The Indian consumer has evolved since 1991 when multinationals entered India, offering products and services which were not available earlier. He now has a large number of options to choose from and globalization has aided the cultural movement due to which the western lifestyles, products and services are demanded by a typical upper middle-class young consumer. He looks beyond product utility to seek intangibles like style statement associated with the product. But can a service become a lifestyle statement? Can companies think of sustainable innovative business models? The paper attempts to answer these questions with the example of an Indian Company called Kaya Skin Clinic, a leading lifestyle brand in the professional skin care segment. The aim of the paper is to develop a conceptual model and illustrate with example the role and relevance of innovation in creating niche, urbane and yet sustainable business. Kaya Skin Clinic has been able to create a whole new market segment of scientific approach-driven skin care solutions. What was once a supplementary service offered by traditional beauty salons, has now become a thriving business model. Armed with a robust proprietary Information and Technology (IT) architecture that facilitates Customer Relationship Management (CRM), Loyalty and Referral Marketing (LRM), Kaya has created a lifestyle brand from what was once a basic service. Here, lifestyle brands create a certain degree of style statement for consumers. The case study shows that developing innovative business model by industry convergence, backed by creation of entry barriers, can give sustainable competitive advantage to firms and develop consumer lifestyles.

The Indian consumer has evolved since 1991 when multinationals entered India, offering products and services which were not available earlier. He now has a large number of options to choose from and globalization has aided the cultural movement due to which the western lifestyles, products and services are demanded by a typical upper middle-class young consumer. He looks beyond product utility, to seek intangibles like style statement associated with the product. Sociocultural, psychographic and geodemographic reasons have led to this altered lifestyle (Joseph and Singh, 2013). An average Indian today is younger with a higher disposable income and a dispensation to spend on sophisticated products and services which reflect his current lifestyle or the style he aspires for than an Indian consumer a decade-and-a-half ago (ASA & Associates, 2013). Wellness industry is one of the sectors which has witnessed a substantial positive impact of rising consumerism in India. As per FICCI (2011) report, the overall size of the wellness market in India stands at 490 bn and wellness services alone comprise 40% of this market leading to the entry of a large number of domestic and international players in the market who are trying novel and innovative methods to target customers offering a value proposition along with a branded lifestyle which leads to dual satisfaction. The report further asserts that the future of the wellness industry in India looks even more promising as the industry will grow at a Compound Annual Growth Rate (CAGR) of 20% to reach 875 bn. Consumers and their needs will continue to evolve, driving the transition from remedial care to a more holistic view on preventive care.

Business Strategy, Intuition, Information and Technology (IT), Customer Relationship Management (CRM), Loyalty and Referral Marketing (LRM), Compound Annual Growth Rate (CAGR), Innovation, Sustainable Lifestyle Brands, .