US spa industry hits rough waters

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The Hat

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After enjoying years of double-digit growth, the US spa industry has fallen on hard times. Research conducted by Diagonal Reports says 2009 was a ‘disaster’ for stateside spas as revenues fell 15% on the previous year.

The marketer says there are numerous factors behind this: a saturation of the spa market, spiralling costs and the industry’s slow reaction to the economic downturn – all of which have significantly contributed to the bleak outlook.

It claims spas will need to change their offering in line with current trends. The new winners are organic and science brands. “They have taken over this market, accounting for nearly all sales and have squeezed out traditional beauty brands in the process”, the report claims.
It goes on to explain how American spas must react in order to stay in the black. “The consumer switch from luxury to maintenance treatments benefits a certain (leaner) type of spa operators. Convenience is the key word. Compact services are now in demand and spas which offer smaller price and smaller time packages to their clients are now expanding in the US.”
 

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