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Despite the continuous efforts, the foreign fitness companies can not challenge the dominant place of local brands in the market.
The Asian Games in Guangzhou bring many business opportunities for people in all walks of life. However, the fitness market, which has a close relationship with the Games, has seemed a bit quiet. Only the local brand Total Fitness Club, which has taken 80% of market share, plans to open two more branches within this year. The other fitness club brands include Nirvana Fitness & SPA, a well-known national chain brand in the fitness industry, and CSI-Bally Total Fitness, have not shown any new plans. The professionals in this industry have pointed that, the competition pattern in current fitness industry in Guangzhou is quite clear. The local brands takes the most share of the market, while the national brands and foreign brands are still in a pending phase for future development. It does not exclude that during the next five years, the latter competitors would enhance its efforts and change the existing market structure.
Total Fitness Club: aiming for establishing 30 branches in South China
"Expansion" has been the key word in the development of Total Fitness Club in recent years. It even opened 9 branches in 2008, which is known as “peak period of expansion” in its internal club. Just because of this strong expansion plans, it has become the Mr. Big in the local fitness industry in Guangzhou. It is known that, at the present time, Total Fitness Club owns 25 branches under its direct leadership in Guangdong province and has taken 80 % of the market share in the fitness industry in Guangzhou.
Zhang Lulong, general manager of Guangzhou Total Fitness Club Management Service Ltd. Company, directly expressed that, the expansion strategy for Total Fitness is to open several branches in the same region in order to achieve its dominance in the local market. As for the future expansion plans, he said, they plan to open two more branches in Fenghuang and Nansha within this year. The target number is to open 30 branches in South China. It does not rule out the possibility to expand its market to district and county level cities. However, the expansion of Total Fitness Club does not seem to go across the boundary of South China. Does that mean Total Fitness Club position itself as a regional brand? Zhang expressed that, the market in South China is the focus of their development, “there must be a residential base for fitness club, and thus Guangzhou is the headquarters of their brand-Total Fitness Club. Guangzhou is a very tolerant city for many new things and concepts, so their brand temporarily chooses South China as the main base.” He also pointed out that the objective of Total Fitness Club is to become a national brand, though the current conditions for development in other places have not been fully mature. “Southerners and Northerners have different customs and views on fitness, even people from each region have various views upon fitness. A system is not enough to adapt to different markets. That’s why we must accumulate more experiences in different markets in order to expand our business into the national scale.”
Non-local Brands: Blocked in Guangzhou
Li Jing, an observer in fitness industry, have pointed out that, from 2003 to 2008, other fitness brands in fitness market in Guangzhou have their own expansion plans respectively. However, brands from other regions seem to be unaccustomed in local market and have slowed down the speed of market expansion.
It is known that, CSI-Bally Total Fitness club entered into Guangzhou market with a high-profile and instantly opened 2 branches. But after 7 years, the number of their branches in Guangzhou is still two. It is reported, CSI-Bally Total Fitness club has a powerful background. It is a Sino-American joint venture company by two listed companies in China and USA, China Sports Industry Group CO., LTD and Bally Total Fitness. According to related information, CSI-Bally Total Fitness club opened over 20 branches in Beijing, Shanghai, etc.. It plans to open 100 chain fitness clubs by 2012 in order to truly correspond to its reputation as a national brand in fitness industry.
Nirvana Fitness & SPA, another focus in the industry, does not have a smooth development in Guangzhou. It is introduced that Nirvana Fitness & SPA is one of the fitness clubs which operate their clubs as an industry. Since its first club in Beijing in 2001, it expended the business to Dalian in North China and Guangzhou in South China. Up to now, it has opened 16 branches. In 2003, it opened the first club in Guangzhou, but the second one was opened after five years.
Li Jing told reporters that, “Although they do not have the specific data for the operations of these two national brands in Guangzhou, it is sure that their performances in Guangzhou are not so good.”
Some people in the industry disclosed that, some foreign fitness brands are keeping an eye on fitness market in Guangzhou. But currently most of them take a wait-and-see attitude, with no practical schedules for the entry into Guangzhou market.
