In an exclusive interaction with SupportBiz, Jain spoke of some interesting trends that are influencing the fitness and well-being segment in India.
Edited excerpts from the interview:
According to you, how are people’s mindsets towards self-care, fitness and well-being changing?
More and more people in India want to look and feel good. There is the increasing desire to be associated with brands, be it in clothing, eating or fitness.
Also, an increasing number of people are looking for preventive health care, as its cost is much lower than the cost of healthcare.
What are the key attractions of Anytime Fitness?
The key attraction of Anytime Fitness is its convenience. It is open 19 hours a day, from 5 AM to 12 AM. We are located at a place where members can easily walk/drive to and have their workout in 30 minutes. It is a club for both busy people and those who are not so busy.
Another key attraction of Anytime Fitness is reciprocity. If you buy a membership at Anytime Fitness at Model Town or any other location, you automatically become a member of the chain, and can use its facilities at any of its more than 2000 locations in 14 countries worldwide.
What are the opportunities and challenges that you foresee in this business?
There are various opportunities open in this domain. One of them is the rapidly rising demand, as people are becoming more and more health- and fitness-conscious and want to be a part of branded gyms.
The major challenges in this sector are high rentals, huge taxation and being considered a luxury - the Delhi government just levied a 3% luxury tax on gyms.
Do you have a franchise model in place?
Yes, we do have a franchise model in place. We offer a quick break-even business model backed by knowledge and the systems of a company which has successfully managed and franchised over 2,000 clubs worldwide.
What is the typical investment needed in your kind of business? What is the RoI that can be expected?
Commonly, an approximate investment of Rs. 1-1.25 crore is required for opening a health club, with an RoI of around 40%.
What kind of growth are you expecting in the next couple of years?
Since we are a very young company, our revenue numbers are yet to be compiled. We are, however, on track with our internal numbers. We expect to launch 5 clubs in 2013 and double thereafter.
What will the key focus of Anytime Fitness be in 2013?
This year, we will be actively working on marketing and branding initiatives for our business. Our main focus will be on brand awareness.