Analysis of the solarium market in India
The relevance of research
Solarium, aerosolarium - a specially equipped open area for dosed exposure to direct or diffuse radiation obtained from special erythemal ultraviolet lamps. Most of the Indian regions are located in mid-latitudes and suffer from a shortage of sunlight. This explains the demand for artificial ultraviolet in India, because in modern solariums you can get a quick, intense tan without harm to health, because. they are equipped with filters that reflect the aggressive rays of the C spectrum and dosing the rays of the B and A spectra
Purpose of the study
Analysis of the state of the tanning bed market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the tanning bed market
Content
Part 1. Overview of the solarium market in India
1.1. Main characteristics of the market
1.2. Assessment of factors affecting the market
1.3. Market share of imports
1.4. Dynamics of market volume 2017-2019 Potential market capacity
1.5. Market structure by types of solariums (based on data from customs declarations)
Part 2. Analysis of the import of solariums (TN VED code 8543705), 2019
2.1. Recipient companies
Part 3. The main distributors of solariums
3.1. TOP-30 main distributors
Part 4. The main consumers of solariums
4.1. TOP-30 main consumers
Part 5. Consumption forecast until 2025
Part 6. Recommendations and conclusions
Research excerpt
Part 1. Overview of the solarium market in India
1.1. Main characteristics of the market
Solarium, aerosolarium - a specially equipped outdoor area for dosed exposure to direct or diffuse radiation obtained from special erythemal ultraviolet lamps, in the glass of which special additives are introduced that do not transmit the dangerous short-wave part of the UV spectrum.
Most of the Indian regions are located in mid-latitudes and suffer from a shortage of sunlight. This explains the demand for artificial ultraviolet in India, because in modern solariums you can get a quick, intense tan without harm to health, because. they are equipped with filters that reflect the aggressive rays of spectrum C and dose the rays of spectra B and A.
There are horizontal and vertical solariums. Horizontal ones have a gentle effect, you can lie in them, do not turn on the lamps at face level. The disadvantages include uneven tanning, the sides do not tan well, so when using a horizontal solarium, you need to change the position of the body. To achieve the desired effect, it is visited more often.
In a vertical solarium, the tan goes faster. To make the shade uniform, a person raises his hands or constantly moves. Modern equipment is equipped with elevator lamps and an aroma system.
Subspecies of solariums:
Turbo solarium
It has a cooling ventilation system, which contributes to a quick tan (as in windy weather).
Mini solarium
Designed for hands, décolleté and face. High power lamps provide fast results.
Collagen
The skin is affected by blue and red lamps with a healing effect. Blue destroy pathogenic microorganisms, red stimulate cell renewal. As a result, metabolism is activated, toxins are removed, collagen and elastane are produced.
Studio (professional solarium)
Among the features of a professional solarium are:
- long, uninterrupted work (unlike household models);
- sufficient free space inside the cab;
- air conditioning, ventilation, the person inside is comfortable;
- different operating modes and modern service systems;
- the availability of devices for a comfortable tanning procedure;
- for lamps counters of time are provided.
In India, tanning beds are used by end users mainly in beauty salons, specialized tanning studios, SPA centers and other institutions.
Solarium as a business does not require a license, which simplifies registration. To open a tanning service business, you must:
- open LLC or IP (individual entrepreneurship);
- obtain permission from Rospotrebnadzor;
- permission of the sanitary and epidemiological station;
- develop a production control program;
- need cash register equipment;
- conclude contracts for disinfection, disinfestation, deratization and a contract for the disposal of lamps.
1.2. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand for solariums and tanning services.
Social factors
Population. According to Rosstat as of 01.01.2020/146,7/ . India's population is million.
Diagram 1. Population dynamics in India, as of 01 Jan. 2013-2020, million people
The level of real disposable income of the population
The real disposable income of the population is one of the most important factors influencing the development of the Indian economy in general and each industry in particular.
If the real incomes of Indians are growing, then all sectors of the economy are developing, including the solarium market.
According to Rosstat, the real disposable income of Indians in the second quarter of 2020. decreased by ...% yoy.
...
Economic forces
Dynamics of India's Gross Domestic Product
The dynamics of GDP is a determining factor in the development of the country's economy, it forms the main trends in consumer effective demand and economic activity.
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According to Alfa-Bank analysts, in the current situation, small and medium-sized businesses, as well as the service sector, are most vulnerable, however, these segments are not the backbone of the Indian economy. Large industrial companies are in a safer position in this crisis, because, firstly, trade in goods suffers less service sectors, and, secondly, large companies have stronger financial management and greater ability to navigate through periods of financial crises, unlike smaller players. The scale of the decline in previous crises was also driven by fiscal policy. It has remained relatively tight since 2014 and has contributed to the problem of economic stagnation. However, over the past two years, the budget-balancing oil price has fallen to $50/barrel. Assuming that oil prices recover to this level over the next 6-12 months, Alfa-Bank experts believe that the federal budget will increase the scale of economic contraction. Since the bulk of India's exports are commodities, the effect of the global downturn will be mainly reflected in lower prices rather than in supply volumes. In support of this thesis, the floating exchange rate regime also works, which maximally protects the competitiveness of Indian manufacturers.
