Investigation on the survival status of China’s fitness industry in 2022 From Refining Research Institute

The following is the Investigation on the survival status of China’s fitness industry in 2022 From Refining Research Institute recommended by recordtrend.com. And this article belongs to the classification: Sports data, Life data.

Combined with in-depth qualitative interviews with practitioners, we summarized this special issue of 2022 epidemic situation – Investigation on the survival status of fitness industry, which can be used as a reference for the whole industry in the special period of the epidemic situation.

Most of the venue owners affected by the epidemic may have been closed for up to one month.

As of April 17, 29.7% of the gym operators surveyed in this questionnaire said that the closing time had reached one month, and 18.9% said that the closing time had exceeded 1.5 months.

In addition, at present, 3.6% of operators choose to completely close their stores.

“After this epidemic, perhaps more than 20% of gyms will fall down and be closer to being eliminated at the end.”—— Practitioner of a fitness company in Shanghai

Of course, 27.9% of the venues have resumed work under the current round of epidemic, and the specific resumption process is different.

Even though it has been opened for business, the revenue of most stores has only recovered by 20% – 40%, accounting for 35.5% of the returned gyms. As for the recovery degree of 80% or even close to 100%, there is only a small proportion, specifically 12.9%.

When it comes to the staff cost of the store, it accounted for 75.7% of the total; The ratio of cash flow to reserves is 68.5%; The third is the fear of blocked market expansion, accounting for 60.4%.

For the offline gym with heavy physical investment, the cost of rental personnel is still the biggest source of pressure.

Taking first tier cities as an example, the rental delivery form of fitness Studios is usually “two for three” or “one for six”. Therefore, venue owners who just finished the last rental cycle before the outbreak and did not pay the rent for the next cycle may be more lucky.

On the contrary, if you encounter an epidemic just in the investment period of entrepreneurship, the situation is very difficult.

“It opened in March this year. In the first month of opening, all the revenue paid the rent of 130000. As a result, from the closure on April 4 to now, a penny has not been recorded and the salary is about to be paid. I may sell some of my own shares to support the operation.”—— A fitness practitioner in Chengdu

Among the self-help measures in the face of this round of epidemic, the proportion of “discussing rent reduction with landlords” and “reducing personnel costs” are almost tied, accounting for more than 45%.

“Increasing revenue and reducing expenditure” is undoubtedly the key to dealing with the epidemic, which requires operators to take the initiative to strive for.

On March 31, the state owned assets supervision and Administration Commission (SASAC) issued the detailed rules for the implementation of rent reduction and exemption of small and micro enterprises and individual industrial and commercial households by state-owned enterprises in Shanghai, but the detailed rules for rent reduction and exemption of state-owned enterprises are difficult to apply to most fitness venues.

In terms of the results of the active discussion on rent reduction, only 15.3% of the venue owners said they had received the help of rent reduction.

Among all self-help measures, “carrying out online fitness business” ranks first, accounting for 47.7%.

From the verification in recent two years, this may not be a business that can directly bring a lot of cash flow, but it is a good way to maintain connection with members and supplement coach income.

In this survey, a total of 32.4% of operators believe that “online fitness business must be done”.

“As a club operator, the tiktok has tried to expand the three core businesses only online. First, sales, sales through the channel, followed by online private teaching, mostly using conference software. Finally, 8-16 people group small classes, which are sold at the price of 10% of the offline course.” Manager of a large club in Shanghai

For the gym operators who are still in the closure period, not all choose to resume business immediately after the closure.

According to the results of the questionnaire survey, 7.9% and 3.9% of the gym operators said that even if the epidemic situation is unsealed, they will still suspend their resumption of work or even close their stores directly. However, most of them choose to return to work immediately, accounting for 88.2%.

“I will return to work immediately after unsealing, but at the same time, I will prepare another way. If the new project is done well, I won’t engage in fitness. Maybe I’m pessimistic. Even if I don’t seal it, everyone’s willingness to exercise decreases when the economy is in recession, so I’ll consider doing something pleasant, such as coffee, massage, etc.”—— Founder of a fitness studio in Chengdu

In terms of user return, the expectations of gym operators across the country are also concentrated. Users are expected to return 60% – 80%, accounting for 46.1%.

In addition, the proportion of 40% – 60% and 80% – 100% of user return is expected to be the same, both of which are 19.7%.

The cash flow source of traditional private education is still the business that most venue owners prefer to carry out this year, accounting for 65.8%.

