Market Research India - Fitness Equipment Market in India 2009

Fitness Equipment Market ‐
Fitness Equipment Market India
April 2009

Executive Summary

 Estimated worth INR 12.5 bn IN 2008; Expected to reach INR 63.3 bn by 2012
 Annual growth rate of 50%
Market  Key segments : Home segment and Institutional segment
 Types of fitness equipments: Cardiovascular Equipment and Weight Training Equipment

Drivers: Challenges:
 Indians becoming health and fitness  Lack of R&D facilities in India
Drivers &
Drivers & conscious  Lack of consumer confidence in Indian
Lack of consumer confidence in Indian
 Growing demand from companies equipments
Challenges
 Entry of foreign fitness chains/clubs  Lack of good fitness trainers
 Reduction in prices and import duties  Lack of space in residential complexes
 Real Estate boom

 Health chains enter equipment retailing market
Trends  Emergence of new distribution channels
 Introduction of innovative products
p

 Market is dominated by foreign brands like Precor, Cybex, Nautilus
 Foreign equipment brands have distribution tie ups with Indian companies
Competition  A large number of importers and small players compete for a share in the Indian fitness
A large number of importers and small players compete for a share in the Indian fitness
equipment industry

FITNESS EQUIPMENT MARKET – INDIA.PPT 2

•Market Overview
•Drivers & Challenges
Drivers & Challenges
•Trends
•Competition
•Key Developments


Fitness equipment industry has a huge growth potential as only
a fraction of urban India practices workout regularly
Overview Market Size and Growth
•Fitness equipment market worth INR 12.5 bn INR bn
in 2008 100

•Fitness equipments can be classified as – 63.3
+50%
 Cardiovascular Equipments: Treadmills, 50 42.2
Stationary bicycles, Stair climbers, Rowing 28.1
18.8
machines, Elliptical cross trainers
machines, Elliptical cross‐trainers 8.3
83 12.5
5.6
56
 Weight Training Equipment: Weight lifting 0
machines, barbells , various types of benches bars 2006 2007 2008 2009 2010 2011 2012
and racks
•Industry has huge growth potential as only
Industry has huge growth potential as only Segment share
1.5% of the urban Indian population regularly
Home segment
practices workout
24%
•Demand for fitness equipment is attracting
companies from

76%

Institutional segment


Institutional sale is the largest segment; Treadmill is the most
popular fitness equipment
End – User segment

Residential
Residential Institutional
• Sold to individuals who prefer working • Bulk of equipments sold to health clubs/gyms and
out/exercising at home due to paucity of time or corporate houses
convenience • Equipments used by institutions are more sturdily
• Equipments used for residential purpose are
used for residential purpose are built and expensive compared to those used at home
built and expensive compared to those used at home
generally built with lighter materials • Quality is the prime consideration and buyers are
• Cost is the prime factor while making the buying ready to pay premium for better quality and
decision technologically advanced products

Top 3 Equipment in Home Segment Top 3 Equipment in Institutional Segment
Approx. Cost Approx. Cost
Treadmills
T d ill INR 35k – 0.15 mn
INR 35k 0 15 Treadmills
T d ill INR 0.2 – 0.6 mn
INR 0 2 0 6
Exercise Bikes INR 4k‐40k Dumbbells and Plates INR 14 ‐275 per kg
Mini Multi‐Gym INR 18k ‐0.10 mn Plate Loaded Fitness Equipment INR 26k‐0.45 mn

Note: Equipment prices are indicative


•Market Overview
•Trends
•Competition
•Key Developments



Challenges
Drivers
Lack of R&D Facilities in India
Lack of R&D Facilities in India
Indian becoming Health and
Fitness Conscious
Lack of Consumer Confidence in
Growing Demand from Indian Equipments
Companies
C i
Lack of Good Fitness Trainers
Entry of Foreign Fitness Chains/
Clubs
Lack of Space in Residential
p
Reduction in Prices and Import Complexes
Duties

