What I learned at the 2007 ISPA Conference
& Expo about Sustainability and Greening in the Spa Industry Part 2
by
Julie Register
This is the third in a series of four
articles on the 2007
ISPA
Conference & Expo held in Kissimmee, Florida November 12-15, 2007.
This
year I had four excellent opportunities to learn what the spa industry can do
and is doing to protect the earth's environment. I had a conversation with Clodagh
on green initiatives. I heard two presentations -Greening
Your Spa by Implementing Sustainable Practices and From Green to Gold:
How Sustainability Can Translate into Spa Profits that shared stories of tangible,
real-life green initiatives taken by role-model spas. I also had the unique opportunity
to sit in on the Green Spa Network's executive committee meeting. In this article,
I will share what I learned from From Green to Gold: How Sustainability
Can Translate into Spa Profits and the Green Spa Network's
activities.
At the end of this article,
you will find links to other recommended
resources. I've also created an evergreen directory
of eco-friendly spas that are committed to incorporating sustainable earth
policies and practices in the running of their businesses.
From
Green to Gold: How Sustainability Can Translate into Spa Profits - Mary
Bemis, Linda Povey, Mark Wuttke; Moderator:
Ted Ning
Ted Ning, Director of LOHAS,
introduced us to LOHAS (Lifestyles of Health and Sustainability) which he described
as an umbrella understanding of all things sustainable - organic foods, green
building, healthy lifestyle, fair trade and more. Many people aspire to live this
life and many markets serve them. Healthy products and services are appealing
and can be more ethical and of higher quality than their counterparts. The question
for businesses is how to capitalize on quality and what are the best business
strategies?
Linday Povey, a Natural
Marketing Institute consultant, discussed the demographics of the LOHAS consumer
and how it relates to spa. The US consumer population breaks down into the following
categories:
19% LOHAS - They are the
active environmental stewards and thought leaders. They are interested in personal
and planetary health. They are not only interested in what goes into their bodies
but what's on their bodies and what's around their bodies.
20%
Natural Lites - For this group, personal health is primary. They are into organic
food, supplementation and physical fitness. Wellness is very important to them.
However, they stop a little bit short of embracing sustainability. They don't
know if they want to always pay a premium for organic food or if they want a hybrid
car. They are not as committed as LOHAS, but are a good secondary market.
25%
Drifters - This group cares when it impacts them directly. They tend to be younger
consumers raised on recycling, and they demonstrate some behaviors of sustainability.
19%
Conventionals - This group is practical and municipal minded. They don't embrace
sustainability, but they will buy Energy Star appliances or put in better insulation,
because it will save them money. However, it's not about investing in the planet.
17%
Unconcerned and unaware - Sustainability is not remotely interesting to this group.
LOHAS
drive us. These consumers are the early adopters. They become loyal, tell others
and drive the rest of the US with them. Spas have to reckon with the LOHAS consumer.
Spas have to embrace their values and understand who they are, because 19% of
the US population goes to spas and 30% of LOHAS does. LOHAS consumers are naturally
attracted to spas and other places that represent wellness. It's important to
them. The more spas understand this customer's value set, the better.
LOHAS
is not necessary an income or just wealthy or well-educated people. It's not demographic.
It's a value set that is reflected by certain people across society. LOHAS believes
that we have too much stuff, and they are interested in experiences, in evolving,
in living life - not clogging life with more things. One of the alignments with
spa is the peace of mind - the experiential component that spas and wellness programs
offer as well as the larger connection to spirituality. 78% of the US believes
there is a definite connection between mind, body and spirit. 92% of LOHAS do,
so there is a natural alignment with spas.
Spas are behind on this movement.
Spas must ask themselves what are these consumers looking for and then provide
it. Spas don't have to sacrifice to be eco-friendly. Very high-end experiences
can be sustainable. The LOHAS consumer really feels that way. Organic clothing,
bamboo sheets, and fair trade products have translated into spa inspired fashion,
home décor, cooking, spa fashion expression. The sustainability needle
will start to move fast. If your spa is not ready, you can miss the mark.
