Insights from Industry Leaders,
interview with four wellness and spa experts in China
Over the decades, the spa and wellness industry in China has undergone remarkable transformations. To delve into these changes and the industry’s future, SpaChina has brought together four distinguished figures from the sector for an insightful discussion. Georgie Yam, Guo Jian, Johnny Chang and Tony Cheung – each a key player in the evolution of spa practices in China – share their perspectives on the sector’s growth, emerging trends, and challenges.
From the rise of sophisticated city spas that rival five-star hotel offerings to the growing acceptance of local designs and services, the industry has seen dramatic shifts. These experts reflect on how consumer demands have evolved, embracing more personalized and technology-driven treatments while exploring the role of branding in a competitive market. They also discuss future trends, including the impact of Generation Z, and the ongoing importance of health and wellness in a post-pandemic world.
This conversation not only highlights the dynamic progress of China’s spa industry but also offers valuable insights for those looking to understand or enter this thriving market.
Over the decades, you’ve seen the spa industry evolve in China. What are some of the most significant changes you’ve witnessed?
Georgie: The transformation has been incredible. When I first started, spas in five-star hotels offered just basic treatments with limited international products. Today, they provide a broad range of advanced beauty and body treatments. The day spa scene has changed even more dramatically. What were once simple foot massage shops have evolved into full-service day spas, offering everything from beauty treatments to TCM therapies. It’s heartwarming to see how far the industry has come – some day spas now rival five-star hotel spas in quality and service.
Tony: The Spa guests do not only look for foreign designed and serviced spas, but they also accept local design and services by local staff.
Guo Jian: The demands of spa consumers are becoming increasingly diverse and personalized, along with the widespread application of technological methods in the spa industry. This includes customized services tailored to different skin types, body types, ages, and genders, as well as comprehensive spa experiences that combine traditional Chinese medicine, yoga, meditation, high-tech equipment, and various technical approaches.
Johnny: The first trend is personalized services, which are increasingly in demand by customers. After the pandemic, customers no longer just seek physical improvements from treatments but also want to address psychological issues, such as stress and depression. Secondly, there has been a shift in customers’ preferences for treatments. Fifteen years ago, customers tended to prefer longer treatment sessions. However, as millennial customers gradually become the main consumer group, the majority now opt for shorter, more efficient treatment options that deliver quick results and provide both physical and psychological benefits. This undoubtedly presents a significant change and challenge for traditional spa and wellness operators like us.
In your opinion, what are the key factors that have driven the development of the spa industry in China?
Guo Jian: The steady economic growth and consumption upgrade over the past 20 years have provided a solid economic foundation for the development of the spa industry. Additionally, continuous improvements and innovations in services and technology have enhanced the quality and effectiveness of spa treatments. Of course, the intense market competition and increasingly refined laws and regulations have also contributed to the industry’s growth.
Georgie: Chinese consumers have become more discerning, especially after experiencing quality lifestyles abroad. As their income and expectations grew, they began seeking out better service and unique spa concepts at home. This shift has driven spa operators to elevate their offerings, creating more personalized and luxurious experiences to meet these new demands.
Johnny: The changes in customer demographics and demands are definitely driving forces behind the industry’s growth.
Tony: There are no short cuts to success, and no luck on our way. It is because we are smart, quick to learn and very hard working.
What role do you think branding plays in the success of a spa business in China, compared to other global markets?
Tony: Spa business is still new in China, customers are attracted by the Brand and trust the brand before they spend their time investigating the product.
Georgie: Branding is everything. Chinese consumers do their homework – they check reviews and gather information before stepping into any spa. A strong brand tells your story, showcases your strengths, and builds trust. Engaging with KOLs and creating memorable offline experiences can really set you apart. In the end, investing in your brand always pays off in China.
Johnny: Brand building is crucial for any industry. With increasing market competition, the blurring of business models, and changes in consumer behavior, shaping and developing a brand has become more challenging than ever. It’s time to assess whether our brand image has evolved in line with the changing market demands. Brand awareness reflects the quality of service, the competence of the staff, and the reliability of treatments and products. Customers trust and choose a spa brand because they believe we can help improve and resolve their issues.
