WNiF Magazine - Winter 2018 Edition - Page 24

Driven by the momentum of economic growth , the fitness market in the Asia-Pacific region has shown steady growth with a positive outlook going forward .

According to a new IHRSA report , the Asia-Pacific region serves 22 million members at more than 25,000 health clubs . In total , this market generates annual revenues of US $ 16.8 billion ( AU $ 22.15 billion ).

The IHRSA Asia-Pacific Health Club Report ( Second Edition ) was released last month in collaboration with Deloitte and is sponsored by Perfect Gym .
It demonstrates that fueled by growing economies , the health club industry in the Asia-Pacific is robust , with significant potential for continued growth .
Maturity
Only two markets in the region are considered mature : Australia and New Zealand , having the highest penetration rates at 15.3 % and 13.6 %, respectively .
While the fitness market shows signs of rapid growth and professionaliSation in Hong Kong ( 5.85 %), Singapore ( 5.8 %), and Japan ( 3.3 %), opportunities for growth remain in the Philippines ( 0.53 %), Thailand ( 0.5 %), Indonesia ( 0.18 %), and India ( 0.15 %). competition are some of the challenges club operators face in the Asia-Pacific market . However , a favorable economic outlook along with increasing health awareness and demand for group exercise and personalised training are all expected to drive industry growth .
Driven by the momentum of economic growth , the fitness market in the Asia-Pacific region has shown steady growth with a positive outlook going forward .
“ Driven by the momentum of economic growth , the fitness market in the Asia- Pacific region has shown steady growth with a positive outlook going forward ,” says Alan MacCharles , partner at Deloitte China . “ Overall market penetration is on an upward trajectory , reflecting an increasing awareness of health and club memberships .”
According to MacCharles , the region ’ s fitness market remains stratified due to varying stages of development , which can be categorized into three tiers :
• Tier 3 : The remaining Asia Pacific markets are still in a comparatively early stage , as a result of slower economic development and low awareness of personal health . Malaysia ( 1.04 %), China ’ s top 10 cities ( 0.97 %), Philippines ( 0.53 %), Thailand ( 0.5 %), Vietnam ( 0.5 %), Indonesia ( 0.18 %) and India ( 0.15 %) comprise the emerging markets . The fitness industry in these countries is typically concentrated in the capital and first-tier cities , where markets are mainly led by commercial fitness club chains . The markets in secondtier ( and under ) cities , however , are dominated by standalone players that are mostly lowerend mom-and-pop shops , due to infrastructure underdevelopment , low purchasing power , and low awareness of personalised training . Underdeveloped regions in these countries demonstrate high growth potential as rapid infrastructure development improves accessibility and connectivity .
Go to ihrsa . org / publications for the full report . AU $ 399 for IHRSA members or AU $ 780 for non-members . Contact us at research @ ihrsa . org for any questions .
The Challenges
Along with such growth opportunities come challenges . Real estate costs , rental availability , infrastructure underdevelopment , need for professionalised services , and increasing
• Tier 1 : Australia ( 15.3 %) and New Zealand ( 13.6 %) are relatively established markets , with higher penetration rates than their neighbors . However , the mature and professionalized markets in these countries indicate limited growth potential ; labor and real estate costs have also constrained growth here .
