The Fitness Industry in India Profile 2009
Indian Fitness Equipment Industry Stretch, jog, pump iron and get on the treadmill — is an integral part of the modern metropolitan mantra. In recent years, the fitness industry in India is seeing a paradigm shift with the change in middle- and upper-class lifestyles in small but significant ways; for instance, earlier, one used to walk to the local marketplace, now one drives to the malls. So people are now feeling the need to set aside a time for dedicated exercising. Even our role models have become leaner and tougher . Now, people are aspiring for complete wellness rather than just staying fit . With surging work pressure and stress related ailments rampant amongst the corporate crowd, there is a need to increase the value and necessity of being fit and healthy in life. Also, due to diseases, increasing pollution in metro cities like Mumbai, Delhi and others, today wellness is becoming the must factor for everyone. The average urban Indian professional is increasingly becoming health conscious and feeling the need to get into a fitness mode It is projected that Indian fitness industry will rise on the graph annually by 20 to 30%. The fitness industry in India – valued at anything between a whopping Rs 2,000 crore and a more modest Rs 300 crore — however is not celebrating just yet. In fact, it’s still a fragmented industry with diverse players such as health clubs, gyms and trainers. The health club approach and a feel good factor — for a highly stressed out segment — is the growing focus of the fitness industry in India.” For corporate executives, health is often an important consideration. They have various problems ranging from spondilyosis, to posture and stress-related issues. Pune and Bangalore are also fast emerging as India’s fitness capitals and can probably boast of the largest number of premium gyms and fitness centres in the country. The large number of IT companies in these cities with their fitness-conscious employees are obvious targets of the gyms. They have high pressure jobs and travel a lot. Corporates, on their part, are today very conscious about employees’ health and fitness issues
Fitness Equipment Market – India Overview : The fitness equipment market in India is estimated to be worth 12.5 bn IN 2008 ; and is expected to reach INR 63.3 bn by 2012. The annual growth rate is expected to be around 50%. The key segments in the sector are the home segment and the institutional segment.
The fitness equipments can be classified as :Cardiovascular Equipments : Treadmills, stationary bicycles, stair climbers, rowing machines, elliptical cross-trainers Weight Training Equipment : Weight lifting machines, barbells, various types of benches bars and racks. •
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Market Size and Growth
INR bn 100
50
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0 2006
2007
2008
2009
2010
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2012
Segment Share
24% Home Segment
76% Institutional segment
The fitness industry has a huge growth potential as only 1.5% of the urban Indian population regularly practices workout.
End-User Segment :
They are divided into two segments :1) Residential or Home Segment 2) Institutional Segment Residential Segment :
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Sold to individuals who prefer working out/exercising at home due to paucity of time or convenience. Equipments used for residential purpose are generally built with lighter materials Cost is the prime factor while making the buying decision
Top 3 Equipment in Home segment are :Equipments
Approximate Cost
Treadmills Exercise Bikes Mini Multi Gym
INR 35k – 0.15 mn INR 4k – 40k INR 18k – 0.10 mn
Institutional Segment : • •
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Bulk of equipments sold to health clubs / gyms and corporate houses Equipments used by institutions are more sturdily built and expensive compared to those used at home. Quality is the prime consideration and buyers are ready to pay premium for better quality and technologically advanced products
Top 3 Equipment in Institutional segment are :Equipments
Approximate Cost
Treadmills Dumbbells and Plates Plate loaded Fitness Equipments
INR 0.2 – 0.6 mn INR 14 – 275 per kg INR 26k – 0.45 mn
DRIVERS & CHALLENGES OF THE FITNESS EQUIPMENT MARKET
DRIVERS Indian becoming health and fitness conscious Growing demand from companies Entry of foreign fitness chains / clubs Reduction in prices and import duties Real estate boom •
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CHALLENGES Lack of R&D facilities in India Lack of Consumer Confidence in Indian equipments Lack of good fitness trainers Lack of space in residential complexes • •
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KEY TRENDS
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Health chains enter equipment retailing • •
Leading health club chains are moving towards equipment retailing Fitness One, a health club, is all set to foray into fitness equipment retailing - The company will sell equipment from Precor of the US and its inhouse brand “Propel Fitness” - The company will outsource the manufacturing of Propel Fitness equipment to Taiwan and Korea
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Emergence of New Distribution Channels •
