2. Fitness Industry in India
High market fragmentation
High Market potential and end-to-
end overall growth.
Several new business models
emerging.
Estimated to cross INR 7,000 Crore
(US$ 1.18 bn) by the year 2017.
Growth rate: 16-18%.
Organised market is estimated at 28
per cent of this total market and is
expected to grow by 22-27 percent.
3. The fitness oriented customers – Age group of 20 to
40 years.
Post-40 working out to fight health issue or by
doctor’s advice.
Earlier male population was major customer
segment. Today, 45% of the members are female.
Easy access to the internet, TV and technology
brought shift in perspective of woman taking to
fitness.
Fitness Industry in India
4. Top 5 players consist of 15% of market
compared to 40 % in Japan and Singapore.
5. Market Trends
Market penetration rate - 0.5%.
Organized fitness market is concentrated in top
eight cities of India - Delhi NCR, Mumbai,
Bengaluru, Chennai, Kolkata, Pune, Hyderabad and
Ahmedabad with more than 60% of top companies
located here.
High real estate prices will lead to more centres in
Tier 2 and Tier 3.
6. Key Growth Drivers
Growing disposable income and higher discretionary
expenditure.
Rising lifestyle diseases, obesity, diabetes.
Rising awareness of healthy lifestyle among Indians.
Industry least affected by slowdown in economy.
Growing young population which is the target
market.
Rapid urbanization and westernization.
7. FitServ - Introduction
Indian fitness industry is undergoing a revolution.
Muscular and toned bodies of celebrities and
fashion icons coupled with healthy lifestyles are
making Indian consumers embrace fitness like
never before.
Spending on fitness was earlier seen as a luxury,
but now it is a way of life.
People are coming to terms with the fact that those
who exercise regularly are happier and healthier
compared to those who don’t.
8. About FitServ
Aggregator for fitness service providers.
Our customer can use any of our partner gyms in
any city.
We would also support ‘pay–as-you-go’ model,
which would allows users to book workout sessions
with gyms.
Help consumers find gyms, aerobic classes, and
yoga centres.
Provide information about trainers and professionals
Provide platform to manage workout plans and diet
plans.
9. Mission
“Provide a unique marketplace platform which would
enable users to search, discover and analyse various
forms of fitness programs and experiences.”
Vision
“Create India’s largest fitness discovery and booking platform
– one stop for anything related to fitness.”
10. Services
Search and Compare gyms, fitness centres and yoga
centres in your locality.
Trial sessions at gyms and other centres to assist user in
making the right choice.
Buy memberships across various fitness centres.
User profile to help in managing membership and
rewards.
Nutritionist and physiotherapist advice.
Free BMI And BMR evaluation.
Personalised diet chart and exercise regime for
customers.
11. Environment Analysis - SWOT
STRENGTHS
-Customised diet and fitness plans
according to consumer’s body type and
around his/ her schedule.
-Free trials for one week on first time sign
ups.
-Fitness centre comparison for convenience.
-The website is easily accessible and mobile
friendly.
OPPORTUNITIES
-Annual growth rate of 16-18%
-Convenience: key missing element, hence adding this
on smart phones(online) will help bridge that gap.
-The key growth drivers of the industry include:
Rise in lifestyle related diseases like diabetes and
obesity.
Rising health awareness and increased health
consciousness
The younger population is trying out a mix of workouts
like Zumba, Pilates, MMA and Kickboxing.
The sector is fragmented and there is a need to
consolidate the sector into one organised sector
WEAKNESS
-Since we are a new venture we have
THREATS
-Competition from larger, well established competitors.
12. Competitor Analysis
Fund raised: Seed fund of $135,000
Later, it raised $2 million through Brand Capital.
Focus areas: Aerobics, gym, zumba, dance, dietitian,
physiotherapy, and yoga
Traction: Over 6,000 centres and 4,000 trainers listed on
its website, with presence in Bengaluru, Mumbai and
Delhi-NCR and receiving 2,000 plus daily unique visitors
13. Funding raised: Undisclosed
Proposition: information on sports, coaching academies, sports
clubs, gyms and fitness centres, book personal training sessions for
yoga, fitness, self-defense, nutritionists, and dietitians etc while also
allowing users to book grounds or courts for various sports. They
have a monthly pass facility as well
Traction: Present in five cities. It supports 25 sports with 50+
activities. Members with a pass facility, which is live in Delhi NCR,
can subscribe to 250 facilities across 40 activities
14. Funding raised: Pre-series A investment of $1.1 million
led by TV Mohandas Pai’s Exfinity Venture Partners.
Propostion: It is an online hyperlocal discovery and
booking platform for fitness programmes including gyms,
yoga, zumba, marathons, and cross fit training.
Traction: 8,000 listings across Mumbai, Bengaluru, Delhi
and Pune, with more than 65,000 users accessing
different fitness options.
Their engagement and repeat rate was placed at 25 per
cent, according to the founder.
15. Funding raised: Undisclosed
Proposition: With a ‘pay–as-you-go’ model, Gymer works
as a mobile app and web-based service, which allows
users to book workout sessions with gyms.
The platform aims to tackle the persistent issue of
members paying heavy fees and not returning to the gym.
