China's fitness industry current situation,change and development

China's fitness industry current situation,change and development

Author: name From: name Modify: Jun. 17, 2020
Jul. 18, 2020

In recent years, the fast-paced lifestyle has caused a series of problems in the physical health of modern people. From 1992 to 2015, the national obesity rate has risen from 3% to 12%, and the incidence of diabetes has also been increasing. As a result, people's attention to health is increasing day by day, and more and more people are willing to join the ranks of fitness, coupled with the country's vigorous promotion, the fitness industry has developed rapidly. In addition, the current era of "Internet +", "Internet + fitness" is also booming, making fitness more convenient and low-cost, and has been welcomed by many fitness enthusiasts. The development of online fitness, on the one hand, provides a new growth point for the fitness industry, on the other hand, it also makes the fitness market have more economic benefits to be developed.


一. Analysis of the status quo of the fitness industry

 

     The market scale of my country's fitness industry continues to grow, and is expected to exceed 200 billion yuan in 2022. Since 2012, the scale of China's fitness industry market has continued to grow; from 2012 to 2017, the average annual compound growth rate of the output value of China's fitness industry was 6.7%. In 2017, the total output value of China's fitness industry was about 154.525 billion yuan; China's fitness industry is expected to be 2020 The total output value can achieve 185 billion yuan, and the scale of the fitness industry will further exceed 200 billion yuan by 2022, reaching 211.527 billion yuan.

 

According to the data from the "Report on the Current Situation and Future Development Prospects of China's Fitness Industry Market in 2020-2026", the number of fitness clubs and members has grown rapidly. With the rapid growth of the fitness population in recent years and the intensified demand for professional guidance, a new wave of fitness has led to signs of recovery in the industry, and the number of fitness clubs has achieved a spurt of growth. In 2017, the number of fitness clubs in China has reached 46,050, which is very close to the US level compared with 44,633 fitness clubs in the United States. In 2017, the number of members in China increased to 43.27 million, which is still a certain gap with the US’s 66.48 million. .

 

The penetration rate of domestic fitness members is far behind that of developed countries. Although the number of club members in China has been increasing in recent years, the penetration rate of fitness members in the top ten cities in Mainland China in 2017 was only 1%, which was far lower than Australia’s 15.3%. Compared with neighboring South Korea and Japan, their membership penetration rates also reached 7.3% and 3.3%. In contrast, the development of my country's fitness market is still in its infancy, and there is considerable room for development in the future.

 

With the continuous expansion of the market size of my country's fitness industry, the rapid increase in the number of clubs and members, and the room for growth in fitness penetration in the future, the fitness industry is bound to usher in a new round of adjustment and growth.

 

二、The development prospects of China's fitness industry

      1. Branding of offline fitness clubs

In the future, the development of offline fitness clubs will move towards branding. There are many precautions in the construction of the club's characteristic brand: in the selection of the venue, the gym cannot be built in the basement and other places where the air is not clear, to ensure that the environment is empty, fresh and pleasant; in the creation of the environmental atmosphere: the same gym should be divided , Use different music, equipment, and dress to create different atmospheres in different areas, such as casual and hard work, to meet the needs of fitness members of different ages and different fitness intensity, and improve the fitness and safety of fitness services In terms of service, the gym can count the number of fitness people in each period to formulate the corresponding number of people, instead of recruiting members without restraint, reducing the user's fitness experience. In addition, the fitness club can be equipped with certain "public coaches" in addition to the common private teachers. It specifically provides simple dialing, guidance, and answering questions for all members of the club. It can also adopt innovative coach rotation systems, such as personal training. Zhou Bi will one day be a "popular coach" and earn a fixed salary. This may seem to reduce the number of private lessons, but in the process of strengthening communication between coaches and members, they have inadvertently advertised themselves. Instead, more people may purchase private lessons and obtain greater economic benefits.


