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Related Spa and Beauty Market Reports:
Medicalised Beauty Market 2011 UK Spa Market 2011 US Spa Market 2010
(Skin care, facials, massage, waxing, depilation, hair removal, beauty, nails, tanning, therapies, treatments, modalities, professional, brands, treatment and product categories, spa concepts, market leaders, market segmentation, United States of America)
TABLE OF CONTENTS Table of contents 2 REPORT STRUCTURE 10 SECTION 1 SUMMARY REPORT DATA 13 TABLE 1 Spa market size - value and volume and % variation 13 TABLE 2 Spa segmentation (%) day, hotel, and medspas 13 TABLE 3 Spas revenue sources (%) treatment categories, and product retail 14 Summary market challenges 14 Methodology 15 Date publication 15 Currency 15 SECTION 2 MARKET SIZE - USA SPA MARKET 16 Introduction / summary 16 TABLE 4 Spa market size - units and sales 16 What is included in the spa count? 16 TABLE 5 Spa concepts and categories (day spas, hotel spas, medspas) 17 Spa market and hyper-differentiation 17 Definitions used determine what is counted 17 SECTION 3 MARKET TRENDS - CURRENT AND FORECAST 19 Introduction / summary 19 TABLE 6 Spa revenue variations –– historical, current, and forecast 19 Not just a decline, a disaster –– the phones stopped ringing (quotes) 19 TABLE 7 Consumer changes in the frequency of spa visits (examples) 20 Closures and churn in the spa market 20 “Great deals out there … if you have the finance” 20 SECTION 4 SPA INDUSTRY STRUCTURE –– SEGMENTATION (ABC) 22 Introduction / summary 22 TABLE 8 Spa market segments (ABC), % distribution of units and revenues 22 US spa market not unique (concentration of revenues) 22 Segment A spas quantified and qualified 22 Segment B spas quantified and qualified 23 Segment C spas quantified and qualified 23 TABLE 9 Spa market segments (ABC) “typical” revenues per unit 23 TABLE 10 Spa business benchmark data, selected chains 24 Regulations can specify a minimum size for spas and salons 24 Federal government designation of “small business” ($ revenues) 24 SECTION 5 SPA INDUSTRY STRUCTURE –– GEOGRAPHY, OWNERSHIP, NUMBERS OF MULTIPLES 25 Introduction / summary 25 TABLE 11 The % of spas in top five states, top ten states, and other forty 25 The top ten states for spas 25 TABLE 12 Distribution of day spas and hotel spas, selected states 26 Sources used for the regional distribution of spas 26 TABLE 13 Distribution of spas (%) of single unit and multi unit companies 27 Massage and sole operators 27 New type of spa multiple? 27 When is a multiple a multiple? 27 Spas and types of business entities 27 SECTION 6 SPA MARKET BUSINESS ACTUALITIES - REVENUES BY CATGORY OF SERVICES / PRODUCTS 28 Introduction / summary 28 TABLE 14 Spa revenues (%) from treatments, and from product retail 28 US spa market not unique (income from services) 28 TABLE 15 Spa revenues (%) by treatment category 29 Demand for the basics and the exotics in spas 29 Changes in consumers’ demands since 2008 29 The revenue generating spa services 29 TABLE / GRAPH 16 The spectrum of spa offerings 30 TABLE 17 Spa distribution (%) of units by menu of treatments on offer 30 Findings consistent in different data sources 31 SECTION 7 SPA MARKET BUSINESS ACTUALITIES - MASSAGE 32 Introduction / summary 32 TABLE 18 Spa massage market, summary of data 32 The top massage therapy 32 Massage estimated market value 33 Massage treatment fees and products 33 Massage an unbranded category 33 Drivers, issues, threats for spa massage 33 Only professional, no DIY massage 33 The iconic status of the three stones 34 Regular lifestyle or occasional indulgence? 