Break a sweat, but not the bank
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Break a sweat, but not the bank

While the gym industry's over-saturation forces a correction, a change in people's exercise preferences and lifestyle has caused many operators to close down their businesses

SOCIAL & LIFESTYLE

A number of gym enthusiasts took to social media earlier last month when True Fitness abruptly announced the closure of its operations in Thailand, frustrating many members who had already paid their long-term membership fees.

The gym had branches at CentralWorld and the Exchange Tower at Asok Intersection as well as at the Esplanade Kae Rai in Nonthaburi. When some members arrived at those branches for their workout, they were welcomed by a closed gate and a written announcement pasted on the wall announcing the firm's closure.

"A lot of members are hoping against hope," complained a Pantip.com user after he saw an announcement at True Fitness at the Esplanade Kae Rai suggesting that the branch would stop operating due to an electricity and air conditioning system error.

"Its regulars have to switch to another branch while waiting for clarification. A lot of members already paid their annual fees. Some even paid advance fees for many years."

True Fitness is not the only gym in the capital city to terminate its service recently. A lot of stand-alone gyms find it difficult to survive as well, and many of them had to cease operating after a few months. While True Fitness' business model, like lifetime membership, is thought to be one factor behind its financial knots, the market supply and demand imbalance was also to blame, commented health and exercise specialist Dr Benjapol Benjapalakorn.

"Gyms are like coffee shops. They have become a preferred choice for many people who want to run their own business these days," said Dr Benjapol.

"In the past, consumers only had big names like Fitness First, Virgin Active Fitness Clubs, True Fitness and We Fitness. Now small gyms are mushrooming. Only those with a good location and correct business model are probably able to survive. But at the point of market saturation, all will find it hard to stand strong."

Personal trainer Natamate Roongwitoo also said the oversupply from the service providers' side should partly be held responsible for the closure of gyms around town.

"People have too many options," said the 36-year-old who has been in the industry for five years. "These places have high operating costs. Some locate so close to one another that they fight over the same group of clients. A lot of gyms had to close down after only a few months in operation."

But apart from these market-related variables, the change in consumers' lifestyle and workout formula especially among modern people has greatly affected the gym industry. In the past, many health enthusiasts opted for gyms mainly because they wanted a fitness trainer who would guide them through gaining coveted six-pack abs and firmer muscles. Today this exercise information is quickly found for free on the internet so people no longer have to depend on costly expert advice.

"A lot of gyms closed down not because people exercise less," added Dr Benjapol. "People actually have more health concerns and awareness. But in the past, the source of health and exercise know-how was quite limited. Today it is all self-accessible. Exercise information is available on the internet and above all, it's free. When that's the case, consumers think there's no point spending both time and money on gyms when they can do it themselves at home."

Simpler exercises such as running and cycling as well as activity-based workouts such as boxing and other team sports like badminton, soccer and tennis have returned as popular exercise options. This, according to Dr Benjapol, has moved the notion of fitness training from enclosed spaces like gyms to outdoor areas like public parks.

"Running at Lumpini Park, for example, has become increasingly more feasible for urban people than activities that require fitness tools and equipment such as weight training. Especially for Bangkokians who believe time is more valuable than gold, exercise can be anything that gets them on the move and is not time-consuming."

But amid the struggle of the fitness industry, apart from coming up with new business strategies, Dr Benjapol does believe that gyms will become niche, responding to a specific group of customers instead of the masses. This includes, for instance, fitness centres for rehabilitative exercises for the formerly sedentary or gyms for a specific workout such as competitive fitness sports, high-intensity training or functional training, to name just a few.

As a personal trainer, Natamate also believes likewise. He said gyms will adjust themselves to serve niche markets as a means to survive.

"Personal trainers will no longer help people get in good shape only," he said. "They will instead turn their direction towards corrective training such as helping clients who fall prey to office syndrome. In the near future when gyms become more niche, personal fitness trainers will serve a specific group of customers who come with a clear exercise goal."

To improve the quality and set standards for the huge supply of fitness trainers currently in low demand, Dr Benjapol believes people in this profession should have a license, just like dentists and physiotherapists. The license requirement will in turn restrict the number of people becoming professional fitness trainers, which will subsequently shrink the supply side.

"Personal fitness trainers are dealing with people's health so knowing which weightlifting positions are best is not enough," he added. "More importantly, trainers should fully understand people's medical restrictions such as those with spine, ankle, shoulder and knee issues and the right exercise for people with underlying diseases such as high blood pressure and diabetes. Exercise is not a one-size-fits-all regimen and this is why we need people with certified knowledge to do the job. In many other countries such as the US and European nations, personal trainers have to have a licence."

Speaking of the future exercise trend, Dr Benjapol is certain that people will gear more towards outdoor workouts and self-practice activities. Personal training will be increasingly available in an online format where clients are trained through video calls instead of one-on-one sessions.

"Although this business model means more convenience for urban people, it poses some health risks without in-person supervision from trainers, especially for those with medical issues. Park activities and running events are also here to stay for a very long time.

"And for sure, gyms will not disappear," he said. "But they will come and go."

The recent closure of three branches of True Fitness in Thailand affected a large number of members who already paid long-term membership fees. Photo: SEKSAN ROJJANAMETAKUN

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