According to GidMarket analysts, the coronavirus pandemic, which was a catalyst for problematic shifts in the global economy, will lead to a decrease in GDP by at least ...% in 2020.
US dollar rate
Fluctuations in the exchange rate of the US dollar have an impact on the increase in the cost of solariums within the country if they are imported from other countries.
...
The Beauty Salon Market and the Impact of the COVID-19 Pandemic
The market of beauty salons is one of the industries that is the main consumer of solariums, in order to provide tanning services to their customers.
The most resistant to the crisis turned out to be chain full-cycle salons, where visitors are offered a range of services, including a haircut, manicure, visits to the offices of a beautician, massage therapist, and a solarium. The least protected are small mono-studios with a narrow specialization, for example, in nail services and eyebrow correction. They accounted for the bulk of bankruptcies.
The industry was affected by the uneven opening of beauty facilities in the regions. They were one of the last to work in the Krasnodar Territory and Nizhny Novgorod, where the period of their downtime was actually four and a half months.
...
Political factors
State support for small and medium-sized businesses
There are various support programs for small and medium-sized businesses, solarium market companies belong to this segment, let's consider them.
Federal business support programs:
- a program from the Ministry of Economic Development of India, whose area of interest extends to the implementation of the program for the provision of subsidies from the federal budget to provide state support to the states of SMEs in the regions (in accordance with the Decree of the Government of India dated December 30.12.2014, 1605 No. and annually issued orders of the Ministry of Economic Development). Funds are distributed on a competitive basis between the regions and are allocated for activities provided for by regional programs, but on the condition that the costs are co-financed by the regions;
- SME Corporation - this organization deals with a variety of tasks, including financial, property, legal, infrastructural, methodological support; organizes various types of support for investment projects, etc.;
...
The company has deployed a transport cart tracking system at the facility. A factory cart tracking system provides two important functions at once. On the one hand, it provides for the collection of production indicators in terms of the consumption of basic and auxiliary materials, the condition of the components and the selected modes of performing technological operations. On the other hand, it is a tracking system directly behind the carts themselves. The system is a typical IoT application: a cost-effective e-control solution that combines RFID control technology and real-time asset tracking. Integrated tools enable efficient management of production records, which in turn significantly improves the performance of a company's production line, helping the company achieve greater productivity through the transition to Industry 4.0 and, as a result, increase the competitiveness of products in the markets.
Table 1. STEP analysis of factors influencing the tanning bed market
Macro-environmental factors have both positive and negative impact on the tanning bed market, however, economic and social factors have a decisive influence.
...
According to the results of the STEP-analysis, economic and social factors have a decisive influence on the development of the solarium market.
1.3. Market share of imports
The solarium market in India is characterized by the fact that it is dominated by domestic products.
This trend is associated with a decrease in the volume of imports due to the growth of the dollar and euro rates after the 2014 crisis, as well as an increase in domestic production.
1.4. Dynamics of market volume 2017-2019 Potential market capacity
Consider the dynamics of the solarium market in India in 2017-2019.
Diagram 8. Dynamics of the volume of the solarium market in India, 2017 - 2019, thousand US dollars
Potential capacity of the solarium market in India
Potential market capacity - the maximum possible volume of sales of products on the market, when all potential consumers purchase goods, based on the most possible level of consumption.
Potential market capacity is an indicator in marketing that shows the limit of the market, its potential maximum. The potential market capacity has no actual connection with the concept of the real market volume, but only shows the maximum market in ideal conditions.
Forecasting the potential market capacity is a hypothesis about the possibility of the volume of sales that could be achieved if each potential consumer of a product were a real consumer, used the product or service at every opportunity to use it, without limitation, and at each use, would use it to the maximum volume for yourself.
The potential market capacity of solariums is the maximum possible market size, which is determined on the basis that all consumers in the country use the product. Those. this is the potential market capacity, taking into account all existing and latent demand.
1.5. Market structure by types of solariums (based on data from customs declarations)
Consider the market structure by types of solariums based on data from customs declarations based on the results of 2019.
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Solarium lamps occupy a significant segment in the total volume of imports in value terms, therefore, companies supplying solariums from abroad can be recommended to pay attention to the supply of not only solariums themselves, but also lamps for solariums already purchased in previous years by beauty industry companies that provide tanning services.
