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11 Jan 2008

Services

Fitness Centers: Market Turnover of THB6 Billion in the Year of the Rat, Growing 7 Percent (Business Brief No.2096)

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These days, people are threatened by an increasing number of health problems, especially the serious ones. Frequent and regular physical exercise can keep you fit, boost your immune system and even help prevent some maladies. A regular regimen can be easily practiced without any equipment or expense with such exercises as walking fast, running or push-ups. Of late, many people have patronized fitness centers or health clubs that have exercise equipment, though they charge high fees for their services.
The National Statistical Office of Thailand's surveys on Thai physical exercise behavior conducted in 2001 and 2004 showed that only 29.1 percent of Thai people regularly performed physical exercise. Of this, only 38 percent did adequate exercise that could maintain physical fitness and overall health, e.g., exercising at least 30 minutes a day, three days a week. This means that the number of those exercising in order to stay healthy could rise further.
Having too little time was the most often cited reason by most respondents for shunning physical exercise. Some 76.7 percent of those polled said that they had to spend most of their time working and taking care of their families, children and elderly relatives. This is consistent with the busy pace of urban life where career people are preoccupied during office hours around 8.00 a.m. to 5.00 p.m., or thereabouts.
These reasons support the boom in fitness center business expanding at numerous venues, e.g., in shopping malls, office buildings and housing developments to fulfill the demand of those who want to keep fit. However, insufficient free time is still a restriction as time is mostly spent with work, family activities, travel as well as the limitation of finding a venue for exercise.
KASIKORN RESEARCH CENTER (KResearch) projects that in 2008, fitness center business will continue growth of at least 7 percent over last year, with a market value of not less than THB6 billion. The main reason is still the increasing trend toward keeping fit, service providers steadily developing more stylish service models in equipment and services, plus branch expansion at new venues for better urban coverage, and even upcountry. Moreover, service providers have enhanced their marketing strategies, i.e., cutting service fees or arranging a variety of sales promotion programs to stimulate new customers.
However, a key factor that entrepreneurs must bear in mind for sustainable growth is the quality of service, that is, care and attention toward patrons. This factor draws customers to continued visits and prevents them from switching to other centers or discontinuing patronage altogether, turning to other means of exercise, instead.

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