Zimmer MedizinSysteme GmbH / icelab
Zimmer MedizinSysteme GmbH / icelab
Zimmer MedizinSysteme GmbH / icelab
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
Boxing training can be transferred onto any other sport, as it helps mindset, agility, power, recovery, fitness and strength
People
HCM people

Rachael Blumberg

Platefit: creator and founder
People know yoga, Pilates, HIIT and Barry’s Bootcamp, but many don’t know vibration training and it’s my intention, passion and purpose to make it available and bring it to the world
People
HCM people

José Teixeira

SC Fitness, Portugal: head of customer experience
People often assume that those who pay more stay longer, but we don’t see this. What we see is that if you have PT you stay longer because you use more, not because you pay more
Features
Promotional feature
TVS Group is one of the leading suppliers of flooring and surfaces for gym, sports and play environments. We take a look at what's behind this company's success
Features
Supplier showcase

Precor and Matrix share their latest operator case studies
Features
feature
A partnership between Pure Gym and BLK BOX is challenging the low-cost model
Features
Thought leaders
Equinox and SoulCycle became mired in controversy recently, when the CEO and majority shareholder of their parent company hosted a fundraiser for President Trump’s re-election. What's the way forward for these brands and what can we learn from this furore? Kath Hudson asks the thought leaders
Features
Cryotherapy
Cryotherapy is hot right now, with more people attracted to its cited benefits, from reduced recovery time to improved sleep quality. Operators offering this chilly experience give us their advice
Features
feature
Legend Leisure Services has delivered an elegant website solution for ANGUSalive
Features
Cycling
In last month’s issue we grilled operators about what makes the best indoor cycling class, and they agreed instructors play a crucial part in the overall class experience. Now we’re asking the experts on the frontline for their thoughts on what makes indoor cycling such a phenomenon
Features
Latest News
Life Leisure is expanding its facility portfolio with the launch of an independent boutique fitness ...
Latest News
Almost half of children and young people (46.8 per cent) in England are doing the ...
Latest News
A local fitness operator with 11 clubs in Chicago, US, is looking to muscle in ...
Latest News
Fitness industry veteran Nick Coutts has been appointed chair of Danish fitness tech firm Motosumo. ...
Latest News
The improvements in health and wellbeing associated with exercise referral schemes aren’t as large as ...
Latest News
The Bannatyne Group has appointed Hugh Hanley as its new head of fitness. He joins ...
Latest News
Physical exercise can improve the health of blood vessels in the heart for people with ...
Latest News
Hufft have created a community fitness centre in Humboldt, Kansas, that reflects the US city's ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Who does your brand belong to?
Who does your brand belong to? There used to be only one answer to this question: the company that grew it and invested in it.
Featured supplier news
Featured supplier: Pulse Fitness modernises Leiston Leisure Centre in £4m redevelopment
The Leiston Leisure Centre, owned by East Suffolk Council, reopened recently following a £4m redevelopment designed and implemented by Pulse Fitness.
Company profiles
Company profile: Legend Club Management Systems (UK) Ltd
Legend provides the leading software solution for driving improvements in leisure operations. We deliver savings ...
Company profiles
Company profile: Stages Indoor Cycling
Stages Indoor Cycling is a product and technology company that is 100% focused on creating ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Fitness equipment
Physical Company Ltd: Fitness equipment
Management software
Fisikal: Management software
Trade associations
International SPA Association - iSPA: Trade associations
Skincare
Comfort Zone - Davines S.p.A: Skincare
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Exercise equipment
Eleiko Sport AB: Exercise equipment
Audio visual
Hutchison Technologies: Audio visual
Fitness software
Go Do.Fitness: Fitness software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Diary dates
10-12 Dec 2019
tbc, Fort Lauderdale, United States
Diary dates
21-23 Jan 2020
Harrogate Convention Centre, Harrogate, United Kingdom
Diary dates
28-30 Jan 2020
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
29-30 Jan 2020
Holiday Inn San Francisco-Golden Gateway, San Francisco, United States
Diary dates
23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
25-26 Mar 2020
Eastwood Hall, Nottingham, United Kingdom
Diary dates
04 Jun 2020
Marriott Forest of Arden Hotel & Country Club, Birmingham, United Kingdom
Diary dates
10-27 Jun 2020
tbc, Pinggu, China
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
30-31 Oct 2020
NEC, Birmingham, 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
Life Leisure is expanding its facility portfolio with the launch of an independent boutique fitness ...
Latest News
Almost half of children and young people (46.8 per cent) in England are doing the ...
Latest News
A local fitness operator with 11 clubs in Chicago, US, is looking to muscle in ...
Latest News
Fitness industry veteran Nick Coutts has been appointed chair of Danish fitness tech firm Motosumo. ...
Latest News
The improvements in health and wellbeing associated with exercise referral schemes aren’t as large as ...
Latest News
The Bannatyne Group has appointed Hugh Hanley as its new head of fitness. He joins ...
Latest News
Physical exercise can improve the health of blood vessels in the heart for people with ...
Latest News
Hufft have created a community fitness centre in Humboldt, Kansas, that reflects the US city's ...
Latest News
The main political parties need to "discuss prevention in the same breath as they discuss ...
Latest News
SoulCycle chief executive Melanie Whelan has resigned from her role, capping off a challenging few ...
Latest News
Workspace provider WeWork has launched a full service, on-site wellness programme at its largest site ...
Job search
POST YOUR JOB
Featured supplier news
Featured supplier: Who does your brand belong to?
Who does your brand belong to? There used to be only one answer to this question: the company that grew it and invested in it.
Featured supplier news
Featured supplier: Pulse Fitness modernises Leiston Leisure Centre in £4m redevelopment
The Leiston Leisure Centre, owned by East Suffolk Council, reopened recently following a £4m redevelopment designed and implemented by Pulse Fitness.
Company profiles
Company profile: Legend Club Management Systems (UK) Ltd
Legend provides the leading software solution for driving improvements in leisure operations. We deliver savings ...
Company profiles
Company profile: Stages Indoor Cycling
Stages Indoor Cycling is a product and technology company that is 100% focused on creating ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Fitness equipment
Physical Company Ltd: Fitness equipment
Management software
Fisikal: Management software
Trade associations
International SPA Association - iSPA: Trade associations
Skincare
Comfort Zone - Davines S.p.A: Skincare
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Exercise equipment
Eleiko Sport AB: Exercise equipment
Audio visual
Hutchison Technologies: Audio visual
Fitness software
Go Do.Fitness: Fitness software
Whole body cryotherapy
Zimmer MedizinSysteme GmbH / icelab: Whole body cryotherapy
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
Property & Tenders
Diary dates
10-12 Dec 2019
tbc, Fort Lauderdale, United States
Diary dates
21-23 Jan 2020
Harrogate Convention Centre, Harrogate, United Kingdom
Diary dates
28-30 Jan 2020
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
29-30 Jan 2020
Holiday Inn San Francisco-Golden Gateway, San Francisco, United States
Diary dates
23-25 Mar 2020
Hilton, Barcelona, Spain
Diary dates
25-26 Mar 2020
Eastwood Hall, Nottingham, United Kingdom
Diary dates
04 Jun 2020
Marriott Forest of Arden Hotel & Country Club, Birmingham, United Kingdom
Diary dates
10-27 Jun 2020
tbc, Pinggu, China
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
30-31 Oct 2020
NEC, Birmingham, United Kingdom
Diary dates
Search news, features & products:
Find a supplier:
Zimmer MedizinSysteme GmbH / icelab
Zimmer MedizinSysteme GmbH / icelab