StrataGist
Local Perspectives On National Trends (Southern Oregon)
The final Sunday edition of the San Francisco Chronicle (December 28th, 2008) in 2008 featured an article in the Style section that analyzed how spa owners are coping in hard economic times ("Spas Shifting Focus"). New strategies include: Discounted services, member-based packages, personalized care/wellness, and green practices/policies to attract ecology-conscious clients.[1]
Competing For Spa Customers (December 2008)
Industry Assessments
Spa industry data for 2008 is not yet available. According to some industry analysts, business is booming, with the majority of facilities reporting 2008 income equal to or higher than in 2007. A national survey of 1,000 spas is being conducted by a hospitality industry expert. Preliminary findings indicate that more than 10% of the facilities had disconnected their telephone lines during the last two years.[2]
"Big City" Markets
The Chronicle article used online sources to compare "spa density" in San Francisco (SF) and New York City (NYC). The findings indicate that there is one spa for every 15,300 NYC residents versus one spa for every 5,100 SF residents.[3] In markets where large numbers of facilities provide similar products or services, managers typically reduce prices to attract new clients. Conventional marketing options implemented to date include e-mail blasts, gift certificate promotions, and holiday season discounts/savings.
Some SF spa directors are tweaking the service mix, while others are cutting operational costs. Retaining a loyal client base is a critical concern cited by most respondents in all the annual medical spa surveys conducted to date by Feed-back.com's researchers. Despite the economic gloom and doom, there is a core group of clientele who will reduce but not give up spa services altogether. Spa directors are competing more aggressively to keep them coming back.
The "Local" Market
To follow up on the Chronicle's spa density comparisons, a little online research was conducted to find population figures. NYC's population in 2007 exceeded 8.3 million.[4] The population of the City and County of San Francisco was approximately 10% of that figure: 799,183.[5] Extrapolating from the "spa density" estimates from the figures above results in the following numbers: 543 spas in NYC and 157 in SF.
In recent months, Feed-back.com's lead researcher observed that the number of spas seems to be exploding in Southern Oregon’s Rogue Valley. In an area east of Medford, she identified 17 spas along a 5-mile route. According to phone book listings, there are 29 spas in Rogue Valley (three of which are in Josephine County). The population of Jackson County is 202,313 [6], and calculations using its resident and facility numbers suggest a spa density of one facility for every 7,781 residents.
Entrepreneurs are apparently taking advantage of the spa business opportunity in the Rogue Valley. During the week between Christmas and New Year's Day, online directory postings (www.hellolocal.com) included 11 listings for esthetician and spa positions in the Rogue Valley region. The ads described esthetician positions available in private practices (4) and salons (6). The other listing sought someone to provide permanent make-up services.
Three times as many postings (33) appeared on the Medford area Craigslist from November 30th through December 30th, 2008. There were four esthetician positions and 29 ads for station rental. Coincidentally, a new crop of locally-trained estheticians graduated in December. Feed-back.com's researchers contacted several spa owners and are awaiting their responses to determine if available positions are being filled.
For past issues of StrataGist, visit the Archive.
[1] "Spas Shifting Focus," San Francisco Chronicle, December 28, 2008.
[2] ibid. [Quoted Source: International Spa Association (IPSA)]
[3] ibid.
[4] "The 'Current' Population of New York City (2007)," New York City Department of Planning.
[NOTE: The actual figure is: 8,310,200.]
[5] "San Francisco", Wikipedia.
[6] "Jackson County, Oregon", Wikipedia.
NOTE: While the population of the city/county of San Francisco is 799,183, the metropolitan area consists of 4.2 million, and the SF Bay Area exceeds 7 million in population. Wikipedia describes San Francisco as "one of the most densely populated cities in the United States."
