Today, it is undeniable that Thai people are becoming increasingly aware of health trends, as seen in their choices for healthy eating, purchasing organic products, and exercising, which is essential for maintaining a strong body. Many individuals opt for fitness club services, which are filled with trainers ready to guide them on how to exercise according to their preferences. This creates a massive opportunity for growth in the fitness business in Thailand, where numerous fitness brands continue to open at various price points to meet customer demands. One of these is 'Fitness First', one of the most popular brands among fitness enthusiasts in Thailand. Recently, it has invested in launching the 'Fitness First Club Icon', the largest club at Icon Siam. Today, we will delve into the business strategy of 'Fitness First' with Mark Elliott Buchanan, Managing Director of Evolution Wellness (Thailand) Co., Ltd.

       

      Mr. Mark Elliott Buchanan, Managing Director of Evolution Wellness (Thailand) Co., Ltd., a leader in the fitness business under the brand 'Fitness First' said that the company is rapidly expanding its fitness business in Asia. In 2017, it merged with Fitness First and Celebrity Fitness, two giants in the fitness club business in Southeast Asia, making it the largest fitness operator in the Asia region with over 166 clubs across 6 countries: Singapore, Malaysia, the Philippines, Indonesia, Hong Kong, and Thailand, serving more than 375,000 members who visit over 25 million times a year.

To build on the fitness business towards wellness and expand its growth base to cover all market segments for sustainable long-term growth, in June 2018, the company acquired Fivelements, a super-luxury retreat resort in Bali. This acquisition will allow the company to expand its business from fitness to wellness to meet market trends. Additionally, in October 2018, it acquired Chi Fitness in Malaysia, a major fitness provider with 13 branches, as part of its goal to become a leader in the Asian market. In July 2019, it also extended the Fivelements brand to a luxury yoga studio in Hong Kong and opened a new fitness club brand called 'Go Fit' in Malaysia in August 2019.

Launching 3 Famous Fitness Brands to Expand Business in Thailand, Targeting 11% Revenue Growth by 2021

        In Thailand, Evolution Wellness Thailand plans to expand its business in line with the parent company by introducing new brands to serve the growing and diverse needs of Thai consumers through 3 main brands: Fitness First, Celebrity Fitness, and GoFit. These brands are positioned to target health-conscious customers but will have distinct characteristics. Fitness First and Celebrity Fitness will offer cardio equipment, free weights, and various studio classes, with professional trainers certified internationally and personal training services. By the end of this year, Fitness First will add 3 more branches, bringing the total to 34 branches, while Celebrity Fitness will open 2 branches simultaneously.

Fitness First

          continues to serve as the flagship brand targeting individuals aged 25 to 40 who want to maintain and transform their body shape to be fit and firm. Currently, it has over 80,000 members, with 7.67 million visits in a year, a 12% increase due to the rise in branches, classes, and activities that motivate members to visit regularly.

          In 2019, it opened 3 new clubs: Fitness First Club Icon at Icon Siam, Fitness First Platinum Pearl Bangkok Ari, and Fitness First Platinum T-One Thonglor, with an investment of over 490 million baht.

          The membership prices currently start at 2,395 baht per month for a 12-month continuous membership, while the highest premium membership costs 2,785 baht per month, allowing access to all Fitness First clubs in Thailand and 6 other countries in Asia.

Celebrity Fitness

          targets individuals aged 21 to 35 who enjoy fun, self-expression, and meeting new friends through diverse dance classes that are the brand's signature, known as the DNA Series. Celebrity Fitness offers comprehensive facilities, including studios for cycling and classes, cardio equipment, free weights, muscle-building equipment, and changing rooms with secure lockers, all managed by a team of international standard trainers from Evolution Wellness Thailand. Thus, members receive care and training quality that meets international standards.

          Celebrity Fitness plans to open 2 branches simultaneously in November 2019 in two central city locations: Samyan Mitrtown and Singha Complex, with an investment of over 120 million baht, aiming for 50 million baht in revenue in the first year with 3,000 members. The starting price for Celebrity Fitness is 1,750 baht per month  .

          Once Celebrity Fitness opens, the company will offer a membership type that allows access to both brands, known as Dual Access Membership, to maximize benefits for members, with a price increase of +100 baht from the original Fitness First membership price based on the type of membership held.

GoFit

          is a new club concept targeting busy individuals, focusing on incorporating technology and applications to assist in services, from facility access, body measurements, to class participation, catering to those who prefer a digital lifestyle. This brand aims to enhance service accessibility to consumers, with a starting price of only 700 baht per month. The GoFit brand is set to launch in Thailand in 2020 to complete the brand portfolio and better meet the needs of customers in each segment according to the lifestyles of the new generation.

As for the performance of Fitness First, it continues to show good growth figures, with revenue increasing by over 7%. Revenue from personal trainer services has risen by over 11%, along with a 1.5% increase in membership. This leads us to set a business target for 2020, aiming for an 11% increase in revenue and over a 13% increase in personal trainer service revenue, with a goal of increasing member usage frequency to 8.6 million visits and growing membership to 89,000.

 'Creating superior experiences for club members through various brands to ensure fun and enjoyment in exercising will be a key point that sets Evolution Wellness Thailand apart and gives it a competitive advantage in the business.'