KeepMe
KeepMe
KeepMe
Health Club Management

Health Club Management

Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Get the latest news, jobs and features in your inbox
Health Club Management

Health Club Management

features

Research: India emerges

New research from Deloitte China and IHRSA shows the market for health and fitness in India is starting to grow, as Kirsten Walsh reports

By Kristen Walsh, IHRSA | Published in Health Club Management 2019 issue 4
 / 9nong/SHUTTERSTOCK
/ 9nong/SHUTTERSTOCK
With a population exceeding one billion, the health club industry in India is in a unique position to serve the health and fitness needs of Indian consumers

With a population exceeding 1 billion, the health club industry in India is in a strong position to serve the health and fitness needs of consumers,” says John Holsinger, IHRSA’s director of the Asia-Pacific.

In efforts to grow the industry in India, the United Health & Fitness Forum (UHFF) was formed in 2016. Led by the top club operators, UHFF and its members organise events such as training workshops, bootcamps, walkathons, and group exercise classes, along with other health and fitness initiatives.

According to The IHRSA Indian Health Club Report, published recently, India ranks fifth in market size among Asia-Pacific health club markets, and there’s room for continued growth.

Produced in collaboration with Deloitte China, the research contains an in-depth analysis of the fitness industry in India, along with a snapshot of the country’s leading health club companies.

Home to one of the global economic powers, the health club market in India is one of the largest in the Asia-Pacific region.

India ranks fifth in market size among Asia-Pacific markets at US$821m in annual revenue, according to the report.

The number of health club locations ranks third, with 3,813 sites, while the country’s two million members rank fifth.

Opportunities remain for the industry in India, as the country has the lowest member penetration rate in the Asia-Pacific region.

Club Types
The fitness club market in India is highly fragmented. Chained top-10 organised players comprise only 15-20 per cent of the overall market in terms of number of clubs. Independent players that are mostly smaller businesses make up the rest of the market.

Commercial fitness clubs can be categorised into three segments:

High-end premium
High-end health clubs account for approximately 5 per cent of the overall market in terms of number of locations and include operators such as Fitness First and Ozone Clubs, which are over 600sq m in size.

Clubs in the high-end premium sector charge membership fees of over US$800.

Mid-market
These gyms account for approximately 25 per cent of the overall market in terms of number of clubs and include fitness chains such as Talwalkars, Snap Fitness, and Anytime Fitness, which have an average club size of 300-500 sq m. Clubs categorised in the mid-market sector charge annual memberships of US$350-400.

Low-cost
The remaining 60-70 per cent of clubs are primarily standalone and under 200sq m. They typically charge less than US$200 for an annual membership.

Other gyms
Despite the growth of the hospitality industry in India, hotel gyms don’t pose direct competition to commercial clubs, as they mainly serve hotel guests and focus on spa and swimming services.

Public gyms located in community centres are mostly equipped with low-end facilities and are not comparable to commercial clubs, and have, therefore, been excluded from this study.

Penetration Rate
Even with considerable growth over the past decade, the market in India is still relatively immature compared to other countries in the Asia-Pacific region.

India’s fitness market currently has a penetration rate of 0.15 per cent. Furthermore, penetration rates are significantly higher in tier-one cities, such as Delhi and Mumbai, than in tier-two and -three cities such as Hyderabad and Ahmedabad, where fitness awareness and spending power are much lower.

Target Demographics
In the Indian fitness club market, the target audience consists mainly of younger consumers between the ages of 20 and 40 who account for around 70 per cent of members and are more focused on staying fit and looking good than their elders.
The majority of club memberships are purchased by working-class professionals, while students also constitute a significant group of consumers.

Though traditionally overlooked, women have become more actively involved in weight-management and fitness training and account for approximately 40 per cent of the total membership.

Retention rates are low in the Indian fitness club market. From a cultural standpoint, members treat fitness as a goal to be achieved and have yet to see it as a lifestyle to be maintained. Once the primary fitness goal is achieved, they tend to drop out at the end of the membership. As a result, the dropout rate tends to be around 70-80 per cent, according to industry estimates.

As the majority of members belong to low- and mid-end fitness clubs, value-for-money is a primary consideration for customers. Meanwhile, Indian consumers are reluctant to commute a great distance to a fitness club, due to the lack of developed transport infrastructure.

Membership Plans
Annual contracts are the most common membership plan in the market and account for over 80 per cent of all membership sales at conventional clubs.
Monthly, quarterly and semi-annual memberships are also available, but are less popular. Multi-year membership contracts offered at a significant discount rate are generally uncommon.

