A
ccording 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).
competition are some of the challenges
club operators face in the Asia-
Pacific market. However, a favourable
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.
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 fuelled 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%).
“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.”
•
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 second-
tier (and under) cities, however,
are dominated by standalone
players that are mostly lower-
end 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
[email protected] for any questions.
According to MacCharles, the region’s
fitness market remains stratified due to
varying stages of development, which
can be categorised into three tiers:
• Tier 1: Australia (15.3%) and New
Zealand (13.6%) are established
markets, with higher penetration
rates than their neighbours.
However, the mature and
professionalised markets in these
countries indicate limited growth
potential; labor and real estate costs
have also constrained growth.
• Tier 2: Hong Kong (5.85%),
The Challenges
Along with such growth opportunities
come challenges. Real estate costs,
rental availability, infrastructure
underdevelopment, need for
professionalised services, and increasing
WHAT’S NEW IN FITNESS - WINTER 2018
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 [email protected] or
on mobile 0437 393 369.
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