Market Research India - Fitness Equipment Market in India 2009
Market Research India - Fitness Equipment Market in India 2009
April2009
ExecutiveSummary
EstimatedworthINR12.5bnIN2008;ExpectedtoreachINR63.3bnby2012 Annualgrowthrateof50% Keysegments :HomesegmentandInstitutionalsegment Typesoffitnessequipments:CardiovascularEquipmentandWeightTrainingEquipment
Market
Drivers:
Challenges:
LackofR&DfacilitiesinIndia Lack of consumer confidence in Indian LackofconsumerconfidenceinIndian equipments Lackofgoodfitnesstrainers Lackofspaceinresidentialcomplexes
Trends
Competition
MarketisdominatedbyforeignbrandslikePrecor,Cybex,Nautilus ForeignequipmentbrandshavedistributiontieupswithIndiancompanies AlargenumberofimportersandsmallplayerscompeteforashareintheIndianfitness A large number of importers and small players compete for a share in the Indian fitness equipmentindustry
FITNESSEQUIPMENTMARKET INDIA.PPT
FITNESSEQUIPMENTMARKET INDIA.PPT
Fitnessequipmentindustryhasahugegrowthpotentialasonly afractionofurbanIndiapracticesworkoutregularly
Overview
FitnessequipmentmarketworthINR12.5bn in2008 Fitnessequipmentscanbeclassifiedas
CardiovascularEquipments: Treadmills, Stationarybicycles,Stairclimbers,Rowing machines,Ellipticalcross trainers machines, Elliptical crosstrainers WeightTrainingEquipment: Weightlifting machines,barbells,varioustypesofbenchesbars andracks
50 5.6 56 0 8.3 83 12.5 18.8 28.1
MarketSizeandGrowth
INR bn
100 63.3
+50%
42.2
2006
2007
2008
2009
2010
2011
2012
Industry has huge growth potential as only Industryhashugegrowthpotentialasonly 1.5%oftheurbanIndianpopulationregularly practicesworkout Demandforfitnessequipmentisattracting companiesfrom
Segmentshare
Home segment 24%
FITNESSEQUIPMENTMARKET INDIA.PPT
Institutionalsaleisthelargestsegment;Treadmillisthemost popularfitnessequipment
End Usersegment
Residential Residential
Soldtoindividualswhopreferworking out/exercisingathomeduetopaucityoftimeor convenience Equipments used for residential purpose are usedforresidentialpurposeare generallybuiltwithlightermaterials Costistheprimefactorwhilemakingthebuying decision
Institutional
Bulkofequipmentssoldtohealthclubs/gymsand corporatehouses Equipmentsusedbyinstitutionsaremoresturdily builtandexpensivecomparedtothoseusedathome built and expensive compared to those used at home Qualityistheprimeconsiderationandbuyersare readytopaypremiumforbetterqualityand technologicallyadvancedproducts
Top3EquipmentinHomeSegment
Approx.Cost Treadmills T d ill ExerciseBikes MiniMultiGym
Note:Equipmentpricesareindicative
Top3EquipmentinInstitutionalSegment
Approx.Cost Treadmills T d ill DumbbellsandPlates PlateLoadedFitnessEquipment INR0.2 0.6mn INR 0 2 0 6 INR14275perkg INR26k0.45mn
FITNESSEQUIPMENTMARKET INDIA.PPT
FITNESSEQUIPMENTMARKET INDIA.PPT
Drivers&Challenges
Challenges Drivers IndianbecomingHealthand FitnessConscious GrowingDemandfrom Companies C i EntryofForeignFitnessChains/ Clubs ReductioninPricesandImport Duties RealEstateBoom R lE B LackofR&DFacilitiesinIndia Lack of R&D Facilities in India LackofConsumerConfidencein IndianEquipments LackofGoodFitnessTrainers LackofSpaceinResidential p Complexes
FITNESSEQUIPMENTMARKET INDIA.PPT
Increasinghealthconsciousnessanddemandfromcorporate houseshasspurredtheindustrygrowth
IndiansbecomingHealthandFitnessConscious
RapidurbanizationandchanginglifestyleismakingIndianshealthandfitnessconscious
UrbanIndianconsumerspendsabout6%ofhisincomeonhealthandfitness PercentageofurbanpopulationInIndiaworkingourregularlyisstillmuchbelowtheglobalstandards
Impact
Urbanpopulationworkingoutregularly
20 10 0
TypeofPhysicalActivitiesUndertakenbyIndians
Walking Physicalworkout/Aerobics y 84% 19% 12% Walking 16% 5% 5%
PartofIndianpopulationbornafter1985,comprisingofchildrenandworkingsingles,is expectedtodrivethedemandforfitnessequipmentsinIndia
GrowingDemandfromCompanies