Real Estate Boom
R lE B


Increasing health consciousness and demand from corporate
houses has spurred the industry growth
Indians becoming Health and Fitness Conscious Impact
• Rapid urbanization and changing lifestyle is making Indians health and fitness conscious
 Urban Indian consumer spends about 6% of his income on health and fitness
 Percentage of urban population In India working our regularly is still much below the global standards
Urban population working out regularly Type of Physical Activities Undertaken by Indians

20 17.5% Walking 84%

10 Physical workout / Aerobics
y 19%
1.5% Jogging/running 12%
0
Global Average India Yoga Walking
16%
Weight Training 5%
Cycling 5%
• Part of Indian population born after 1985, comprising of children and working singles, is
expected to drive the demand for fitness equipments in India
Growing Demand from Companies Impact
• I di I i
India Inc. is realizing the importance of employee fitness
li i th i t f l fit
• Big corporate houses are opting for an in‐house fitness centres
 Companies like Wipro, GE, Airtel have established modern gyms in their work places
• Many companies provide allowance for the gym membership
• S ll
Small enterprises with less than 50 employees opt for a corporate rate at local health clubs
i i hl h 50 l f l lh l h l b


Entry of foreign fitness chains and reduction in import duties to
increase the demand for fitness equipment
Entry of Foreign Fitness Chains/Clubs Impact
• Entry of foreign fitness chains in India has increased the demand for fitness equipment
Fitness Chain India Strategy
gy
Gold gym •Gold Gym has 18 gym facilities in various cities
•It plans to expand its operations using franchise route
Snap Fitness • Snap Fitness plans to open 250 gym clubs in tier‐I and II cities in India
Fitness One • Fitness One also proposes to have 150 centres
Fitness First • Fitness First plans to invest INR 2 bn by 2010 to roll out 15 large‐format gyms

Reduction in Prices and Import Duties Impact
• Reduction in import duties over a period is encouraging for the fitness equipment importers
• Fitness equipments can be imported at a low prices, thus making it more affordable
Import duty Reduction in Prices for Motorized Treadmill
INR
100
56% 100,000
60,000
50 36% 25% 50,000 20,000
0 0
1998 2005 2008 1995 2005


Real estate boom promoting  the health and fitness industry

Real Estate Boom Impact
• Every prestigious real estate project aims to give value for money by providing health club
facilities
• The realty boom has resulted in  exponential growth for the fitness equipment industry
• More and more gyms are coming up not only in residential complexes but also various malls in
India
 Fitness First opened a gym in Ambience mall in Gurgaon
 F t re Gro p has tied p ith Tal alkars Better Val e to offer fitness destinations in shopping mall The
Future Group  has tied‐up with Talwalkars Better Value to offer fitness destinations in shopping mall. The
50:50 joint venture is called Talwalkars Pantaloon Fitness


Domestic manufacturers face issues like lack of R&D facilities
and consumer confidence in Indian equipments
Lack of R&D facilities in India Impact
• Technological innovation and introduction of new products is a must for fitness equipment
manufactures
• However, Indian manufacturers lack such research and development facilities in the area of
fitness equipment
• Developing and sourcing technology that has accurate biomechanics is big hurdle for Indian
players

Lack of consumer confidence in equipments manufactures in India Impact
• Indian manufacturers tend to compromise on quality in order to keep the price low
Indian manufacturers tend to compromise on quality in order to keep the price low
• Many consumers lack confidence in Indian fitness equipment and prefer to use imported fitness
equipments which are superior in quality
• Hence fitness equipments manufactured by Indian manufacturers find it difficult to compete
q p y
with fitness equipments manufactured by international brands


Lack of good trainers and space constraint in residential
apartments hampering the growth of market
Lack of good fitness trainers Impact
• India does not produce knowledgeable certified trainers through any of the mainstream
educational institutions
 Nutritionists and physiotherapists are not job‐ready when they come out of college
• Fitness equipment distributors have to build a relationship with the trainers of health clubs/
corporate gyms as they influence the equipment buying decision of the owner
• Lack of knowledge among trainers about latest trends and products in fitness equipment
market hamper the growth of the institutional sales segment
market hamper the growth of the institutional sales segment

