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LIZ TERRY » EDITOR » SPA BUSINESS the race for beauty


Spas are targeting the beauty market to develop new revenue streams, but face fierce competition from the high street


W


ith pressure on operators to produce greater profits and yields for their inves- tors and clients, the beauty


market holds tantalising promise. Beauty treatments can be offered in


much smaller spaces than spa treatments, are a lower risk in terms of capital invest- ment and – because most are associated with maintenance and self-care – they attract very high levels of regular repeat business from loyal customers who can then be upsold to spa treatments. Tese are all characteristics which make


the prospect of extending the beauty offer an appealing one for operators in the spa market – especially as it’s a sector which tends to attract lower-volumes of business. As spas focus on developing more reg-


ular income streams and building local business – including through membership schemes (see sb09/3 p20) – it’s likely more will turn to the beauty industry for the services with which to achieve these goals.


New research shows the beauty market has survived the recession well and could bring much needed additional revenues to spas


So the case for combining beauty with


spa seems clear cut: consumers will enjoy the high-end ambience of the spa while enjoying their regular beauty treatments, and they’ll fill in the quiet times for spa operators and improve the business yield. But spa and beauty aren’t easy bedfel-


lows and operators must be sensitive to the challenges of combining the two disciplines. Tis is largely because staff tend to come from very different backgrounds. Te central focus of a salon is to offer


treatments – manicure or eyelash tint, for example – while spas offer a journey where


20 Read Spa Business online spabusiness.com / digital


the treatment is part of the experience and more attention is given to the preparation for it and the transition back to reality. As a result, customer service and staff


training need to be adjusted to ensure the new services fit seamlessly into the spa. But it isn’t just spas which are target-


ing beauty as a lucrative sector. Everyone from motorway service station operators to supermarkets are announcing forays into the market as the competition for groom- ing, waxing and plucking gets hotter. And the crossover isn’t just in one direc-


tion, as major consumer beauty brands eye the spa market with a view to expansion. Te Dior Institute, for example, has just


opened its second site at the Es Saadi Pal- ace Spa in Marrakech –it’s first within a hotel outside France and within a spa. So should spas invest in beauty facilities


and adjust their operations to accommo- date an increase in these services. If so, how can they ensure the two bed down well together? We investigate.


SPA BUSINESS 1 2011 ©Cybertrek 2011


PHOTO: ISTOCK.COM/©RICH LEGG


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