Chinese Spa Market

(hotel spa, day spa, beauty, wellness, anti ageing)



TABLE OF CONTENTS 2
REPORT STRUCTURE 6
Use of quotes 7
SECTION 1 REPORT SUMMARY 8
TABLE 1 China salon/day spa market, at a glance 8
Methodology 8
Currency 8
Date of publication 8
SECTION 2 MARKET SIZE, VOLUME AND VALUE, AND SALES VARIATIONS 9
Introduction and summary 9
TABLE 2 China day spa market size, unit and staff numbers 9
Day spa employment 9
Haircare treatments, and beauty treatments 10
TABLE 3 China salon/day spa market, value of sales in 2010 10
TABLE 4 Spa chains’ business variations 2009-2013, forecast and actual 10
A retrospective view 11
SECTION 3 GOING FORWARD, DAY SPA MARKET IN CHINA 12
Introduction/summary 12
Day spa market drivers 12
Consumers and appearance consciousness 12
Cities and appearance consciousness 13
Geographic reach widens 13
The chains and their growth strategy 13
Focus on largest consumer segments 13
TABLE 5 The day spas’ ‘convenience’ and ‘value’ menu 14
Offer 14
The ‘compact’ menus 14
Everyone everywhere wants value 14
Many consumer segments, one spa 14
Positive impact of quality upgrades 15
Invest in training 15
Continue to lobby for official action 16
Chains know their consumers 16
Membership system and day spas 16
Membership system – benefits for beauty salons/day spas and clients 17
SECTION 4 SPA MARKET SEGMENTS (A, B, C, AND CHAINS) QUANTIFIED AND QUALIFIED 18
Introduction/summary 18
TABLE 6A Day spa market revenues by market segment 18
TABLE 6B Day spa segments, % variations 18
The A segment qualified and quantified 19
The B Segment qualified and quantified 19
TABLE 7 Sales variation in B Segment chains 2009 to 2013 19
TABLE 8 The distribution of luxury and mid-market by a chain operator 20
Spa segment 20
The C Segment qualified and quantified 20
The unregistered or grey salon/spa market 20
Day spa chains in China 20
TABLE 9 China summary profile day spa chain segment 20
TABLE 10 The top 20 day spa chains and units operated 21
TABLE 11 Spa chain (%) distribution of units by city 21
Location 21
SECTION 5 BUSINESS ACTUALITIES IN DAY SPAS 22
Introduction/summary 22
TABLE 12 Revenues in day spa chains, (%) treatments and product retail 22
TABLE 13 Revenues in day spa chains, percentage variations 22
TABLE 14 Revenues from treatments and sales’ variations 2010 23
The top and best performing treatment categories 23
Revenues from any category vary widely in spas 23
TABLE 15 Revenues (percentage) treatments, a historical comparison 24
Spa business category, massage based and body care 24
Body care and massage can be a mixed bag 24
Massage and regulations 24
Body shaping category 25
Day spas continue to diversify into wellness 25
Spa business category, face and skincare 26
Skincare revenues 26
Top skincare treatments 26
Hair removal sales trends in spas 26
DIY hair removal 26
Spa business category, product retail 27
Sales beyond chains 27
SECTION 6 DAY SPA CHAINS NAMES AND PROFILES 28
Introduction/summary 28
TABLE 16 The top 20 spa companies in China, profiles 28
TABLE 17 Day spa chains identified as “best of class” 29
The cachet of France 29
TABLE 18 Criteria experts apply to identify top chains 29
Methods used to identify top chains 29
Questions over up-to-date figures 30
SECTION 7 TOP BRANDS AND MARKET SHARE 31
Introduction/summary 31
Fragmented market 31
TABLE 19 Brand share in salons/spas 31
Own labels 32
TABLE 20 Brands ranked used in day spa skincare 32
TABLE 21 Brands growing sales in day spas in China 33
TABLE 22 Brands popular in B Segment day spas (ranked) 33
TABLE 23 Brands and price points 33
Experts’ comments on brands identified 34
TABLE 24 Day spas and the number of brands handled 34
Why more than one brand? 34
SECTION 8 DAY SPA PRICES AND PRICING 35
Introduction/Summary 35
TABLE 25 Price changes historical and projected 35
TABLE 26 Hidden reductions, examples 35
TABLE 27 The percentage of price cuts that spas applied 36
