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Health Club Management

Health Club Management

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UNITING THE WORLD OF FITNESS
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Health Club Management

Health Club Management

features

FIBO China: A Chinese Puzzle

Jak Phillips went to FIBO China and filed this report

Published in Health Club Management 2019 issue 9
Jak Phillips
Jak Phillips
The online to offline model – where businesses build an audience through a slick digital presence and then channel them towards physical sites – is highly popular in China and made possible by the ubiquity of WeChat

Stormy seas make for great sailors.” This was the prescient theme of the presentation from my fellow speaker Christian Mason – MD of Virgin Active South East Asia – at the Fit Business Live event held at FIBO China in Shanghai last month.

The eloquent Australian was discussing the story of how Virgin Active quickly became a dominant player in the Singapore and Thailand markets from a standing start, but he could equally have been referring to the unlikely situation currently unfolding in the Chinese gym market.

As anyone who’s been to China will attest, the country is full of surprises. And two of the preconceptions I arrived with were well and truly scotched during the course of my week-long trip.

I’ll start with the good news. For all the headlines warning of smog, pollution and wastage, China (or Shanghai at least) is in the midst of an ecological epiphany. The country of red is determined to go green, with recycling bins now dominating every house, hotel and office, while legions of neighbourhood champions are being paid to ensure people play by the rules and diligently sort their rubbish. Single-use plastics are also off the menu as China seeks to cut down on waste and repair the impact that exponential growth has had on its environment.

Winter is coming
The bad news – perhaps more relevant for this audience – is that all is not rosy in the Chinese gym market. Contrary to popular perceptions of endless double-digit growth, driven by a burgeoning middle class, the fitness industry has indeed hit stormy seas and is in the midst of a major slowdown. Aggressive overexpansion has led to a number of club chains going bust in recent months, while the fiscal headwinds slowing the wider economy have meant clubs are being starved of outside investment.

Reliable data is difficult to come by, but many of the operators in attendance at FIBO China were of the poetic view that “Spring has been, and winter is coming”, with suppliers also feeling the resultant pinch.

In some ways, the Chinese club market is following the path of the global fitness industry, but in others, it’s delightfully divergent. One of the main topics at the Fit Business Live event – hosted by Les Mills – was the need for clubs to shift from a sales-driven to service-driven approach in order to add value to members and shore up sky-high attrition rates: a topic familiar to many readers, I’m sure.

Conversely, another hot topic was the exciting opportunities afforded by the high-tech, low-touch business model being deployed to devastating effect by one of the rising stars of the Chinese club market: Super Monkey.

Set to reach 200 sites by the end of 2019, Super Monkey is a low-cost boutique, offering a mix of own-brand and Les Mills workouts. Users book classes via their phone (neatly, they can also book their friends in) and receive a passcode 10 minutes before the class, which they use to access the studio. The lack of staffing and the low square footage required (a small curtained-off area to change in is the only amenity other than the studio) means Super Monkey studios can open virtually anywhere. And they’ve been doing exactly that.

Tech savvy
The online to offline business model – whereby businesses build an audience through a slick digital presence and then channel them towards physical sites – is highly popular in China and made possible by the ubiquity of WeChat.

Whether it’s speaking to friends, paying for a meal or applying for a loan, virtually all business in China is conducted via this app (which makes extensive use of QR codes), with the resultant integrated experience opening up a world of marketing opportunities for digitally-savvy clubs like Super Monkey to own the entire customer journey and a wealth of data.

Given the need for enhanced member experience and the boom in innovative boutiques, group fitness was another hot topic at the event, with its impact on retention and ability to offer quality and consistency to fast-scaling businesses held up as a key factor in its prominence across all segments of the Chinese club market.

Elsewhere at the FIBO show, you continued to encounter a curious blend of the fresh and familiar. Aside from the usual mega-stands from all the big equipment suppliers (I always spare a thought for the poor presenters who have to work-out for the entire day and pretend they’re enjoying it) there were some interesting activation experiences, with Reebok-sponsored functional fitness competitions deftly blending the spectacle of an event with clothing retail opportunities.

Looking ahead
That said, there was also the unedifying sight of men and women in Speedos and oodles of fake tan competing in bodybuilding contests, surrounded by supplement stands where muscle-bound men flex their biceps on beat to German techno. Ours is a vital and professional industry, that’s come a long way since the 80s. So why do we continue to give a platform at our events to a niche sub-culture that for so long has brought mockery on us, scared people away from gyms and marred us with accusations of steroids and supplement abuse? I’ve got nothing against the sport of bodybuilding, but aren’t we’re shooting ourselves in the foot by continuing to willingly associate it with the modern physical activity sector?