Guo Jian: In China, brand building plays a vital role in the success of spa businesses. It enhances consumer awareness and trust, boosts market competitiveness, and helps establish long-term, stable relationships with consumers through branding. This, in turn, increases repeat purchases and strengthens word-of-mouth marketing.
With your experience in working with various spa equipment and product companies, what are the current trends in spa products that are most popular in China?
Johnny: The products most popular among our Chinese customers are those that are safe and natural in composition, deliver quick results, and feel good on the skin, while also addressing both physical and psychological issues. Another crucial aspect that must be emphasized is the importance of brand after-sales service. Poor after-sales service from some brands has led to disastrous outcomes.
Georgie: Chinese consumers still prioritize skin whitening, brightening, and body contouring. Non-invasive treatments like cryotherapy and muscle stimulators are in demand because they deliver quick results. It’s all about offering what the market wants while staying ahead of trends. Compliance is key.
Tony: Now and in the future, health and wellness products will become the most popular in China. It’s essential to understand the social class and specific needs of your spa customers and then offer health products that match their demands.
Guo Jian: The development trends of spas and their products in China are diverse and dynamic. Key trends include personalized customization, the integration of technology with nature, green and sustainable development, and the blending of online and offline experiences.
Looking ahead, what do you see as the future trends in the spa industry in China?
Tony: In the future, we will no longer rely on foreign investment but will increasingly invest abroad. Our business areas, such as hardware design and project training, will no longer depend on imports. Instead, we will gradually expand our services internationally, particularly in regions like the Middle East and other Asian countries.
Georgie: Generation Z is reshaping the spa experience. They crave energy and engagement, not just relaxation. With their fast-paced lives, they’re looking for quick, effective solutions for both mental and physical well-being. Spas that focus on holistic health – mental, physical, and spiritual – will thrive in the future. AI diagnostics and wellness staycations could make the spa experience more meaningful.
Johnny: The development trend in the spa and wellness industry will increasingly move towards personalized services that address the physical, psychological, and spiritual needs of clients. Centers that truly listen to customer needs and offer reasonably priced treatments and products will undoubtedly have a bright future.
Guo Jian: To meet the increasingly diverse needs of consumers, the spa industry will continue to introduce a wide range of services. In addition to traditional beauty and massage services, the industry will expand into areas such as fitness, rehabilitation, traditional Chinese medicine, holistic wellness, and outdoor activities. Moreover, cross-industry integration will become a major highlight, with deep collaborations between spas and sectors like tourism, hospitality, and healthcare, working together to create comprehensive health service platforms.
How do you think the concept of wellness will continue to evolve in China, especially in the post-pandemic era?
Tony: People are more concerned with their health and willing to spend more time and money to participate in wellness treatments.
Guo Jian: In the post-pandemic era, health concepts in China will continue to deepen and evolve. There will be a comprehensive enhancement in people’s health awareness, with greater emphasis on disease prevention and mental health. These changes will lead to various positive health behavior modifications, such as healthier eating, regular sleep patterns, and moderate exercise. At the same time, the health industry will experience rapid development and transformation.
Georgie: The pandemic has made people more introspective, seeking balance and meaning in life. Generation Z, in particular, is blending work with play and exploring local cultures. Spas should embrace this trend by offering localized treatments that highlight the uniqueness of their region. Creating memorable, shareable experiences is key – being original and authentic will make your spa stand out.
Johnny: According to a 2020 survey by the World Health Organization (WHO), the global incidence of depression and anxiety increased by 25%, with 35% of adults worldwide suffering from insomnia, and the number is even higher in mainland China at 38%. This impact is expected to last for at least 20 years. Our health industry can help reduce mental and psychological stress through various therapeutic methods such as meditation, mindfulness, and aromatherapy, improving sleep quality, skin condition, and muscle health. After all, prolonged mental and psychological stress is a major cause of insomnia, decreased immunity, and damage to the skin’s natural barrier, leading to premature aging.
After all these years in China’ Spa and Wellness industry, what are you most proud of in your career?
Tony: In the 30 years, I, personally, leading my team, including my son and my daughter to learn from different experts all over the world, and actively participate in the development of the spa industry inside China, starting from introducing What is Spa, to designing and building different spa centers, and upgrading the industry.