     2. Develop fitness markets in small and medium-sized cities

Big cities are where elites gather. As an imported product, fitness clubs take root in big cities as soon as they enter our country. At present, most of the market has been developed. In 2018, the GDP of 17 cities in my country exceeded 1 trillion yuan, and their economic strength gradually improved. People in third- and fourth-tier cities gradually began to cultivate fitness habits, and the market space was huge. Emerging fitness clubs want to expand the market, carry out brand transformation, and compete with old clubs that have customer recognition. They may follow the principle of "migrating from small cities to large cities". On the one hand, competition in small cities is relatively weak and venues The rent is cheap, and the barriers to entering and exiting the market are small. On the other hand, although the fitness industry in big cities is far ahead, it is changing rapidly. Small cities can learn from the changes in the fitness market in big cities to predict their own changing trends and adjust them in time. The current market potential of small cities is far greater than that of large cities that are almost fully developed, and the changes are relatively stable, with less operational risk, and there is a certain chance of "turning back against the wind."


    3.Online fitness and supporting industries develop together

The WeChat movement has gained hundreds of millions of users because it is embedded in the national social software WeChat. The enlightenment this brings to specialized fitness apps is to create a social platform, expand the user circle, and enhance users' interest and viscosity in fitness by comparing training volume, sharing training results, and exchanging fitness experience. In addition, in response to the "irregular fitness movement" problem that many users worry about, online fitness apps can learn from foreign experience and add new functions for online one-on-one online teaching by real people. In addition to personal education, the staff in charge can also Is a fitness influencer or fitness star on a social network platform. For the fitness accessory industry, on the one hand, its supply must conform to the current trend of the times, such as the "symbolic consumption" pursued by the public, and on the other hand, it must meet the needs of users. Some users want to have a good figure but are not willing to endure hardship. As a result, the sales of “lazy fitness” products such as abdominal muscle stickers and fat-removing machines are extremely high.


三. The future development trend of the fitness industry

    

     1. From large-scale expansion to boutique fitness studio

The traditional gym has a huge investment in the early stage, and the loss of consumption in the later stage. Traditional gyms have invested a lot of money to purchase heavy-duty fitness equipment in order to meet the various fitness needs of customers. A small fitness club (under 1,000 square meters) has an investment of about 300,000-1 million, and a medium-sized gym (1,000-2,000 square meters) has an investment of approximately Around 1 to 2 million, large gyms (above 2000 square meters) are around 2 to 5 million. In the later stage, it is also necessary to pay high house prices and rents and heavy labor costs. The later stage income mainly comes from membership income (62.03%) and private education course income (33.57%), and it is prone to losses due to factors such as difficulties in recruiting new students. In 2017, about 40% of China's gyms were at a serious loss. Under such market data pressure, many gym operators have begun to seek transformation, hoping to seize the future in the transformation. Boutique gyms that focus on a certain area have become a hot spot for transformation.

The user's demand for professional boutique fitness studios continues to increase. The number of boutique gym members increased by 70% from 2012 to 2015. In 2015, boutique fitness studios accounted for 35% of the US fitness market, and this proportion is still increasing. There are four stages in the development of fitness in our country. In the 1980s and 1990s, strength-based fitness with emphasis on reminder shaping emerged; after the 1990s, the concept of aerobic fitness became popular, and domestic fitness clubs began to popularize membership systems; since the 20th century, fitness clubs began Combine dance, yoga and other forms to develop; in the future, in order to meet diversified needs, more professional studios will become the main growth point. The "2019 China and Global Fitness Trends" jointly issued by the Shanghai Institute of Sport and the American Academy of Sports Medicine shows that the rankings of private training, group training, fitness studios, yoga, core training, and postpartum training for pregnant women will rise rapidly in the future, which corresponds to professional fitness work The room will usher in development opportunities.

 

"Small but beautiful" model is sought after, and domestic boutique fitness studios are developing rapidly. Boutique fitness studios are relatively highly specialized and generally meet specific needs of users. The population is relatively fixed and the unit price is relatively high. Domestic boutique fitness studios The main representatives include the "small and beautiful" container model super orangutan, the cycling gym Gucycle, the yoga social space Orange Yoga, the Shape fitness centered on personal training courses, and the V+Fitness of the United States Equinox.


