“Study on the growth of fitness equipment industry in India”

Prepared byKhan Mohammad Yaseen

Under guidance ofProf. Sandeep Sawant

IMRB International

• Company OverviewType : Subsidiary

• Founded : 1970• Founder : Hindustan thompson

Associates• Headquarter : Mumbai Maharashtra

India• Services : Market Research,

IMRB International• Established in 1971 and with over three decades of market

research experience, IMRB International is a pioneer in India in various research areas

• Associates With British Market Research Bureau (BMRB) and MillwardBrown International

• IMRB International operates out of thirteen cities in India and has associate offices in Sri Lanka, Bangladesh and Nepal

• IMRB International is the market research wing of J Walter Thompson (JWT) - the leading advertising agency in India

• JWT in turn belongs to the Kantar Group, which in turn is a part of the WPP Group - the largest advertising group in the world.

J. Walter Thompson Co.

• J.Walter Thompson was founded in 1864, with 246 offices globally and more than 9200 employees.

• The world's first global brand communication company• provides its clients with both short term sales success

and long term brand value. • JWT's proprietary planning process, Thomson total

branding in now installed in all offices worldwide guarantying a uniform level of excellence in the development of Brand Vision, a Branding Idea and Total Communication Plan.

Kantar Group• The Kantar group was established in 1993, a London based holding

company responsible for WPP's worldwide information and consultancy interests. Kantar, is the world's largest survey organization

• The research studies in over 130 countries. The Kantar group specialized in:

• Qualitative and quantitative research• Tracking studies• International research• Predictive modeling• Media measurement• Data capture and handling• Strategic research• Customer handling

Units of IMRB International

• Five specialist units:-• Probe Qualitative Research (PQR)• Social and Rural Research Institute (SRI)• Media & Panel Research Group• Customer Satisfaction Management &

Measurement (CSMM)• Business & Industrial Research Division (BIRD)

and the• eTechnologygroup@IMRB International

• The fitness industry in India – valued at anything between a whopping Rs 2,900 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.

Fitness equipment Industry In India

Fitness industry in India • The health and fitness market in India is estimated at around

Rs.2, 900 crore

• Growing at an annual growth rate of 15 per cent. Compared to the West,

• a fragmented industry with diverse players such as health clubs, gyms and trainers.

• Indians were never too particular about the fitness but slowly there is a change in the attitude and more people are thronging to gymnasiums. The average annual spend on health and fitness by an individual is a meager sum of Rs.2,600 (approximate), which means there is a huge gap to be filled.

Vandana Luthra, founder VLCC.• "Indians are gradually catching in on the importance of fitness and thus

there is a major fillip to the industry. The demand has been fuelled by the TV boom and the media exposure and everyone wants to be fit and have a perfect body, for which they are not shying away from going to the slimming centers or gymnasiums,“

Munira Jawadwala Kawad, Manager-Training and Sports Nutrition, Gold's Gym

• "Currently, approximately only 0.06 per cent of Indian population is exercising. Therefore, there is a tremendous potential in this industry and a long way to go before there are any indications of saturation,“

Rujuta Diwekar, fitness trainer • "Good fitness trainer continues to make time daily to sharpen their skills.

Also, taking up a course updates once every year allows them to study further and keep up with the latest research, trend and competition in the industry. Respecting your own time and that of your client's and learning to be non-judgmental also goes a long way,"

•

Reason for growth of fitness industry• Stretch, jogs, pump iron and get on the treadmill — are 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.

• Stay fit• Due to disease• High pressure job• Aspiration to look good• Inspiration• Networking• Career Motive

• Since fitness industry is fastest growing industry which leads to help in the growth of equipment of fitness….

Fitness equipment industryOverview: The fitness equipment market in India is estimated to be worth 12.5 bn IN 2008; and its

almost 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.

Cardiovascular Equipments

TreadmillStationery bicycle Stair climber

Rowing Machine Elliptical cross Trainer

Weight Training Equipment

Weight lifting machinesBarbells

Bench bar and Racks Preloaded Fitness Equipments

Market Overview

• Market Size and Growth

Market Segmentation

• The fitness equipment industry can be divided into two segments as

• 1) Residential or Home Segment • 2) Institutional Segment

Home Segment • 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 is

Equipments Approximate CostTreadmills : INR 35k – 1.5lacExercise Bikes : INR 4k – 40kMini Multi Gym : INR 18k – 10lac

Institutional Segment• 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 is: Equipments Approximate CostTreadmills : INR 2lac – 6lacDumbbells and Plates : INR 14 – 275 per kgPlate loaded Fitness Equipments : INR 26k – 4.5lac

Major Players

There are many international and domestic players in the fitness equipment industry some of are

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 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 •

Key Trends1) 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 in house brand “Propel Fitness”

- The company will outsource the manufacturing of Propel Fitness equipment to Taiwan and Korea

• 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

Continue…

Key Trends2) Emergence of New Distribution Channels • 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 tele-

marketing - Abdominal exerciser is popular fitness equipment sold through Tele-

marketing

Competition in the industry Franchisee route is preferred market entry route for foreign players • 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 • 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 • 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

Current ScenarioForeign players their products and strategy

Accell Fitness Tread mills, cycles, muscle Trainers, elliptical and rowers • 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 Home gyms, functional trainers, free weight systems, free weight machines,

benches and racks, weights and dumbbells • Body solid has a tie-up with Proline fitness for distribution in India

Cybex Treadmills, cross trainers, exercise bikes and various plate loaded • Cybex is distributing its products in India through Fitline • Cybex is introducing latest technology products equipment in India based on its

expertise in biomechanics, ergonomics and physiology Continue…..

Current ScenarioHorizon Fitness Treadmills, Elliptical trainers, exercise bikes, ascent trainer • Horizon Fitness distribute its products in India through Proline fitness Life fitness Treadmills, elliptical cross trainers, exercise bikes, summit trainers, home

gyms, and racks • 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

5lac for buying ‘Life fitness’ equipment • It is now planning to set up six companies- owned ‘Celebrate Life’

showrooms in India at an investment of INR 100 mn Precor Cycles, stretch trainer, strength systems, treadmills, elliptical cross trainers and

climbers • 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 in-house fitness centers

Current ScenarioNautilus Cycles, stepper, climber, treadmills, dumbbells, home gyms, ellipticals, and

benches • 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 Vibrogym Vibration machine based fitness equipment • 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

Continue…..

Current ScenarioDomestic players their products and strategyAsian Sports & Enterprises Vibratory belts, home gym, abdominal machine, motorized jogger, climbers and stair

steppers• 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 Fitness Pvt. Ltd. Plate loaded equipment, cardio equipment, racks and benches • It manufactures most extensive line of free-weight and multi-station exercise

equipment in the industry • Plans to introduce innovative products on a continuing basis

Current ScenarioNational Sports Weight lifting bars and weight lifting plates• Manufactures custom built product according to client specifications TI Cycles Treadmill, steppers and elliptical • 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.)

ConclusionThus 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.