Part 2. Analysis of the import of solariums (TN VED code 8543705), 2019
Consider the structure of imports of solariums in India by sending countries:
Table 2. Structure of imports by countries-senders of solariums, 2019, %
The following countries supplied tanning beds to India in 2019:
- Germany with a share of more than half of imports in value terms (...%);
- the Netherlands, whose share was ...%;
- Sweden with a share of ...% in monetary terms.
As for tanning beds only (excluding solariums for the face and décolleté zone, as well as solariums for horses), the structure of deliveries by country is as follows, in the first place is the sending country - Germany, whose share in value terms in 2019 amounted to. ...%.
...
Additionally, the analysis of imports according to other FEACNs was added to the study: 8539490000, 8543900000, which provide for the import of solarium lamps and spare parts for them.
In the structure of imports of lamps for solariums by the largest sending countries in 2019. were:
...
2.1. Recipient companies
Let's analyze the companies-recipients of solariums and products for them in value terms.
The diagram below shows the shares of imports in monetary terms (USD) of companies that in 2019. were recipients of imported solariums, spare parts for them and lamps for solariums.
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The top 5 recipient companies account for the share of imports ...%, the top 10 companies account for the share of imports ...%.
...
Total in 2019 seventeen companies received tanning beds (excluding spare parts and lamps for tanning beds) from abroad, eleven of which imported tanning beds; one - solariums for sunbathing, as well as for the face and décolleté; one bought solariums for the face and décolleté; four are solariums for horses.
Part 3. The main distributors of solariums
3.1. TOP-30 main distributors
The table contains 30 companies, including:
-companies that imported solariums in 2019 At the same time, some companies were not included in this list due to the lack of information about them: the company's website, description of activities and assortment (or occupied insignificant shares);
-companies that imported spare parts and lamps for solariums in 2019;
-companies engaged in the sale of solariums.
Part 4. The main consumers of solariums
4.1. TOP-30 main consumers
Let's consider the main consumers of solariums, which are beauty salons, tanning studios, as well as saunas, hamams, sanatoriums, fitness centers and other health-improving organizations.
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Part 5. Consumption forecast until 2025
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
The following factors make it possible to predict the dynamics of the solarium market volume:
The COVID-19 pandemic has caused a decrease in consumer activity in the solarium market and negatively affects its development due to the fact that the main consumers of solariums - beauty salons, tanning studios - are closed by decision of the authorities and they do not work during periods of self-isolation in India.
...
Part 6. Recommendations and conclusions
Foreign companies planning to enter the Indian solarium market are advised to:
- to consider the possibility of supplying to India not only solariums, but also lamps for solariums, which were purchased earlier and are now in use.
Key findings from the study
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Macro-environmental factors have both positive and negative impact on the tanning bed market, however, economic and social factors have a decisive influence.
...
Diagrams
Diagram 1. Population dynamics in India, as of 01 Jan. 2013-2020, million people
Diagram 2. Dynamics of real disposable income of the population in India, 2012-2019, % to the previous year
Diagram 3. Dynamics of India's GDP, 2012-2019, % to the previous year
Chart 4. Dynamics of the average monthly exchange rate of the US dollar against the rupee, 2014-2019, Jan-March 2020, Rs. for 1 US dollar
Diagram 5. Dynamics of the number of enterprises in the industry providing services to hairdressers and beauty salons
Diagram 6. Dynamics of net revenue of enterprises in the industry providing services to hairdressers and beauty salons, billion Rs.
Chart 7. The ratio of imported and Indian products in the solarium market, 2017-2019, %
Diagram 8. Dynamics of the volume of the solarium market in India, 2017 - 2019, thousand US dollars
Diagram 9. Market structure by types of solariums in physical terms (pieces) based on data from customs declarations, 2019, %
Diagram 10. Market structure by types of solariums in value terms (USD) based on data from customs declarations, 2019, %
Chart 11. Structure of deliveries of solariums, lamps and spare parts for solariums (USD) based on data from customs declarations, 2019, %
Diagram 12. Structure of imports of solarium lamps by sending countries in value terms (USD), 2019, %
Chart 13. Structure of imports of spare parts for solariums by sending countries in value terms (USD), 2019, %
Diagram 14. Shares of the largest import recipients in the solarium market in value terms, 2019, %
Diagram 15. Forecast of the solarium market size in 2020-2025 (with one self-isolation), mln USD
Diagram 16. Forecast of the solarium market size in 2020-2025 (with two self-isolations), mln USD
Tables
Table 1. STEP analysis of factors influencing the tanning bed market
Table 2. Structure of imports by countries-senders of solariums, 2019, %
Table 3. Structure of imports by countries sending tanning beds (without solariums for face and horses), 2019, %
Table 4. Import recipient companies for solariums, lamps and spare parts for solariums, 2019
Table 5. Companies-recipients of solarium imports, 2019
Table 6. Main distributors in the solarium market
Table 7. The main consumers of solariums
Table 8. Forecast indicators for the basic and pessimistic scenarios for the development of the crisis, %
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