• Tier 2 : Hong Kong ( 5.85 %), Singapore ( 5.8 %), Japan ( 3.3 %), and Taiwan ( 3.0 %) belong to the fast-expanding and maturing second-tier markets . This segment features gradually professionalizing services , expanding consumer bases , and high concentration of leading players . With room for growth , already fierce competition is expected to continue in the future .
ABOUT IHRSA
Founded in 1981 , IHRSA – International Health , Racquet & Sportsclub Association – is the industry ’ s global trade association , representing more than 10,000 health and fitness facilities and suppliers worldwide . Locate an IHRSA club at www . healthclubs . com . To learn how IHRSA can help your business thrive , visit www . ihrsa . org . John Holsinger , IHRSA ’ s Director , Asia Pacific , can be contacted at jwh @ ihrsa . org or on mobile 0437 393 369 .
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WHAT ’ S NEW IN FITNESS - WINTER 2018 13
By Dana Dolan T here’s one golden question every fitness industry entrepreneur wants the answer to: How to market their fitness business to their target client? In an industry that generates over $80 billion every year, it isn’t easy to effectively grab your slice of the pie. In fact, the number of gyms and fitness studios continues to increase each year. It’s more crucial now than ever to stand out from the competition. What does Generation X want? This group wants variety in their workouts mixed with technical execution. Essentially, they want fun mixed with performance — these are their priorities. This means classes that are as much about entertainment as the workout. Gen X has embraced the notion that movement through fun can be integrated into daily life better than a regimented exercise plan. So how do you put yourself in the best position and take the initiative to market your fitness business to three specific generations: • Generation X • Millennials • Generation Z In this article we’ll discuss the impact each generation has had on the industry, what their fitness priorities are, and strategies to get fitness lead generation under way. Let’s dive in! FITNESS LEAD GENERATION: GEN X Gen X, born in the mid 1960’s to the late 1970’s, is at the forefront of the current fitness mo fVVBFV"VFGF0( ƗfRƖfRFFRgVW7N( FWff"fFW702667FrbFrFw2fW'7W0WW&66Rf"FR6RbWW&66RऄrD$UBD2tTU$D0vV2V'&6VBFRFF@fVVBF&VvgV6&PFVw&FVBFFǒƖfR&WGFW"F&VvVFVBWW&66RF20W6VB676W2ƖR'F'G2"&66Ɩ&rG&fr֖G6WBFBgV7'@7FfFW26&RFRVFFRfFW70आr2vVW&FfVV6VBFRGW7G'vVW&FFW"&627FW676W2BGW&VBFVFFRV VBW6&Vw&bFRV&ǐ( 2vFWrV62( gV( ЦfFW72f&WGv2FFVBFRf&`fG2V2BFW"6Ɩ6FV@fW2FVWvVW'2VvvVBगB2&VV7VvvW7FVBFW&RWfV&W76&Rf"FF( 2f&WGbF6RЦ7&VBBvFV6G7676W2#@tN( 2UrdDU52tDU"#vVW&F2F&W6ǒW&FV@276FW&VgW6RFfW7BfG0"7&W2vFWB7G&rW7Ff6FFBN( &VVfBFVrFW&֖W0F2FW( fRvVBFV VFƗG26gFVBg&( v( F( v&6'FW"B&FW.( आrF&WBFvVW&FvVW&F27FWG&VVǒ7FfPFRfFW72v&BW7G&ƖF0vVW&F2&FWR֖ƖVR7G&rF( B֗72WB'GVGFVvvRvFF2&vP&WBआW&^( 26RF2FvWBfFW72V@vVW&Fg&F2fVVFvPw&W7G&W72v&ƖfR&6PW"w"7GVF6VBF&vWBFW6P6ƖVG2'֗rFV66G&rvFV7W&R7FfFW2ƖVF6R7 'F'G2"6WB&VƗ7F2FV6GWfV0vVW'2F( BvB&w&2FB&PfW&ǒFV6R"F7G&W76gVFP&GvWfW"v&WG2FVVBF&PVffV7FfRV7W&&Rv2B&W7VG0tN( 2UrdDU52tDU"#&R6W'FǒV6W76'FVWF0vVW&F6֖r&6FW"f6ƗGƖvv2vFF֗6rfVV@BfW&ƗG26VBFvFV6Gv&WG22ffW"w&WG&pF26WBFRFRf"fW'7G&p&VF6&WGvVVFRVGV6F6fVFBFRG&FR6rFv&G067W'&VFǒw&vrFRBWfVG2v66FVW2FF2Fw&WG&rvfW2W"vVW'2FPW6FVVBFW7&fRB6FP'GVGF7&VFR66&G2@W"f6ƗGbV&W"2F涖r`6r672FV"fV"b֗76rW@FR667V7Bv6&7FpW"672GFVF6R&FW2dDU52TBtTU$D㠤ԔT0FR֖V2w&W6&6RF6P&&FRV&ǒ( 2FFRFP( 2B&R&VvVBf"&Vp6Ɩ6FVBFfGV2֖V2fVR&&FW2V6FffW&V@FFR&WfW2vVW'2WW&66RF7FF266WBbFR7Bf"F0w&WvFGFb( 7G&r2FRWp6( FW( &RW6rv&G2ƖRVFp&vB&RF&WfW2vVW&F2आvWfW"FW7F7G'VvvRFfBWW&66PFFV"&WFRWfVFVvFW@VFv&Vv&BF2'W7vRw&W6VV2ƖR֖FV@6VGvW&RFW6fRf7B66v&WG2FRGW7G'2W7@&VvrFG'Vǒ66FFR@FBFFV"VVRFW6&W2आrfR֖V0fVV6VBFRGW7G'F26Ɩ6FVB'&B27F'FVBFPfVVBb( fFW726VFW>( 'WBvB2( fFW726VG( W76VFǒ֖V2fRFW'GvV@66F7W&W2vFFV"fFW70Vf&VG2f"FVN( 22V6&WBvWGFrFvWFW"vFƖR֖FV@VR2B2&WBv&rWBF0vVW&FW2FRFVb6VGV676rFV"GF6W'FfFW72f6ƗFW2FWFVFgvFFV"fFW726VG2'BbvFW&RF7&76fB FW"vV&WFVBfFW726VFW0#