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12 Carrousel du Louvre - BW Confidential

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The buzz<br />

Wellness focus<br />

Paris-based spa operator Thémaé president & co-founder Guillaume Lefèvre<br />

How is the European day spa market performing?<br />

The market has been quite difficult <strong>du</strong>e to the economy and a lot of projects have been either postponed<br />

or shelved; we’ve seen many spas go out of business <strong>du</strong>e to overly ambitious projects. Several<br />

years ago there was a flurry of spa openings and operators assumed that with some nice decorative<br />

touches and a couple of massage tables, the customers would flood in. However, there often wasn’t<br />

the notion of quality to back up these concepts, and no long-term vision. Spas have to offer creative<br />

and qualitative treatments to stand out from the competition, especially <strong>du</strong>ring a crisis period.<br />

We opened our first spa in Paris in 2007 in the middle of the recession, so the timing couldn’t have<br />

been worse, but <strong>du</strong>e to our unique concept [all treatments and pro<strong>du</strong>cts are based on tea] and focus<br />

on high-quality service, we have succeeded in developing our day spa in hotel spas worldwide.<br />

How do you recruit new and loyal consumers?<br />

Word of mouth is the best form of communication as it is based on what the client has experienced in the spa. For an<br />

upscale spa, the price of treatments also needs to be justified, and not heavily discounted.<br />

How are discounting sites, such as Groupon, impacting the business?<br />

This is not an approach that a spa should take to develop its business as it is very much based on short-term results. These<br />

kinds of promotions can bring additional cash, but the margin is left by the wayside. Offering large discounts also means<br />

that a spa has to cut down its labor costs, but if you re<strong>du</strong>ce your staff’s pay you are also lowering the quality of the services<br />

provided. The consumers that buy into this kind of promotion also tend not to be loyal, and as a spa operator I want to<br />

build a long-term relationship with my clients.<br />

22<br />

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