Letters
Do you have a strong opinion, or disagree with somebody else’s point of view on topics related to the spa industry? If so, Spa Business would love to hear from you. Email your letters, thoughts and suggestions to
theteam@spabusiness.com
Structural alternatives to entering the Indian spa market
Todd Walter, president and CEO, Elizabeth Arden Red Door Spas
As a western spa company looking to launch in India, I had two observations not explicitly addressed in Spa Business’s feature on the country’s spa industry (see SB10/4 p26). The fi rst has to do with the structural alternatives of entering the mar- ket, the second relates to our obligation to protect the integrity and reputation of our industry in such an explosive market. As an outsider looking in, there are
three obvious approaches to entering a new market, each with its own risks and rewards: entering the market directly and going it alone; teaming up with a local joint-venture partner; and fi nding a master franchisee to license your brand. Current regulations in India make it dif-
fi cult for foreign corporations to directly own and operate retail locations, so for now, going it alone is out. Licensing your brand to a master franchisee minimises your economic risk, but it also requires ceding control of your brand (and guest experience) to a third party. At Elizabeth Arden Red Door Spas, we’re pursuing a joint venture, an alternative that for us best balances risk and reward, while still allowing us to remain intimately involved in the day-to-day operations. Key to this is fi nding a partner who shares our
Red Door Spas is looking to enter the Indian spa market under a joint venture partnership
core values and beliefs. No contract can possibly cover the myriad issues that we will face in the future; knowing our part- ner (when we do sign one) will share our business philosophy should help ensure we address these issues quickly and con- structively when they do arise. With regard to industry integrity, it is
an unfortunate reality that the quality of services offered and the training spa tech- nicians receive will vary greatly in each location. Unfortunately, and particularly given the nascent stage of the Indian spa
market, a bad experience can tar all serv- ice providers alike. To this end, we strongly support the joint efforts of the Federation of Indian Chambers of Commerce and Indus- try (FICCI) and the Quality Council of India’s National Accreditation Board for Hospitals and Healthcare Providers (NABH) in their development of standards and a self-regu- latory process for spa accreditation. India’s spa and wellness industry faces
a very bright, robust, and long-term future, and we are looking forward to participat- ing in it in the near future.
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