The fitness retail industry stands at INR4,579 Cr, with a CAGR of 16-18% and is expected to surpass INR 7,000 crore by the end of 2017. On the other hand, Modern retail is estimated at 28 per cent of this total market and is predicted to grow at a CAGR of 22-27% according to an article by Iamwire. Gyms are flourishing as Indians see a rise in disposable income and as lifestyles challenges youth in terms of lower immunity against diseases. People from all age groups can be seen engaged in different types of exercising regimes. A wide increase in the number of diabetes and obesity cases has also accelerated the growth in the sector. Gym advertisements are everywhere you go, newspapers, flyers, roadside hoardings. These fitness places are extensively using social media platforms for reach out to more and more customers. This is important in order to make your gym popular amongst masses and increase health clubs and gym memberships. The gym is no more a luxurious service for Indians it is more of a need to lead a healthy life. Not only in metro cities but also in tier 2, 3 cities and also in smaller towns, people are opting for gyms and other fitness centres. The health fitness oriented generation desires to appear and feel good at any cost which is further pushing the growth in the sector.
Trends in the market
- Rise in Gym franchise hybrid route- Many investors are entering in the sector by using the hybrid route and by buying franchises of successful and famous gyms like Talwalkar, Gold Gym etc.
- The rise in female gym member- Almost 45percentage of the members of the gym are female taking fitness and gyming seriously. Various health problems namely osteoporosis, arthritis, depression reduction of bone density led women fitness very seriously. Breast cancer takes lives of many women and is the second most widespread kind of cancer in India.
- Reign of the Unorganised sector- Almost 72% of the gym and fitness centres are run by the unorganised sector while the organised sector has a market share of just about 28%.
- Adoption of Power Yoga and Strength Training- People are moving towards power yoga practice which increases flexibility, strength and stamina and strength training which makes one fitter, stronger and develops better body mechanics.
- Adoption of diet plans- As we all know that a diet plays 70% of the role in weight loss and healthy living. Thus, we can see a movement of Indians toward healthy food options like salads and fruits.
Key Growth Drivers
- Urbanisation- India is also going through an increasing rate of urbanisation with more and more number of Indians moving to the cities and towns for different reasons.
- Rise in Disposable income-Given to the rising disposable incomes, there is seen a remarkable shift in the lifestyle and so in the gym industry where people are willing spending.
- Large young population- Youth of the country is highly conscious about their looks and this makes them hit the gym and keep themselves in shape. It is also important in order to keep up with the ongoing fashion trends.
- Self-awareness in terms of appearance- People of all age groups is now becoming conscious about their about their appearance. Be corporate workers or housewives, everyone wants to look presentable.
- Increase in lifestyle diseases obesity- In recent time as the lifestyle of Indians has gone through a shift and still changing, lifestyle disease cases have grown manifolds. This includes diabetes and obesity; these virtually pushed Indian toward joining gyms and keeping healthy.
- Industry free from economic slowdowns- This industry does not seem to be affected during the time of economic slowdowns or recessions as people are not likely to leave their fitness activities in any economic cycles.