    2. From offline traditional studios to smart home fitness equipment

The membership retention rate is only 17.33%, and the utilization efficiency of traditional gyms is poor. The average member retention rate in my country is 17.33%. In the traditional pre-paid model, users may leave their fitness cards idle due to various factors such as inconvenient time and distant locations, making the traditional gyms unable to be effectively used.

Smart devices + online courses, home fitness models are gradually emerging. Compared with traditional gyms, home fitness has the advantage of flexible time and the ability to exercise anytime and anywhere, so it is becoming more and more popular among the middle class with busy work. There are two main modes of home fitness. One is to combine smart devices to launch smart device supporting courses; the other is to directly use online APP to launch paid courses.

my country's online fitness industry has entered a stable development stage, and the number of active users of sports and fitness apps continues to grow. The online fitness industry in my country started in 2010, and the earliest established was Gudong Sports in 2010. Most industry participants entered the market in 2014-2015. Market participants have their own characteristics. Among them, Migu Run combines running with charity; Yuedong Circle focuses on junior sports participants and uses red envelopes to drain traffic; Jellybeans started as a square dance business; hot fitness online and offline courses are fully developed, and at the same time Launched system solutions for the fitness industry, etc. At present, the online fitness industry has entered a stable development stage. There are few new ventures and well-known brands have formed. However, with the continuous optimization and upgrading of some popular products, the user scale is still growing. The number of active users in 2018 is expected to reach 72.075 million. .


   3. The development prospects of the O2O model in my country remain to be seen

ClassPass is the pioneer of the O2O model. As a platform for aggregating course resources, it activates the remaining courses and empty venue resources of each gym for users to make appointments and digest, and provides members with diversified courses while improving the utilization of gym resources. rate. Therefore, the O2O model of ClassPass has achieved great success overseas.

Most of the first batch of ClassPass followers in our country lost after a brief period of glory. In 2015, the success of O2O aroused a large number of imitators in our country, mainly including burning fitness, hot fitness, whole city hot exercise, and little bear running. When the O2O model became popular, it attracted a large amount of capital market investment. Among them, the most financing was the city's hot refining, which attracted nearly 100 million yuan in capital in 2015. Unfair competition methods caused by the influx of a large amount of capital also hindered the development of fitness O2O platforms. At that time, some Internet companies lied to have established cooperative relations with the club after purchasing the fitness club sub-card, and without the authorization of the club, arbitrarily Make low-price sales. This kind of bullying aroused dissatisfaction with traditional gyms, and eventually led to a joint boycott of the "99 yuan monthly" fitness card by the Beijing Federation of Fitness Clubs. Before 2016, most O2O model companies have closed down or transformed.

 

Compared with the American experience, the success of the O2O model requires a mature fitness market. There are three main factors for the success of the O2O model in the U.S. market: First, there are a large number of gyms in the U.S. market. There were 34,460 gyms in 2015, much higher than China's 5,000. The high density of gyms makes O2O platform users more choices; , American gyms are generally cheap. The monthly fee of US$20-40 for ordinary gyms is much lower than that of ClassPass, while the monthly fee for ordinary gyms in China is more than 100 yuan. The 99 yuan monthly subscription model of O2O platform does not work; finally, in 2015 ClassPass has brought more than 30 million U.S. dollars in revenue to partners, and there is a conflict of interest between China's O2O platform and gyms, which has been resisted by gyms.

 

With the further development of the fitness market, the O2O model is still likely to turn around. The number of gyms in China has grown rapidly in the past few years. In 2017, it has reached 46,050, which is close to 44,633 in the United States. With the development of the fitness industry in the future, the number of fitness clubs increases and operating costs decrease, the O2O model is still integrating the resources of the entire fitness market. This is an important way, so it may still reappear in our country in the future.