The majority of fitness clubs require an upfront lump sum membership payment with credit card, debit card, or cash. Monthly payment is generally not accepted, although customers may choose to arrange a monthly loan with their financial institutions for club membership payment.

Some fitness clubs have started to utilise Paytm, an Indian mobile payment platform, to process payments.

At average mid-end clubs in India, 10-15 per cent of members hire personal trainers. At a high-end fitness club, such as Fitness First, where members have higher purchasing power, this ratio could be over 20 per cent. In cities such as Delhi and Mumbai, personal trainers typically charge $100-$250 (USD) for 12 sessions over a one-month period.

Revenue generated from personal training typically accounts for 20-25 per cent of a club’s total revenue, and merchandising contributes less than 2 per cent, while the majority of fees (75-80 per cent) are derived from membership sales.

Club Locations
Large urban cities, known as metros in India, have fostered the fitness culture among urban residents and have become thriving hotbeds that attract fitness club chains to expand their footprints and establish state-of-the-art clubs.

Chain commercial fitness clubs are concentrated in the top eight metros of India, including Delhi NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune and Ahmedabad.

While market growth is expected to continue in these metros, high real estate rental costs will influence the established players to shift their focus to the suburban areas of metros and tier-two and -three cities. In these areas, the fitness trend is also burgeoning and the market is highly underpenetrated and currently dominated by local mid- and low-end standalone clubs.

The mid- to high-end segment is projected to grow in these cities as disposable income increases.

In terms of locations, most mid- and low-end fitness clubs are sited in residential neighborhoods to serve a larger population – usually in a catchment area within a radius of one to three kilometers.

Conversely, high-end fitness clubs are generally located in shopping malls or business districts for enhanced accessibility and visibility. Where real estate is available, competitors tend to be clustered into certain areas to compete for wealthy customers in the region.

INDIA HEALTH CLUB MARKET

Number of members 2m

Number of clubs 3,813

Number of clubs $821m

INDIA HEALTH CLUB MARKET

Get The IHRSA Indian Health Club Report, Contact [email protected] or call +1 (617) 951-0055

John Holsinger
John Holsinger
Women have become more actively involved in weight management and fitness / PHOTO: StockImageFactory/SHUTTERSTOCK
Women have become more actively involved in weight management and fitness / PHOTO: StockImageFactory/SHUTTERSTOCK
Members treat fitness as a goal to be achieved rather than a lifestyle to be maintained / PHOTO: Prostock-studio/SHUTTERSTOCK
Members treat fitness as a goal to be achieved rather than a lifestyle to be maintained / PHOTO: Prostock-studio/SHUTTERSTOCK
http://www.leisureopportunities.com/images/imagesX/305832_339415.jpg
New research from IHRSA and Deloitte China shows the fitness market in India – which currently has a penetration rate of 1.5 per cent – is poised for growth
People
We have 14 rockstar instructors, all freelance but all working for us on an exclusive basis, and haven’t lost a single one of them since we opened. We pay them well – they can earn €100+ for a full class. But even more important than that, they all feel involved in the business
People
In addition to being one of the UK’s largest leisure management companies, Parkwood Leisure is also a health and fitness operator at scale, with 73 gyms and over 100,000 members. MD Glen Hall tells HCM how two major reviews in recent years have put the company on a new path
People
HCM people