LOHAS
wants to know about spas more than just materials used but about where they came
from, about preconsumption - local? organic? renewable? How is this place powered
and heated - solar? What about the packaging of the product? What about good corporate
responsibility? How is the staff treated? Do they have health care? How does the
spa run their business? Do I want to spend my money at that type of company? This
line of thought runs all the way through to post consumption. Is there recycling?
What about biodegradability? It's an end-to-end story. LOHAS wants to know beginning
to end all these types of questions.
There are two key trends in spas:
Eco
Spas - providing a serene, green and socially conscious experience. They believe
personal health is connected to planetary health. They want to run a sustainable
business in a sustainable way. Where did the muds come from? Are there indigenous
ingredients? Indigenous treatments are popular because of the sustainability aspect.
Do they have green and LEED certified buildings.
Ecotourism
- the #1 growth aspect of tourism industry which is growing 3 times as fast as
the industry in general. Ecotourism allows the consumer to experience indigenous
culture, products, community and wild life. It allows them to experience something
and to give something back. There can be a connection with philanthropic or educational
opportunities. Ecotourism consumers think going somewhere is not only good for
them personally, but they are being good global citizens in the way they are traveling.
They are concerned about the way the spa is run, how the spa manages their waste,
the kinds of products they use, the source of the ingredients, and the kind of
food offered. These are all things the LOHAS consumer is asking for. It's well
beyond natural ingredients. It's what's the robe made of? How is the water purified?
They are increasingly raising the bar.
There
is ongoing corporate responsibility. Ask your clients to participate with you
to be not just consumers, but participants with your business. This is a revenue
opportunity. The LOHAS consumer spends on LOHAS things - everything from personal
health to ecotourism to green building to lifestyles to alternative transportation.
It's a $209 billion category. It's a huge business opportunity in the years ahead.
The
LOHAS consumer wants you to put forth a perspective, a value system, an approach,
a system, an ideology. This is who we are. This is how we're running it. Maybe
we don't have the product thing worked out, but we're working on it, and let me
tell you about that. It's about transparency. What is our ideology? As an organization,
what do we want to be for, and let's set the bar. Let's have a sustainable, strategic
plan. Let's have a 5-year goal, and let's get there step by step. It's the time
and place to get a vision together about what the industry is for.
Mark
Wuttke, Principal of the Wuttke Group, LLC, talked about the natural and organic
segment of the personal care market, discussed certifications and provided examples
of innovative ways spas have utilized sustainability to improve their market position.
The
natural and organic segment is the largest growing segment in the personal care
market, growing 24% per year. The personal care market is big - ~$177 billion
in the US. The natural and organic market is ~$350 million. If growth continues,
it will be a substantial part of overall market.
Rapid growth is causing
confusion, however. We have to be able to provide quality information to our customers.
Otherwise, we risk the chance of not earning their trust and not having credibility.
More importantly, we affect the rest of the industry. If you want to enter this
space, there is going to be certain criteria and prerequisites. LOHAS consumers
love transparency. They understand we are evolving, but they don't want to be
misled. They don't want to be led to believe that we are something that we are
not. Transparency is absolutely crucial in this entire process. People will stand
by you if they think you are evolving and aspiring to a greater level.
There
are positive things happening in the spa industry, but the US is behind.
Six
Senses, one of the first global hospitality companies in which spa is an integral
part, have demonstrated leadership with Green
Globe Certification. They were used by Green Globe for the benchmarking on
a global basis for construction, water usage, design, and all the elements associated
within the spa.
The
Talise Spa at the Madinat Jumeirah in Dubai went down a wellness concept and
made a conscious decision to use an exclusive back bar product which was a green
product. They thought it was important to not have incongruence. They wanted to
stand up and be counted and were willing to pay the price, and the result is truly
an example of From Green to Gold. This decision resulted in a 75% increase
in their retail and was a direct result of that one decision. It's a 24 treatment
room, +$4.5-5 million/year spa. They weren't trying to greenwash. It was part
of their wellness offering.