34 How mice and monitors can drive massage 34 Hands stressed, but work is non manual 34 Power of human touch, DIY and automated 34 Easy availability, more competitive 35 Massage therapies an entry point to spa market 35 Competition / churn in the massage sector 35 Spa operators, brands 35 Spa massage menus and changes 36 Massage standards, claims, and proven outcomes 36 Relaxing massage versus therapeutic and insurer reimbursed massage 36 Massage rituals and etiquette to reduce consumer fears/inhibitions 37 Spa massage … threats and opportunities 37 SECTION 8 SPA MARKET BUSINESS ACTUALITIES (REVENUES BY CATGORY OF SERVICES / PRODUCTS) - SKINCARE 38 Introduction / summary 38 TABLE 19 Summary skincare business in spas 38 Skincare value estimate and forecasts 38 Drivers, issues, and threats for spa skincare 39 Facial skincare because face is visible 39 Spa services hard to duplicate at home 39 Skincare a retail driver 39 Spas the catalyst for new skincare categories 40 Companies and brands in spa skincare (summary) 40 Spa skincare - threats 40 Spa skincare - threat from tanning clinics? 40 Spa skincare - retailers 41 Spas’ demands of skincare products 41 Spa skincare demands and different body parts 41 TABLE 20 Top spa skincare treatment protocols 42 Manual and mechanical / European and American 42 Skin peels, dermabrasion, and dermaplaning 42 TABLE 21 Consumers’ skin problems 43 Other beauty services (eyebrows and lashes) 43 SECTION 9 SPA MARKET BUSINESS ACTUALITIES - HAIR REMOVAL AND OTHER BEAUTY 44 Introduction / summary 44 TABLE 22 Summary hair removal business in spas 44 Hair removal value and changes 44 Hair removal drivers, issues and threats 44 Men and waxing 45 Threat of competition worsens, the threaders 45 Hair removal and high volumes (quotes) 46 Brands and spa hair removal 46 TABLE 23 Hair removal, face and body parts treated 46 Waxing protocols 46 Intimate waxing 47 Estheticians upskill 47 Reluctance to wax some body parts 47 Other beauty services (eyebrows and lashes) 47 SECTION 10 SPA PRODUCTS MARKET - VALUE AND TRENDS, ACTUALITIES OF PRODUCT RETAIL 48 Introduction / summary 48 Methods used to quantify value of spa products market 48 TABLE 24 Estimates of value of spa products market (purchases and retail) 49 Buying power could be concentrated 49 Value of spa product retail ($) 49 Spa mark ups on retail 49 Retail sales trends in 2010 49 Any switch from treatment to retail? 50 The “product pushing” services 50 Retail spending variations and the impact of airline luggage restrictions 50 Drivers, issues and threats for spa retail 50 Spa exclusivity 51 Dilute exclusivity 51 Dilute margins 51 Spa David and retail Goliath 51 Retailers stealth services 52 TABLE 25 Spas sampled revenues (%) services, retail and gift 52 SECTION 11 BRANDS – NAMES AND NUMBERS HANDLED 53 Introduction / summary 53 TABLE 26 Spas and numbers brands handled (average per spa) 53 Retail, the numbers of brands and own labels 53 TABLE 27 The best known brands in spas 54 Spas launch pad for new brands 54 Only “spa brands” 54 SECTION 12 SPA PRODUCTS / BRANDS – NEW BRANDS AND THE UNBRANDED SPA CATEGORIES 55 Introduction / summary 55 TABLE 28 Spa categories - branded and unbranded 55 An unbranded luxury market? 55 The unbranded from hotels? 56 Bring your own? 56 Unbranded entry point – imports and new 56 Brands - own label 56 SECTION 13 SPA PRODUCTS / BRANDS - CONSUMER BEHAVIOR CREATES NEW PRODUCT CATEGORIES- 57 Introduction / Summary 57 Spa brand market characteristics 57 TABLE 29 Spa market - the new concepts, nature or science? 