Sunday, March 23, 2014

Gyms in China

Gyms appear everywhere in China.
This is a new trend. Chinese people care more and more for their health!
Chinese people want to stay slim, fit and healthy. Chinese people want a nice body, thin for women, body builder for men!

Miracle fitness, a gym franchise you find all over China... a success story.

Gyms strategy in China
I believe that gyms in China follow two distinct strategies:

"Low cost" gyms
"Low cost" gyms offer yearly subscription at very affordable fees: 600, 700, 800 yuan a year! (about 70 euros!).
This fees includes access to all facilities: treadmill, bikes, musculation... You have also access to free classes! There is even a small saune, shower, central air conditioning...

But how can the gyms cope with all these costs?
These gyms open outside of city center so that they benefit from a fair rent and a high inhabitants density.
The gyms encourage members to get a long term contract: 5, 10 years! Many members give up very quickly: lack of motivation, injury...
This is how gym can make money as they invest the subscription fee in the bank.

Up market gyms
Some up market gyms offer very expensive subscription.
These gyms are often located in the city center and they target rich and very rich customers.

The gym market in China is only starting.
The actual offer doesn't fit all needs.
For instance there is still no gym for obese people who want to get slim.
Or there is no gym for children. While many parents worry that their child is too fat and force him to enroll a gym.

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