Four insiders share their opinions and predictions for the next phase of the spa industry
As one retailer put it, these are “very wonky times” for the spa industry.
Between mergers and acquisitions, demand decreases and economic concerns, the industry is trying to find its new normal as manufacturers and retailers prepare for the next 18 months.
We asked industry experts to share a snapshot of how they’re feeling, plus what’s new and upcoming in the spa world.
“A rough year”
JP Parent, senior vice president and managing director of Balboa Water Group, doesn’t deny it’s been challenging after the high of the last few years in the spa industry. Consumer habits are changing as people abandon backyard upgrades in favor of things like travel.
Parent points to July 2023 in particular — which normally is a strong sales month for retailers — as being disappointing.
“This year has been a rough year for the industry altogether,” Parent says. “I always consider the main competitor to be the travel industry. People are traveling, they’re eating out and spending their money differently than putting it in their backyard.”
As Paul Deal, owner of Four Winds Spas bluntly puts it: “The market sucks.”
It’s especially tough for retailers with excessive stock. Deal, a Tennessee-based manufacturer, says retailers who got too excited with ordering excessive products during the pandemic are paying the price now.
“There are a lot of them that are in deep financial trouble, and they’re hanging on,” he says.
Market needs more excitement
It’s not all doom and gloom. With the current economy in mind, it’s an excellent time for manufacturers, retailers and spa servicers to think ahead and revamp what no longer works. Reviewing business operations and approaching day-to-day customer interactions differently can help retailers out of slumps.
Norm Coburn, owner of New England Spas, is offering financing and discount promotions and leaning into price transparency online.
When it comes to other consumer-facing changes, Parent believes the spa industry could do with some more updated marketing techniques.
We need to cater to the younger generations and not just promoting relaxation. It’s not just when you have a sore back; you need a hot tub to have fun with friends.
JP Parent, Balboa Wate Group
“There are still a lot of gray-haired people like me on hot tub marketing,” Parent says. “We need to cater to the younger generations and not just promoting relaxation. It’s not just when you have a sore back; you need a hot tub to have fun with friends.”
Deal of Four Winds Spas is anticipating customer interests and believes two-for-one plunge pools are going to become increasingly popular.
He predicts the next trade show in Vegas will showcase more of the product. “I think this will be one of the biggest new market items in the upcoming years,” he says. This type of cast concrete vessel can serve as a pool in the summer and, with the addition of heating elements, as a spa in the winter.
Hope for the future
Innovation is another aspect that manufacturers need to keep in mind to maintain a strong customer base in tough economic times, says VJ Teenarsipur of Watkins Wellness.
“An idea that spans the general spectrum is connectivity,” Teenarsipur says. “The whole world is becoming more interconnected. There’s no reason our spas shouldn’t be more connected to create that immersive experience.”
Parent agrees and is eagerly waiting for the next hot tub models that will incorporate more connectivity. In the future, he hopes to see more manufacturers integrate the hot tub into home automation and ensure it has its place in the new smart home environment.
For Coburn, going “green” is a big focus as the industry moves forward.
“I’d like to see more green measures in our industry as in recycling and reusing materials,” he says. “We’ve put together a strong collection of private label products that incorporate greener packaging and all-natural methods of water treatment with less harmful chemicals.”
There is a lot of news about energy and making products more energy efficient. That’s something all of us are going to be more focused on. Additionally, energy conservation and offering easy maintenance are areas we will have to innovate. That’s the consumer’s expectation.
VJ Teenarsipur, Watkins Wellness
Teenarsipur adds, “There is a lot of news about energy and making products more energy efficient. That’s something all of us are going to be more focused on. Additionally, energy conservation and offering easy maintenance are areas we will have to innovate. That’s the consumer’s expectation.”
Experts say that while challenging times may lie ahead, the industry is maintaining itself and will continue to thrive — just as it has through hard times. Leaning on others in the hot tub world is one way to get through it.
“It’s one of the most resilient and close-knit industries I’ve been in,” Teenarsipur says. “I love the support I’ve seen.”