The fitness industry in India has travelled a long way from the local ‘akhadas’ to wrestling, being a part of the international Olympics.
Indian fitness industry is driving towards health, well-being, confidence, and good looks, opting resistance training in gyms, aerobics, Zumba, kickboxing etc. The market for fitness in India is growing at 19-20%, which is estimated to cross Rs 7000 Cr by 2018. Following the trend, body building and aerobics training has increased among men and women respectively. Revenue is expected to show an annual growth rate (CAGR 2018-2022) of 10.4%, resulting in a market volume of US$2,351 million by 2022.
Location of a gym plays a significant role in the brand’s success. The location should be decided, keeping the target customer in mind. People usually don’t prefer to go far out to fulfill their fitness needs. An area where there is a demand for a gym, easily accessible by the clients, and where competition is minimal can be considered as the best location for establishing a gym. Unless you own gym’s building outright, rent is one of gym’s operating expenses. Rent can vary from location to location, which can increase the membership price for the clients.
A proper R&D is required in order to understand the local people residing in the area around a gym location. Making phone calls or conducting door-to-door surveys can be conducted to determine the age, sex of individuals, and physical activity level of the residents in the targeted area. A proper research provides the owner a skeleton of how things should work in order to make the brand successful.
Opening a gym costs some money, like any other business from obtaining the space for gym, buying equipments, or modifying a building to accommodate the needs of a gym. Hiring staffs and trainers, followed by registration fees can act as cost barriers while opening a gym. Thus, it is important to raise the money by persuading investors or simply getting loan from a bank. Friends and families can also contribute to the funding part if required. A detailed business plan should be drafted, informing how the business will benefit the people as well as the brand.
Opening a franchise gym can be a lucrative option, rather than an independent-operated gym. Via franchise, the owner gets to run a gym for a large chain with many other locations. A franchise either covers the initial cost of opening the gym or provides for the equipments. However, in a franchise, most of the profits from the gym belong to the parent company. A franchisor offers a recognizable and established brand with training opportunities and connections to the franchisee. It’s mandatory to carefully research for the pros and cons of a franchise agreement and an independent model before stepping into the business.