite distinct body and skincare treatments but this is because a number of factors (regulations, location, space and philosophy) determines just what is possible.
It is innovation in beauty as with wellness - in terms of product formulation and treatment delivery – which has allowed spas to outperform the traditional beauty market. Beauty treatments, both high tech and natural, are sold as a package, that is a sequence and combination of treatments, utilizing a range of skills and a variety of products.
In a nutshell, spas outperform because they sell more treatments and products to more people more frequently. Their client base is wide as they have attracted millions of new consumers – especially younger women and men. They are a fixture of the urban lifestyle.
The wellness paradigm is now shaping the entire beauty, personal care and wellbeing sector. The effect can already be seen in selective beauty channel para-pharmacies and hypermarkets. This shift in consumer behaviour is forcing innovation on the beauty market.
The story of massages best explains both the spa trajectory and its potential . Massages are now mainstream which is a dramatic transformation of what was once an artisan sector. Until recently, they were mainly provided by sole practitioners (eg, alternative health) and viewed as a minority therapy or in some cases with suspicion as “sleaze”. Now massage chains are being rolled out (especially in the US) such is their demand.
Not surprisingly, there is confidence in the fundamental strength of the sector and its capacity to grow. Spa sales softened in 2010 due to the recession but the best performers expect a return to double digit growth rates.
The main factors driving expansion are continuing demand for wellness by the consumer and constant innovation in therapies, treatments and technologies on the part of the spa. Spas are at a very virtuous point of their growth cycle. Increased demand for wellness by spa users drives innovation which then expands both demand and the consumer base.
TABLE The UK spa market data glance
Spas pioneer new categories and new consumer priorities
TABLE The three pillars of the spa market
Pampering –– Relax body and mind
New treatment categories
From zero to ... 10 From sleaze to ....
New categories of products
TABLE Three spa pillars bridge the ......
BEAUTY
PAMPERING
WELLNESS
UK uniquely innovative
Going forward –– pampering, massage and wellness
Going forward –– beauty
Going forward –– packages not single treatments
Currency
Date of publication
SECTION TREND SETTING SPAS AND THEIR CONSUMERS
SHAPE NEW BEAUTY AND WELLNESS PRIORITIES
Introduction and summary
What do spa clients want? A major omission suggests new priorities
Spas a new lifestyle
New priorities change the question being asked
Wellness in holistic healing temples (quote)
London spas showcase the future
TABLE The Best in Class spas in London experts’ picks
London spas size and composition of the population
The “affluents” and the “determined”
London attracts diverse clientele, including ..
Tourists, travelers and shoppers
London 2012 Olympics
SECTION SPA BUSINESS ACTUALITIES, SALES VARIATIONS CURRENT AND FORECAST
Introduction / summary
TABLE Sales variations in day spas and hotel spas, 2010 to 2014
Sales variations, forecast and historical
Sales variations, by spa type
Spas (quotes)
Spa escapism
Spas invest to maintain quality
Location specific performance
No competition
TABLE Spa sales trends, the seasonal highs and low
Trends in the winter
Trends in the summer months
SECTION SPA BUSINESS ACTUALITIES, THE TOP SOURCES OF REVENUES
Introduction and summary
TABLE Spa revenues, (%) from treatments and from product retail
TABLE Wellness and beauty menus as (%) of revenues in spas
Wellness more upmarket?
TABLE The treatments most commonly offered by spas
Data discrepancies / Business actualities do not fit into inherited categories
Tracking income from gift certificates
SECTION SPA BUSINESS ACTUALITIES TOP TREATMENTS, MASSAGE AND BODY CARE
Introduction and summary
TABLE Massage, and other body business, summary
Rise of massage from sleaze
TABLE The best selling massage therapies
The deep tissue (Swedish) massage
Massage techniques from the West and the East
Massage for women
Massage for men
TABLE The solutions that massage therapies deliver
Stress and beauty
Only customized massages
TABLE Massages ranked (%) full body and partial body
Sales trends, partial body massages
The lunchtime and the shopper’s massage?
No undressing is attractive
Massage and stress relief (quotes)
Opportunities in massage 29 The latest massage therapies (quotes)
TABLE Body beauty and body care business, summary
Blurring of beauty and wellness
TABLE Body care treatment packages (examples)
TABLE Spa body treatments (%) from wraps, scrubs, and massages
Body shaping treatments
SECTION SPA BUSINESS ACTUALITIES, BEAUTY AND FACE TREATMENTS
Introduction and summary
TABLE The top beauty treatments in spas, data summary
TABLE Face care, the top rituals/purposes
Facials for shoppers
TABLE Facials as a % of business in spas
Big spas, big sales of ...
Anti ageing facials, % of spa business
TABLE Facials as a % of spa business and the brands used
TABLE Anti ageing facials (AAF), the top protocols
TABLE The cleansing facials, top protocols
TABLE The cleansing facials, the spa sequence
Facial rituals
TABLE Facials, high tech and medicalised
Some forbidden beauty
SECTION SPA BUSINESS ACTUALITIES, MANICURES, ETC.