For the reasons of blocked non-local fitness brands, the analysts in the industry all agree on “inability to adapt”. Miss Liu, who have worked in fitness club management for many years, told reporters, fitness club industry is one which quietly rely on geographical difference, because different local culture decides various operation systems including management and marketing skills, etc. “For example, a listed company in California, U.S.A, opened the first club in Beijing in 2007 and later expanded to other places. Up to now, its two branches in Shanghai have been cancelled, which reflects the problem of inability to adapt the local market.
Li Jing also noted that, the expansion strategy of join in style can not be successfully copied in all the markets. The uneven quality between different join-in clubs is an obvious problem in this industry, but the strategy of direct type requires more capital and more unified management.
A Changed Market Structure in Five Years
This inability to adapt to local market of non-local brands, does that mean it is difficult for them to open the fitness market in Guangzhou? People in this industry believe that the fitness market is still in its infancy. With the continuous exploration of its commercial potential, it is bound to attract more brands into the market. Meanwhile, due to the gradual mature operations in various markets, the existing competitive pattern in fitness market will change.
Zhang Lulong from Total Fitness Club pointed out that the fitness market in Guangzhou has not been completely mature yet. And in district and county level cities, there are competitions in disorder such as price wars, etc.. “Compared to the foreign fitness market with a history of over 100 years, the fitness market in mainland China, especially in Guangzhou, is still far from being saturated. It has a large space and great potential for development in the future. In the United States, 8 of every 10 people have fitness membership, while this data in Beijing and Shanghai is only 3-4 people, 1 in Guangzhou, with the average age from 30 to 40 years old. Given the expanded level in the number and age of people, the prospects for this market can be foreseen. ” Therefore, he estimated there will be more brands especially foreign brands joining in the competition in fitness market.
As for the competition structure in fitness market in Guangzhou, Li Jing believed, from the dominance of Jianlibao fitness club in Guangzhou to current entries of several fitness brands, the fitness market in Guangzhou has entered into a period of brands concentration for competition. “ Total Fitness Club has taken most of the market share, while Nirvana Fitness & SPA and CSI-Bally Total Fitness have already developed their own stable customer groups. Tuning Life, though this brand has the tendency to turn into chain cosmetology stores, it has its own supporters. As an important city, Guangzhou is sure to become the focus of foreign brands, which will continue to enhance the competition.”
图片关键词：健身馆、力美健华
The Asian Games in Guangzhou bring many business opportunities for people in all walks of life. However, the fitness market, which has a close relationship with the Games, has seemed a bit quiet. Only the local brand Total Fitness Club, which has taken 80% of market share, plans to open two more branches within this year. The other fitness club brands include Nirvana Fitness & SPA, a well-known national chain brand in the fitness industry, and CSI-Bally Total Fitness, have not shown any new plans. The professionals in this industry have pointed that, the competition pattern in current fitness industry in Guangzhou is quite clear. The local brands takes the most share of the market, while the national brands and foreign brands are still in a pending phase for future development. It does not exclude that during the next five years, the latter competitors would enhance its efforts and change the existing market structure.
Total Fitness Club: aiming for establishing 30 branches in South China
"Expansion" has been the key word in the development of Total Fitness Club in recent years. It even opened 9 branches in 2008, which is known as “peak period of expansion” in its internal club. Just because of this strong expansion plans, it has become the Mr. Big in the local fitness industry in Guangzhou. It is known that, at the present time, Total Fitness Club owns 25 branches under its direct leadership in Guangdong province and has taken 80 % of the market share in the fitness industry in Guangzhou.
Zhang Lulong, general manager of Guangzhou Total Fitness Club Management Service Ltd. Company, directly expressed that, the expansion strategy for Total Fitness is to open several branches in the same region in order to achieve its dominance in the local market. As for the future expansion plans, he said, they plan to open two more branches in Fenghuang and Nansha within this year. The target number is to open 30 branches in South China. It does not rule out the possibility to expand its market to district and county level cities. However, the expansion of Total Fitness Club does not seem to go across the boundary of South China. Does that mean Total Fitness Club position itself as a regional brand? Zhang expressed that, the market in South China is the focus of their development, “there must be a residential base for fitness club, and thus Guangzhou is the headquarters of their brand-Total Fitness Club. Guangzhou is a very tolerant city for many new things and concepts, so their brand temporarily chooses South China as the main base.” He also pointed out that the objective of Total Fitness Club is to become a national brand, though the current conditions for development in other places have not been fully mature. “Southerners and Northerners have different customs and views on fitness, even people from each region have various views upon fitness. A system is not enough to adapt to different markets. That’s why we must accumulate more experiences in different markets in order to expand our business into the national scale.”
