health and wellness industry in india

Team Members1.Madhura Potle MMM – 08 – 17 2.Dilip Wagh MMM – 08 – 273.Ashfaque Shaikh MMM – 08 – 21 4.Sai Shrisekar MMM – 08 – 23 5.Sudeep Talukdar MMM – 08 – 31 6.Mandar Bhatt MMM – 08 -

Industry OverviewHealth and Wellness Industry is classified into 7 Core

Segment.1.Allopathy2.Alternative therapies3.Beauty4.Counselling5.Fitness and Slimming6.Nutrition7.Rejuvenation

Industry Overview contd…On an average more than 50% of the market is

Unorganised and highly segmented with several small and regional players.

While Ayurveda and Alternative treatments are predominantly Unorganised, health foods and drinks and dietary supplements are more Organised.

Larger service providers face a challenge from the presence of the unorganised sector as it puts tremendous pressure on pricing and therefore margins.

Industry Overview contd…Market Size - Estimated `. 110 BillionIndustry Growth Rate – 30-35 % GDP Contribution – 5%FDI Limits – Raised from 26% to 51%Existing Companies – To Name a few companies

Reliance, Dabur, Manipal Group of Companies, Dr. Batra’s, Kaya Health Clinic, etc

PEST Analysis

India Govt. is doing its best to promote the Health and

Wellness IndustryIncreased in FDIFraming Standard PoliciesEntrance to International Players

1. Policy And Politics

2.EconomicalProducts such as Health Foods and Drinks, Dietary

Supplements and Alternative Medicines require greater investments. Payback periods range from three to six years

Services such as Ayurveda Treatment, Alternative Treatment Centres and Salons require much lower investment and also have lower payback periods of up to three years

High costs of Labour

3. SociologicalDue to Increase in population and the people capacity to

spend the demand for Health and wellness product and services is increasing every day

Alternate therapies are the most popular choice of people in Southern India

Customers in north are inclined towards BeautyMaximum number of Fitness and Slimming Centres are in

the West.

4. TechnologicalNew Technology Product and services are introduced on

regularly bases in Health and Wellness sectoreg. New Fitness Equipment with better result , Technologically advanced Body Supplements, Spa and health treatments according to the body type, etc.

Technology playing an important role in booming Health and Wellness sector.

Good Quality product and faster services with the help of technology

SWOT Analysis

Quality and Range of Product and services.India has No. of hospitals, Beauty, Fitness and slimming Centre's, which provide quality and wide range of product and services which which attracts a vast pool of tourist from other countries.

Affordable CostVast People who are specialized and expertise India emerging as Health and Tourism Destination

1. Strength

2. WeaknessNo Strong Govt. support for Health and Wellness

industry in India.Lack of co-ordination between different players in the

industry such as airline operators, hospitals and hotelsLack of uniformity in pricing of product and servicesCheatingNo Standard ProcedureNo proper infrastructure

3. OpportunitiesIncreased demand for Health and wellness product and

services with increasing populationShortage and supply of Health and wellness product and

services in other countriesQuality of the Product and services are good as compare

to other countriesLow labour cost and availability of specialized people

4. ThreatsStrong competition from countries like Thailand,

Malaysia and Singapore.Under Investment in InfrastructureExploitation of people by illegal means and waysCompetition from Unorganized sector of India

Case Analysis

In 2007, Reliance Retail (Reliance) launched its first Reliance Wellness store1 in Hyderabad, India.

The store provide skin and personal care products, pharmaceuticals products, and nutritional products to consumers.

In addition to this, the store would offer fitness equipments, books, audio and video CDs

Through the customer loyalty program, the company offered free insurance cover to its customers.

Reliance Healthcare And Wellness Store

Contd……The company plans to set up 1,800 wellness stores across

the country.Reliance wellness is planning an investment of `. 1500 crore by 2011 and targeting 51 towns across India.

Reliance Wellness’ is the format of store that will add value to people’s lives, by providing products and services that proactively work to enrich people’s body, mind and spirit.

Contd…..Reliance Wellness’ will offer Curative and Health &

Beauty Solutions which will provide world class products all under one roof and also educate consumers on their health needs, thus enabling them to take charge of their health.

The Store will showcase Wellness Events, Seminars, Workshops and Advisory camps on contemporary wellness issues like diabetes, hypertension, fitness, diet and nutrition, weight management and skin care (anti-ageing, anti-acne, etc).

Future Of Health And Wellness Industry In IndiaAs the Industry is growing by 30% - 35% every year and

the recession is over and Retail Sector is booming the opportunities in the Health and Wellness sector is very High.

GDP is estimated to increase from currently 5% to 7% in coming years.

Employment opportunities are increasing in the industry due to increase in demand of the product and services.

Contd…..Growing awareness: As more people come to know

about the benefits of being pro-active about their health, the market is posed to grow.

Despite the size of the industry, the actually market penetration of wellness products and services is low. The market is therefore open for anyone who can crack the penetration problem.

The wellness industry is gradually shifting from loyalty programmes to building relationships with its consumers. This is the best way to ensure that existing consumers keep returning and also move up the value chain.

THANX