Hidden price cuts 36
Compact treatments and price 36
TABLE 28 Spa treatment prices CNY per minute (minutes) 36
TABLE 29 Treatment price (reference points on price spectrum) CNY 37
TABLE 30 Day spa treatment time (minutes) 37
Membership discounts and frequency of visits 37
The spin offs of memberships are more than monetary 37
Services can be restricted to members 37
Rise of membership system not without obstacles 38
Personalized services crucial to quality experience 38
The one-on-one service proves popular 38
SECTION 9 DATA AND METHODOLOGY 39
Introduction / summary 39
TABLE 31 Profile of companies interviewed 39
TABLE 32 Profile of spas interviewed locations 39
TABLE 33 Profile of spas interviewed market segments represented 39
Methodology 40
Language 40
Confidentiality 40
Market segments that experts represent 40
Criteria for choosing interviewees 40
Why focus on chains? 41
Geographical and industry expertise 41
TABLE 34 Companies and market experts interviewed previously 41
SECTION 10 SUPPORTING DATA ON DAY SPA MARKET, AND DATA ISSUES 42
Introduction/summary 42
TABLE 35 Day spa ownership 42
Data conflict - beauty salon/spa employment/numbers 42
Staff numbers per unit 42
Day spa geography 43
TABLE 36 China salon/spa units per capita in selected cities and nationally 43
TABLE 37 Distribution of units by size, in selected cities 43
TABLE 38 Cities where the beauty chains are concentrated 44
TABLE 39 Per capita comparison, selected countries (Europe and the Americas) 44
TABLE 40 Day spa metrics, medium sized and large sized units 45
TABLE 41 Spa rooms, ratio shared and private 45
TABLE 42 Day spa metrics, benchmark data on revenues 45
The peak months 45
Opening hours 45
TABLE 43 Spa chains and consumer profiles (percentage) by segment 46
Consumer profile 46
High spending consumers 46
Data - lack of and conflict 46
Reasons for data conflict 47
The “grey” market 47
Units that could be a front for other activities? 47
Impact of counterfeits on data 48
Underreporting / tax avoidance 48
Data problems not unique to China, some examples 48
TABLE 44 The many different businesses providing beauty related services 49
The bathhouses 49
TABLE 45 Cosmetics and toiletries (C&T) market in China 49
SECTION 11 BARRIERS TO CHANGE AND OFFICIAL PROPOSALS 50
Barriers to market development 50
Official and industry policy to change and develop the industry 50
Regulatory requirements are becoming more stringent 50
The central planks of official policy for salon/spa industry 51
Summary of regulations and quality standards for salons/spas 51
Regulations beauty salons/spas, and bathhouses (2007) 51
Summary of regulations for bathhouses 52
The regulations for hair and beauty salons/spas 52
Occupational skills authorities 55
Professional beauty certificate/diploma levels 55
Quality standards - international - achieved in China 56
SECTION 12 COUNTRY DATA 57
TABLE 46 China data, population and labour force 57
TABLE 47 China population by gender and age structure (2008) 57
TABLE 48 China population (millions) by age structure (1995-2050) 57
TABLE 49 Population concentration in top ten provinces and cities 58
TABLE 50 The top 14 cities in China, ranked by population 58
TABLE 51 China the “Top 10 Provinces,” ranked by population 58
TABLE 52 China’s 31 administrative divisions/capitals population 59
Administrative divisions 60
SECTION 13 NATIONAL HOLIDAYS 61
Country-specific seasonal and other peaks in beauty business 61
Student holidays 61
Another peak - weddings and graduations 61
TABLE 53 The holidays - national public and legal holidays 62
Educational calendar 62
School day 62
SECTION 14 GLOSSARY 63
Symbols used in tables 63
Report formats 63
SECTION 15 - INDEX OF COMPANIES, BRANDS, SELECTED PUBLICATIONS, AND ORGANIZATIONS (REGULATORY, TRADE, PROFESSIONAL) 64
DIAGONAL REPORTS STATEMENT 66
Table of Contents
Beauty Report Series