Amanda Daley

Professor of behavioural medicine, Loughborough University
PACE labelling would be a simple, user-friendly way of informing people, at a glance, of the amount of physical activity required for the food they are considering eating
Features
Design
Third Space sold its boutique brand, Another Space, and launched its sixth full-service club in the space of a few weeks, signalling its intention to consoldidate its position at the top end of the market
Features
Myzone
Steve Mellor, owner of AMP Athletic, has installed Myzone to drive his business. We find out how it’s enabling him to deliver great service to his members
Features
feature
Technogym is helping Odyssey Health Club launch new gym floor formats that enhance the member experience
Features
IHRSA Update
Kristen Walsh takes a look inside IHRSA’s latest Profiles of Success report
Features
Supplier showcase
Class Boutique Fitness has collaborated with Physical Company to create a boutique studio offering that’s as inclusive as it is effective
Features
HCM research
You could help members reduce feelings of sadness, conquer binge-eating and improve self-control, using learnings from the Journal of Consumer Psychology, reports Megan Whitby
Features
feature
HCM talks to Fraser Smith about founding his studio and why he picked miha bodytec as his supplier and EMS training for his USP
Features
Latest News
Food labelling that shows the amount of exercise needed to burn off the calories in ...
Latest News
The team at unusually named studio //3877 has created a boxing gym in Washington, D.C., ...
Latest News
Boutique fitness operator Barry's is entering the indoor cycling market with Barry's Ride – a ...
Latest News
Getting fit together could be the secret for a long happy relationship. A new study ...
Latest News
Not-for profit leisure operator Circadian Trust is partnering with NHS GP surgeries in Gloucestershire to ...
Latest News
ukactive has launched two major new reports as part of its Business Intelligence service. The ...
Latest News
The annual Sweat event kicks off in London today (20 February), offering the UK's fitness ...
Latest News
Boutique boxing gym brand BXR London has revealed plans to open its second site at ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Iyashi Dôme: the original Japanese sauna
In 2004, Shogoro Uemura, CEO of Iyashi Dôme, was inspired by his father’s work to create a new treatment protocol based on the Japanese tradition of sand bathing.
Featured supplier news
Featured supplier: Speedflex enters new partnership with Gateshead Council
HIIT specialist, Speedflex, is set to launch a new studio at Gateshead International Stadium in partnership with Gateshead Council.
Video Gallery
How to use the MZ-Bodyscan
MyZone
The Best Product for the Best Clubs Read more
More videos:
Company profiles
Company profile: Dyaco UK Ltd
Dyaco UK Limited offers a versatile range of world-class commercial, medical and home fitness equipment ...
Company profiles
Company profile: Myzone Group Ltd
At Myzone we reward Effort to solve the pervasive problem of ‘diminishing motivation within exercisers’ ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Management software
Fisikal: Management software
Wearable technology solutions
MyZone: Wearable technology solutions
Fitness software
Go Do.Fitness: Fitness software
Exercise equipment
Star Trac / Core Health & Fitness: Exercise equipment
Direct debit solutions
Harlands Group: Direct debit solutions
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Professional services
Deloitte UK: Professional services
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Derby City Council
Property & Tenders
Diary dates
06-07 Mar 2020
Palazzo del Ghiaccio, Milan, Italy
Diary dates
23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
25 Mar 2020
Executive Boardroom, Middlesex University, London, United Kingdom
Diary dates
25-26 Mar 2020
Eastwood Hall, Nottingham, United Kingdom
Diary dates
26-29 Mar 2020
The Winter Gardens Blackpool, Blackpool , United Kingdom
Diary dates
27-29 Mar 2020
TeatroGoya Multiespacio, Madrid, Spain
Diary dates
19-24 Apr 2020
tbc, Beijing, China
Diary dates
04 Jun 2020
Marriott Forest of Arden Hotel & Country Club, Birmingham, United Kingdom
Diary dates
13 Jun 2020
Worldwide, Various,
Diary dates
17-18 Jun 2020
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
30-31 Oct 2020
NEC, Birmingham, United Kingdom
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates

features

Research: India emerges

New research from Deloitte China and IHRSA shows the market for health and fitness in India is starting to grow, as Kirsten Walsh reports

By Kristen Walsh, IHRSA | Published in Health Club Management 2019 issue 4
 / 9nong/SHUTTERSTOCK
/ 9nong/SHUTTERSTOCK
With a population exceeding one billion, the health club industry in India is in a unique position to serve the health and fitness needs of Indian consumers

With a population exceeding 1 billion, the health club industry in India is in a strong position to serve the health and fitness needs of consumers,” says John Holsinger, IHRSA’s director of the Asia-Pacific.

In efforts to grow the industry in India, the United Health & Fitness Forum (UHFF) was formed in 2016. Led by the top club operators, UHFF and its members organise events such as training workshops, bootcamps, walkathons, and group exercise classes, along with other health and fitness initiatives.

According to The IHRSA Indian Health Club Report, published recently, India ranks fifth in market size among Asia-Pacific health club markets, and there’s room for continued growth.

Produced in collaboration with Deloitte China, the research contains an in-depth analysis of the fitness industry in India, along with a snapshot of the country’s leading health club companies.

Home to one of the global economic powers, the health club market in India is one of the largest in the Asia-Pacific region.

India ranks fifth in market size among Asia-Pacific markets at US$821m in annual revenue, according to the report.

The number of health club locations ranks third, with 3,813 sites, while the country’s two million members rank fifth.

Opportunities remain for the industry in India, as the country has the lowest member penetration rate in the Asia-Pacific region.