Lack of space in residential complexes Impact
• With the rise in real estate prices in India, very few people can afford to buy big apartment/flat
•AAverage size of an Indian house is 494 sq. feet in rural areas and 504 sq. feet in urban areas
i f I di h i 494 f i l d 504 f i b
• Small apartments leave very little or no space for installing a tread mill or a home gym
Household with less than 100 sq. ft. per person

60 55.0% 56.0%
55 0% 56 0%
46.0%
38.5%
40
Urban
20 Rural

0
1953-54 2006-07


•Market Overview
•Trends
•Competition
•Key Developments


Key Trends

Health Chains enter Equipment
Health Chains enter Equipment
Retailing Market

Trends

Introduction of Innovative Emergence of New Distribution
Products
P d t Channels
Ch l


Leading fitness chains are moving into equipment retailing; New
distribution channels have emerged in the market
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 Brand
 The company will sell equipment from Precor of the US and its in‐house brand ‘Propel Fitness’ capitalization
 The company will outsource the manufacturing of Propel Fitness equipment to Taiwan and Korea and increase in
• Talwalkar, Indian Fitness chain, plans to sell fitness equipments by opening store in shopping competition
malls
C
Company plans to open 50 ‘Talwalkars Fit & Active’ stores in shopping malls across the country by 2010
l t 50 ‘T l lk Fit & A ti ’ t i h i ll th t b 2010

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 Channels
• People prefer buying fitness equipments online as it allows product comparisons, saves time evolving beyond
and convenient brick and
• Tele‐shopping networks sell home fitness equipments through tele‐marketing mortar
 Abdominal exerciser is a popular fitness equipment sold through tele‐marketing


Manufacturers are launching new and innovative products

Introduction of Innovative Products
• Manufacturers enhancing the existing products with new features like Equipment
giving entertainment options in equipment
giving entertainment options in equipment manufacturers
f t
• Cardio machines with build in LCD TV screens, iPod connectivity and going beyond
Enhancing existing mobile phone chargers are available in market basic
products  Technogym’s has launched treadmill with an integrated TV and radio equipments
• New concept of time efficient machines which enables user to spend
p p
less time to remain fit as compared with conventional machines

• Singapore‐based company, OSIM and Indian manufacturer Proline
Singapore based company, OSIM and Indian manufacturer Proline
fitness have launched massage chairs for the Indian market
Introduction of new  These are pre‐programmed massage chairs which simulate the experience of a
live massage
products
• Power Plate International has tied‐up with Hero Motors Ltd to
introduce premium vibration devices in the Indian market
i d i ib i d i i h I di k
 Company has opened Power Plate Studios at The Club, Mumbai and Asian
Roots, Delhi


•Market Overview
•Trends
•Competition
•Key Developments


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
f l k f l d l d d
• Domestic fitness equipments are available at half the price any foreign brands

Government FDI • Indian government allows 51% FDI in single‐brand retail and 100% FDI in wholesale cash &
policy
li carry operations
carry operations
• Indian government is considering allowing foreign direct investment (FDI) to take a 49%
stake in multi‐brand retailers
• Foreign players market their products through distributors/importers in India
Franchisee Route
Franchisee Route • Foreign company can appoint a master licensee to market and distribute their brands
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
Sell directly to
Appoint end‐users
Foreign Players
Foreign Players Authorized
Authorized
Distributor
Appoint sub
dealers


Foreign Players (1/2)

Foreign Player Products India Strategy
Accell Fitness Tread mills, cycles, muscle • It has appointed Fitline as its marketing partner in India
trainers,  Ellipticals and Rowers • Accell Fitness is looking for growth in Tier I and II cities in
India
I di
Body Solid Home gyms, functional trainers, • Body solid has a tie‐up with Proline fitness for distribution in
free weight systems, free weight India
machines, benches and racks,
weights and dumbbells
weights and dumbbells
Cybex Treadmills, cross trainers, • Cybex is  distributing its products in India through FitLine
exercise bikes and various plate • Cybex is introducing latest technology products in India based
loaded equipment on its expertise in biomechanics, ergonomics and physiology
Horizon Fitness Treadmills, Elliptical Trainers, • Horizon Fitness distribute its products in India through Proline
Exercise Bikes, Ascent Trainer fitness

