According to research firm MarketResearch.com, the gyms, health and fitness clubs market in the Asia Pacific region was estimated at US$14.2 billion in 2020, a compound annual growth rate of 3.4% between 2016 and 2020. Japan accounted for 27% of the total value in 2018 and followed by China with about 25.8%.
In recent years, the health and fitness industry has taken hold in many other Asian countries, including countries within the Association of Southeast Asian Nations (ASEAN) or commonly known as Southeast Asia. Whether it’s Malaysia, Thailand, Philippines, Indonesia, Singapore, or Vietnam, a growing number of people suffer from health related issues, such as diabetes, heart disease, and obesity. Asia is no longer immune to these types of diseases that have long afflicted many parts of the world.
Due to Asia’s booming population and economics, the health and fitness industry has remained a strong business option for investors in Asia. Rising disposable incomes and fast growing economies are some of the initial market drivers. In addition, the fitness industry has adapted to new trends in health and fitness, and brands that focus on specific areas of fitness are able to stand apart from the crowd, such as brands that focus on cycling or high intensity workouts and similar concepts. It turns out that fitness isn’t all hard work – it can be fun as well!
Here’s why health and fitness franchises make good investment options for experienced and new franchisees.
Fitness franchises have benefited from, unfortunately, a growing trend of obesity, diabetes and other related health problems amongst the young and old, in Asia and globally. This has led to an increasing number of people joining gyms and fitness centres in recent years, and allowing many fitness businesses to continue to grow their customer base.
With the advent of epidemics like Covid and its variants, people are now realizing more than ever the importance of staying healthy and fit. A healthy lifestyle that includes a balanced diet and regular exercise has become a habit for many. Gyms have adapted to the new environment and have put in place various safety protocols to ensure gym enthusiasts can exercise confidently and safely.
Franchised gyms are oftentimes turnkey businesses. A franchise is likely to be successful as it already has a proven business and operating model that the franchisee can operate with the franchisor’s support. With operating procedures, center design and equipment fit-out, and training provided by the franchisor, new investors can often start and operate gyms successfully in a relatively short amount of time.
For example, franchisees of premium indoor rhythm cycling brand Revolution from Singapore are provided with ongoing support throughout the franchising journey, including design and build of each cycling studio, implementation of the fitness technology, fitness center operations training, sales and marketing support, site selection, and more. Setting up a studio can be as short as three to six months.
Unlike starting your own business or owning businesses in other industries, establishing a fitness franchise does not always require significant initial capital outlay. Investments are generally safer due to lower overhead costs, flexible formats and studio sizes, and technology and automation that increases efficiency and helps to reduce costs.
Gyms and fitness centres generally have simpler business models, and do not require investors or franchisees to have any specialised knowledge of the industry. Fitness brands like Revolution look for franchisees with entrepreneurial spirit, knowledge of consumers and the market place, strong communication skills, sufficient capital, and the trust and willingness to follow the franchisor’s proven franchise business model.
During economic booms and busts, people continue to focus on their health and fitness. The fitness industry is also a non-seasonal business as exercising and living a healthy lifestyle are not dependent on the season. As a fitness business owner, one can expect a revenue stream that may include membership subscriptions, personal coaching, online classes, merchandising, sponsorships, and more. Oftentimes, gym memberships are pre-sold before a gym even opens for business.
Why not own a franchise that helps others achieve their healthy lifestyle goals and may also help you achieve your business goals? If done correctly, lower investment requirements and strong consumer demand may produce faster return on investment for the franchise business owner.
About Revolution
Revolution is a premium indoor rhythm cycling brand, established in 2020, and has grown to be the premier studio in Singapore with 4 locations. Contact us now at info@vffranchiseconsulting.com for master franchise opportunities now. With more than 2,000 first-time riders each month and a growing portfolio of brand partnerships, Revolution is the leading indoor rhythm cycling brand in Southeast Asia.
About Sean T. Ngo
Sean T. Ngo is the CEO and Co-Founder of one of Asia’s leading franchise consultancy and brokerage, VF Franchise Consulting. He is Asian American and has been happily based in Vietnam for nearly 18 years. You can reach him at sean@vffranchiseconsulting.com or info@vffranchiseconsulting.com.