Club Types
The fitness club market in India is highly fragmented. Chained top-10 organised players comprise only 15-20 per cent of the overall market in terms of number of clubs. Independent players that are mostly smaller businesses make up the rest of the market.

Commercial fitness clubs can be categorised into three segments:

High-end premium
High-end health clubs account for approximately 5 per cent of the overall market in terms of number of locations and include operators such as Fitness First and Ozone Clubs, which are over 600sq m in size.

Clubs in the high-end premium sector charge membership fees of over US$800.

Mid-market
These gyms account for approximately 25 per cent of the overall market in terms of number of clubs and include fitness chains such as Talwalkars, Snap Fitness, and Anytime Fitness, which have an average club size of 300-500 sq m. Clubs categorised in the mid-market sector charge annual memberships of US$350-400.

Low-cost
The remaining 60-70 per cent of clubs are primarily standalone and under 200sq m. They typically charge less than US$200 for an annual membership.

Other gyms
Despite the growth of the hospitality industry in India, hotel gyms don’t pose direct competition to commercial clubs, as they mainly serve hotel guests and focus on spa and swimming services.

Public gyms located in community centres are mostly equipped with low-end facilities and are not comparable to commercial clubs, and have, therefore, been excluded from this study.

Penetration Rate
Even with considerable growth over the past decade, the market in India is still relatively immature compared to other countries in the Asia-Pacific region.

India’s fitness market currently has a penetration rate of 0.15 per cent. Furthermore, penetration rates are significantly higher in tier-one cities, such as Delhi and Mumbai, than in tier-two and -three cities such as Hyderabad and Ahmedabad, where fitness awareness and spending power are much lower.

Target Demographics
In the Indian fitness club market, the target audience consists mainly of younger consumers between the ages of 20 and 40 who account for around 70 per cent of members and are more focused on staying fit and looking good than their elders.
The majority of club memberships are purchased by working-class professionals, while students also constitute a significant group of consumers.

Though traditionally overlooked, women have become more actively involved in weight-management and fitness training and account for approximately 40 per cent of the total membership.

Retention rates are low in the Indian fitness club market. From a cultural standpoint, members treat fitness as a goal to be achieved and have yet to see it as a lifestyle to be maintained. Once the primary fitness goal is achieved, they tend to drop out at the end of the membership. As a result, the dropout rate tends to be around 70-80 per cent, according to industry estimates.

As the majority of members belong to low- and mid-end fitness clubs, value-for-money is a primary consideration for customers. Meanwhile, Indian consumers are reluctant to commute a great distance to a fitness club, due to the lack of developed transport infrastructure.

Membership Plans
Annual contracts are the most common membership plan in the market and account for over 80 per cent of all membership sales at conventional clubs.
Monthly, quarterly and semi-annual memberships are also available, but are less popular. Multi-year membership contracts offered at a significant discount rate are generally uncommon.

The majority of fitness clubs require an upfront lump sum membership payment with credit card, debit card, or cash. Monthly payment is generally not accepted, although customers may choose to arrange a monthly loan with their financial institutions for club membership payment.

Some fitness clubs have started to utilise Paytm, an Indian mobile payment platform, to process payments.

At average mid-end clubs in India, 10-15 per cent of members hire personal trainers. At a high-end fitness club, such as Fitness First, where members have higher purchasing power, this ratio could be over 20 per cent. In cities such as Delhi and Mumbai, personal trainers typically charge $100-$250 (USD) for 12 sessions over a one-month period.

Revenue generated from personal training typically accounts for 20-25 per cent of a club’s total revenue, and merchandising contributes less than 2 per cent, while the majority of fees (75-80 per cent) are derived from membership sales.

Club Locations
Large urban cities, known as metros in India, have fostered the fitness culture among urban residents and have become thriving hotbeds that attract fitness club chains to expand their footprints and establish state-of-the-art clubs.

Chain commercial fitness clubs are concentrated in the top eight metros of India, including Delhi NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune and Ahmedabad.

While market growth is expected to continue in these metros, high real estate rental costs will influence the established players to shift their focus to the suburban areas of metros and tier-two and -three cities. In these areas, the fitness trend is also burgeoning and the market is highly underpenetrated and currently dominated by local mid- and low-end standalone clubs.

The mid- to high-end segment is projected to grow in these cities as disposable income increases.

In terms of locations, most mid- and low-end fitness clubs are sited in residential neighborhoods to serve a larger population – usually in a catchment area within a radius of one to three kilometers.