And the tendency of the interviewed operators towards small group classes has exceeded that of group exercises, with the former accounting for 36.9% and the latter for 31.5%.

In terms of business planning, it is also worth mentioning that compared with the hot yoga and pilates in 2020-2021 (23.4%), more operators have chosen to focus on new groups such as pregnancy and childbirth, teenagers and the elderly (27%).

For the adjustment of store business strategy this year, the proportion of “exploring revenue channels” and “strengthening internal training” accounted for 61.3% and 48.6% respectively before the examination.

In contrast, the proportion of “expanding store size” and “recruiting more employees” ranked lower, 26.1% and 21.6% respectively.

Obviously, more people will choose to continue to cultivate internal skills this year than expand the scale.

Finally, we collected the operators’ confidence in the development of the industry in the next three years. Among them, 22.5% held “very optimistic”, 60.4% held “generally optimistic” and 13.5% held “not very optimistic”.

I believe that if it falls to each city, it will produce different answers at the level of confidence.

“Since the spread of the epidemic in March this year, the venue owners in Shenzhen have been more positive and optimistic than those in Shanghai – although the city has been closed for up to six weeks, there is indeed hope. However, on the side of Shanghai, although the city closure was not announced at the initial stage, the subsequent endless closure will actually increase the psychological gap and lower the confidence of many venue owners.”—— Practitioner of a fitness company in Shenzhen and Shanghai

Among all fitness coaches affected by the spring epidemic, 45.1% are in the state of shutdown, while only 24.3% are offline coaches who stop work and turn to online fitness.

In addition to the coaches who have returned to work in the gym (23.9%), some coaches (6.6%) are working in the non fitness industry.

In Shanghai, where the epidemic spread more widely, many fitness coaches also spontaneously participated in the volunteer team to help coordinate community nucleic acid testing, material distribution and other work. At the same time, some coaches chose to become distributors to distribute living materials in the urban area and earn part of their income.

“Shanghai basically declared unemployment after the arrival of this round of epidemic. Now it provides distribution services to residents in its own community, which can subsidize part of my own income. It also has the nature of social welfare, which is easier and less point-to-point pressure than distribution in the whole city.”—— Personal trainer of a studio in Shanghai

Many coaches who only rely on offline class hour fees as the only income channel are facing the dilemma of clearing their income. At present, 39.4% of fitness coaches say that “there is almost no income channel”.

Among the income related to fitness, 26.1% belong to coaches who have returned to work, while only 25.2% can earn income from online fitness.

In addition, coaches who earn income from non fitness industries account for 15.5%, others include subsidies from venue operators (6.6%) and help from relatives and friends (7.5%).

In terms of specific income changes, a total of 35.8% of coaches said they had experienced an income decrease of 80% – 100%.

Only 8.8% of coaches whose income decreased by less than 20%, and the number of coaches facing income reduction also increased with the increase of the reduction range, showing a ladder growth.

Since March, the survival of coaches affected by the epidemic in China has not been optimistic.

We also counted the coaches’ coping strategies. Among them, 65.5% of coaches choose to practice internal skills at the moment to prepare for returning to work, which accounts for the highest proportion.

Tiktok, I may have been used to the epidemic, not as confound as the first outbreak. Besides exploring the revenue channel, I am also learning the operation skills of the vibrato content independently, because the pattern has completely changed, and the content consumption habits have completely become video classes, so is fitness. Group gymnastics coach of a club in Shanghai

If it can bring direct income, sideline may be one of the few sources of income. 36.7% of coaches choose to engage in sideline at present.

“Compared with being a coach, the unit time output of community distribution must be lower. My running fee is 10% of the total price of goods. Now the working income of nearly 10 hours is not as much as that of the previous studio for 3 hours, plus the cost of renting electric vehicles and the cost of living in CYTS, the overall income is not much.”—— Personal trainer of a studio in Shanghai

Online fitness is not the best way to get direct income under the epidemic, but 32.7% of coaches are still running online fitness.

When asked about the specific reasons, 87.8% of the coaches said they were for the purpose of retaining existing fitness members, 32.4% prepared for career change bloggers, and 20.3% aimed to obtain relevant income from online.

“From the epidemic in 2020 to now, doing online fitness is not to make money, and it is difficult to make money. In contrast, it is more important to take retention as the purpose. On average, I have 40 people in an online class, and 80% of them are highly interactive. Therefore, I have even attracted invitations to paid courses including central enterprises.”—— A free League coach in Shanghai

Maintaining the existing membership relationship is also the premise of efficient transformation after returning to work.

