Presentation for Bella Mahl 2024-03-28-24-MW-Overview-Bella.pptx
Study on the growth of fitness equipment
1. “Study on the growth of fitness
equipment industry in India”
Prepared by
Khan Mohammad Yaseen
Under guidance of
Prof. Sandeep Sawant
2. IMRB International
• Company Overview
Type : Subsidiary
• Founded : 1970
• Founder : Hindustan thompson
Associates
• Headquarter : Mumbai Maharashtra
India
• Services : Market Research,
3. 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.
4. 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.
5. 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
6. 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
7. 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, 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.
8. 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.
9. 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,"
•
10. 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….
11. 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.
15. Market Segmentation
• The fitness equipment industry can be divided
into two segments as
• 1) Residential or Home Segment
• 2) Institutional Segment
16. 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
17. 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 : INR 2lac – 6lac
Dumbbells and Plates : INR 14 – 275 per kg
Plate loaded Fitness Equipments : INR 26k – 4.5lac
18. Major Players
There are many international and domestic players in the fitness
equipment industry some of are
19. 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
•
20. 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…
21. 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 tele-
marketing
- Abdominal exerciser is popular fitness equipment sold through Tele-
marketing
22. 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
23. 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
24. 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…..
25. 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
26. Current Scenario
Nautilus
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…..
27. 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
28. 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.)
29. Conclusion
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.