Qingcheng Technology Releases White Paper on the Fitness Industry: Opportunities Coexist with Challenges

What will the future model of gym development be? Should traditional infrastructure be upgraded, or should service value and user experience be enhanced? Is it necessary to seek new commercial models for expansion? How can the internet be leveraged to make gyms more convenient and efficient in acquiring customers, reducing costs, and improving management efficiency? Which is more profitable—boutique studios or community gyms? How is gym development faring in different cities? How can players in the fitness industry supply chain survive and thrive better? These are the series of questions most concerning professionals in today’s fitness industry. The latest "2016-2017 China Fitness Industry White Paper" released by Qingcheng Technology, a leading SaaS service provider in the fitness industry, provides answers to these.

How many gyms are there in China?

According to the latest white paper data from Qingcheng Technology, there are currently 37,627 gyms in China, surpassing the United States. However, the penetration rate of fitness enthusiasts in China is only 0.79%, far below the 17.82% in the United States, indicating that China’s fitness market still has huge room for growth.

In recent years, the number of fitness enthusiasts in China has been growing at an average annual rate of 10%. National awareness of fitness has become increasingly strong, and fitness has gradually become one of the most focused topics now and in the future. Nationwide fitness has become a trend.

Currently, the total number of gyms in China has reached 37,627, among which fitness studios account for 70.2%, and large clubs make up 29.8% of the total.

Boutique fitness studios are mainly concentrated in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen. Since most people in these cities are white-collar workers, fitness is not only a way to exercise but also a means to relieve stress, resulting in higher demand for gyms.

Which will go further: new-style gyms or traditional gyms?

Among the 37,627 gyms nationwide, fitness studios account for as much as 70.2%, totaling 26,414. New gyms open every week around people’s lives, while some older ones close down. A closer look at the fitness industry landscape shows that various new formats such as 24-hour gyms, CrossFit, cycling studios, yoga studios, boxing gyms, and sports rehabilitation centers continue to develop. Yoga studios account for one-third of the total number of new formats, while specialized new-format venues such as boxing gyms and sports rehabilitation centers also show strong growth momentum.

From a revenue perspective, the average monthly income of fitness studios is 193,050 yuan, while clubs can achieve monthly sales of up to 950,630 yuan. In terms of the proportion of membership card types sold, the share of stored-value cards has increased significantly compared to last year. More gyms are reducing consumers’ decision-making costs and aiming for long-term customer renewal through service continuity.

Among the various types of classes offered by gyms, fat loss, muscle gain, and body sculpting classes remain the core. Fat loss classes account for 36.78% of the total courses, as weight loss remains an ongoing demand among gym-goers. Pricing for classes varies significantly across cities. The average price for a private training session in S-tier cities can reach 352 yuan, while in B-tier cities it averages 164 yuan, 0.46 times that of S-tier cities.

In comparing consumption between studio and club members, traditional clubs have nearly 4.5 times the number of members compared to studios, but the average annual spending per member is less than half that of studios. Compared to last year’s data, the number of fitness studios has surged, and the spending level of members has also increased significantly. Women still make up the majority of gym members. Among fitness studio members, female members account for 75.66%, slightly down from 78.15% in the 2015-2016 data, while the proportion of male members has increased.

The user lifecycle in gyms is 132 days. From a user’s first visit to their last, the average period is 132 days. The lifetime value (LTV: Life Time Value) contributed by each user is 5,193 yuan, while the average user acquisition cost (CAC) is 248 yuan.

How can gyms improve their operational efficiency?

Daily expenses for gyms include management, IT, marketing, contract enforcement, taxes, and more. How to allocate expenditure proportions, reduce costs, and improve management efficiency are key aspects of gym operational management. Data shows that Qingcheng Technology’s SaaS management system can help gyms save an average of 2–3 employees, reduce IT maintenance costs, and efficiently acquire customers via the internet, greatly helping gyms cut costs and boost management efficiency. Of course, gyms themselves also need to continuously improve their services and user experience to deepen customer affection and increase retention rates.

What is the profile of professionals in the fitness industry?

Among roles in the fitness industry, coaches make up more than half. Years of experience and different cities impact practitioners’ incomes to varying degrees. According to data, a personal trainer with over three years of experience earns an average monthly income of 18,000 yuan.

With the influx of many beginner fitness users, the scarcity of all-around fitness coaches and the difficulty for gyms to find suitable talent have become supply-demand issues in the fitness industry. A comprehensive and professional fitness recruitment platform can completely solve the talent recruitment challenges in the fitness industry, helping gyms continuously secure top talent in the field while enabling coaches, membership consultants, and other practitioners to quickly find desirable jobs.

Seven Insights from Qingcheng Technology on the Industry

Traditional fitness clubs are undergoing transformation, upgrades, and transitions

Small fitness studios are trending toward refinement, specialization, and chain development

Intelligent systems and management software are changing the operational management of gyms procedurally

A shift toward the refined operations of the retail industry, with more cross-industry and cross-format diversification attempts

Low-cost customer acquisition methods are becoming a competitive edge for gyms to stand out

Top talent in the industry has clearer career development paths and advancement channels

Paid small-group classes and one-to-many personal training are increasingly becoming core revenue products for gyms