Asian Fitness in a 'State of Flux'

The fitness industry in the Asia-Pacific region is in a "state of flux" according to the third edition of the International Health, Racquet & Sportsclub Association (IHRSA) Asia Pacific Market Report.

Citing China and India as "bright spots", the report also highlights high profile failures in Taiwan and South Korea as having affected consumer confidence in fitness centres.

In Australia and New Zealand, the report comments on the market being "mature", referring to membership penetration rates of 12.4% in Australia and 10.8% in New Zealand. (The Australian figures contrasts with a suggested membership penetration rate of 19% in the 2007 report â a figure that was widely believed to have been over-optimistic).

IHRSA's third edition of its Asia Pacific Market Report is produced in cooperation with consultants Deloitte, and sponsored by Matrix Fitness Systems. It provides comprehensive information on 14 counties and expanded data on many of their major cities. It examines such factors as market size and potential; membership penetration rates; average monthly membership; number of clubs; market share of the top five club companies; and economic outlook.

In China, the report states that the "fitness market grew their number of sites by a combined average of 35% compared to 2007, and like-for-like membership in the same 10 cities we surveyed in 2007 rose 13%, hitting 2.6 million people. Based on our new sample of 10 cities, gym membership in China reached 2.9 million people in 2008."

The report also expresses concern at "the relatively high member-churn rates across the region - some as high as 70%-80% per year. While employment and housing changes are significant contributing factors, the high turnover may also be attributable to the Asia Pacific industry's evolution from a supply-driven to a demand-driven model."

It also reports that "in more mature markets, such as those in Australia, New Zealand, Hong Kong, and Singapore, international companies play a stronger, more major role, and are continuing to expand their positions. Market segmentation is also increasing in these areas.

"Another emerging trend in the Asia Pacific market is the growing popularity of the 'club house', or apartment fitness centre, in new residential developments ⦠utilised as a 'draw' to attract prospective renters or buyers.

The Report's predictions for the coming year are:

• Continued consolidation in the industry
• More sophisticated market segmentation
• Continued interest in the industry by financial buyers and investors in selected markets
• More local chains extending their reach throughout the region
• Growth of fitness trends, such as yoga and Pilates
• Continued promotion and education about personal training
• Increased use of monthly auto-debit payments

The IHRSA Asia Pacific Market Report is available in a convenient downloadable PDF format from the IHRSA website.

A summary of the report is available from www.ihrsa.org/index.cfm?fuseaction=page.viewPage&pageID=20023&nodeID=15