wellness opportunity in india
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Presentation at FICCI conferenceTRANSCRIPT
INVESTMENT IN WELLNESS INDUSTRY
FICCI Wellness 2010
Mumbai, August 25, 2010
4/14/2011 1
WELLNESS: A HUGE GROWTH
OPPORTUNITY
• Industry estimate: Rs. 11,000 Crore
• Growing at 30 - 35% per annum
Rs. 3,500 Crore
Incremental Business per annum!
HOUSEHOLDS WITH INCOME> RS. 50 LAKH
GREW 8 TIMES IN THE PAST DECADE
201454
1,037
40
103
255
20
52
141
0
200
400
600
800
1000
1200
1400
1600
2001-02 2005-06 2009-10
Number of households (figures in ‘000)
10,000+
5,001 - 10,000
2,001 - 5,000
SOURCE: NACAER
4/14/2011 4
4 lakh households > Rs. 50 L income
INDIA: TOP 10 HEALTH PROBLEMS
4/14/2011 5
Frequent colds/flu
Headaches/Migraines
Stress
Gastrointestinal/digestive problems
Anemia (iron deficiency)
Sleep problems
Joint health problems
Diabetes
Bone health/strength
Tiredness, lack of energy
41%
40%
37%
37%
34%
34%
34%
33%
33%
33%
SOURCE: HEALTH FOCUS INTERNATIONAL
INDIA: OPPORTUNITIES FOR WELLNESS
SOURCE: HEALTH FOCUS INTERNATIONAL
4/14/2011 6
Frequent colds/flu
Headaches/Migraines
Stress
Gastrointestinal/digestive problems
Anemia (iron deficiency)
Sleep problems
Joint health problems
Diabetes
Bone health/strength
Tiredness, lack of energy
41%
40%
37%
37%
34%
34%
34%
33%
33%
33%
“LOSS OF CONTROL” FEELING:
OPPORTUNITY FOR WELLNESS INDUSTRY
SOURCE: HEALTH FOCUS INTERNATIONAL
4/14/2011 7
Strongly agree/agree 2000 2003 2005 2008
Change
‘08 vs.
‘00
My short-term health depends on
how well I take care of myself95% 87% 86% 81% -14
As long as I take care of my heath
day-to-day, the long term will take
care of itself
90% 87% 83% 69% -21
I have a great deal of control over my
future health89% 72% 77% 67% -22
My stress levels can be managed by
me93% 83% 82% 60% -33
If I take the right actions, I have a
good chance of avoiding cancer85% 66% 78% 56% -29
SPAS, GYMS & SALONS –
WORTH INVESTING?
• Estimated SPA rooms (organized sector): 2,000 – 2,500
• Estimated number of gyms: 5,000
• Availability will undoubtedly double in next 3 – 5 years.
• Is it worth investing?
– Rs. 1.5 to 2.5 crores for a gym
– Rs. 30 – 50 lakhs for a fitness & slimming center
– Rs. 12 – 25 lakhs for a day spa/ beauty salon
4/14/2011 8
BUILD A LONG TERM MODEL OF SUCCESS
• Just being there is not a guarantee for
success
• Competition will get stronger
• For investment to payback – focus on the
business structure & strategy
4/14/2011 9
THE PILLARS OF SUCCESS
Service Quality
Branding
Loyalty Pricing
4/14/2011 10
SUCCESS STRATEGIES - 1
4/14/2011 11
Service Quality
Train
Motivate
Monitor
SUCCESS STRATEGIES - 2
Loyalty
Service
Reward
Cross-sell
4/14/2011 12
SUCCESS STRATEGIES - 3
Branding
Target Segment
Unique Proposition
Brand Experience
4/14/2011 13
SUCCESS STRATEGIES - 4
Pricing
Target Segment
Competition
Special Offers/ Deals
4/14/2011 14