In view of the problem of member maintenance under the epidemic, in addition to online fitness, the majority of coaches who provide fitness communication services for maintenance, accounting for 63.3%. On the other hand, 18.6% of coaches choose not to take the initiative to maintain their members.

For the income expectation after the epidemic, coaches who think their income has recovered by 40% – 60% account for the most, accounting for 23.9%; Followed by the income recovery of 60% – 80%, accounting for 21.2%; The number of coaches whose income is expected to recover by 20% – 40% ranks third, accounting for 18.1%.

Only 14.2% think their income can recover to 80% – 100%.

On the whole, fitness coaches are not optimistic about the recovery of income after the epidemic.

Among the fitness coaches surveyed this time, 13.3% believed that they would leave the fitness industry after experiencing the epidemic.

As for coaches who do not choose to leave the fitness industry at present, 44.9% choose to continue to work as coaches after the epidemic; 33.2% will explore the possibility of promotion in the industry; 17.9% may start a business in the fitness industry; And 4% resigned to look for new opportunities in the industry.

Experiencing a new round of epidemic has also given fitness coaches new consideration to employers.

The element of social security ranks among the top spears, accounting for 68.1%. I believe there will be more fitness coaches in the future and will actively make requirements for basic security such as five insurances and one fund.

The second is salary (67.7%). In contrast, there are significantly fewer coaches who choose promotion space (40.3%), training system (36.7%), working environment (38.9%) and work intensity (18.6%).

It also talks about confidence in the future of the fitness industry, but compared with Gym operators, fitness coaches have more confidence.

The proportion of fitness coaches who hold “very optimistic” accounts for 42.9%; 38.9% held “generally optimistic”; 12.8% held “not optimistic”; The proportion of “very negative” was 5.3%.

“There may not be a particularly large outbreak in the short term, because members will not resume training immediately, but in the long run, when the epidemic tends to stabilize and with the release of consumption potential, I believe that the fitness industry will grow further.”—— Group class coach of a studio in Shenzhen

Finally, we also summarize the three upcoming trends for reference:

The Matthew effect of the industry is becoming more and more obvious

After experiencing this epidemic, I believe the Matthew effect will be more significant.

From 2021 to the first half of 2022, many chain fitness brands have accelerated the pace of opening stores, and more boutique studios have begun to take over the closed stores to further expand the chain scale.

The epidemic is still accelerating the reshuffle of the industry. Gyms with weak anti risk ability and lower service competitiveness will continue to be swallowed up by head brands.

Operators tend to be cautious

After the baptism of multiple outbreaks, practitioners will be more cautious about opening stores. In addition, we will treat new business exploration rationally.

Therefore, we can also make a slight judgment. For example, the phenomenon of vicious competition in store locations will be further reduced; The subdivision of store business has become the business trend; And under the repeated epidemic situation, the employment strategy will also tend to be in a state of “Inaction”.

“Online capability”

Become an important part of the coaching profession

Instead of waiting for the objective environment to improve, the current environment requires fitness coaches to shape their own value faster.

Among them, online will become an important part of the future career of coaches – integrating offline resources into online, which is one of the important lessons for modern coaches.

Because it is not only the survival problem under the epidemic, but also determines the ability of coaches to obtain customers online while operating offline services in the future. More reading: green orange Technology: 2018-2019 white paper on fitness industry 2013 Beijing diabetes mellitus survey of survival status: Green Orange: 2016-2017 China’s fitness industry white paper green orange Technology: 2017-2018 years of fitness industry white paper (download) NetEase cloud music: 2020 China music and music survival status report Ali Research Institute: 2017 SME survival status and development strategy report (download) Keep:2021 year “buy goods” The conversion rate of users is 1.06%, born in free and trapped in fee analysis: 2018 white paper on China’s ice and snow industry (with download) Wuhan University: research shows that vigorous exercise is more conducive to health CTR: Research Report on marketing campaigns of major manufacturers of the 2014 Brazil World Cup, mass fitness loves walking, and the annual per capita sports consumption is 645 yuan – information figure PwC: 2016 sports industry survey report (with download) Central China Normal University: Teenagers’ addiction to games is related to the small area of the stadium. How long will the human body become unhealthy after stopping exercise? 2017 Deloitte football fortune list (with download)

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