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R E P O R T

medium businesses. The main complexity comes from the high
price sensitivity of the consumer, which affects brand loyalty as
consumers aren’t able to as much as they would like. However,
the market is also characterised by a considerable number of
buyers, and this in turn increases buying power. It should also be
noted that the market has low entry barriers and is accessible to
private individuals, through franchising of established brands.
As the interest in wellbeing has increased due to the pandemic,
so have the number of new entrants, either in the form of local
and international franchises or small independent studios.
Threats to the spa market include alternative methods of
wellness treatments such as relaxation therapies, meditation
and home spa, which are much more cost effective for the
consumer and must be taken into consideration when creating
a strategic plan to enter the Saudi Arabian spa market.

The degree of competition will be largely dependent on level of
demand and market growth, but technological advancements
offer brands the opportunity to stand out; better mobile apps
for appointment booking, customer loyalty programs and pay-
as-you-go services are unlikely to be adopted by the larger spa
chains and therefore leave a gap in the market for smart brands
to penetrate.

Navigating the Legislation of
Saudi Arabia: The key to success

It is a requirement in Saudi Arabia for all products to be listed in
the Electronic System for Listing Cosmetics Products as listing
aims to organise import, trade and market cosmetics products.
The aim of this is to provide an integrated database of all
marketed cosmetic products in Saudi Arabia, in addition to the
Saudi Arabian Spa Market: data of their importers and local manufacturers.
A less mature market with a bright
future holds opportunity for brands

There’s no question that the Saudi Arabian market is less mature
as compared to the European and North American regions,
however, this should not be off-putting for brands as the market
is expected to see great growth over the next five years.
Although the Saudi Arabian Spa market is dominated by a few
multinational firms including Jeddah Spa, Talise Spa, Assail Spa and
Pearl Spa, brands who are innovative and can attract the attention
of the consumer via new technologies could be set for success.

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