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Talwalkar, Indian Fitness Chain, plans to sell fitness equipments by opening store in shopping malls - Company plans to open 50 ‘Talwalkar Fit & Active’ stores in shopping malls across the country by 2010
With the advent of cable television and internet, tele-shopping and online shopping have emerged as new distribution channels in fitness industry People prefer buying fitness equipments online as it allows product comparisons, saves time and convenient Tele-shopping networks sell home fitness equipments through telemarketing - Abdominal exerciser is a popular fitness equipment sold through tele-marketing
Introduction of Innovative products
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Manufacturers enhancing the existing products with new features like giving entertainment options in equipment Cardio machines with build in LCD TV screens, iPod connectivity and mobile phone chargers are available in market - Technogym’s has launched treadmill with an integrated TV and radio New concept of time efficient machines which enables user to spend less time to remain fit as compared with conventional machines
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Singapore based company, OSIM and Indian manufacturer Proline fitness have launched massage chairs for the Indian market. - These are pre-programmed massage chairs which simulate the experience of a live massage Power Plate International has tied-up with Hero Motors Ltd. to introduce premium vibration devices in the Indian market - Company has opened Power Plate Studios at the Club, Mumbai and Asian Roots, Delhi
COMPETITION
Franchisee route is preferred market entry route for foreign players •
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Majority of the high end fitness equipment (treadmills, arc trainers, etc) sold in India are imported - American fitness equipment brands are more popular in India - Most of the American and European manufacturers have fabrication units in China and Taiwan Domestic manufacturers lack R&D facilities and compromise on quality in order to reduce prices - Domestic fitness equipments are available at half the price of any foreign brands
GOVERNMENT FDI POLICY
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Indian Government allows 51% FDI in single-brand retail and 100% FDI in wholesale cash and carry operations Indian Government is considering allowing foreign direct investment (FDI) to take a 49% stake in multi-brand retailers
FRANCHISEE ROUTE
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Foreign players market their products through distributors / importers in India Foreign company can appoint a master licensee to market and distribute their brands Master licensee in turn appoints sub-dealers to distribute the brand in India
FOREIGN PLAYERS IN THE GYM EQUIPMENT MARKET
Foreign Player
Products
Accell Fitness
Tread mills, cycles, muscle Trainers, ellipticals and rowers
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Body Solid
Cybex
Horizon Fitness Life fitness
Home gyms, functional trainers, free weight systems, free weight machines, benches and racks, weights and dumbbells Treadmills, cross trainers, exercise bikes and various plate loaded equipment
Treadmills, Elliptical trainers, exercise bikes, ascent trainer Treadmills, elliptical cross trainers, exercise bikes, summit trainers, home gyms, and racks
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Precor
Nautilus
Cycles, stretch trainer, strength systems, treadmills, elliptical cross trainers and climbers
Cycles, stepper, climber, treadmills, dumbbells, home gyms, ellipticals, and benches
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Vibrogym
Vibration machine based fitness equipment
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Vision Fitness
Treadmills, elliptical trainers, cycles, Cardio and strength products
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It has appointed Fitline as its marketing partner in India Accell Fitness is looking for growth in Tier I and II cities in India Body solid has a tie-up with Proline fitness f or distribution in India
Cybex is distributing its products in India through Fitline Cybex is introducing latest technology products in India based on its expertise in biomechanics, ergonomics and physiology Horizon Fitness distribute its products in India through Proline fitness Life fitness has tied up with Cardio Fitness for distribution It has tied up with HDFC Bank to offer finance loan to consumers upto INR 0.5 mn for buying ‘Life’ fitness equipment It is now planning to set up six company- owned ‘Celebrate Life’ showrooms in India at an investment of INR 100 mn Precor has appointed Gympac as its sole marketing partner in India Apart from hotels and fitness clubs, Precor is targeting companies, which are setting up inhouse fitness centers Nautilus has been awarded an over INR 50 million by Talwalkars, India’s largest chain of health centers In India for its Bowflex range it has appointed Ace Sporting & Fitness for distribution It has a distribution tie-up with Trinity Healthcare Pvt. Ltd. Launched two variants of the equipment – ‘VibroGym Professional’ and ‘VibroGym Domestic’ Recently sold its equipment to Bodyline gym in Bangalore Vision Fitness has appointed Proline to distribute its products
DOMESTIC PLAYERS Indian Products Player Asian Vibratory belts, home gym, Sports & abdominal machine, motorized Enterprises jogger, climbers and stair steppers
Business Outlook