The
Green Spa Network is a network of local day spas in US who are trying to take
some incremental steps and leadership in this area when it comes to benchmarking
in greening.
We are aware of LEEDS
Certification in the US, but there are many categories of LEEDS certification
- from fit out to the complete building. We need to take the time to learn what
the different levels are so we can be quality informers. However, LEED Certified
is no longer a point of difference. It is not enough to be LEED Certified alone
because if it isn't green architecture, it's not good architecture any more. There
used to be a 20% premium for LEED Certification in the building industry, but
the prices have come down. It's now under 3%. It was high because they were learning
as they were going. You pay a premium for people to learn on the job. Now you
can get a much quicker return on investment. That's why any good architecture
is green architecture now.
Since green architecture is not enough, spas
have to drill down to the actual programming to differentiate themselves in the
marketplace. The product companies segment is growing. A lot of companies are
looking for some kind of certification for differentiation. Consumers can be led
to believe they are selecting organic products when they are not in a confused
market and in a market where companies may stretch the boundaries with the way
they use words in their names and associations with different groups that they
are a member of. This is causing a search for certification. However, a lot of
the standards are agricultural. There hasn't been much for beauty and personal
care products. This is an area where the Europeans are really stepping up. Major
product house certifying bodies in the world are getting together at a 3-day natural
beauty summit in Paris to try to harmonize international global standards. Currently,
there is:
BDIH
(certified natural cosmetics) in Germany is about natural. However, they don't
acknowledge organic. They acknowledge pure, and they acknowledge well-crafted
but not organic. They are seen as the highest level of natural products which
are not necessarily organic.
EcoCert
in France is about organic certification. EcoCert will become the base elementary
level for any skin care or personal care product entering into the organic space.
Origins announced recently that they are going for EcoCert certification. This
will have a huge impact on this global company. They will have to revamp their
whole organization, revamp all their packaging and revamp all their practices.
It might take up to 3 years. Origins is owned by Lauder a $6.3 billion dollar
business. It's a pretty significant move.
The
Soil Association in the UK is agricultural, but they also have their own standards
for natural beauty care products.
EcoControl out of Germany offers audits
and certifications against companies' own standards as an independent body.
It's
important to note that some of these organizations also allow chemicals, and it
is important to understand what chemicals are allowed. Some certifications bodies
only look at the active ingredients in a product to consider them organic, while
they are not taking into consideration the other substances in a product which
may include a water, or emulsifiers or something else. Some certifications bodies
not allow the finished product to be chemically preserved, but do allow the ingredients
that go into the product to be chemically preserved. This is why it is a minefield,
and why they need harmonization.
The next emerging area is fair trade.
Whole Foods, for example, is putting less focus on organic and more on locally
grown. It's about sustainability. How sustainable is it to ship a product halfway
around the world? Natural, sustainable and organic are one area. Knowing where
the ingredients come from is another. What farm grew it and who prepared it? Just
because it's organic doesn't mean its being produced correctly. There are a number
of suppliers of milk that have come under tremendous scrutiny because of the treatment
of cows. The production of the milk, even though organic, is horrendous. That's
because it is about a higher level of consciousness. It's not just about being
chemical free. It's also about how it's prepared and who's respected and how sustainable
it is - the entire process - from the tilling of the soil to the delivery to the
customer.
Water management from a sustainability standpoint is a huge
issue. ASPA,
The Australian Spa Association, has gotten government funding to do benchmarking
in Victoria for standards for water management.
Kimpton
Hotel did not know where to start, so they asked their customers what they
would like to see them start to do. One of the first things their customers wanted
was recycling bins in the guest rooms. The hotel listened and designed three-compartment
bins for recycling that went with the room decor. They are the first hotel to
bring these to guest rooms.
Have the courage to reach out to your customers.
Aren't you really then meeting their expectations rather than making assumptions?
This
is not about exclusion. The industry needs to embrace everyone and have different
levels for them. Transparency is key. We are evolving. How do we disclose what
we know? How do we not mislead anyone in any way? Then let consumers make an informed
decision. We will earn more trust and respect through that process than if we
just get on the green-washing wagon.