Anyway, rant over. Aside from the trade show, FIBO China had a series of star speakers adding sparkle to the education stream on the Friday, including Rene Moos, Jonathan Fisher and Herman Rutgers. I had to leave by then, so I can’t recount what was said, but I’m sure most readers will be familiar with their work and wisdom already. Suffice to say, the calibre of industry professional FIBO China is able to attract is testament to the growing importance of the Chinese gym market. Stormy seas may currently be rocking the boat, but surely its long-term course is set fair to become the next fitness superpower.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Group exercise classes and bodybuilding demonstrations entertained the crowds at FIBO China
Group exercise classes and bodybuilding demonstrations entertained the crowds at FIBO China
http://www.leisureopportunities.com/images/imagesX/141972_362210.jpg
HCM's Jak Philips reports on the most recent FIBO from China and covers the importance and popularity of the online to offline business model in China for the fitness industry as well as explaining why he believes the Chinese gym market is 'on a major slowdown'.
Jak Phillips, FIBO, China, fitness,Jak Phillips, FIBO, China, fitness
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Loews Coronado Bay Resort, Coronado, United States
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features

FIBO China: A Chinese Puzzle

Jak Phillips went to FIBO China and filed this report

Published in Health Club Management 2019 issue 9
Jak Phillips
Jak Phillips
The online to offline model – where businesses build an audience through a slick digital presence and then channel them towards physical sites – is highly popular in China and made possible by the ubiquity of WeChat

Stormy seas make for great sailors.” This was the prescient theme of the presentation from my fellow speaker Christian Mason – MD of Virgin Active South East Asia – at the Fit Business Live event held at FIBO China in Shanghai last month.

The eloquent Australian was discussing the story of how Virgin Active quickly became a dominant player in the Singapore and Thailand markets from a standing start, but he could equally have been referring to the unlikely situation currently unfolding in the Chinese gym market.

As anyone who’s been to China will attest, the country is full of surprises. And two of the preconceptions I arrived with were well and truly scotched during the course of my week-long trip.

I’ll start with the good news. For all the headlines warning of smog, pollution and wastage, China (or Shanghai at least) is in the midst of an ecological epiphany. The country of red is determined to go green, with recycling bins now dominating every house, hotel and office, while legions of neighbourhood champions are being paid to ensure people play by the rules and diligently sort their rubbish. Single-use plastics are also off the menu as China seeks to cut down on waste and repair the impact that exponential growth has had on its environment.

Winter is coming
The bad news – perhaps more relevant for this audience – is that all is not rosy in the Chinese gym market. Contrary to popular perceptions of endless double-digit growth, driven by a burgeoning middle class, the fitness industry has indeed hit stormy seas and is in the midst of a major slowdown. Aggressive overexpansion has led to a number of club chains going bust in recent months, while the fiscal headwinds slowing the wider economy have meant clubs are being starved of outside investment.

Reliable data is difficult to come by, but many of the operators in attendance at FIBO China were of the poetic view that “Spring has been, and winter is coming”, with suppliers also feeling the resultant pinch.

In some ways, the Chinese club market is following the path of the global fitness industry, but in others, it’s delightfully divergent. One of the main topics at the Fit Business Live event – hosted by Les Mills – was the need for clubs to shift from a sales-driven to service-driven approach in order to add value to members and shore up sky-high attrition rates: a topic familiar to many readers, I’m sure.

Conversely, another hot topic was the exciting opportunities afforded by the high-tech, low-touch business model being deployed to devastating effect by one of the rising stars of the Chinese club market: Super Monkey.

Set to reach 200 sites by the end of 2019, Super Monkey is a low-cost boutique, offering a mix of own-brand and Les Mills workouts. Users book classes via their phone (neatly, they can also book their friends in) and receive a passcode 10 minutes before the class, which they use to access the studio. The lack of staffing and the low square footage required (a small curtained-off area to change in is the only amenity other than the studio) means Super Monkey studios can open virtually anywhere. And they’ve been doing exactly that.

Tech savvy
The online to offline business model – whereby businesses build an audience through a slick digital presence and then channel them towards physical sites – is highly popular in China and made possible by the ubiquity of WeChat.

Whether it’s speaking to friends, paying for a meal or applying for a loan, virtually all business in China is conducted via this app (which makes extensive use of QR codes), with the resultant integrated experience opening up a world of marketing opportunities for digitally-savvy clubs like Super Monkey to own the entire customer journey and a wealth of data.

Given the need for enhanced member experience and the boom in innovative boutiques, group fitness was another hot topic at the event, with its impact on retention and ability to offer quality and consistency to fast-scaling businesses held up as a key factor in its prominence across all segments of the Chinese club market.

Elsewhere at the FIBO show, you continued to encounter a curious blend of the fresh and familiar. Aside from the usual mega-stands from all the big equipment suppliers (I always spare a thought for the poor presenters who have to work-out for the entire day and pretend they’re enjoying it) there were some interesting activation experiences, with Reebok-sponsored functional fitness competitions deftly blending the spectacle of an event with clothing retail opportunities.

