THE WELLNESS INDUSTRY

In 2007, 96 million spa-goers regularly visited spas across the globe

MKG Consulting has carried out a vast study on the following market sectors: wellness, zen, beauty, spa, health and fitness, tanning salons, senior citizens, wellness coaching, medicine and cosmetic surgery. You should find the results very motivating. Take note and use this information to attract and retain clients by showing them that you are up to date on the latest trends.


 

THE WELLNESS INDUSTRY

According to Paul Zane Pilzer, the wellness industry, which is in a period of considerable growth, brought in 200 million dollars (approximately 149 million Euros) in 2002 and is showing signs that this may increase to 1000 billion dollars (approximately 695 million Euros) per year between now and 2010. That is an increase of 500%.
 
The nutrition sector is a very significant segment of this market. In recent studies conducted in France, the vast majority of the population are reported to be tired and stressed. The eating habits and lifestyle of the French are becoming more and more incompatible with the real needs of the individual. Stress and fatigue also aggravates bad eating habits, which has resulted in one out of two French people being overweight.

Of all the European countries, France is also the highest consumer of antidepressant medication, which is largely as a result of problems related to stress, anxiety and fatigue from every day life.

According to Françoise Serraita (Peclers – Future Trends Forecaster), the wellness industry is not only limited to spas and organic cosmetics but also encompasses other elements that contribute to wellness such as eco-friendly vehicles, ecologically sound architectural principles, life coaching, organic foods and everything relating to sustainable development. She outlines three different client profiles:

• Absolute nature “fanatics”, who only use 100% organic products to calm their anxieties.

• Those who are committed to achieving wellness through the use of organic products and sustainable development (such as organic cosmetics and eco-friendly cars etc.)

• Those who resort to wellbeing that is 100% artificial. These individuals use technology to artificially create a sense of wellness that would never occur naturally. This “bio-technology” (a fusion of biology and technology) is currently being developed in the United States and Japan, and suggests that the future of the wellness industry will incorporate this vision in France and Europe in years to come.

Thus, activities linked to wellness, such as those provided by saunas, solariums, massage parlours and relaxation centres, are experiencing a period of radical growth. In 2004, more than one in three establishments were created or revamped, out of more than 3,500 establishments, and of this number 71% were less than 5 years old.

Beauty treatments are the second most dynamic activity, with one out of every two establishments having been created in the last five years, of the 14,000 institutes or centres offering facial treatments, manicures or hair removal. As in the hair styling industry, most beauty salons are privately owned and individually managed whereas massage or relaxation centres are more often part of a group of franchise.

The French are consuming more and more organic products. Today, more than twenty-five percent of consumers regularly purchase organic products whilst fifty percent of consumers state that they occasionally purchase organic products. Only 32% said that they had never tried organic products. According to a study conducted by the Agence Bio, an Organic Monitoring Agency, the sale of organically produced food stuffs has increased by approximately 9.5% each year since 1999, whereas the rest of the food industry has increased by only 3.6% per annum over the same period. Health, the search for authentic tasting food and a concern for the environment are at the root of this phenomenon. The growth in this sector can also be attributed to the presence of organic products on the shelves of large food chain stores since 2000, with stores such as Carrefour and Monoprix pioneering the way, as well as a decrease in price. Today, it costs approximately 25% more to eat organically, whereas 15 years ago, it would have been 50% more expensive to eat organically. While we are on the topic, it is interesting to note that 40% of consumers consider it quite normal to pay more for organically grown products although they do feel that these should not be more than 10% more than regular food.

