Study on the growth of fitness equipment industry in India

Prepared by Khan Mohammad Yaseen

Under guidance of Prof. Sandeep Sawant

IMRB International
Company Overview Type : 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

Fitness equipment Industry In India

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, its 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 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 industry

Overview:

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

Treadmill Stationery bicycle Stair climber

Rowing Machine

Elliptical cross Trainer

Weight Training Equipment

Barbells Weight lifting machines

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 Cost Treadmills : INR 35k 1.5lac Exercise Bikes : INR 4k 40k Mini 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 Cost Treadmills Dumbbells and Plates Plate loaded Fitness Equipments

: : :

INR 2lac 6lac INR 14 275 per kg 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 Trends
1) 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 Trends
2) 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 telemarketing - Abdominal exerciser is popular fitness equipment sold through Telemarketing

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 Scenario
Foreign 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 Scenario
Horizon 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 Scenario
Nautilus Cycles, stepper, climber, treadmills, dumbbells, home gyms, ellipticals, and benches Nautilus has been awarded an over INR 50 million by Talwalkars, Indias 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 Scenario
Domestic players their products and strategy Asian 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 Scenario
National 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.)

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.

Conclusion