A report on Healthcare, Beauty and Wellness that was released by Franchise India has pegged this segment to grown by 20 per cent to 25 per cent in the coming years.
The report, titled Healthcare and Beauty White Paper touches upon franchising in India, the business of health care, beauty and wellness and fitness.
According to the report, franchise companies represent a very small market in India with 1,200 franchisors and 125,000 franchise units. Together they form a little more than3 per cent of the market. Yet, this market generates around 30 per cent of revenue in India’s retail and service sector. It also states that the franchising industry in India is currently growing at an annul rate of 30 to 35 per cent and that national and international franchisors employ a million people in India.
“Our Healthcare, Wellness & Beauty franchising report encompasses every aspect involved with the opportunity, from what is the latest in healthcare and wellness franchising to broader issues and important developments needed to be installed in the business when using franchise route for businesses growth. This report would serve as a reference guide for all healthcare companies looking at the potential of franchising,” said Gaurav Marya, President, Franchise India Holdings Limited, after the release of the report.
The turnover of this industry is pegged at $7.2 billion in India with an opportunity for Indian franchisors to grow globally. Here are some sector-wise figures that the report threw up:
Health Sector
Globally, the health sector is worth $8 trillion and is on a high growth trajectory, with strong emphasis on the Asian and the Middle East markets.
Health care is one of India largest sector in terms of revenue and employment and is expanding rapidly.
The Indian health care Industry is estimated to be about Rs 200,000 crore and is projected to reach Rs 300,000 crore by 2012.
Today India spends 4.8 per cent of it GPD on healthcare. Around 78 per cent of this funding is done through private funding.
Government spends around 1.2 per cent of it GPD on health care, which is lower than other developing countries.
Beauty and Wellness
The Beauty service industry is largely unorganised and pegged at over Rs 15,000 crore.
According to industry estimates, the unorganised and semi-organised industry consists of Rs 1,500 crore to Rs 1,600 crore even as the organised grows at 20 per cent to 30 per cent per annum.
The spa and Wellness industry is estimated at Rs 11,000 crore with a growth rate of 25 per cent to 35 per cent according to an audit by consulting firm Ernst & Young for FICCI.
It is also expected that the business of spas in hotels would rise by 20 per cent and day spa business would rise by 30 per cent within two years.
Health and fitness
The health and fitness market in India is estimated at around Rs 2,500 crore and is growing at 40 per cent year on year.
Source: Audience Matters
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