Wellness Industry Getting Major Investment, Merger and Acquisition Boost - Insight by Dr Prem Jagyasi

The ever growing wellness has caught the attention of leading global players especially from the hospitality and cosmetic industry. News about merger and acquisitions in this sector has been hitting the market quite often signaling the huge business potential of this niche market. Since I have been a part of several wellness projects, here are the insights why I think wellness is becoming a fast catch for investment, merger and acquisition.

Why Wellness is growing?

Wellness today is looked upon as a lifestyle that has transformed the concept of global health and happiness. Consumers over the world have woken up to an imperative call that whether you possess wealth or not, being well in every respect is the top priority. Else your life doesn't merit a significant value.

It would be very much relevant to state that the concept of wellness did not evolve overnight. Previously, due to restricted information and very limited service points, wellness service industry could not generate much global attention compared to what we are witnessing today. The huge response from high net worth segment of people has turned the market as a niche service sector.

The demand for various wellness services is increasing in leaps and bounds with the unlikely indication of any recession in the long run. This has drawn the attention of big players as the ROI (returns on investment) seems to be very attractive.

Upcoming wellness trends:

The concept of wellness has hammered into our consciousness to such an extent that today it is considered as the only way for a healthy survival. Further exploration reveals the extent of transformation that the wellness conscious world is going to witness very soon.

As Per GWS extensive research shows that in the next 20 years the global medical expenses for chronic diseases would run into 47 trillion across the world USD which is about 30 % of GDP. The planet earth will be housing a population of 800 million aging people vulnerable to diseases. Thanks to great breakthroughs in medical science.

Can wellness be an answer? The response is an affirmative ' yes '. People can no longer afford to take wellness as optional. In days to come, we may even see government legislations enforcing a healthier lifestyle for individuals. 

- Wellness has created a separate niche in the global tourism industry as well. Resorts without a space for wellness will not be much demanded. The emphasis is on "transformational experience", which will see less of tourist visits in destinations created solely for visiting and relaxing purpose. More importance will be put on how the destination helps in transforming a tourist's flesh and spirit.

-Spa and sauna are set to be redefined with lots of innovations being brought in.

-Wellness architecture to bring in new concepts in constructions fostering healthy dwelling for the people. Wellness building complexes would soon replace the conventional apartments and housing complexes.

- Dwelling amidst noise is a big deterrent to a person’s wellness. The new era of wellness would see silent resorts, silent discos etc. encouraging absolute silent activities.

- Democratization of wellness is the call of the hour. The concept is permeating through a broad spectrum of consumer mass bringing in more members belonging to a wider and diverse economic bracket. Read more Wellness Trends For 2017 That You Need To Watch Out

My venture in wellness industry:

In this context, I would like to share my experience in wellness service industry which would be of immense interest for those desirous of forming a productive collaboration with other operating players.

 I have explored almost the entirety of the globe as a traveler and an expert wellness service consultant. Personally, I believe that the widespread wellness concept can definitely create a better world. My exposure to different lands helped me acquire an insight into the key factors that can facilitate a robust wellness business. Recently I was invited to by government of middle east to evaluate about How To Develop Wellness Tourism Business Using Local And Natural Resources develop a project.

Delving deep into the roots of the wellness concept, I had realized the immense potential of wellness industry that is yet to be unraveled. It has been a gradual expertise buildup in creating exceptional business developing measures with a meticulous SWOT analysis.

In wellness business, proper identification of potential is the key to success. My in-depth knowledge in this domain helped me a lot in proper evaluation and execution of strategies that ultimately has culminated into many successful business stories.

With the wellness industry getting a major rejuvenating shot in the arm, I have keenly observed that a large number of players have crowded the global wellness market vying for a profitable share. However, as the price is purely decided by the consumers’ demand against supply, I felt that the economy of scale looks like the obvious solution for individual wellness companies struggling for survival.

It is true that individual players do have a unique saleable platform. But this is not always enough for the long run survival. It is very important to maintain the upward cash inflow to sustain the growth. Suitable merger and acquisitions would provide an access to a broader capital base. When two potential companies work together their strength adds up.

Fortunately, I got the rare opportunity to oversee some great mergers and acquisitions in various wellness consulting projects. I have been successful in laying out effective strategies and coordination that helped organized investment drives for a number of wellness industry projects.

In such high-stake ventures, my segment wise market analysis and strategies were highly recognized as it provided a clear vision in financial viability of the business on a fierce competitive platform.

Merger and acquisitions in wellness industry:

Witnessing the speedy growth of this industry, today investors are looking for opportunities in merger and acquisitions with existing wellness service units than considering for start ups. Especially, the hospitality industry has noticed a business synergy with the wellness service units.

They are either in the process of investing or close to making an investment as a forward integration to their main area of expertise in hospitality trade. The leading hotel giants with their existent well-built infrastructure are packaging wellness services for the huge volume of high net-worth public. As a part of the backward integration, they are also directly funding the development projects of wellness service industry at strategic locations.

Hyatt’s sensational acquisition:

Recently, there had been a landmark acquisition in the wellness industry worth USD 375 million with Chicago based Hyatt acquiring New York based Miraval Group to put its foot on the wellness business. Hyatt had timely realized the business opportunity to cater to the needs of a growing number of global customers showing a rising desire to consume wellness services.

Other Notable Mergers in Wellness Industry:

1. Founder and CEO of New York Health and wellness, Mitchell Suss had gone for a merger agreement with New York's eminent celebrity cosmetic dermatologist Dr Adam Mauer, known as the rock star in the field of cosmetic dermatology. This merger adds up Dr Mauer's undisclosed clientele of celebrities with the existing and growing customers of New York Health and Wellness who are feeling younger and happy with the company's" Perfect Balance Botox" techniques.

2. Recently, there has been another corporate merger of players swallowing its competitors and turning bigger. Virgin Pulse is a share of Richard Branson's virgin group and engaged in wellness business. In last February, it had announced to acquire two companies.

One is Providence, a Rhode Island based Wellness Company and the other is Global Corporate Challenge, a wellness firm based in Melbourne, Australia. Merged together, the three companies will serve a huge customer base of 6500 clients across 185 countries.

3. In another case of corporate acquisition, Share care Inc. health and wellness online platform has out rightly purchased the business of Health ways Inc, HWAY.O. This move opens up an avenue for the sold company to shift its efforts away from unprofitable health division towards Silver Sneakers Fitness Brand, one of the country's most popular exercise programs for the aged.

Corporate acquisitions in the wellness industry are well thought out strategies of investment decision. The outcome of the merger and acquisition sees new corporate giants with the capability to serve a wider customer base with a much better delivery. At the same time, the company's future growth is sustained as well.

Read more at Dr Prem's Wellness and Wellness Tourism Guide