Traction: Partnered with over 180 gyms across Bengaluru
16. Funding raised: Angel round of close to Rs 2 crore
Proposition: Operational in five cities including , the
platform allows customers to not just buy gym
membership but also book hourly sessions. Taking an
app-only approach, it also allows users to book group
sessions like
Focus areas: Yoga, zumba, crossfit, martial arts,
and sporting activities like swimming, skating, and
summer classes
Traction: New Delhi, Mumbai, Pune, Bengaluru and
Bhubaneshwar
Over 780 fitness centres, and clocked 3,030
transactions in the first 40 days of starting operations.
Every day, the platform is adding 10 centres while
closing almost 150 transactions across locations.
17. OPERATIONAL PLAN
Partner with gyms in the major cities. Starting with
tier 1 cities and further expanding to tier 2 cities.
Classify them on the basic of membership fee into
three classes – A, B & C
◦ A : 25,000 or above.
◦ B : 20,000
◦ C : 15,000 or below
App development
Launch and marketing.
18. Platform to get new
customers.
Updates about new trends in
fitness industries
Profiles and history of
customer coming to their
gym.
Certification for trainers of
associated gyms
Fit-serve
services for
Gyms
19. Fit-serve
services
for
customers
Help you find
best suited gym
for you.
Customised diet
and exercise
regime based
on customer
profiles
Flexibility to use
partner gym
while traveling.
Nutritionist and
physiotherapist
advice on
regular basis.
Regular
updates about
new exercises
and nutritional
profile.
20. FINANCIAL PLAN
Grade
Membershi
p Fee
(Annual)
Year 1
Cash Inflow
Commissio
n Fee (5%)
Grade A 25,000 20,000,000 1,000,000
Grade B 20,000 24,000,000 1,200,000
Grade C 15,000 75,000,000 3,750,000
Total (INR) 119,000,000 5,950,000
Year 1 Annual (INR)
Monthly
(INR)
Revenue 5,950,000 495,833
Total Revenue 5,950,000 495,833
Expenses:
UI/UX Developer 1,680,000 140,000
Customer Support Team 1,500,000 125,000
Marketing Expenses 1,800,000 150,000
Web Server Expenses 300,000 25,000
Office Rent 600,000 50,000
Office Set-up (Capex) 500,000 41,667
Total Expenses 6,380,000 531,667
Profit / (Loss) (430,000) (35,833)
21. FINANCIAL PLAN
Year 2
Annual
(INR)
Quarterly
(INR)
Revenue 6,902,000 1,725,500
Total Revenue 6,902,000 1,725,500
Expenses
UI/UX Developer 1,932,000 483,000
Customer Support
Team 1,725,000 431,250
Marketing Expenses 2,070,000 517,500
Web Server Expenses 345,000 86,250
Rent 600,000 150,000
Total Expenses 6,672,000 1,668,000
Profit / (Loss) 230,000 57,500
Year 3 Annual (INR)
Revenue 8,006,320
Total Revenue 8,006,320
Expenses
UI/UX Developer 2,221,800
Customer Support Team 1,983,750
Marketing Expenses 2,380,500
Web Server Expenses 396,750
Rent 660,000
Total Expenses 7,642,800
Profit / (Loss) 363,520
22. MARKETING PLAN
Phase Span Objective
1 Year 1 To create Brand Awareness among our target customers
and bringing customers onboard through 10000 App
downloads.
2 Year 2 Customer engagement. To convert downloads into
memberships with adequate focus on retaining the early
adaptors of our service.
3 Year 3 10-20% increase in customer base with adequate attention
to our loyal customers.
4 Year 4 To build a formidable Fitness brand, with strong brand
salience and brand identity.
23. Marketing Mix
Product: We are a App-based Fitness aggregator and consultant.
This means that our product is our App and service is customer
experience with various partner gyms. The App aesthetics and user
friendliness are critical to a good customer experience.
Price: We are charging customers on annual basis for membership.
There are three variants to this, Grade A,B and C. Their respective
fees are 25000, 20000 and 15000. Our consultancy services come
complimentary with our memberships.
24. Marketing Mix
Place: The idea is to establish a nation wide network of partner
gyms and become a one stop solution for fitness. Being an App
based venture there is no one particular place.
Promotion: Leveraging Social media: Youtube, Facebook,
Instagram, Snapchat, Whatsapp. Writing blogs which encourage
maintaining fitness even while travelling, Collaborating with fitness
icons and fitness experts for influencer marketing, One full month for
free to select first 100 customers, Fitness magazines and
newspapers. Some attractive schemes for customers who refer our
app to others (friends,family etc) like if the referred individual
becomes a member, the one who referred him gets one extra month
of service for free.
25. Risk Assessment for FitServ
Aggregators giving subsidies and incentives to customers and
suppliers to gain market share and traction.
◦ If this trend continues business will not sustain
◦ Test the model without incentives and discounts to know its
viability in long term
Competition from current players in market like Fitternity , Gymer
etc .
Perception of ‘not adding any real value’
Switching cost low for the customer – due to pay as you go model
customer can use other aggregators
Gym owners to switch to alternate aggregators.