57 Scientific a new category in spas 58 Organic / green formulations in spas 58 Beauty formulations in spas 58 Spas engine of new direction for personal care products 59 Diagonal Reports forecasts accurate 59 Spas more demanding, organic certification looked for 59 Spas brands are ethical 60 SECTION 14 SPAS AND PRODUCT PURCHASING CRITERIA 61 Introduction / summary 61 TABLE 30 Spas and product purchasing criteria 61 Change in criteria since downturn? 61 Assortment of products required 61 In spa and retail as a criterion 62 Attitudes to “spa” brands 62 The brand you use defines your spa (quotes) 62 How brands can lose spa status 62 TABLE 31 Product purchasing criteria spas (practical) 63 Technical support 63 Size of order 63 Size of products / units 63 SECTION 15 GOING FORWARD - CHANGES IN CONSUMER BEHAVIOR (DO RECESSIONS CAST A LONG SHADOW?) 64 Introduction / summary 64 Impact on different treatment categories? 64 Compact (and convenient) treatments 64 Redundant spa treatments 64 Unknowable, unpredictable, unprecedented 65 Erratic behavior by consumers 65 Too soon in “new” year to tell 65 Factors complicate analysis of current consumer behavior 66 Free services can obscure usage rates 66 Could consumers’ “recession habits” outlast the recession? 66 Might previous spa spending become one of the scapegoats? 66 Not see “2007 numbers” any time soon (quotes) 66 TABLE 32 Timeline of the downturn 67 Why spas delay responding to new behavior 67 How spas responded to changed consumer behavior 68 The new behavior of consumers and of spas (quotes) 68 Downturn exacerbates existing fault lines 69 Rates of 600% 69 Cost basis required revision 69 Adjustment difficult - labor 69 Oversupply detected by Diagonal Reports 70 Historical precedent for how recession changes behavior 70 Lifestyle driven shift, long term 70 The growth drivers of the past 70 SECTION 16 GOING FORWARD - OPPORTUNITIES AND CHALLENGES 72 Introduction / summary spa products 72 Massage and hair removal virgin territory. 72 Spa own label brands 72 Spa market generates product innovation 72 The male market 73 Market changes open other opportunities 73 Market threats, challenges, and unknowns 73 Ethnic diversification 73 Challenge of the scope of licensing 74 Snake oil and sleaze 74 Spa consumer complaints (editor picks) 74 SECTION 17 SPA BUSINESS CONCEPTS DESCRIBED, WITH EXAMPLES OF TYPES 75 TABLE 33 Spa concepts introduction / summary list 75 Spa concept - hotel spas 75 Niche day spa concepts 75 TABLE 34 The most popular names and terms for day spas 76 TABLE 35 Spa niche green spas names of companies (6 names) 76 TABLE 36 Spa niche mobile - names of companies (12 names) 77 Spa concept - airport 77 Spa concept – the mini spa 77 Spa concept - the new spas, multiples and membership based 77 Consumer convenience 78 Unwarranted disparagement? 78 Not unique to USA 79 Not new in Asia 79 Prices in new spas 79 Making the spa less scary 79 SECTION 18 NAMES OF SPA OPERATORS AND SPA COMPANIES, AND SPAS NAMED AS BEST IN THEIR CLASS 80 Introduction / summary 80 Criteria that distinguish best of class spas (any type) 80 Staff training in best of class spas 80 The spa elite, hotel or day? 81 The (very) best in class spas 81 Other best in class hotel spas 81 Best in class spas, resort / hotel (quotes) 82 TABLE 37 Spas identified as “best in class” day spas (10 names) 82 Comments on some best of class spas 82 SECTION 19 NAMES OF COMPANIES AND BRANDS IDENTIFIED AS BEING USED IN SPAS 84 Introduction / summary 84 TABLE 38 Brands in spas, some “organic” concepts (16 names) 84 TABLE 39 Brands in spas, some “scientific” concepts (12 names) 85 TABLE 40 Brands in spas in skincare treatments (5 names) 85 Premium level brands in spa skincare (4 names) 85 Spas’ comments on brands (selected) 86 SECTION 20 SPA PRICING AND PRICES (SELECTED ONLY) 87 Introduction spa pricing methods 87 TABLE 41 Spa charges and taxes