According to the "China Fitness Industry Data Report 2018" released by Gym Square, China's fitness and sports population accounts for 18.3% of the total population. Only 4.94% of the total population aged 26 to 55, comparing to 75% in the United States.
In recent years, traditional fitness enterprises have gradually declined. On the other hand, new type of fitness enterprises that rely on Internet technology to attract users' attention have emerged and are favoured by capital. However, perhaps in terms of fitness, all that can be done is to change new ways of playing.
AI Fitness New Service is Limited in Scope of Application
On the premise that performance is more than everything else, the fitness industry often has frequent scandals, and the quality of services has been criticised for a long time. At this time, adhering to the "intelligent, light labour, quality service" of the new fitness enterprise has naturally become a "pathfinder" in adversity.
Some people say that the two most basic functions of a fitness trainer: planning and tracking, can be completely replaced by AI. However, AI cannot replace fitness coaching.
On the one hand, in the process of fitness, safety is the most critical and basic issue, especially for heavy equipment, protection measurements are essential. The AI obviously has little effect on this part. On the other hand, the influence of coaches and private courses on fitness effects cannot be underestimated - AI cannot communicate and refine the details.
Admittedly, the concept of AI fitness is currently limited to light equipment and unskilled areas, and the application of differentiation directly affects the distribution of users. When primary fitness groups choose fitness locations, the "entertainment" and "novelty" still accountable to large population. Free exercise spaces are usually more suitable for such groups than a professional gym.
However, for professional fitness enthusiasts with greater market value and loyalty, the attraction of AI seems to be insufficient.
Details in Developing System Chain
On the business model, with more and more traditional gymnasiums exposing the hidden problem of sales performance system in the operation process, the sense of reform has intensified. The short-term consumption pattern adopted by the new gym will naturally move to the main market soon, and the most advantageous competitiveness will lose its advantage. At present, many traditional gymnasiums in the market have abolished the annual card system.
In terms of user density, the target customer group of the new gym is mostly the primary fitness group, and the loyalty conversion rate of this kind of consumer group is extremely low. On the one hand, it is difficult to cultivate a fixed customer base and the source of profits is unstable. On the other hand, the new gym is trying to cultivate the fitness hobbies and habits of users, and then extend the user cycle.
From these two aspects, the new gym's "pathfinding" function is more significant, and the greater the possibility of "making wedding clothes for others".
Additionally, according to statistics, when consumers choose gymnasiums, the price factor accounts for the largest proportion about 33%; Distance factor accounted for 24%; The other factors are venue environment, guidance professionalism and curriculum diversity. Brand factors are hardly considered. When the Chinese consumers choose gyms, the cost-efficiency and proximity principle are far greater than other effects.
The profit of the single store is weak, and the additional merchandise is new to play
According to the statistics of China Industry Information Network, 80% of fitness enterprises are in a state of maintenance and loss. The 2018 Fitness Industry Report Data also shows that nearly 84% of fitness clubs cannot survive for 12 months.
Looking back at another leading company, Keep, it is reported that Keep's profit mainly comes from brand cooperation advertising, online content payment and customised services. Keep's active users in the online sports health field in 2018 had only 6.98% penetration in the entire industry, and the conversion rate of online users was extremely low.
Usually, traditional gyms will use the additional products to increase profits, but retail clients only contribute 3.1% of the total revenue. A similar situation is also staged in the new fitness companies. However, thanks to the Internet, the new business models and additional products are being liberated unprecedentedly.
On anther hand, not everyone can afford e-commerce game. Without large capital injection, small-to-medium-sized gyms cannot afford to have huge online traffic with single-store setup. Incubating brands requires a steady flow of marketing investment. Otherwise, they will be precarious if relies solely on revenue generated from the physical stores.
by @锦鲤财经 (WeChat subscription：jinlifin)