Looking ahead
That said, there was also the unedifying sight of men and women in Speedos and oodles of fake tan competing in bodybuilding contests, surrounded by supplement stands where muscle-bound men flex their biceps on beat to German techno. Ours is a vital and professional industry, that’s come a long way since the 80s. So why do we continue to give a platform at our events to a niche sub-culture that for so long has brought mockery on us, scared people away from gyms and marred us with accusations of steroids and supplement abuse? I’ve got nothing against the sport of bodybuilding, but aren’t we’re shooting ourselves in the foot by continuing to willingly associate it with the modern physical activity sector?

Anyway, rant over. Aside from the trade show, FIBO China had a series of star speakers adding sparkle to the education stream on the Friday, including Rene Moos, Jonathan Fisher and Herman Rutgers. I had to leave by then, so I can’t recount what was said, but I’m sure most readers will be familiar with their work and wisdom already. Suffice to say, the calibre of industry professional FIBO China is able to attract is testament to the growing importance of the Chinese gym market. Stormy seas may currently be rocking the boat, but surely its long-term course is set fair to become the next fitness superpower.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Group exercise classes and bodybuilding demonstrations entertained the crowds at FIBO China
Group exercise classes and bodybuilding demonstrations entertained the crowds at FIBO China
http://www.leisureopportunities.com/images/imagesX/141972_362210.jpg
HCM's Jak Philips reports on the most recent FIBO from China and covers the importance and popularity of the online to offline business model in China for the fitness industry as well as explaining why he believes the Chinese gym market is 'on a major slowdown'.
Jak Phillips, FIBO, China, fitness,Jak Phillips, FIBO, China, fitness
Latest News
Hundreds of thousands of small companies in the UK – including those operating in fitness ...
Latest News
Boutique gym attendance and class bookings in some world regions have bounced back to around ...
Latest News
The government has further extended protection from rent enforcement activity until the end of the ...
Latest News
Town Sports International – which operates a raft of brands, including the New York Sports ...
Latest News
Wearable tech firm Formsense has secured a technology partnership with an inter-interdisciplinary team of researchers ...
Latest News
Les Mills has launched a trio of digital solutions to help fitness operators shift towards ...
Latest News
Sport England has launched the latest edition of the popular This Girl Can campaign, celebrating ...
Latest News
COVID-19 has changed the world as we know it – and the fitness industry with ...
Latest News
PureGym has secured a £100m cash injection from shareholders to help deal with both the ...
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Organised fitness, sports and other leisure activities (including swimming) can continue despite the introduction of ...
Latest News
A study by researchers at Emory University in the US has shown how exercise can ...
Opinion
promotion
The pandemic has thrown a new focus on health, with sales of body composition analysis equipment at an all-time high, as InBody’s Francesca Cooper explains.
Opinion: Gyms add body composition analysis and health screening to their offering following pandemic
Featured supplier news
Featured supplier: GymPraaktis develops AI Exercise Engine software to revolutionise at-home fitness
Health and wellness software company, GymPraaktis, is launching its new Exercise Engine software for gyms and members looking to improve their fitness routines from home.
Featured supplier news
Featured supplier: Speedflex develops new personalised HIIT programme to support the overweight getting into fitness
As the government announced its new obesity strategy to limit the impact of a potential second wave of COVID-19, HIIT specialists, Speedflex are also doing their bit to help tackle the issue.
Video Gallery
A new Zone is here
MyZone Group Ltd
A new zone is here for your club, for your members and for you. Read more
More videos:
Company profiles
Company profile: Gympass
On a mission to defeat inactivity, Gympass is a corporate wellness solution that builds mutually ...
Company profiles
Company profile: EMD UK
EMD UK is the national governing body for group exercise. Funded by Sport England, EMD ...
Supplier Showcases
Supplier showcase - Speedflex
Catalogue Gallery
Click on a catalogue to view it online
Directory
Red Light Therapy
 Red Light Rising: Red Light Therapy
Independent service & maintenance
Servicesport UK Limited: Independent service & maintenance
Locking solutions
Monster Padlocks: Locking solutions
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Spa software
SpaBooker: Spa software
Design consultants
Zynk Design Consultants: Design consultants
Direct debit solutions
Harlands Group: Direct debit solutions
Software
Volution.fit: Software
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Skincare
Sothys: Skincare
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
21-24 Sep 2020
Loews Coronado Bay Resort, Coronado, United States
Diary dates
21-24 Sep 2020
Messe Stuttgart, Germany
Diary dates
22-23 Sep 2020
Heythrop Park, United Kingdom
Diary dates
07 Oct 2020
Online, Singapore, Singapore
Diary dates
17-23 Oct 2020
Pinggu, Beijing, China
Diary dates
03-06 Nov 2020
Online,
Diary dates
27-28 Nov 2020
Athena, Leicester, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
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