Guo Jian: Having worked in the medical field for over thirty years and in yoga culture promotion and life care for more than twenty years, I have dedicated myself to promoting health, beauty, and love. After being diagnosed with breast cancer at age 50, I embraced life with renewed vigor and actively became a Pink Ribbon Ambassador in China. Despite the passage of time and health challenges, my enthusiasm for my work has never waned. For the past decade, I have consistently contributed to the spa and health industry in China. Now, at 70, I will continue to use my wisdom and love to create an ageless life, honor the art of love, and promote the beauty of life, contributing to a bright future for China’s health industry.
Johnny: What I am most proud of is having taught several world-renowned skincare brands, hotel spas, and city spa owners and teams essential customer communication and personalized service skills. This has led to significant improvements in their profitability. Customer retention rates and conversion rates have averaged 88% and 33%, respectively, and customer satisfaction with brand services has risen to 4.98 out of 5.
Georgie: I’m proud of creating jobs for around 1,000 employees and helping 30 of them work overseas, improving their lives and their families’ well-being. With the successful stories, I was very proud to be invited by Stanford University and Maryland University in the US as a speaker on their EMBA tour in China, also I have been selected by Hong Kong University to be their business case study about entrepreneurship in China for 2 consecutive years. These achievements have brought me immense satisfaction.
What advice would you give to new entrepreneurs who want to enter the spa industry in China today?
Tony: Spend more time and effort on creating and developing our Spa Concept and style with more Chinese elements.
Guo Jian: This industry is undoubtedly a service-driven field. Entering the market amid intense competition requires starting with the most fundamental elements: focusing on consumer needs and feedback and providing the highest quality service with the best cost-performance ratio. As long as the service quality is maintained, brand awareness can be expanded and business development achieved through diverse marketing channels.
Georgie: Be original. Don’t just copy what’s popular – create something unique that truly resonates with your clients. Always think about how you can enrich their experience rather than what you can take from it.
Johnny: Focusing on both personal health and the brand design and image of a spa business is crucial. While investing in fixed installations, decorative accessories, treatment development, mechanical equipment, and product selection, as well as training for treatments and products, is certainly necessary, it is not enough to maximize return on investment. If the interpersonal skills and personalized service protocols for the entire team at the spa and wellness center are neglected, the owner may unknowingly be losing valuable investments every day.
Can you share a memorable moment or collaboration you’ve had with SpaChina Magazine over the years?
Tony: For almost 20 years, I witness SpaChina, led by Fifi, guiding the industry and escalating to a world renowned organization. SpaChina is a platform for the industry to learn, to share and to improve together.
Johnny: The most memorable collaborations are always when I receive an invitation from SpaChina to share industry experiences at their summit. SpaChina’s insights are consistently ahead of the market; they always choose topics for me to discuss that address urgent market needs or are most relevant to the needs of health and spa owners, teams, and clients. I have participated in SpaChina summits since the first one, and I always remember receiving excellent feedback after each sharing session, which makes me very proud. Over the past 20 years, many industry professionals and businesses have grown and witnessed changes in the industry alongside SpaChina.
Guo Jian: I have served as a judge at several SpaChina awards ceremonies and have had the opportunity to interact with many five-star hotel spas and city spas in China. I have observed that each hotel spa and city spa has its own cultural and brand charm, showcasing their unique features through specific treatment programs. Many of these programs incorporate traditional Eastern wellness concepts and techniques, effectively achieving relaxation and stress relief. I also see professional management and the dedication and sense of fulfillment expressed by the staff. I am committed to serving the industry, empowering spa platforms, and sharing my knowledge and experience with colleagues. I aim to bring the concepts and knowledge learned at the annual SpaChina summit to more people, helping them to love life, take responsibility for their well-being, and live a life of quality and vitality.
Georgie: One of my fondest memories is from 20 years ago when a young editor interviewed me for SpaChina. Back then, it was just a small publication. Today, SpaChina is a leader in our industry, just like that young editor now is the editor-in-chief, who has grown and evolved alongside it. It’s been a beautiful journey for both of us and for our friendship.
