Major shift in spending behaviour based on usage
YS Week Ender , Dec 29, 2019
Earlier, Indian fitness enthusiasts would typically visit a gym and were forced to make upfront payments and buy long-term memberships to get started (which was cheaper than buying a shorter one- or three-month package).
Irrespective of how much they used their membership, they were billed for all 365 days creating breakage or under-utilisation of their spends on fitness.
Based on the consumption data on Fitternity in last 12 months, we have seen 55 percent of these users opt for offerings that are more ‘New World’ in nature, and 45 percent of them opting for the conventional gym/group class membership.
As the ‘New World’ offerings become stronger and more and more users are exposed to them, we believe there will be a major shift in spending patterns in India over the next few years.
Demand for flexibility and variety
With a massive influx of new gyms and fitness classes in most areas, users are now exposed to a slew of new options as against the three to four gyms/yoga classes they had to choose from a few years ago. The decision to join, which was earlier based on pricing alone, has now evolved to understanding what is trending, evaluating the vibe, infrastructure superiority, etc.
Large sets of users are also preferring alternative options like swimming, outdoor classes, and sports as an occasional change to their fitness routines.
A lot of users are also opting to pay-per-use or buy an aggregated fitness pass to keep their options flexible and not limit themselves to a particular outlet or workout activity.
Increased interest for corporate wellbeing
Corporate wellbeing, which has taken centre stage globally, is a concept that has been picking up steam in India over the last few years. As most MNCs have the corporate wellness mandate being passed on from their global counterparts and increasing thought leadership around wellness in domestic large corporations – we have seen massive increase in corporates sanctioning budgets for wellness or working with partners to curate and enable direct third-party solutions for their employees.
We foresee five million users entering the fitness ecosystem through corporate wellness initiatives in the next five to seven years.