According to Industry reports (wellnessinstitute.com and PWC report), the International Wellness Industry is estimated to be about $3.4 Trillion.The Indian wellness industry is estimated to cross $15 Billion in 2016, growing at the rate of 15% CAGR. The Indian Spa Industry is estimated to be $200 million and expected to grow at 25% annually. Currently 80% of the Spa Industry in India is unorganised.
Commenting on the plans Ritesh Mastipuram, Founder and Managing Director - O2 Spa said, “Worldwide the Spa industry is one of the fastest growing and is well recognised for its contribution towards wellness. In India, majority of the industry remains unorganized and the Indian consumer is just waking up to the wellness and Spa concept. Over the last 8 years, O2 Spa has been single handedly championing the cause /shift towards making this industry organized. It has established itself as a highly reliable and professional brand to deliver quality, hygienic and standardized services across the 17 cities we are currently present in. Our rapid expansion over the next one year will give the industry a much needed boost and propel the growth in the coming years”
The expansion plans include addition of about 30 outlets in Tier 1 and 60 outlets in Tier 2 cities in India and more than 10 outlets abroad. O2 Spa operates in 5 different formats that include Airports, Malls, Luxury hotels, Standalone Properties and Luxury Trains (railways).O2 Spa is taking the lead in converting smaller towns to an organized Spa and Wellness market through its expansion.
O2 Spa has invested heavily in technology and processes to ensure that customers have a standardized experience of services, customer engagement, ease of access to information on the web as well as via call centre, list of offerings, updated information on developments, new outlets and offers. This also enables the company to effectively understand changing customer trends, preferences, and performance of the outlets as well as efficient monitoring of outlets.
First Indian Spa Chain with largest International Footprint
O2 Spa has also embarked on an aggressive expansion plan internationally and has launched 9 outlets across Dubai, Abu Dhabi, Sharjah and Fujairah. Currently in the international market, O2 Spa operates in the Standalone Property and hotel formats. The company will gradually expand to airports and malls and other innovative formats as well. O2 Spa plans to enter other countries in the Middle-East and is expected to have an around 20 international outlets by the end of the fiscal year.
Commenting on the International Plans, Swapna Reddy, Co – Founder Director, O2 Spa said, “The awareness and adoption for Spa and Welllness services is quite high in these countries. While deciding on our strategy for growth, we could not ignore these countries and took a bold decision to venture abroad. The extremely positive response we got enabled us to scale up to 9 outlets within a short span of 2 months. The distinctive advantage of being able to source trained therapists from our own O2 Skills Academy in Hyderabad helped expand easily”
O2 Skills Academy: helping the ecosystem and Nation Building
Given the inherent lack of quality and trained talent in the Spa Industry, O2 Skills Academy was setup in 2013. It has two world class training facilities ranging across 15,000 Sq.ft to 1, 00,000 Sq.ft at Shamshabad and Yacharam. The academy has so far trained over 2000 therapists and hospitality staff.
Adding further, Ritesh said, “O2 Skills is a very important initiative from O2 Spa to help the Spa ecosystem by constantly supplying a steady stream of trained manpower to the industry within the country and abroad. In its own way it contributes not only to the Government’s agenda of skilling India but also enhancing brand India as a quality services nation by providing service staff abroad.”