Non-local Brands: Blocked in Guangzhou
Li Jing, an observer in fitness industry, have pointed out that, from 2003 to 2008, other fitness brands in fitness market in Guangzhou have their own expansion plans respectively. However, brands from other regions seem to be unaccustomed in local market and have slowed down the speed of market expansion.
It is known that, CSI-Bally Total Fitness club entered into Guangzhou market with a high-profile and instantly opened 2 branches. But after 7 years, the number of their branches in Guangzhou is still two. It is reported, CSI-Bally Total Fitness club has a powerful background. It is a Sino-American joint venture company by two listed companies in China and USA, China Sports Industry Group CO., LTD and Bally Total Fitness. According to related information, CSI-Bally Total Fitness club opened over 20 branches in Beijing, Shanghai, etc.. It plans to open 100 chain fitness clubs by 2012 in order to truly correspond to its reputation as a national brand in fitness industry.
Nirvana Fitness & SPA, another focus in the industry, does not have a smooth development in Guangzhou. It is introduced that Nirvana Fitness & SPA is one of the fitness clubs which operate their clubs as an industry. Since its first club in Beijing in 2001, it expended the business to Dalian in North China and Guangzhou in South China. Up to now, it has opened 16 branches. In 2003, it opened the first club in Guangzhou, but the second one was opened after five years.
Li Jing told reporters that, “Although they do not have the specific data for the operations of these two national brands in Guangzhou, it is sure that their performances in Guangzhou are not so good.”
Some people in the industry disclosed that, some foreign fitness brands are keeping an eye on fitness market in Guangzhou. But currently most of them take a wait-and-see attitude, with no practical schedules for the entry into Guangzhou market.
For the reasons of blocked non-local fitness brands, the analysts in the industry all agree on “inability to adapt”. Miss Liu, who have worked in fitness club management for many years, told reporters, fitness club industry is one which quietly rely on geographical difference, because different local culture decides various operation systems including management and marketing skills, etc. “For example, a listed company in California, U.S.A, opened the first club in Beijing in 2007 and later expanded to other places. Up to now, its two branches in Shanghai have been cancelled, which reflects the problem of inability to adapt the local market.
Li Jing also noted that, the expansion strategy of join in style can not be successfully copied in all the markets. The uneven quality between different join-in clubs is an obvious problem in this industry, but the strategy of direct type requires more capital and more unified management.
A Changed Market Structure in Five Years
This inability to adapt to local market of non-local brands, does that mean it is difficult for them to open the fitness market in Guangzhou? People in this industry believe that the fitness market is still in its infancy. With the continuous exploration of its commercial potential, it is bound to attract more brands into the market. Meanwhile, due to the gradual mature operations in various markets, the existing competitive pattern in fitness market will change.
Zhang Lulong from Total Fitness Club pointed out that the fitness market in Guangzhou has not been completely mature yet. And in district and county level cities, there are competitions in disorder such as price wars, etc.. “Compared to the foreign fitness market with a history of over 100 years, the fitness market in mainland China, especially in Guangzhou, is still far from being saturated. It has a large space and great potential for development in the future. In the United States, 8 of every 10 people have fitness membership, while this data in Beijing and Shanghai is only 3-4 people, 1 in Guangzhou, with the average age from 30 to 40 years old. Given the expanded level in the number and age of people, the prospects for this market can be foreseen. ” Therefore, he estimated there will be more brands especially foreign brands joining in the competition in fitness market.
As for the competition structure in fitness market in Guangzhou, Li Jing believed, from the dominance of Jianlibao fitness club in Guangzhou to current entries of several fitness brands, the fitness market in Guangzhou has entered into a period of brands concentration for competition. “ Total Fitness Club has taken most of the market share, while Nirvana Fitness & SPA and CSI-Bally Total Fitness have already developed their own stable customer groups. Tuning Life, though this brand has the tendency to turn into chain cosmetology stores, it has its own supporters. As an important city, Guangzhou is sure to become the focus of foreign brands, which will continue to enhance the competition.”
图片关键词：健身馆、力美健华