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Down at the gyms

By Xiao Xiangyi (China Daily) Updated: 2012-10-26 17:36

Though domestic fitness companies take more than 90 percent of the market share, international investors have not ceased trying to tap the Chinese market. Many are waiting to seize the right time and with the right new product.

It is the third time Hendriks has been to China for the fitness industry summit held by China Fit, but he's also on the lookout for business opportunities.

He has been thinking of bringing a new concept to China - to cooperate with real estate developers and establish a community for Chinese senior citizens.

He wants to combine nice apartments with facilities where elderly people can take part in yoga, tai chi, swimming and other fitness activities.

"Elderly people who do not have much money can rent the apartment and become a member at a low price, and the people who are rich can buy a beautiful apartment and get fitness and social settings for free," says Hendriks.

"It has been a reality in Holland. I know one or two investors from Holland are talking to Chinese officials and developers.

"China has a serious problem with the growing number of elderly people, and this can be a good little pill for that growing pain. It's not easy to succeed here, so all we have to do is to find a win-win solution for this market."

Chinese fitness brands are also vying to establish a distinctive niche with more new concepts and products in order to survive in a homogenized market .

Liu at Possibility says one of his most successful projects is Jianzhihang Fitness in Hefei in East China's Anhui province.

"I knew he thought highly of social networks, so I suggested he open a golf-themed club that replicates the environment and provides golf training facilities," he says.

"A fitness club with a theme targets only a certain group of clients, but very precisely. This also helps avoid investment failure."

Zhang Lu, CEO of Squirrel Fitness Clubs at Baoding, a third-tier city in Hebei province, says her wish is for more support from the government.

For example, clubs with swimming pools have to pay 20 yuan ($3.20; 2.50 euros) for one metric ton of water, six times more than the ordinary commercial rate because fitness clubs are charged as part of the entertainment industry.

"China pays much more attention to competitive sports than national fitness," she says. "The Olympic Games are the events when the people who need exercise most watch the people who need rest most doing sports." But changes are afoot, and some regional governments are taking action.

The government of Jiangsu, a relatively rich province on the country's east coast, launched a pilot program in Suzhou and Nantong at the beginning of this year, allowing medical insurance cards to be used in local fitness clubs. The state insurance pays a percentage of the membership fee.

"We need support because what we are doing is improving the nation's health," Zhang says.

xiaoxiangyi@chinadaily.com.cn

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