Life fitness Treadmills, elliptical cross
p • Life fitness has tied up Cardio Fitness for distribution
p
trainers, exercise bikes, summit • It has a tied up with HDFC Bank to offer finance loan to
trainers, home gyms and racks consumers upto INR 0.5 mn  for buying ‘Life’ fitness
equipment
• It is now planning to set up six company‐owned ‘Celebrate
Life’ showrooms in India at an investment of INR 100 mn

Note: This list is not exhaustive


Foreign Players (1/2)

Foreign Player Products India Strategy
Precor Cycles, Stretch trainer, strength • Precor has appointed Gympac as its sole marketing partner  in
systems, Treadmills, Elliptical India
Cross trainers and climbers
Cross trainers and climbers •AApart form hotels and fitness clubs Precor  is targeting
f h l d fi l b P i i
companies, which are setting up in‐house fitness centers
Nautilus Cycles, stepper, climber, • Nautilus has been awarded an over INR 50  million by
treadmills , dumbbells ,home Talwalkars, India's largest chain of health centers
gyms, ellipticals and benches
gyms ellipticals and benches • In India for its Bowflex range it has appointed Ace Sporting &
di f i fl i h i d S i &
Fitness for distribution
VibroGym Vibration machine based fitness • It has a distribution tie up with Trinity Healthcare Pvt Ltd
equipments • Launched two variants of the equipment ‐ 'VibroGym
Professional‘ and 'VibroGym Domestic‘
f ‘ ‘
• Recently sold its equipment to Bodyline gym in Bangalore
Vision Fitness Treadmills, Elliptical Trainers, • Vision Fitness has appointed Proline to distribute its products
cycles, Cardio and strength
products



Domestic Players

Indian Player Products Business Outlook
Asian Sports & Vibratory Belts , Home Gym, • The company also manufactures equipment custom built as per
Enterprises Abdominal Machine, client requirement
Motorised Jogger  , climbers
Motorised Jogger climbers • Th
The company is an authorized distributor of Cosco, Jonex, Silver,
i h i d di ib fC J Sil
and stair steppers 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
i i Plate loaded equipment,
l l d d i • It  manufactures most extensive line of free‐weight and multi‐station
f i li ff i h d li i
Pvt. Ltd cardio equipment ,racks and exercise equipment  in the industry
benches • Plans to introduce innovative products on a continuing basis
National Sports Weight lifting bars and • Manufactures custom built product according to client specifications
weight lifting plates
f

TI Cycles Treadmill, steppers and • Plans to launch an exclusive retail stores to sell fitness equipment
ellipticals • TI Cycles plans to offer financing schemes to customers and has tied
up with various firms
Other domestic manufacturers include Advansys, Bullworker Enterprises

Domestic manufacturers are involved only in low‐end fitness equipments



Distributors (1/3)

Indian Distributor Overview Foreign Tie‐ups
Ace Sporting & • Product range includes home gyms, treadmills, dumbbells, • Bowflex
Fitness climbers and various accessories
• Th
The company is based in Delhi the company distributes its
i b d i D lhi th di t ib t it
products through various sub‐dealers and organized retail
chains like Hometown and Homestop
Acme Fitness • Product range includes Cardio‐vascular equipments, • True Fitness, BH Fitness, Tuff
strength equipments and accessories
strength equipments and accessories Stuff, PaceMaster , Body‐
Stuff PaceMaster Body
• It has nation wide presence with centers in Chennai, Pune, Solid, Lexco, Octane Fitness,
Mumbai, Bangalore, Delhi, Cochin, Kolkatta and Coimbatore Concept2 , WaterRower
Cardio Fitness • It deals in treadmills, climbers, exercise bikes ,elliptical cross • Hammer Strength
trainers and plate loaded equipment
trainers and plate loaded equipment
• Cardio Fitness is based in Delhi with branches in Mumbai,
Hyderabad, Bangalore and Chennai
Cardiomed • Deals in Cardio Equipments, Strength Training, Functional • FreeMotion, Keyton, Jacobs
Training ,Sauna & Steam
Training Sauna & Steam Ladder, Pro court, and BSW
Ladder Pro court and BSW
• Cardiomed is based in Delhi with branches in Mumbai,
Bangalore, Hyderabad and Kerala