I di I i IndiaInc.isrealizingtheimportanceofemployeefitness li i th i t f l fit Bigcorporatehousesareoptingforaninhousefitnesscentres
CompanieslikeWipro,GE,Airtelhaveestablishedmoderngymsintheirworkplaces
Impact
Manycompaniesprovideallowanceforthegymmembership S ll Smallenterpriseswithlessthan50employeesoptforacorporaterateatlocalhealthclubs i i hl h 50 l f l lh l h l b
FITNESSEQUIPMENTMARKET INDIA.PPT
Entryofforeignfitnesschainsandreductioninimportdutiesto increasethedemandforfitnessequipment
EntryofForeignFitnessChains/Clubs
EntryofforeignfitnesschainsinIndiahasincreasedthedemandforfitnessequipment FitnessChain Goldgym SnapFitness FitnessOne FitnessFirst IndiaStrategy gy GoldGymhas18gymfacilitiesinvariouscities Itplanstoexpanditsoperationsusingfranchiseroute SnapFitnessplanstoopen250gymclubsintierIandIIcitiesinIndia FitnessOnealsoproposestohave150centres FitnessFirstplanstoinvestINR2bnby2010torollout15largeformatgyms
Impact
ReductioninPricesandImportDuties
Reductioninimportdutiesoveraperiodisencouragingforthefitnessequipmentimporters Fitnessequipmentscanbeimportedatalowprices,thusmakingitmoreaffordable Importduty
100
Impact
ReductioninPricesforMotorizedTreadmill
INR
56%
50 0
100,000
36%
60,000 20,000
25% 2008
50,000 0
1998
2005
1995
2005
FITNESSEQUIPMENTMARKET INDIA.PPT
Realestateboompromotingthehealthandfitnessindustry
RealEstateBoom
Everyprestigiousrealestateprojectaimstogivevalueformoneybyprovidinghealthclub facilities Therealtyboomhasresultedinexponentialgrowthforthefitnessequipmentindustry Moreandmoregymsarecomingupnotonlyinresidentialcomplexesbutalsovariousmallsin India
FitnessFirstopenedagyminAmbiencemallinGurgaon F t re Gro p has tied p ith Tal alkars Better Val e to offer fitness destinations in shopping mall The FutureGrouphastiedupwithTalwalkarsBetterValuetoofferfitnessdestinationsinshoppingmall.The 50:50jointventureiscalledTalwalkarsPantaloonFitness
Impact
FITNESSEQUIPMENTMARKET INDIA.PPT
10
DomesticmanufacturersfaceissueslikelackofR&Dfacilities andconsumerconfidenceinIndianequipments
LackofR&DfacilitiesinIndia
Technologicalinnovationandintroductionofnewproductsisamustforfitnessequipment manufactures However,Indianmanufacturerslacksuchresearchanddevelopmentfacilitiesintheareaof fitnessequipment DevelopingandsourcingtechnologythathasaccuratebiomechanicsisbighurdleforIndian players
Impact
LackofconsumerconfidenceinequipmentsmanufacturesinIndia
Indian manufacturers tend to compromise on quality in order to keep the price low Indianmanufacturerstendtocompromiseonqualityinordertokeepthepricelow ManyconsumerslackconfidenceinIndianfitnessequipmentandprefertouseimportedfitness equipmentswhicharesuperiorinquality HencefitnessequipmentsmanufacturedbyIndianmanufacturersfinditdifficulttocompete q p y withfitnessequipmentsmanufacturedbyinternationalbrands
Impact
FITNESSEQUIPMENTMARKET INDIA.PPT
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Lackofgoodtrainersandspaceconstraintinresidential apartmentshamperingthegrowthofmarket
Lackofgoodfitnesstrainers
Indiadoesnotproduceknowledgeablecertifiedtrainersthroughanyofthemainstream educationalinstitutions
Nutritionistsandphysiotherapistsarenotjobreadywhentheycomeoutofcollege
Impact
Fitnessequipmentdistributorshavetobuildarelationshipwiththetrainersofhealthclubs/ corporategymsastheyinfluencetheequipmentbuyingdecisionoftheowner Lackofknowledgeamongtrainersaboutlatesttrendsandproductsinfitnessequipment markethamperthegrowthoftheinstitutionalsalessegment market hamper the growth of the institutional sales segment
Lackofspaceinresidentialcomplexes
WiththeriseinrealestatepricesinIndia,veryfewpeoplecanaffordtobuybigapartment/flat A AveragesizeofanIndianhouseis494sq.feetinruralareas and504sq.feetinurbanareas i f I di h i 494 f i l d 504 f i b Smallapartmentsleaveverylittleornospaceforinstallingatreadmillorahomegym Householdwithlessthan100sq.ft.perperson