Conversely, high-end fitness clubs are generally located in shopping malls or business districts for enhanced accessibility and visibility. Where real estate is available, competitors tend to be clustered into certain areas to compete for wealthy customers in the region.

INDIA HEALTH CLUB MARKET

Number of members 2m

Number of clubs 3,813

Number of clubs $821m

INDIA HEALTH CLUB MARKET

Get The IHRSA Indian Health Club Report, Contact [email protected] or call +1 (617) 951-0055

John Holsinger
John Holsinger
Women have become more actively involved in weight management and fitness / PHOTO: StockImageFactory/SHUTTERSTOCK
Women have become more actively involved in weight management and fitness / PHOTO: StockImageFactory/SHUTTERSTOCK
Members treat fitness as a goal to be achieved rather than a lifestyle to be maintained / PHOTO: Prostock-studio/SHUTTERSTOCK
Members treat fitness as a goal to be achieved rather than a lifestyle to be maintained / PHOTO: Prostock-studio/SHUTTERSTOCK
http://www.leisureopportunities.com/images/imagesX/305832_339415.jpg
New research from IHRSA and Deloitte China shows the fitness market in India – which currently has a penetration rate of 1.5 per cent – is poised for growth
Latest News
Food labelling that shows the amount of exercise needed to burn off the calories in ...
Latest News
The team at unusually named studio //3877 has created a boxing gym in Washington, D.C., ...
Latest News
Boutique fitness operator Barry's is entering the indoor cycling market with Barry's Ride – a ...
Latest News
Getting fit together could be the secret for a long happy relationship. A new study ...
Latest News
Not-for profit leisure operator Circadian Trust is partnering with NHS GP surgeries in Gloucestershire to ...
Latest News
ukactive has launched two major new reports as part of its Business Intelligence service. The ...
Latest News
The annual Sweat event kicks off in London today (20 February), offering the UK's fitness ...
Latest News
Boutique boxing gym brand BXR London has revealed plans to open its second site at ...
Latest News
Rising workplace stress among employees has led companies to increase their investment in incentives as ...
Latest News
David Lloyd Leisure is facing prosecution by Leeds Council over alleged health and safety breaches, ...
Latest News
Taking part in regular aerobic exercise could decrease the likelihood of developing Alzheimer's disease in ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Iyashi Dôme: the original Japanese sauna
In 2004, Shogoro Uemura, CEO of Iyashi Dôme, was inspired by his father’s work to create a new treatment protocol based on the Japanese tradition of sand bathing.
Featured supplier news
Featured supplier: Speedflex enters new partnership with Gateshead Council
HIIT specialist, Speedflex, is set to launch a new studio at Gateshead International Stadium in partnership with Gateshead Council.
Video Gallery
How to use the MZ-Bodyscan
MyZone
The Best Product for the Best Clubs Read more
More videos:
Company profiles
Company profile: Dyaco UK Ltd
Dyaco UK Limited offers a versatile range of world-class commercial, medical and home fitness equipment ...
Company profiles
Company profile: Myzone Group Ltd
At Myzone we reward Effort to solve the pervasive problem of ‘diminishing motivation within exercisers’ ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Management software
Fisikal: Management software
Wearable technology solutions
MyZone: Wearable technology solutions
Fitness software
Go Do.Fitness: Fitness software
Exercise equipment
Star Trac / Core Health & Fitness: Exercise equipment
Direct debit solutions
Harlands Group: Direct debit solutions
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Professional services
Deloitte UK: Professional services
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Derby City Council
Property & Tenders
Diary dates
06-07 Mar 2020
Palazzo del Ghiaccio, Milan, Italy
Diary dates
23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
25 Mar 2020
Executive Boardroom, Middlesex University, London, United Kingdom
Diary dates
25-26 Mar 2020
Eastwood Hall, Nottingham, United Kingdom
Diary dates
26-29 Mar 2020
The Winter Gardens Blackpool, Blackpool , United Kingdom
Diary dates
27-29 Mar 2020
TeatroGoya Multiespacio, Madrid, Spain
Diary dates
19-24 Apr 2020
tbc, Beijing, China
Diary dates
04 Jun 2020
Marriott Forest of Arden Hotel & Country Club, Birmingham, United Kingdom
Diary dates
13 Jun 2020
Worldwide, Various,
Diary dates
17-18 Jun 2020
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
30-31 Oct 2020
NEC, Birmingham, United Kingdom
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
KeepMe
KeepMe