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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 🙂

 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 ,globally there are over 180,000 fitness clubs, estimated to have earned $84 billion from their 145 million members.

Fact 4:  According to 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 , 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 ?

“Only a fool thinks price and value are the same.”

– 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 .

  • 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 .








  1. Farrah Fawcett

    Excuse me, I feel like your article has a very biased opinion about Insta influencers that usually represents boutique fitness. We are not just influencers, we are also certified and experienced. Please avoid using words like “crap” in your article to make it look more professional cause chances are the so-called fact you used to describe us insta influencers are downright wrong. Otherwise, good article about boutique concept but I feel that you lack resources. Try finding articles that doesn’t only show you numbers but factual evidences such as pictures, real life testimonies/results from real people and real life experiences. After all, that’s what people would want to read. Thanks.


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