Introduction and summary
TABLE Nail and other beauty treatments in spas, data summary
Manicure and nail business in spas
Hair removal business in spas
Laser hair business in spas
Starter and maintenance Brazilians
Tanning business in spas
SECTION SPA BUSINESS ACTUALITIES, CONSUMER PROFILES AND ATTITUDES TO SPA SPENDING
Introduction and summary
TABLE consumer segments in spas, summary profile
Gender of clients
Working women
Everyone with the money
The spas where extravagant spenders are ...
Consumer attitude to spending in spas in 2011?
Managers describe the extravagant spenders
Selecting wisely to maximize experience
SECTION BUSINESS ACTUALITIES PRODUCT RETAIL AND HOMECARE 40 Introduction and summary
TABLE Revenues (%) product retail, summary
Spas with higher retail than industry average
Stock up in London
TABLE Spa retail (%) from skincare lines
Yoga retail
TABLE Drivers of retail sales in spas
Smell, taste, and test quality
Convenience and privacy
Luxury on demand
Retail avoids rigmarole
Driving recommendations in spas
SECTION GOING FORWARD AND CONCLUSIONS SPA THERAPIES
Introduction and summary
TABLE The best and worst performing categories in beauty and wellness
TABLE Unmet consumer beauty and wellness needs
Wellness or quality of life enhancement
Women specific therapies
Therapies to attract men
Spa sociability
Sleep deprived
Clients and time
TABLE The new lifestyle menu
DIFM Fitness
Yoga and Reiki
SECTION BEYOND AND OUTSIDE THE SPA MARKET
Introduction and summary
TABLE Beauty provision, traditional and high tech
Pace of growth
Forecasts made in 2006 borne out
Barriers to entry
Cost of equipment significant entry barrier
Sales in multiples and large companies
Business in largest clinics is ...
A few large companies ......
Multiples target .....
Companies of unprecedented size in beauty provision
Biggest retailers adopt and adapt spas’ selling strengths
SECTION SPA BUSINESS ACTUALITIES, BRANDS
Introduction and summary
TABLE … brands
TABLE Brands in bodycare (x names) and face care (x names)
Product houses, own labels (bespoke)
TABLE Brands noted as new or innovative (x names)
TABLE Spa criteria to select / drop a brand
Practices that maintain brand exclusivity
Professional only brands
Exclusivity
SECTION SPA BUSINESS ACTUALITIES PRICES
Introduction and summary
Pricing
TABLE Prices, facials examples by status of therapist
TABLE Prices of injectables and Botox
TABLE Prices of peels (package of 6)
TABLE Prices fillers for facial lines, facial augmentation
TABLE Prices laser hair removal per sessions
TABLE Prices laser lipo and body
SECTION BUSINESS ACTUALITIES SPA PRICES, AND THE IMPACT OF THE ONLINE
Introduction and summary
Pricing and online discounts
On line deals blur carefully wrought segments
SECTION COMPANY PROFILES, PRODUCT MANUFACTURERS
TABLE Company and brands identified (X names)
Experts comments on brands (alphabetical order)
SECTION COMPANY PROFILES SPA OPERATORS (DAY SPAS)
TABLE Spa companies, and the largest chains(*) identified (X names)
Spa company (units UK)
TABLE Spa companies hotels identified (?X 20 names)
Spa company
TABLE Health clubs, and leisure clubs identified (?X names)
Health clubs
Comments on spa companies and retailers (alphabetical order)
TABLE Beauty retailers beauty counter assistants
Company
SECTION SUPPORT DATA BEAUTY AND WELLNESS MARKET UK
Introduction and summary
Estimating spa numbers
TABLE The UK beauty/wellness universe, units and revenues –– by business type
Data provided as approximations of scale
TABLE The beauty salon/day spa market data at a glance
The UK and the USA compared
Industry counts
TABLE The beauty salon / day spa market (2010)
Facility based units
TABLE Beauty salon/day spa market segmentation (A, B and C)
Definition of spa segment A
Definition of spa segment B
The C segment and the .....
The spa market in hotels and H&F clubs
A spa OR a treatment room, a solarium, or a sauna?
TABLE Most spas in ....
TABLE UK hotel sector (%) by type of business
TABLE The H&F club sector, quantified (units and revenues)
TABLE Revenues in different segments of the CAM market in the UK
The top five CAM therapies
TABLE The top 20 acupuncture procedures in the UK
Support data aesthetic procedures (invasive and non invasive)
TABLE The non-invasive aesthetic procedures market, summary of data
Numbers professionals with provision rights (non-invasive aesthetic procedures)
Huge difference in the skill and expertise of providers
Speed of growth, A regulatory mess
Voluntary
Statutory
Insurers and compliance
SECTION RECOGNITION SCHEMES IN BEAUTY AND WELLNESS
Recognition (awards and peer judgement)
Recognition (CAM Clinic of the Year)
Recognition aesthetic procedures
SECTION METHODOLGOY
TABLE Description of participating companies
SECTION COUNTRY DATA UK
INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL)
If wellness is the new consumer priority, then the spa sector must be the main beneficiary. Spas deliver wellness and beauty treatments to a wide range of consumers. They are now a fixture of the urban lifestyle in Britain and attract younger women and also men in large numbers.
The UK spa sector in particular is quite unique as it is very innovative and enjoys high growth rates. Spas there outperform the traditional beauty market.
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