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This Is The Reason Why Commercial Gym Will Be Wipe OUT In 5 Years Time

This Is The Reason Why Commercial Gym Will Be Wipe Off In 5 Years Time


 Gyms are expanding fast , and i mean real fast .

On the other hand ,

Gym are closing fast too, and i mean REAL fast .

With the merger of Celebrity Fitness with fitness first and the closing down of True Fitness , im really worried about the lifespan of commercial gym in Malaysia . This article will going to bring you down to the core of the fitness industry in Malaysia .Enjoy ūüôā

 Lets us dissect the fitness industry in Malaysia .

Some facts about fitness industry in Malaysia that YOU DO NOT KNOW .

  • Fact 1 : According to statista , revenue in the “Fitness” segment in Malaysia amounts to US$27m in 2017 .
  • Fact 2 : According to statista¬†the fitness revenue in Malaysia is expected to show an annual growth rate (CAGR 2017-2021) of 16.6¬†% resulting in a market volume of US$50m in 2021 .

 Fact 3 : According to franchisehelp.com ,globally there are over 180,000 fitness clubs, estimated to have earned $84 billion from their 145 million members.

Fact 4:  According to dailywobb.co Gen Y, who we define as those aged 18-34 in 2016, now make 44% of the population in Malaysia (2016).

Fact 1 to fact 3

According to these facts , it certainly show a great positive upwards trend for the fitness industry in Malaysia . A bright future for ¬†gyms’s owner ,or fitness company to expand their business in Malaysia .

However ,

 have you heard of any of the big commercial gyms are expanding their business aggressively in Malaysia recently?

I do not think so , closing down got la , expanding fast  , i do not think so .

So , what/who is making the positive impact in the fitness industry in Malaysia ?

The GEN Y buying behaviors and the boutique gym in Malaysia are the main contributors to the positive fitness trends in Malaysia , and both of these elements will be the biggest threat to the giant commercial gym in the next 5 years ,if not earlier .

This Is The Reason Why Commercial Gym Will Be Wipe Off In 5 Years Time

Why commercial gym will be WIPE OUT in 5 years time if they do not change their current business model ?

The people that will go to gym , search for 6packs in 6 weeks on youtube , google for lazar angelov  are Malaysian that age around 18 -34 , or  what we call , the Millennials .

According to a Malaysia fitness market report(2015) by ezypay.com , there are total of 60.2 % of gym membership belongs to the population of age group 21 to 30 .

Age 21 to 30 what type of people is this ? The Millennials . So , if your business model , does not suit them , prepare to get wipe out real soon .

Let me tell you this , the buying behavior of Millennials are very different from baby boomers . So , read below carefully .

millenial buying behavior 2017
millennial buying behavior 2017

Above is the comparison of the buying patterns of the millennial and the baby boomers .Full report download here.

So , as we can see over here , the Millennial’s retailer loyalty retention rate is much more lower than the baby boomers. What does this mean ? This mean that they are not going to join your gym for the next 2 years .They are going to join and quit your gym in 3 months time !

According to ezypay’s Malaysia fitness industry report ,

==> 61.3% were part of a fitness club for only
3 months or less,

==> while 16.1% were there
for 4 to 6 months.

==> 13.7% remained for
more than 12 months,

==> 5.6% for 10 to 12
months and

==> 3.2% for 7 to 9 months.

So , noone is going to stay with your gym for more than 9 bloody months ! Stop selling long term membership , the market need short term membership !

Another important things  that we need to take note of the  Millennial ,  is that they love new stuff .

They love innovative and latest trend in the market . This also explain why the loyalty is so low with Millennial . When there is a new concept gym or latest training method , they will give up on their “old gym” and join the gym that provide the latest training method .

Another things that is worth take note is that , Millennial is highly influenced by well known influencer such as insta red people, more than fitness expert . So , do not waste your money in putting up big ass billboard on the road that only block the sun and generate shit result .

Invest on insta influencer , facebook influencer or any social media influencer , even thou they know crap about fitness .

One last thing , the membership price . 

So you think that your gym services with sauna , the latest equipment , worth RM 199 a month ?

‚ÄúOnly a fool thinks price and value are the same.‚ÄĚ

–¬†Antonio Machado

Consequently, when discussing price, it is not so much a driver of value, rather a reflection of consumer’s appraisal of a health/fitness facility’s value proposition .

In 2015, the industry’s average annual monthly dues increased; a temporary cause for jubilation.

In 2015, 41% of members paid less than $25 a month , while another 28% paid between $25 and $49 a month.

The data shows that the fastest growing segment of the commercial health/fitness facility industry is the budget sector .

  • -clubintel.com
  • As a conclusion , the fitness industry as a whole ¬†is experiencing an unusual level of changes in the historical business model. Furthermore, the fitness industry is experiencing the burn associated with changes in consumer preferences with the Millennials .
  • Operating the fitness business the traditional way , will most likely direct you to “holand” (failure) in the next 5 years or earlier .
  • ¬†Hopefully what i share over here , able to provide inspiration for young entrepreneurs and those ego and arrogant CEO that just wont listen , to foster a successful ¬†future for their fitness business .








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