Thalassotherapy also had to evolve in order to accommodate a new clientele that was in search of relaxation rather than grooming or beauty. As a result we have seen that the average stay at a thalasso centre has become shorter and shorter. In 1996, the average stay was 5.8 days whereas by 2005 this had decreased to 3.22 days. Thalassotherapy centres needed to adapt to this new week-end clientele who arrived with 35 hours to spare and high expectations. Clients are now in search of a location that can offer them total relaxation rather than a place where they can be beautified. The Thalassotherapy Association reported that turn over relating to beauty, boutiques and complementary activities had increased by 9.9% from 2005 to 2005. This can be attributed largely to the emergence of spa packages and day spa treatments offered in the very heart of thalassotherapy centres such as Pornic, Quiberon and Carnac.
 
Summary

• 85% of the French population admit to being very concerned about their health.

•  97% agree that good physical health means being in good psychological health.

• According to experts, the wellness industry will have multiplied five-fold between 2002 and 2010.

• France is the largest consumer of antidepressant medication in the world.

• The Zen market continues to infiltrate an increasing number of aspects of everyday life.

• Cooking courses conducted in the last three years in France show a real desire to marry culinary enjoyment with healthy eating habits.

• More than 25% of consumers in France regularly purchase organic products.

• 250,000 cosmetic surgery procedures were performed in 2006.

• 82% of all operations performed by French plastic surgeons were non-invasive.

• The use of Botox has multiplied fifteen-fold within the space of 4 years in the United States.

• In Great Britain, 30 to 40% of companies’ training budget is allocated to coaching.

• Wellness and professional coaching is booming in France and Europe.

• After a few years of stagnation, the beauty industry in France is once again growing with the development of ethnic beauty ranges and other fresh new concepts such as beauty bars.

• Following a decline in popularity in traditional gyms, fitness centres decided to steer their activities towards wellness, which was what their clientele were looking for (78% expressed a desire to include physical relaxation treatments in their fitness centre).

• France represents 4.5% of the international spa industry, which includes some 96 million regular spa goers.

• The senior citizen sector (fifty years or older) currently accounts for one third of the French population. By 2020 there will be close to 25 million seniors in France. This sector is increasingly more health conscious and actively in pursuit of products that will enable them to guard their health as long as possible.

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THE ZEN MARKET

For a number of years now, the philosophy of Zen has fascinated the French. From tai chi to shiatsu, from feng shui to green tea, rituals originating in India, Japan and China have increased their seductive hold on European consumers, luring them away from the cult of performance and results and guiding them towards a philosophy of well-being. It was around the start of the new millennium that Zen culture started to infiltrate all aspects of Western life: fashion, décor, cosmetics, health, architecture and food.

And so we saw the introduction of tea houses in a number of large cities, Asian art galleries started to multiply and Buddhist-inspired window displays appeared in a number of large stores. In France, consumption doubled between 1995 and 2005 and the sale of high-end tea increased by 10%.

According to sociologist Jacques Paitra, this was a real “mental revolution” and not just a fashion statement. It represented a new way life that corresponded with the present day aspirations of the French people. It followed logically that a number of brands developed products in line with these evolved aspirations: for example, “Kenzoki” by Kenzo, a cosmetic range (based on aromatherapy). Or consider the influence on fashion with Mao collars, kimono pants outfits and Japanese printed fabrcis. There was, of course, an influence on the development of spas and the incorporation of Japanese baths and Asian-styled massage therapies.

The home and the art of table setting did not remain untouched. Feng shui (well-being through décor) has never been more popular in the West. As far as furniture and cooking are concerned, the sale of Orient-inspired furniture (e.g. bamboo products and mahogany-stained wood furniture etc.) has grown considerably in recent years as has Asian-styled dinner table accompaniments such as bowls of sake, Chinese baguettes or even Sushi.

More than simply aspirating to achieve a sense of well-being and internal harmony, this is a reflection of a deep ideological need and a profound desire to live a better life and we are seeing this sentiment shared y a growing number of individuals. It truly is a revolution of the mind and it looks set to endure.
 

THE BEAUTY MARKET

According to a study conducted by the NDP in 2006, the beauty industry repported a period of growth. Select perfumeries, representing 50% of distribution, reported an increase in turn over of 3%. An increase in product cost can account for this progression. In effect, the volume of products sold had stagnated while the average price of the product had increased by 2.7%.