"At the end of the day, we can't
kid ourselves. There aren't many hotel or asset managers who are absolutely washed
in green consciousness, unless it's green dollar bills. The reason the hotel industry
or asset managers are interested in us at the moment is because there is research
that shows we are driving their key performance indicators. We are making more
money for them. We are driving occupancy. We are driving average daily rates which
is driving their RevPAR which is what general managers get bonused on. That's
what's actually driving the spa component within the asset management and hotel
industry as we know it. The data is from Smith
Travel Research, and they will show you for luxury properties, it's almost
40% premium for luxury hotels with a luxury spa."
Ted
Ning: Companies need to be responsible for who they outsource to. The LOHAS
consumer is very interested in authenticity. How can you express that? One example
is 7th Generation,
a detergent/cleaning company. If you go to their web site, they list all of the
different ingredients they have in their products that are natural and organic.
But they also list the ones that are not. This is what they have been able to
do, and this is what they are still working on. They tell the consumer up front,
and that's transparency. That's being authentic.
One of
the first things to do is get a task force together in your own organization.
Your staff know best what you need based on your circumstances. Have everybody
involved from upper management to janitorial. Although you may feel challenged
and overwhelmed sometimes, there are many people exactly like you and there are
people here who want the same things that you do. And the fact that there is a
Green Spa Network that is being created with the goal of providing you with simple
solutions that are seamless is a great step in the right direction.
Mary
Bemis is the editor of Organic
Spa Magazine, a magazine for readers who are looking for a more healthy,
balanced lifestyle. The mission of the magazine is to bring spa wisdom home,
as well as to highlight the spas that are leading the organic way.
Audio
recordings of this presentation is available at mobiltape.com.
It's well worth buying. However, you will not be able to hear the audience's
questions because none of them spoke into microphones. Since Q&A is a
significant part of this presentation, it is very frustrating to listen to.
You can, of course, hear the answers which provide good information.
The
Green Spa Network
I
had an opportunity to sit in on the Green
Spa Network (GSN) Board Meeting at ISPA. It's a young, but passionate, organization
whose goals are:
to bring sustainable operating
practices to the spa industry,
to facilitate
education, research and alliances in sustainable business practices and
to
promote the natural connections between personal wellbeing, economic sustainability,
and health of our planet.
At the time of the
meeting, the following spas were members of the Green Spa Network Seed
Spa Program, a legacy group of spas that collaborate to build the Green Spa
Network knowledge base and to act as the proving ground for new green spa strategies,
tools and products.
They would like an
even dozen. This group will provide green leadership in the spa industry. However,
the Green Spa Network is about inclusivity, not exclusivity and over 100 spas
are interested in joining when general memberships become available later in 2008.
Green Spa Network members will have access to the only spa trade resource devoted
entirely to greening and sustainability. This includes expert advice to questions
about greening such as:
How do products affect
the health of my clients?
Where can I find alternatives
to toxic or dangerous ingredients?
How can I keep
greening cost-effective and affordable?
How do
I reduce the amount of waste that my spa produces?
Where
can I learn about green building and renovation for spa facilities?
How
can I get my staff on board with new greening initiatives?
Everyone
can join the Green
Spa Network Community Page, a social networking site. The Green Spa Network
believes that people must feel greening is possible, and spas can set the path.
Their message is that it doesn't matter where you are on this path, just start
the journey. Take baby steps, and you will get there.
There are a number
of programs The Green Spa Network currently has in development such as :
Green
Spa Toolkit - This will be a starter kit for spas that want to go green. The kit
will include topics like: lighting, non-toxic cleaners, water conservation, etc.
Student MBA Program - The student MBA program will
provide interns to assist w/ GSN activities, program development and individual
spa greening programs.
The Green Spa Network
is looking for sponsors
to help build the organization and develop spa greening programs. Funds will help
us hire staff, develop a powerful new website and produce the Green Spa Toolkit.
They are also looking for an Executive
Director.
Other Eco-Friendly / Sustainable
/ Green Resources
$50-