60 40 20 0
Impact
1953-54
2006-07
FITNESSEQUIPMENTMARKET INDIA.PPT
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FITNESSEQUIPMENTMARKET INDIA.PPT
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KeyTrends
Trends
IntroductionofInnovative Products P d t EmergenceofNewDistribution Channels Ch l
FITNESSEQUIPMENTMARKET INDIA.PPT
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Leadingfitnesschainsaremovingintoequipmentretailing;New distributionchannelshaveemergedinthemarket
HealthChainsenterEquipmentRetailing
Leadinghealthclubchainsaremovingtowardsequipmentretailing FitnessOne,ahealthclub,isallsettoforayintofitnessequipmentretailing
ThecompanywillsellequipmentfromPrecoroftheUSanditsinhousebrandPropelFitness ThecompanywilloutsourcethemanufacturingofPropelFitnessequipmenttoTaiwanandKorea
Talwalkar,IndianFitnesschain,planstosellfitnessequipmentsbyopeningstoreinshopping malls
C Companyplanstoopen50TalwalkarsFit&Activestoresinshoppingmallsacrossthecountryby2010 l t 50 T l lk Fit & A ti t i h i ll th t b 2010
EmergenceofNewDistributionChannels
Withtheadventofcabletelevisionandinternet,teleshoppingandonlineshoppinghave emergedasnewdistributionchannelsinfitnessindustry Peoplepreferbuyingfitnessequipmentsonlineasitallowsproductcomparisons,savestime andconvenient Teleshoppingnetworkssellhomefitnessequipmentsthroughtelemarketing
Abdominalexerciserisapopularfitnessequipmentsoldthroughtelemarketing
FITNESSEQUIPMENTMARKET INDIA.PPT
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Manufacturersarelaunchingnewandinnovativeproducts
IntroductionofInnovativeProducts
Manufacturersenhancingtheexistingproductswithnewfeatureslike givingentertainmentoptionsinequipment giving entertainment options in equipment CardiomachineswithbuildinLCDTVscreens,iPodconnectivityand mobilephonechargersareavailableinmarket
TechnogymshaslaunchedtreadmillwithanintegratedTVandradio
Enhancingexisting products
Newconceptoftimeefficientmachineswhichenablesusertospend p p lesstimetoremainfitascomparedwithconventionalmachines
Singaporebased company, OSIM and Indian manufacturer Proline Singapore basedcompany,OSIMandIndianmanufacturerProline fitnesshavelaunchedmassagechairsfortheIndianmarket Introductionofnew products
Thesearepreprogrammedmassagechairswhichsimulatetheexperienceofa livemassage
PowerPlateInternationalhastiedupwithHeroMotorsLtdto introducepremiumvibrationdevicesintheIndianmarket i d i ib i d i i h I di k
CompanyhasopenedPowerPlateStudiosatTheClub,MumbaiandAsian Roots,Delhi
FITNESSEQUIPMENTMARKET INDIA.PPT
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FITNESSEQUIPMENTMARKET INDIA.PPT
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Franchiseerouteispreferredmarketentryrouteforforeign players
Majorityofthehighendfitnessequipment(treadmills,arctrainersetc)soldinIndiaareimported
AmericanfitnessequipmentbrandsaremorepopularinIndia MostoftheAmericanandEuropeanmanufacturershavefabricationunitsinChinaandTaiwan
DomesticmanufacturerslackR&Dfacilitiesandcompromiseonqualityinordertoreduceprices f l k f l d l d d
Domesticfitnessequipmentsareavailableathalfthepriceanyforeignbrands
GovernmentFDI policy li
Indiangovernmentallows51%FDIinsinglebrandretailand100%FDIinwholesalecash& carryoperations carry operations Indiangovernmentisconsideringallowingforeigndirectinvestment(FDI)totakea49% stakeinmultibrandretailers Foreignplayersmarkettheirproductsthroughdistributors/importersinIndia Foreign company can appoint a master licensee to market and distribute their brands Foreigncompanycanappointamasterlicenseetomarketanddistributetheirbrands MasterlicenseeinturnappointssubdealerstodistributethebrandinIndia Appoint Authorized Authorized Distributor Selldirectlyto endusers
Appointsub dealers
FITNESSEQUIPMENTMARKET INDIA.PPT
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ForeignPlayers(1/2)
