US-based fitness chain Anytime Fitness is using the franchisee
route to grow faster in the Indian market and aims to open 100 centres in three
years.
Anytime Fitness wants to be a
pan-India chain. “We see a long-term opportunity in the Indian market
considering the low penetration levels. We find the Indian market very similar
to what the US market was 15-20 years back,” John Kersh, vice president, Anytime
Fitness Gym, said.
“We have grown from one centre in the US in 2002 to 2,000 centres in 50 states of the country. With a presence in 20 countries we look forward to having 4,000 to 4,200 centres by 2018 and India is an important market for us as the incidence of lifestyle diseases is higher in the country and the awareness about health is growing,” he said.
The penetration of fitness programmes in India is as low as 0.5 per cent in India, while it is six to seven per cent in Asia and 16 to 17 per cent in the US.
“We have grown from one centre in the US in 2002 to 2,000 centres in 50 states of the country. With a presence in 20 countries we look forward to having 4,000 to 4,200 centres by 2018 and India is an important market for us as the incidence of lifestyle diseases is higher in the country and the awareness about health is growing,” he said.
The penetration of fitness programmes in India is as low as 0.5 per cent in India, while it is six to seven per cent in Asia and 16 to 17 per cent in the US.
According to Kersh, franchising has worked well for the brand globally as the operating expenses are low in the model.
“A centre needs around 400 members to break even and most of them break even in about six months. The centres are easily accessible being located in residential areas and are open 19 hours a day. Before opening a centre, we enroll around 150 to 200 members and this too helps the centres break-even fast,’ said Vikas Jain, managing director, Anytime Fitness India.
The company will initially handhold the franchisee in order to find the location, set up the centre, source equipment, recruit and train the staff and to promote the brand. Apart from setting up new centres, the brand is also open to converting and upgrading its existing gyms. In India a majority of the fitness centres are in the unorganised sector.
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