Perspectives · Wellness Industry

As health apps flourish, physical wellness facilities must prove their reason for existence

Screens cannot replace space. But space must also know how to tell that.

Quick summary

Physical wellness establishments do not fall behind digital applications due to technology. They fall behind because they have not positioned what technology cannot provide: the presence of the body, the atmosphere, tactile sensations, and feelings contained within an intentional space. The brand that translates these elements into clear identity and consistent experience will retain loyal customers, even as applications continue to proliferate.

The Calm meditation app has recorded over 100 million downloads as of 2023, according to Statista data. Dozens of online yoga platforms, sleep tracking apps, and AI-driven personalized coaching are rapidly growing. No physical establishment can match them in scale. Every spa owner, yoga studio, and wellness center needs to answer a straightforward question: if customers can do everything on their phones, why would they still need to visit you?

This is not a question about technology. This is a question about brand positioning.

Selling convenience, not selling healing

Health apps address a specific issue very well: convenience. You can work out anytime, track progress whenever, and personalize according to your schedule. This is something physical facilities cannot compete with and should not try to.

But convenience is not the reason people book a massage after a stressful week. It is not the reason people wake up early to go to a yoga studio instead of opening YouTube. It is not the reason people pay double for a treatment at a well-designed spa instead of meditating with a free app.

What people are truly seeking when entering a physical wellness space is something that cannot be digitized: the atmosphere of the place, room temperature, scents, the texture of the floor beneath their feet, the voice of the guide, and the feeling of being contained within an intentional space. This is a tactile and spatial experience. These elements only exist in physical reality.

57 trillion VNDEstimated market size for Personal Care in Vietnam in 2025. Source: Brandsvietnam, summary of the beauty and wellness market 2025.

The real issue: the invisible brand in a crowded market

The wellness industry in Vietnam is growing steadily. The number of beauty and health care establishments is estimated to increase from about 5,000 units in 2020 to nearly 10,000 units by 2025, according to data compiled by Brandsvietnam. This means there is real customer demand. The issue is that when you open another establishment, the market does not see you.

Most wellness establishments describe themselves using identical phrases: luxurious, medically approved, professional staff, commitment to effectiveness. When everyone says the same thing, no one says anything at all. Customers have no reason to choose you over the newly opened neighbor with a brighter sign and more attractive launch promotions.

This is the trap the wellness industry is caught in: competing through promotions instead of positioning, through price instead of meaning. Kantar BrandZ notes that brands perceived as "meaningful and different" can charge 38% more than average competitors in the same industry. This is not magic; it is the result of articulating what others do not.

38%The higher price that a "meaningful + different" brand can charge compared to the industry average. Source: Kantar BrandZ, around 2020.

The space is where the brand is communicating

When a person walks through the door, your brand has already begun to speak to them before any staff can greet them. The lighting, scent, temperature, sound, surface materials, arrangement, and even how sound resonates in the room. All of these elements are the language of space.

Research by Lindgaard et al. published in the journal Behaviour & Information Technology in 2006 shows that visual impressions are formed within 50 milliseconds. This occurs even before the brain can process information consciously. In a physical environment, this number is amplified because not only sight but all senses receive signals simultaneously.

A spa can spend a lot on treatments, staff, and equipment. But if the space does not convey the philosophy behind those elements, customers will not perceive the difference. They pay for a service, not for a brand. And those who pay for the service will leave when they find equivalent services at a lower price.

The physique sets the stage; the other five aspects create meaning.

Jean-Noël Kapferer, the six facets of brand identity

Positioning the "non-digitizable part": three questions to answer

Before redesigning signage or investing in a signature scent, you need to answer three core positioning questions.

First: What are your ideal customers looking for that they cannot find in an app? It’s not "relaxation" or "better health" because apps promise that too. It’s something specific, emotional, and tactile that can only be found in a physical space.

Second: What is your current space communicating to those who enter? It’s not what you want it to say, but what people actually feel in the first 50 seconds.

Third: If you were to describe your facility in one sentence without using the words "luxurious," "professional," "quality," or "standard," what would that sentence be?

These three questions are not a marketing exercise. They are a test to see if your brand occupies a real position in the minds of customers. Ries & Trout once described positioning this way: positioning is what you do in the mind of the customer, not with the product.

~10,000 establishmentsIt is estimated that the number of beauty and wellness facilities in Vietnam will double by 2025 compared to 2020. Source: Brandsvietnam, market summary 2025.

Consistency is the mechanism for building trust

A well-positioned wellness brand that is inconsistent in experience renders that positioning meaningless. A first-time visitor may have an excellent experience. But if they encounter new staff with a different attitude, a more chaotic space, or a different process, they will not only be disappointed but also lose trust in the brand's commitment.

Trust in the wellness industry builds very slowly and can be lost very quickly. This is especially true because customers entrust their bodies and emotions to service providers. When there is inconsistency, the feeling of betrayal is much stronger than in traditional retail.

Marty Neumeier describes a brand as the customer's perception, not a logo or slogan. That perception is gradually built through each interaction, each touchpoint. The identity system, communication tone, reception process, how staff respond to issues, and even how invoices are presented all contribute to forming the brand.

The figures regarding the beauty and wellness market in Vietnam in this article are based on a compilation of press reports and market research from Brandsvietnam and other economic media sources. Global wellness industry data is often widely cited from the Global Wellness Institute, but the calculation methods are inconsistent across reporting cycles. Sinh Vũ uses these figures as trend references, not as a basis for financial forecasting.

Wellness brands do not sell services, they sell the space that contains

Wellness establishments exist and thrive despite digital applications not because they have better technology or better prices. They exist because they create something that screens cannot provide: the feeling of being contained within an intentional space, where the body is allowed to rest completely.

That is the reason for existence. It is also the core of brand positioning: not describing services, but describing the unique thing you provide that no one else, including apps, can replace.

A brand that communicates this clearly and consistently, through every touchpoint from the website to the scent in the waiting room, will retain customers, as they actively choose to return instead of considering other options.

References

Grand View Research, Global Wellness Economy Monitor (GWI) 2023. Statista, Health & Fitness Apps Revenue Worldwide 2024. Vietnambiz, Brandsvietnam (Vietnam beauty/wellness market 2025). Decree 96/2023/NĐ-CP on classifying beauty establishments. Kantar BrandZ (meaningful + different). McKinsey, Business Value of Design 2018. Lindgaard et al., Behaviour & Information Technology 2006.

Frequently asked questions

Does a small wellness facility need to invest in branding, or just run ads?

Ads attract first-time customers, but the brand retains them from the second visit onward. For wellness facilities, repeat customers and referrals are the sustainable revenue source. If you only run ads without clear positioning, the cost of acquiring customers will keep rising while retention rates will continue to drop.

Do digital health apps like Calm or MyFitnessPal really compete with spas and yoga studios?

Not competing directly, but they change customer expectations. App users are accustomed to tracking progress, personalizing workout schedules, and managing their own time. Physical establishments should position themselves based on what apps do not provide: intentional spaces, human connections, and tactile experiences. Do not try to compete on features.

How can I know if my wellness brand is positioned correctly?

Ask customers why they choose you instead of booking through an app or working out at home. If the answer is only 'close to home' or 'affordable price,' that signals unclear positioning. A well-positioned brand will hear customers speak the language it wants to convey.

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