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)
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