ForeignPlayer AccellFitness Products Treadmills,cycles,muscle trainers,EllipticalsandRowers Homegyms,functionaltrainers, freeweightsystems,freeweight machines,benchesandracks, weightsanddumbbells weights and dumbbells Treadmills,crosstrainers, exercisebikesandvariousplate loadedequipment Treadmills,EllipticalTrainers, ExerciseBikes,AscentTrainer Treadmills,ellipticalcross p trainers,exercisebikes,summit trainers,homegymsandracks IndiaStrategy IthasappointedFitlineasitsmarketingpartnerinIndia AccellFitnessislookingforgrowthinTierIandIIcitiesin India I di BodysolidhasatieupwithProlinefitnessfordistributionin India
BodySolid
Cybex
CybexisdistributingitsproductsinIndiathroughFitLine CybexisintroducinglatesttechnologyproductsinIndiabased onitsexpertiseinbiomechanics,ergonomicsandphysiology HorizonFitnessdistributeitsproductsinIndiathroughProline fitness LifefitnesshastiedupCardioFitnessfordistribution p IthasatiedupwithHDFCBanktoofferfinanceloanto consumersuptoINR0.5mnforbuyingLifefitness equipment ItisnowplanningtosetupsixcompanyownedCelebrate LifeshowroomsinIndiaataninvestmentofINR100mn
HorizonFitness
Lifefitness
19
ForeignPlayers(1/2)
ForeignPlayer Precor Products Cycles,Stretchtrainer,strength systems,Treadmills,Elliptical Crosstrainersandclimbers Cross trainers and climbers Cycles,stepper,climber, treadmills,dumbbells,home gyms,ellipticalsandbenches gyms ellipticals and benches Vibrationmachinebasedfitness equipments IndiaStrategy PrecorhasappointedGympacasitssolemarketingpartnerin India A ApartformhotelsandfitnessclubsPrecoristargeting f h l d fi l b P i i companies,whicharesettingupinhousefitnesscenters NautilushasbeenawardedanoverINR50millionby Talwalkars,India'slargestchainofhealthcenters InIndiaforitsBowflexrangeithasappointedAceSporting& di f i fl i h i d S i & Fitnessfordistribution IthasadistributiontieupwithTrinityHealthcarePvtLtd Launchedtwovariantsoftheequipment 'VibroGym Professionaland'VibroGymDomestic f RecentlysolditsequipmenttoBodylinegyminBangalore VisionFitnesshasappointedProlinetodistributeitsproducts
Nautilus
VibroGym
VisionFitness
20
DomesticPlayers
IndianPlayer AsianSports& Enterprises Products VibratoryBelts,HomeGym, AbdominalMachine, MotorisedJogger,climbers Motorised Jogger climbers andstairsteppers BusinessOutlook Thecompanyalsomanufacturesequipmentcustombuiltasper clientrequirement Th ThecompanyisanauthorizeddistributorofCosco,Jonex,Silver, i h i d di ib fC J Sil EasternShoes,B.D.M.,Champs,SunnyandSelf Itscustomersinclude,government.,corporateoffices,heritage hotels,bigresortsreputedschoolsandcolleges Itmanufacturesmostextensivelineoffreeweightandmultistation f i li ff i h d li i exerciseequipmentintheindustry Planstointroduceinnovativeproductsonacontinuingbasis Manufacturescustombuiltproductaccordingtoclientspecifications
TICycles
OtherdomesticmanufacturersincludeAdvansys,BullworkerEnterprises Domesticmanufacturersareinvolvedonlyinlowendfitnessequipments
Note:Thislistisnotexhaustive FITNESSEQUIPMENTMARKET INDIA.PPT
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Distributors(1/3)
IndianDistributor AceSporting& Fitness Overview Productrangeincludeshomegyms,treadmills,dumbbells, climbersandvariousaccessories Th ThecompanyisbasedinDelhithecompanydistributesits i b d i D lhi th di t ib t it productsthroughvarioussubdealersandorganizedretail chainslikeHometownandHomestop ProductrangeincludesCardiovascularequipments, strengthequipmentsandaccessories strength equipments and accessories IthasnationwidepresencewithcentersinChennai,Pune, Mumbai,Bangalore,Delhi,Cochin,KolkattaandCoimbatore Itdealsintreadmills,climbers,exercisebikes,ellipticalcross trainersandplateloadedequipment trainers and plate loaded equipment CardioFitnessisbasedinDelhiwithbranchesinMumbai, Hyderabad,BangaloreandChennai DealsinCardioEquipments,StrengthTraining,Functional Training,Sauna&Steam Training Sauna & Steam CardiomedisbasedinDelhiwithbranchesinMumbai, Bangalore,HyderabadandKerala ForeignTieups Bowflex