In 2006, the global perfume and cosmetic industry reported a growth of 4.8%, the largest increase recorded since 2000. These impressive results, however, conceal some significant disparities, particularly from a geographic point of view. While new consumer regions (Asia excluding Japan, Eastern Europe and Latin America) are developing, growth is relatively low in more mature markets (Western Europe, North America and Japan).

The ethnic beauty market has expanded significantly in the last few years and looks set to become the latest niche within the plethoric beauty market. According to directors, they estimate this market to include between 3 and 7 million potential clients. The ethnic cosmetic market currently accounts for 50 million Euros in France. The only sure thing as far as management is concerned, is that this segment of the market over-consumes. The average spend per basket for this market sector is 3 to 5 times more than that of the Caucasian market.

Another contributing factor is the development of beauty bars over the past few years in Paris. The idea is to offer services to clients without needing to make appointments and at very competitive prices. The beauty bar at the large Sephora store on the Champs-Elysées is a prime example of this fad. Establishments such as the Printemps Haussman Make-Up Baror the Institut du Pied are also pioneers within the beauty bar market in France. Garnier is offering a beauty bar on the Internet with well being and beauty advice, as well as personality quizzes.
 

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THE SPA MARKET

In 2007, there were 96 million spas goers regularly visited spas across the globe.

The French only accounted for 4.8 million of this total, trailing far behind the Americans (32.2 million), the Japanese (15.8 million) and the Italians (10.7 million).

68% of spa goers in France are women.

Preferred treatments in France are first and foremost the sauna and Jacuzzi, then exfoliations and wraps, followed by massage jets.

The market announced a growth of 61% over the last few years in France (Source: European Study on the spa industry, ITEC France / ISPA).

Of the 200 respondents interviewed, 69 had already visited a spa. The average age of the respondents was 33 years.

Three categories of spa goers were identified:
• Those who had only been to a spa once (29% of the group)
• Occasional spa goers (46% had been between 2 and 6 times)
• Frequent spa goers (25% said that they regularly visited spas)

51% of clients visit spas with someone accompanying them: 49% accompanied by friends and 17% accompanied by a family member. 35% prefer to go alone and 13% sometimes go alone and sometimes accompanied, depending on the occasion (Source: Study conducted by ROSAE in 2005).
 

CONCLUSION

These days, spas centre around the concepts of relaxation and well being, offering various relaxation and body treatments, many having their roots in shiatsu, ayurvedic and thai massage principles.

Trends are definitely leaning more towards nature, travel and discovery. And thus, the concept of massage techniques from around the world play a large role in the spa menu. The “natural” aspect of spas is characterized by the incorporation of treatments with a natural base such as “Vinotherapy”, “Tellutherapy”, “Crystal therapy” and even rituals involving fruit, sugar, maize, chocolate or vegetable extracts.

The majority of spas only offer treatments that are administered at the hands of therapists. A number of spa owners completely reject the notion of “machine-administered” treatments. This is, nevertheless, the unique selling point of an establishment such as Kietud, which offers unusual machine-based treatments within confined spaces.

The product range used and the quality and originality of the treatments offered seem to be key elements when it comes to creating a loyal clientele. Thus, the use of a particular brand of products that is held in high regard can assist in growing one’s client base.

Finally, the quality of the service offered is the most essential ingredient for clients who are becoming “experts” in massage therapy and can no longer be thought of as newcomers to the industry as in years gone by.

Massages need to be adapted to suit the client’s needs, the type of spa and even the season and weather. For this reason specialized treatments such as “golf”, “pregnancy”, “new mother”, “slimming” or “Autumn” massages are all the rage.

Giving quality gifts also results in loyal clients. When clients are rewarded they tend to keep returning. Some spas also offer discounts to their top clients in order to encourage them to introduce their services to friends or family.

 

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