The spa industry in the United States has steadily grown over the years and has become the fourth largest in the leisure sector. With as many as 15,000 locations in 2004 (iProceed estimate), it has become a leading destination for well-heeled consumers who visit day spas, spa resorts, fitness spas, destination spas, and more recently, the medical spas.
I recently attended the Spa & Resort and Medical Spa Expo in New York City and I was impressed how this industry attracts as much $12 billion from American consumers primarily through small enterprises. While some of the spa services have come under pricing pressure due to higher competition, spas have tried to offer more high-value services. At a time when supermarkets and mass merchandisers are selling spa-quality personal care products, spas are gradually transforming their business model to focus on anti-aging, rejuvenation, and even medical treatment. Hence, the emergence of the medical spa.
A medical spa (or med-spa or medi-spa) has one or more doctors (dermatologist, plastic surgeon, nutritionist, etc.) associated with it. They may work full time or visit on an as-needed basis. With such a portfolio of services, spas are now combining standard skincare treatments with medical procedures. Since healthcare providers are not involved, doctors like them because you get paid right away and there is no paperwork at all.
What does it mean for you?
Technorati tag: Spa business
I recently attended the Spa & Resort and Medical Spa Expo in New York City and I was impressed how this industry attracts as much $12 billion from American consumers primarily through small enterprises. While some of the spa services have come under pricing pressure due to higher competition, spas have tried to offer more high-value services. At a time when supermarkets and mass merchandisers are selling spa-quality personal care products, spas are gradually transforming their business model to focus on anti-aging, rejuvenation, and even medical treatment. Hence, the emergence of the medical spa.
A medical spa (or med-spa or medi-spa) has one or more doctors (dermatologist, plastic surgeon, nutritionist, etc.) associated with it. They may work full time or visit on an as-needed basis. With such a portfolio of services, spas are now combining standard skincare treatments with medical procedures. Since healthcare providers are not involved, doctors like them because you get paid right away and there is no paperwork at all.
What does it mean for you?
- New business opportunities are emerging in providing high-quality, natural (and/or organic) personal care products. At the same time, there is demand for professionals who can provide all the specialized services that spas and medical spas now offer.
- Spas are no longer seen as luxuries. For an aging and stressed population in the US, spas provide a way to stay young and healthy. Some of the new visitors to spas are teenagers and men. Thus, having a spa attached to hotels, conference centers, golf resorts, office complexes, etc. makes perfect sense from a cross-selling perspective.
- Spas, that have traditionally operated as small businesses, may be ready for some consolidation. The industry is highly fragmented, and therefore, with consolidation, there is tremendous scope for economies of scale. Already quite profitable, spas can potentially be even more profitable if economies of scale are realized.
Technorati tag: Spa business