AcmeFitness
CardioFitness
Cardiomed
Aftersalesserviceandgeographicalcoverageofthedistributorsarethedifferentiatingfactorinthisindustry After sales service and geographical coverage of the distributors are the differentiating factor in this industry
Note:Thislistisnotexhaustive FITNESSEQUIPMENTMARKET INDIA.PPT
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Distributors(2/3)
IndianDistributor Gympac Overview CompanydealsinEllipticalcrosstrainers,treadmills,cycles, strengthsystems G GympacisbasedinChennaiwithbranchofficesin i b d i Ch i ith b h ffi i Bangalore,NewDelhi,Pune,Hyderabad,Kochiand Chandigarh Thecompanyhassalesandaftersalesteamsinallmajor cities cities Inadditiontohotels,fitnessclubsandhighnetworth individuals,Gympacistargetingcompanies,whichare settingupinhousefitnesscenters It has 70 exclusive fitness stores across India Ithas70exclusivefitnessstoresacrossIndia Thecompanyisplanningtoexpandto200storesinthenext twoyears ForeignTieups Precor,HurandInflight
M.K.Marketing
Thecompanydealsintreadmills,ellipticals,rowers,strength Maxfit,Californiafitness, trainingequipmentandvariousaccessories training equipment and various accessories sportop ThecompanyisbasedinHyderabad
23
Distributors(3/3)
IndianDistributor ProlineFitness Overview CompanydealsinHomegyms,bikes,ellipticals,treadmills andstrengthequipment P li Fit ProlineFitnesshasapanIndiapresencewith58exclusive h I di ith 58 l i showroomsinover35citieswithaneffectiveandefficient aftersalesbackup CompanyplanstosetuptwostoresinSriLanka The company plans to increase its presence in tier I and II ThecompanyplanstoincreaseitspresenceintierIandII cities ProductrangeincludesTreadmills,bikes,EllipticalCross Trainers,Steppers,Rowingmachines,Multigyms,Benches, Massagers,Fitnessaccessories Massagers Fitness accessories StayfitisbasedinBangaloreandprovidesnationwideafter salessupport TrinityHealthcaredealsinvibrationmachinebasedfitness equipment ThecompanyisexpandingitsbusinesstoWestAsiaand SouthEastAsia IthasopenedshopsinBangaloreandMumbaiandplansto p p openashopinDelhi ForeignTieups HorizonFitness,Vision Fitness,Matrix,BodySolid, JohnsonHealthTech.Co.Ltd Johnson Health Tech Co Ltd
Stayfit
IconHealth&Fitness
TrinityHealthcare
Vibrogym
24
FITNESSEQUIPMENTMARKET INDIA.PPT
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KeyDevelopments
Date 14 Nov 2008 Development CardioFitnessIndiaPvtLtd,afitnessequipmentcompanybasedinDelhi,isplanningtoincreaseits retailoutletsfromtheexistingsixto30withaninvestmentofINR200mninthenexttwoyears.The companyhastieupswith16globalmanufacturers,includingLifeFitnessoftheUS JMD Ltd, real estate developer, has partnered with Celebrity Fitness India Pvt Ltd for its retail mall JMD Regent Arcade on MG Road in Gurgaon. Celebrity Fitness will offer fitness solutions through professional personal trainers, gym equipment and spa. Gymandfitnesstrainingtoequipmentretailingcompany,FitnessOne,isnowworkingonestablishing y g q p g p y, , g g largeformatsportscentres,wherethecompanywillextendfunctionalfitnesstrainingto sportspersonsapartfromfitnessfreaks TICyclesofIndia,partoftheMurugappaGroup,aspartofitsretailexpansionplanintendstoopen 120exclusivestoresacrossthecountry,storeswouldbeaonestoppremiumstoresforallbicycling, fitnessequipment,sportsandinfantproducts fitness equipment sports and infant products SingaporebasedOSIMInternationalLtdisplanningtosetupanother100exclusivebrandoutletsin IndiaasitiseyeingasixfoldincreaseinturnoverforitsIndianarminthenextfouryears.Itsproduct portfolioincludesfootreflexologyproducts,handheldmassagers,eyecaremassagers;footmassager isthebiggestcontributortoitsrevenue.
31 Oct 2008
12Sep 2008
24June2008
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