The Fitness Industry in India

The Fitness Industry in India:

The Potential Growth of the segment in coming years

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        Report by:

                                Ankur Pratim Deori

                                IIM Calcutta | 2016-18

                                Rhiti Group | Intern

CONTENTS

1. Executive Summary……………………………………………………03

2. Introduction to the Fitness Ecosystem…………………………………05

3. The Consumers…………………………………………………...........08

4. The Providers…………………………………………………………..09

5. The Adjacent Industries………………………………………………..11

6. The Facilitators…………………………………………………...........12

7. The Government……………………………………………………….13

8. Industry Trends…………………………………………………...........14

9. Key Growth Drivers……………………………………………...........17

10. Major Industry Players……………………………………………….18

11. 7-P Analysis…………………………………………………………..20

12. Porter’s Five Forces Analysis…………………………………...........23

13. SWOT Analysis………………………………………………………25

14. Challenges……………………………………………………………27

15. The Way Forward……………………………………………………29

16. Recommendations……………………………………………………31

17. Glossary……………………………………………………………...33

18. Citations……………………………………………………………...35

EXECUTIVE SUMMARY

        This report titled ‘The Fitness Industry in India: The Potential Growth of the segment in coming years’ presents a comprehensive analysis of the fitness services being used in the country by revenue along with the market segmentation by pricing, organizational structure, city-wise concentration for fitness services and by end users, growth drivers, and competitive scenario of major players in the India Fitness Services and Equipment Market.

        The fitness services and equipment market in India has low penetration and has ample scope for growth in the future. The growth in the India Fitness Services and Equipment Market has been largely impelled by the augmenting demand for fitness services because of rising lifestyle diseases and obesity. Increasing demand for fitness services and equipment, as contributed by the factors such as high population growth, rising disposable incomes and increasing youth population in India is anticipated to further stimulate the country’s overall fitness services and equipment market in the following years. There has been increasing demand for fitness services in the country. The increase in the fitness services market has been observed because of factors such as penetration in corporate sector, introduction of new age fitness services such as Zumba, Pilates, EMS (Electric Muscle Stimulation) and others.

        The Health and Fitness Industry in India has evolved rapidly from its nascent unstructured beginning in the early 90s to a comprehensive ecosystem today which includes consumers, providers, adjacent industries, facilitators and the Government.

        • Consumers: The Consumers mainly comprise of a young population with rising income levels. They have an increasing need to look good and feel good and this has led these young consumers to seek fitness solutions to meet lifestyle challenges.

        • Providers: The Providers are the ones who offer fitness services and products to meet the hygiene, curative and enhancement needs of the consumer.

        • Adjacent Industries: The adjacent industries such as healthcare, media, retail, gaming, hospitality and education are capitalizing on the growth of the fitness sector to generate additional revenue streams, leverage existing competencies and offer a wider array of services/products to customers.

        • Facilitators: The Facilitators include employers, insurance companies and schools, who are likely to play a key role in encouraging and inculcating pro-fitness habits among consumers going forward.

        • The Government: Here, the Government wears multiple hats in its roles as a provider, facilitator, enabler and regulator in the industry. Major chunk of the business lies in Fitness and cosmetics products and services. Gym service and Gym equipment generate a large part of it.

The Health and Fitness Industry: A Billion-Dollar Opportunity

        The overall Health and Fitness market in India is estimated at around INR 1.35 Trillion today. This industry includes both fitness products and services. Fitness services alone comprise 40% of this market. Some of the key industry trends include:

• The growing Health and Fitness industry in India has attracted many domestic entrants and international players. For example, Anytime Fitness, Gold’s Gym, Fitness First, SportsFit World, Talwalkars, Snap Fitness, etc.

• Established players are pursuing revenue maximisation through product and service diversification and are exploring new global and domestic markets. Franchising is emerging as a popular option for scaling up.

• Companies are actively seeking public and private equity investments to fuel their growth.

• While there is strong optimism about future growth prospects, recovery of investments may spread over a longer horizon than anticipated. This is because the customers acquisition rate is slow, but this industry is known for loyal customers and as the country is slowly getting more concerned with health and fitness, this industry is looking towards a big profit.

• There exists an opportunity for micro-segmentation to develop more targeted value propositions for consumers and commercialisation of traditional Indian home remedies.