increase client bill 87 TABLE 42 Spa prices by market segment (60 minute facial) 87 The discount spas packages 88 SECTION 21 SPA MARKET SEASONALITY OF SALES 89 Introduction / summary - seasonality and spa business 89 TABLE 43 Spa business seasons, best and worst 89 TABLE 44 Spa calendar “Big Days” 89 Spa business - impact of geography and climate 89 Winter and skincare, summer and hair removal 90 Spa hours in hotels 90 SECTION 22 SPA MENUS - DETERMINATES OF SPA OFFER 91 Introduction / summary 91 Business practicalities 91 Avoid license infringement 91 Insurers 92 Advice about how to describe service 92 Menus descriptions that confuse consumers 92 TABLE 45 Spa treatment menus in chains (examples) 93 SECTION 23 SPA INDUSTRY DATA - ESTIMATES IN CIRCULATION AND DEFINITIONS 94 Introduction / summary 94 TABLE 46 Salon/spa universe quantified (major reports and surveys) 94 Spa industry data, according to BLS and NACCAS 94 Spa industry data, according to ISPA 94 TABLE 47 Spa market quantified (ISPA) 2002 - 2008 95 Industry debate - “what is a spa”? 95 Spa definitions by major industry organizations (ISPA, SpaFinder, Global Spa Economy Report) 95 TABLE 48 Spa “must haves” and “optional” services (DSA) 96 TABLE 49 SOC codes and occupational titles, relevant for spa industry 96 TABLE 50 Employment in the spa industry – categories and numbers 97 Licensing systems as guide to numbers 97 Independent contractors, booth renters and spas (numbers) 97 Numbers can be a product of IRS interest 98 The spa industry - the micros (the spalets), and the noncompliant 98 Home based spas 98 TABLE 51 Spa market estimate distribution of the compliant units 99 Noncompliance varies by area, and category 99 Noncompliant can be technical breach 99 Estimated size of sleaze? 99 SECTION 24 SPA MARKET REGULATORY AND LICENSING FRAMEWORKS 100 Introduction / summary 100 Licensing systems as data source 100 Spa segments licensed/compliant 100 Licensing of spas, including EIN 101 Insurers’ requirements 101 SECTION 25 METHODOLOGY, DATA SOURCES, SAMPLE REPRESENTIVITY 102 Sources consulted and methodology 102 Sources’ confidentiality 102 Spa experts represent upper end of the market 102 Criterion used to select market experts 102 Breadth of experts’ expertise 103 TABLE 52 Spa experts - numbers of and distribution by spa type operated 103 TABLE 53 Spa experts - numbers of units operated 103 TABLE 54 Spa experts - numbers of and distribution by spa type operated 104 TABLE 55 Spa experts - distribution by location (states represented) 104 Experts’ distribution reflects spa distribution in the USA 104 Affiliations, awards and recognition 105 Professional support and development, print and online 105 Profile of businesses operated by spa experts (per location) 105 SECTION 26 USA COUNTRY DATA 106 TABLE 57 Country data summary 106 TABLE 58 USA population projections (2011-2020) 106 TABLE 59 USA population - current and projections - racial and ethnic demographics (2008 and 2050) 106 ABBREVIATIONS AND GLOSSARY 107 Symbols 107 AIG effect 107 Backbar 107 Beauty maintenance services and quality of life services 107 Cosmeceutical 107 Eyelash extenders 107 Exclusivity / professional exclusivity / spa exclusivity 108 Dermabrasion and dermaplaning 108 Facials, European and the American facial 108 Intimate waxing 108 Medicare 108 Medical beauty services 108 Peels (skin) 108 Revenues in spas 108 Smaller price and smaller time packages 109 Swedish massage 109 Threading / Threaders 109 INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS 110 DIAGONAL REPORTS STATEMENT 113 Summary of US Spa Market 2010 Beauty Report Series Buy This Report |
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