Like other industries, the fitness industry is cyclical. Underpinned by the changing focus of investors and the characteristics of the ‘new generation’ of consumers and employees, the sector matures and renews every 5-10 years.
COVID-19 accelerated this process around the world, and the Philippines is no exception.
Tell-tale signs of this market development include mergers of existing brands, established operators consolidating their portfolios, and local brands popping up seemingly overnight. The consumer market has recovered from the pandemic, but with renewed focus on the importance of community and a heightened awareness of the importance of maintaining a healthy lifestyle.
Now more than ever, today’s consumers demand access to affordable, fuss-free fitness facilities without membership complications.
Armed with an awareness of these changes, it is possible for savvy investors to find unique opportunities to grow and enhance their investment portfolios.
For aspiring entrepreneurs & seasoned investors
“It is not the strongest of brands that survive, nor the most intelligent, nor the oldest; but the ones most responsive to change.”
How to select the right fitness brand?
Linking with an international brand gives immediate credibility in the eyes of the consumer and a springboard for a highly profitable business. But with so many options, how do you choose the right franchise/licensing partner?
Here are some tips for your due diligence:
1. Understand the earning model of the brand – monthly fees, variable costs, added vendor costs, hidden renewal costs and more. Your operational costs can be so much more than just royalty fees.
2. Understand the exit strategy of the ‘brand holder’ – and how this will affect the value of your investment during and at the end of your franchise/license term.
3. Ensure the availability of local support visits – very important is the availability of experienced gym operators with deep experience in your own market and the skills to coach and guide you on your entrepreneurial journey. From initial site selection, to hiring key staff and maximising presales, to ongoing margin refinement and simply dealing with the day-to-day challenges of running a successful business, experience is everything. Remember, there is a huge difference between a team of experienced gym operators and a license/franchise development (sales) team – you need them both!
4. Choosing the right model is critical – all gyms aren’t created equal. Partnering with a Franchise/ License model that leverages modern technology to drive efficiency will give you a competitive edge and long-term sustainability. Look for a brand that is “fresh”, flexible and appeals to a wide consumer audience. Remember, consumers often assume that new versions of products and services are better!
GoFit Choa Chu Kang is the latest club to open in Singapore.
For gym owners
“Expect change. Analyse the landscape. Take the opportunities. Stop being the chess piece; become the player. It’s your move.”
Already in the gym or fitness centre business? Then converting an existing gym business model into a new one is a smart way to refocus your investment and adjust to the new generation of consumers and employees for the next 5 to 6 years. This can often be easier than you think.
Backed by Evolution Wellness Group, Asia’s most experienced health and fitness operator, GoFit is entering the Philippines market. We’re looking for ambitious operators, investors and development partners who want to help us redefine the fitness industry.
• Are you aware of the opportunity to convert your gym to a GoFit? It might be easier than you think.
• Would you like to sell your gym? We’d love to hear from you.
For an open conversation on the opportunities we provide, drop us a line at [email protected] or leave your details with us and we’ll be in touch.
