The mushrooming number of gyms across China shows that more and
more Chinese people are jumping on the fitness bandwagon.
Fan Zheng, director with the marketing office affiliated to the
Beijing Bureau of Sport, said that whether these fitness centers
are operated by joint ventures, domestic firms or even local
neighborhoods, they are in great demand, especially at the weekend
and during holidays.
Statistics from Fan's department show that there are currently
around 1,000 sport and entertainment clubs in the capital city,
with over 100 of these being fitness centers.
"Though the number of the city's fitness clubs has surged
rapidly in recent years, the market margin remains vast," said Fan,
adding that the nation's rapid economic growth and people's
improving living standards mean that business opportunities
continue to grow in this sector.
So far, China's fitness sector is in its infancy, with veteran
foreign operators waiting to tap the market, Zhang Ping, a
researcher with the Economic Research Center affiliated to the
Chinese Academy of Social Sciences, told China Daily.
According to the General Administration of Sport, in the United
States, there is an average of one fitness club for every 10,000
people, while, the figure is 1 million in China.
World-leading technologies, management skills and talent need to
be brought into this sector to bring it up to international
standards.
The government is also offering preferential policies to help
develop the sector, such as a business tax rate of just 3 per cent,
said Zhang.
Following the establishment of Evolution Fitness Centre, a
Sino-Australian-New Zealand-funded club in 2001, a batch of giant
overseas players have entered the Chinese market, Fan of Beijing
Bureau of Sport told China Daily.
They include US-based Bally Total, Bodywork-impulse and Power
House, and Hong Kong Haosha.
At present, the largest overseas-funded fitness chain is
CSI-Bally Total Club, which was launched in May 2002 and operated
by a joint venture composed of Bally Total Fitness, the world's
leading fitness company, and China Sports Industry Co Ltd, a
Shanghai-listed State-owned sports conglomerate.
Yoga, Latin dance, shadow boxing, boxing, and ballet are just
some of the activities that Bally offers its clients, along with a
private coaching service. Wan Lihua, board chairman of the joint
venture, told China Daily that they currently operate 13 outlets
across China, five of which are in Beijing.
"We plan to open 10 to 15 new clubs nationwide this year."
CSI-Bally Total's fast expansion is based on their strong
financial position and rich operating experience, as well as world
leading fitness coaching courses and equipment.
However, Wan pointed out that their plan is rather
"conservative," given the shortage of professional talent both
coaching and management professionals.
To solve this problem, the company co-operated with Beijing
Sport University at the end of last year to set up a specific
institute to cultivate fitness professionals.
"Though the foreigners have displayed a strong development
momentum, the domestic competitors currently hold the leading
position in the market in terms of outlets and membership numbers,"
Zhang said.
Nirvana Fitness and Spa Co Ltd, which commenced its business in
2001, operates two huge fitness centers in Beijing, and another
seven are under construction around the capital.
Providing similar fitness and coaching services as CSI-Bally
Total, Nirvana's coaching team and rich knowledge of the local
market gives it the upper hand.
Li Bing, Nirvana's chairman, told China Daily that the majority
of their coaches are winners of various national and international
contests and their training courses are more localized than foreign
counterparts, and cater to the needs of Chinese people.
"In my opinion, Nirvana's success is partly due to their
marketing strategy," said Jiang Xin, a 24-year-old office worker
and a Nirvana member.
The fitness club has become a hub of film and TV stars, and
singers. A galaxy of stars are also the public face of Nirvana in
its advertising.
"People, especially young people, want to build their bodies or
figures to be perfect like those stars," said Jiang.
In addition to specific fitness clubs providing comprehensive
services, star-level hotels also open their gyms to local
people.
Besides the high-end fitness centers and hotel gyms, these
fitness centers are more popular among ordinary people as they are
more affordable.
"Fitness is not only fashion, but more importantly it is
health," said director Fan, adding that the establishment of the
affordable fitness outlets and community sport centers should be
encouraged.
A survey conducted by Horizon, a veteran market research and
consulting company, indicates that the major reason people exercise
is to be healthy, with 71 per cent of respondents saying this.
The survey covered 1,639 people aged between 18 and 60 in the
six major Chinese cities of Beijing, Shanghai, Guangzhou, Chengdu,
Changsha and Taiyuan.
In 2003, sports spending in the six cities was up to 534 yuan
(US$64) per capita.
Beijing ranked top with 884 yuan (US$107) per capita, partially
a result of the 2008 Olympic Games, said director Fan.
Far lower than CSI-Bally Total and Nirvana, where annual
membership costs 8,000 yuan (US$964) and 6,000 yuan (US$723)
respectively, the fee in a medium-level fitness center ranges from
3,000 yuan (US$361) to 4,000 yuan (US$482).
"Community fitness clubs are even cheaper," Fan pointed out.
"To meet the requirements of local people and enhance public
health, the Beijing municipal government even encourages foreigners
to invest in the community fitness club development sector by
offering preferential tax, charge-free land use rights and
streamlined administrative services," added Fan.
(China Daily March 10, 2005)