ase, 1258 AM 2019-2020 China Healt and Fitness Market Wnite Paper| Dslote China | TMT Industy . Services y Industries » Careers ~ Hot Topics v +P | English / / Search a Q nny & Article 2019-2020 China Health and Fitness Market White Paper Deloitte release jointly with CHINAFIT GG Nowis the best time for enterprises to invest in digital 9 field and improve their digital capabilities. How to create interaction and improve stickiness with your customers and ecosystem partners through which platform and interaction mode are the key issues that enterprises need to think about. “Taylor Lam, Delite Chia Techrology, Mesa & TelecommunicationsIndusty Leader GG China's fitness market is becoming more and more 3” attractive to investors both home and abroad. In order to deep dive into the Chinese fitness industry and understand the market dynamies and future trends, we are honored to be commissioned by CHINAFIT and the International Health, Racquet and Sports Club Association IARSA) to conduct research andl analysis on the Chinese fitness industry and to author the White Paper. We hope to share our thoughts with both local and international industry insiders and investors nits: www. delotte.conven/en/pagestechnology-media-and-tlecommunictionsarticles/2019-2020-china-gymmarket-developmentwhite-paperhtm! 1/81315/24, 12:58AM 2019-2020 China Healtn and Fitness Market White Paper | Dsloite China | TMT Industy ‘Alan MacChares, Deloite China Commercial Strategy and Research Partner GG Asthe philosophical founder of Taoism, Loazi once said: He 999 who knows others is inteligent, he who knows himself is wise, he who conquers others possesses might, he who conquers himself is invincible, He who knows contentment is rich, he who perseveres is a man of wil He who does not lose his root can endure, he whose Tao survives him islong- lived {Asa business operator, itis important for us to understand the normal status and average level ofthe industry. But itis even more important to understand the state of our own business. We believe this report can help you better understand China's gyrn market. allows operators to use the average development level ofthe industry to measure the state oftheir own business, so that you can make a more accurate judgment in your future business operations Yan Stal the Founder of CHINAFTT ‘The finess market in China has been developing rapidly for more than 20 yeas, gong ‘through various phases of evelopment inthe part two decades, In tre past ew Years, ‘he ftness industry has ance again witnessed accleraced growth. 2079, the top 18 cles we analyzed, had an estimated total market ste af MIE 38 bllon 27,600 stores ‘and 8.79 milion members. The industys becoming more diversified th personal ining studies, Boutique stusies and nen-model gyms cortrbuting to ts rapid growth (English version) ‘Asa whole, Chinas gym markets sil ih a growth stage wth incense competion and Dowrlcas the write lick of unified industry standards The main factors curreny hampering the paper ‘development and standaraaation ofthe industry ae market homogene lack of professionalmanagement and rsiners and opaque market nformaton, We hope this “2019-2020 China Health and Fess Market White Paper helps provide a ‘comprehensive, authentic and authoritative arabs ofthe health and fines industry in China. This reprtis based on hundreds of store vss and interviews across 78 cies in China, a wel as big data arayss of current arktinvormason. Restmates the markets of Chinas fitness industry in he 18 ces vised and analyzes the ‘competive indscape operating status, consumer behavior and ndusty tends in 8 ‘aety of ees. This report wllenabe ey stakeholders to beter Understand ofthe industry in order to anticipate and formulate Suture operational and development strategies. (Overview of China Health and Fitness Industry nips: www2.deloite.conven/en/pagestechnology-mecia-and-telecommunicationslarticles/2019-2020-china-gym-market-developmentuhite-panerhim! 2/81315/24, 12:58AM 2019-2020 China Health and Fitness Market White Paper |Dslote China | TMT Industy 4 RMB 33.7 billion in revenue arse mus emer iene sn 2013 ed $+ 27,600 gyms unr of gnsinhe acts vanee 202 $8.79 million members Number ef gymmembersn the 12 mee sme in 2015 4 3.9% penetration rate = 4 152 million members cS 4 39 public investment and acquisition cases with a total value of RMB 4.813 billion Pubic assent and arta casein 238 ‘Trend of China Health and Fitness Industry Iisa good time for the domestic ness industry to acelerate development. Compared withthe penetration rate of 5S nthe leading market, che national ness penetration rate as gradually creased to nearly 4¥ but stil relatively lo. There s currently gap ‘compared with the international marke and significant space fer demand inthe domestic industry to grow. The development stage of the industry fs an optimal time to expand he number of offine gyn + Meret sever: driven by fnesstlaced polis, ineteased consumption, enhancing ness awareness and population ofthe Interne +, Chinas ‘anessindusty is undergoing industry ransformation and improvernents while growing in marke ze. + Competitive