After sales service and geographical coverage of the distributors are the differentiating factor in this industry
After sales service and geographical coverage of the distributors are the differentiating factor in this industry



Distributors (2/3)

Gympac • Company deals in Elliptical cross trainers, treadmills, cycles, • Precor ,Hur and Inflight
strength systems
•GGympac is based in Chennai with branch offices in
i b d i Ch i ith b h ffi i
Bangalore, New Delhi, Pune, Hyderabad, Kochi and
Chandigarh
• The company has sales and after‐sales teams in all major
cities
cities
• In addition to hotels, fitness clubs and high‐net worth
individuals, Gympac is targeting companies, which are
setting up in‐house fitness centers
Grand Slam Fitness
Grand Slam Fitness • It has 70 exclusive fitness stores across India
It has 70 exclusive fitness stores across India • SportsArt Fitness Kettler and
SportsArt Fitness, Kettler and
• The company is planning to expand to 200 stores in the next Turbuster
two years
M.K. Marketing • The company deals in treadmills, ellipticals, rowers, strength • Maxfit, California fitness,
training equipment and various accessories
training equipment and various accessories sportop
• The company is based in Hyderabad



Distributors (3/3)

Proline Fitness • Company deals in Home gyms , bikes, ellipticals, treadmills • Horizon Fitness, Vision
and strength equipment Fitness, Matrix, Body Solid,
• P li Fit
Proline Fitness has a pan India presence with 58 exclusive
h I di ith 58 l i Johnson Health Tech. Co. Ltd
Johnson Health Tech Co Ltd
showrooms in over 35 cities with an effective and efficient
after sales back up
• Company plans to set up two stores in Sri Lanka
• The company plans to increase its presence in tier I and II
The company plans to increase its presence in tier I and II
cities
Stayfit • Product range includes Treadmills, bikes, Elliptical Cross • Icon Health & Fitness
Trainers, Steppers, Rowing machines, Multi gyms, Benches,
Massagers, Fitness accessories
Massagers Fitness accessories
• Stayfit is based in Bangalore and provides nation wide after
sales support
Trinity Healthcare • Trinity Healthcare deals in vibration machine based fitness • Vibrogym
equipment
• The company is expanding its business to West Asia and
South East Asia
• It has opened shops in Bangalore and Mumbai and plans to
p p
open a shop in Delhi



•Market Overview
•Trends
•Competition
•Key Developments


Key Developments

Date Development
14 ‐ Nov ‐ 2008 Cardio Fitness India Pvt Ltd, a fitness equipment company based in Delhi, is planning to increase its
retail outlets from the existing six to 30 with an investment of INR 200 mn in the next two years. The
company has tie‐ups with 16 global manufacturers, including Life Fitness of the US
31‐ Oct ‐ 2008 JMD Ltd, real estate developer, has partnered with Celebrity Fitness India Pvt Ltd for its retail mall ‐
JMD Regent Arcade on MG Road in Gurgaon. Celebrity Fitness will offer fitness solutions through
professional personal trainers, gym equipment and spa.
25 Sep
25 ‐Sep ‐ 2008 Gym and fitness training to equipment retailing company, FitnessOne, is now working on establishing
y g q p g p y, , g g
large‐format sports centres, where the company will extend functional fitness training to
sportspersons apart from fitness freaks
12 ‐Sep ‐ 2008 TI Cycles of India, part of the Murugappa Group, as part of its retail expansion plan intends to open
120 exclusive stores across the country , stores would be a one‐stop premium stores for all bicycling,
fitness equipment, sports and infant products
fitness equipment sports and infant products
24 ‐June ‐2008 Singapore‐based OSIM International Ltd is planning to set up another 100 exclusive brand outlets in
India as it is eyeing a six‐fold increase in turnover for its Indian arm in the next four years. Its product
portfolio includes foot reflexology products, handheld massagers, eye care massagers; foot massager
is the biggest contributor to its revenue.


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Market Research India - Fitness Equipment Market in India 2009

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