Spa and Wellness Beyond 2008

The spa and wellness industry is set to become the next big thing in the health and medical sector. Staying fit and healthy is an extension of everyone’s ardent desire to remain younger and to maintain longevity through a fit form, keeping a balance between good physical condition and inner being.

In response to the growing popularity of this industry, particularly here in the region, The Spa and Wellness Association Singapore could be the leading industry in Asia to provide first-hand information on spa, medical and wellness establishments and starting not just spa and beauty but healthcare and spa business.

This term, we are pleased to update on the following exciting news related to the industry:

1. Recently, the Singapore government announced that they will invest a total of more than S$360 million to prepare the workforce to meet a project spike in manpower demand, driven by new tourism investment, including the two integrated resorts in Singapore

2. The Marina Bay Sands and Resorts World at Sentosa. (update courtesy of Singapore Tourism Board).

Singapore’s booming tourism growth, coupled with increasing affluence of locals, had fueled sterling growth of the local spa sector. This positive outlook is shared by spa operators whom estimate that the industry will grow at an annual rate of between 11%-25% in the short to medium term. Growth will be driven both by the expected increase of up-market tourists and the increasing number of local spa goers. Affluence levels and a bias toward better health are combining to build the mass appeal of spa treatments as a way to preserve health and appearance.

A strong public-private sector relationship provides the strong foundation for the sector’s growth, where regulators such as the Singapore Police Force (SPF), Singapore Tourism Board (STB) and the Workforce Development Agency (WDA) work in tandem with local industry led associations such as the Spa Association Singapore and Spa & Wellness Association of Singapore (SWAS) to raise professionalism of operators and therapists. (extracted from WDA write-up)

“Total Beauty & Wellness” Business For Spas – A Paradigm Shift

The often accepted traditional concept of Spas seems ready for a radical make-over. New entrants to the market have changed the skin-care and massage concept that have long defined spas these past 20 years. They are now taking the world by storm and transforming long established beliefs about the global beauty business. 

Indeed, the last ten years have seen a worldwide emergence of new types of beauty businesses, services, procedures and technologies together with spa buzzwords all in the name of maximizing customer satisfaction by catering to individual consumer profiles.

As the spa sector develops, further variations on the spa concept, both in terms of facility type, and treatments offered will emerge. We see this evolution taking place in the “ medical spas, medispa and medspa ” markets.

Increasingly, we are seeing a merger of the Spa Concept with that of the provision and practice of Aesthetic Medicine; Non-Invasive Cosmetic Treatments; Wellness and Fitness Regimens and Total Beauty Regimens. It is now not uncommon to find, the inclusion of beauty; dermatology; hospital based clinics and weight loss centres in medspas, spas in hospitals, dental practices, and resort medical spas.

The democratization of medical aesthetics has fuelled the strong growth in Med Spas for aesthetic laser treatments and physician skincare brands. According to US medical Spa Managers, "ordinary" people are increasingly buying aesthetic treatments and services. Med spas are seeing a wider range of new clients, not bound by gender, ethnicity or age. More men, different ethnic groups apart from the predominantly white consumer and younger consumers have begun to demonstrate that they are a growing force to reckon with. Although the older, affluent woman remains the most important medical-cosmetic customer.

Cosmetic or non-invasive procedures generate most revenues because clients want fast treatments, effective results, and no down or recovery time. Skincare, which removes or reduces the signs of ageing such as age spots and wrinkles, is driving this market while hair removal for both men and women can account for more than 50% of business in US Medspas. (Medical spa articles extracted from diagonal research)

High Growth Rates In The Asia Spa Sector To Continue To Rise

Co-organised by SWAS, the success of the Spa Seminar at Cosmoprof 2007 in Hongkong has led to SWAS being invited to organize a bigger event at Cosmoprof Asia 2008 focusing on the mega spa trends and growth in Asia. SWAS intends to bring in renown spa gurus from US, Europe and Asia to be part of this important event where SWAS can be the resource centre with global spa players, world spa associations and spa authorities.

Growth rates in the spa market are much higher than in traditional and long established beauty and hair salons due to the demand in spa tourism. Spa treatments meet a demand that has not been satisfied in more traditional business models. Spas are multiplying exponentially across Asia, Europe and US and cover the whole gamut to include day spas, hotel spas, and resort and destination spas.

The “cosmeceutical" industry has entered into the spa market and is often represented by large, corporate players. These new entrants possess the resources to roll out their business plans not only nationally but globally as well through spa seminars and exhibitions.

In January 1, 2007 the ASEAN Harmonization Act came into force and its impact on spa industry members who either import or export spa products or cosmetics is evident. The Act is welcomed by all in the region; some 500 million consumers can be assured of a wider range of safe products which is more easily regulated through one system and one open ASEAN market.

HIGH GROWTH RATES IN THE ASIA SPA SECTOR TO CONTINUE TO RISE

With the success of Spa Seminar at Cosmoprof 2007 in Hongkong, SWAS has been invited to organize a bigger event at Cosmoprof Asia 2008 focusing on the mega spa trends and growth in Asia. SWAS would be inviting renowned spa gurus from US, Europe and Asia to be part of this important event where SWAS can be the resource centre with support from global spa players, world spa associations and spa authorities.

Growth rates in the spa market are much higher than in traditional and long established beauty and hair salons due to the demand in spa tourism. Spa treatments meet a demand that was not satisfied in more traditional business models and spas are multiplying in number across Asia, Europe and US from day spa, hotels, resort and destination spas. The new entrant by the “cosmeceutical" industry that are entering into spa market are large and often corporate, where they have the recourse to roll the business plan, normally it reach not nationally but global thru spa seminar and exhibitions.

SWAS-SUPPORTED TRADE SHOWS

As an ongoing benefit to members, SWAS is working with various show organisers in the region to offer our members an opportunity to participate in the SINGAPORE pavilion in the major trade shows in the region. These trade shows are an excellent opportunity for members to network and explore distribution channels and create new markets and business opportunities. The following are a list of trade shows that members of SWAS should consider participating:

1 Beautyworld Middle East 2008 - Dubai

2 Beautyworld India 2008 – Mumbai

3 Cosmoprof Asia 2008 - Hong Kong

4 Cosmoprof Shanghai 2008 – Shanghai Jan 2008

For more information on these trade shows, please contact the secretariat Office:
Mr William Yeo / Ms Fauziah Gilbert
Tel : (65) 3125 2021 Fax : (65) 6234 1089

For more information on SWAS’ networking nights, continuing education courses and industry updates, please visit the website at www.spaandwellness.org or call the secretariat office for more information.