The company also manufactures equipment custom built as per client requirement The company is an authorized distributor of Cosco, Jonex, Silver, Eastern Shoes, B.D.M., Champs, Sunny and Self Its customers include government, corporate offices, heritage hotels, big resorts, reputed schools and colleges Jerai Plate loaded equipment, cardio It manufactures most extensive line of Fitness equipment, racks and benches free-weight and multi-station exercise Pvt. Ltd. equipment in the industry Plans to introduce innovative products on a continuing basis National Weight lifting bars and weight lifting Manufactures custom built product Sports plates according to client specifications TI Cycles Treadmill, steppers and ellipticals Plans to launch an exclusive retail stores to sell fitness equipment TI Cycles plans to offer financing schemes to customers and has tied up with various firms Other domestic manufacturers include Advansys, Bullworker Enterprises. •
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Domestic manufacturers are involved only in low-end fitness equipments DISTRIBUTORS Indian Distributor Ace Sporting & Fitness
Overview Products range includes home gyms, treadmills, dumbbells, climbers and various accessories The company is based in Delhi the company distributes its products through various subdealers and organized retail chains like Hometown and Homestop Product range includes Cardio-vascular equipments, strength equipments and accessories It has nationwide presence with centers in Chennai, Pune, Mumbai, Bangalore, Delhi, Cochin, Kolkatta and Coimbatore
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Foreign Tie-ups Bowflex
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Acme Fitness
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Cardio Fitness
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It deals in treadmills, climbers, exercise bikes, elliptical cross trainers and plate loaded equipment Cardio Fitness is based in Delhi with branches in Mumbai, Hyderabad, Bangalore and Chennai
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True Fitness, BH Fitness, Tuff Stuff, PaceMaster, BodySolid, Lexco, Octane Fitness, Concept2, WaterRower Hammer Strength
Cardiomed
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Gympac
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Grand Slam Fitness M.K. Marketing
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Proline Fitness
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Stayfit
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Trinity Healthcare
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Deals in Cardio Equipments, Strength Training, Functional Training , Sauna and Steam Cardiomed is based in Delhi with branches in Mumbai, Bangalore, Hyderabad and Kerala Company deals in Elliptical cross trainers, treadmills, cycles, strength systems Gympac is based in Chennai with branch offices in Bangalore, New Delhi, Pune, Hyderabad, Kochi and Chandigarh The company has sales and after-sales teams in all major cities In addition to hotels, fitness clubs and high-net worth individuals, Gympac is targeting companies, which are setting up in-house fitness centers It has 70 exclusive fitness stores across India The company is planning to expand to 200 stores in the next two years The company deals in treadmills, ellipticals, rowers, strength training equipment and various accessories The company is based in Hyderabad Company deals in Home gyms, bikes, ellipticals, treadmills and strength equipment Proline Fitness has a pan India presence with 58 exclusive showrooms in over 35 cities with an effective and efficient after sales back up Company plans to set up two stores in Sri Lanka The company plans to increase its presence in tier I and II cities Product range includes treadmills, bikes, elliptical cross trainers, steppers, rowing machines, multi gyms, benches, massagers, fitness accessories Stayfit is based in Bangalore and provides nation wide after sales support Trinity Healthcare deals in vibration machine based fitness equipment The company is expanding its business to West Asia and South East Asia It has opened shops in Bangalore, and Mumbai and plans to open a shop in Delhi
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FreeMotion, Keyton, Jacobs Ladder, Pro Court, and BSW Precor, Hur and Inflight
SportsArt Fitness, Kettler and Turbuster Maxfit, California fitness, sportop
Horizon Fitness, Vision Fitness, Matrix, Body Solid, Johnson Health Tech. Co. Ltd.
Icon Health & Fitness
Vibrogym
After sales service and geographical coverage of the distributors are the differentiating factor in this industry
CONCLUSION Thus we can say that The fitness equipment in India is already doing a business of Rs. 1000 approximately all over the country. In some parts of the country, there is already an annual growth of 50%. In cities like Bangalore, Mumbai, Chennai, Hyderabad, New Delhi big corporation houses like Air Tel, Wipro, call centers are already fitting fitness equipments and elliptical machines, Exercise Bikes, Treadmills, Mini Stair Steppers, and other gym equipments in their premises for a healthy work force. Now the demand to remain fit in the second rung of cities have also began. This awareness has awakened the young and old to various ways to exercise and loose weight. Many fitness companies from US, Australia and Europe have come in the Indian markets with their products seeing the large potential that the industry has generated.