lanescape: the domestic markets fragments int regions, with clstneiveregonal brands. However, new capital cominginte the markets ‘expected to generate navor-nide brands. Over time the marke: wil develop ‘are niches anc brand will become more statifed +Business model asthe industry faces disruption, fitness brands are actively ‘optmizng their eusness models, adding personal training. group exercise and other value-added services. Tey ae also exploring new Spas of charging ‘adel. The industry tend tonards more transparent, professional and Sandarized services, ding the development of ftneserelated ndusties, https:ww2.delote.com/enlenpagesttechnology-mecia-an-telecommunicationstatcles!2019-2020-china-gym-market-development-white-paper hil a8315124, 12:58AM 2019-2020 China bi th and Fliness Market White Paper | Dslote China | TMT Industy rph 21 chines vee market. hentia et met 2 Ye ‘The Impact of COVID-19 Pandemic + With the domestic pandemic being brought under contol, over 80% of gyms and ‘ness studies have been gradually reopened, while afc remains at 70-80% of prepanderic level. The ful recovery of te industry remains uncertain, ‘sepending onthe convo ffurner outbreaks + From a longterm perspective the pandernichas increased people's awareness of halts and ness ona national eae. The feneesndsty, 9 ore secor oF healt industry wil continue o grow and avery the long-term outlooks postive +The panderichas accelerated the dgtzaton ofthe fness industry. As aym ‘operators oll out online content an series to maintain and expand customer ‘relationships, consumers are becoming mare familar with home Tess and online fess. + nrecent years the industry standardization lel has continuously improves as ‘the market asst tele. The Matta effect has gradual emerge, nd tne ecentrazed markets anstorming% a relatively concentrated market. Cou 19has accelerated indistey reshutfing 1+ After he epdemig ness brand il focus on Impravngin these fe areas business model store expansion, product and service aelngs, mainaining ‘members, and online operation, rp 5:1 ey resumption rea stom rf ee Marne 250" Une ===. [—————.. apn 24spers ane Fee App IU beers nd afer he CMDB pandemle Une 2 https:www2.delote.com/en'enpagesttechnology-mecia-an-telecommunicationsiatcles/2019-2020-china-gym-market-development-white-paperhiml 4/8315124, 12:58. M 2019-2020 China bi th and Fliness Market White Paper | Dslote China | TMT Industy Operation of Leading Gyms + Tezdtnnal ymshave operated using an assetheavy model. They have mainly developed around the cy where they ae headquartered, using he headquarter asthe center, whl expand ng 0 surrounding ces. Interns af rational gyms, Wekybirahas the largest number of stores, Aer acquiring DAY DAY FITNESS in Zhejiang in 2018, the rurber of stores increased api, Bath Wis and Tera \Wallness use Shanghai as thei base; they have nearly 100 stores in Shanghai and are expanding o ast china, + Newemadel gyms have adapted an asetsight model through standardization and lgization, anc have rapaly expanded ty opening in ret ees an store ‘ranchising LeFt has rapily penetrated into elght ts in four years since ts lestablshment, trav hae over &S0 stores, making Rhe gym ith the largest ‘number of stores nacianwside. Other newemodel ys, represented by LINE ‘Suni, Kuakui and Super Monkey, have developed innovations ingroup class content and charge models. These gyms work hart standardize their products land services te aliract consumers ta eamterat are oes ye 2818 ‘Wha: SiGddsacess om peter ea Inching 0 oe Report version ‘Te fee version of 2019-2020 Chins Hea ang Fitness Market White Paper can be read and ‘dowloaded through Delete patorm. The fullversion report contains detalled data (about 100 pages) ofthe heakn and ftnase market n 1 ster eles and new fatter cies. Please contact Deo industy research team (ran Xu Deo China Commerc ‘Strategy and Reseatch Director. adsu@deloitte comer ta get the ful report meee, https:ww2 delote.com/en'enpagesttechnology-mecia-an-telecommunicationsiatcles/2019-2020-china-gym-market-development-white-paperhiml 5/81315/24, 12:58AM 2019-2020 China Health and Fitness Market White Paper |Dslote China | TMT Industy Recommendations White paper on Technology marketing a commuriction sin China ? . rand in 2025, China Fashion TMT industry Ecommerce Outlook Global crow serves, Compiles by remains Delo ity wth Googe Contact Deloitte Submit RFP | Search Jobs YD clobal office directory | Offce locations | @ovw v About Deloitte Home Social Media Newsroom Events Deloitte Found Alumni China Office Directory Press releases Submit RFP Contact us f hutp:/www.facebook.com/deloittechina nits: www. delote.conven/en/pagestechnology-media-and-tlecommunictionsaticles/2019-2020-china-gymmarket-developmentwhite-paperhtm! i1315/24, 12:58AM 2019-2020 China Healtn and Fitness Market White Paper | Dsloite China | TMT Industy ’ http:/wwww-twitter.com/deloittechina in hittps://www.linkedin.com/company/deloitte! es htp://www.youtube.com/deloittechina s http:/e.weibo,com/chinadeloitte o hutps://www.instagram.com/deloittechina! 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