The Fitness Industry in India

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The Road Ahead

Scarcity of skilled and trained personnel is one of the biggest challenges in the fitness industry today. Fitness services will require 600,000 additional skilled personnel over the next five years. However, their availability is a major concern. Also, effective monitoring of the industry is a challenge. The initial attempts at quality accreditation have not been impactful enough.

To address these challenges private participants and the government share a common agenda in developing education infrastructure and improving quality standards in the fitness industry. Private participants will have to work together to create a visible rating mechanism for the industry, that can provide an assurance of quality among consumers. In addition to this, greater collaboration with the government to create education infrastructure and generating internal and external awareness on quality accreditation are key action areas for private participants.

The government on its part must ensure that there are systemic checks for monitoring and that certified and licensed personnel are employed in critical service areas. During the next three years, we estimate that the Indian health and fitness industry will grow at a CAGR of 16-19% to reach INR 2 Trillion.

Consumers and their needs will continue to evolve, driving the transition from remedial services to a more holistic view on preventive services. This holds a strong promise for the fitness industry in India.

INTRODUCTION TO THE FITNESS ECOSYSTEM

From its nascent unstructured beginning in the early 90s, the Indian wellness industry has evolved into a comprehensive ecosystem that includes consumers, providers, adjacent industries, facilitators and the Government.

Defining Fitness

• The American Heritage Medical Dictionary terms ‘fitness’ as ‘the state or condition of being fit. It refers to having good health, especially good physical condition resulting from exercise and proper nutrition.’

• In India, traditional medicine and preventive practices have always stressed on ‘a healthy mind in a healthy body’. Accordingly, Indian traditional practices of Ayurveda, yoga and meditation were aligned to deliver physical and internal well-being, mental peace and happiness.

• For this report, we have defined fitness as ‘looking good on the outside and feeling good on the inside’.

Fitness comprises the following five segments:

Segments

Products

Services

Beauty services and cosmetic products

Cosmetic products (skincare, haircare, colour cosmetics and fragrances)

Salons and beauty centres

Cosmetic treatments (invasive and non-invasive)

Fitness and cosmetic products

Fitness equipment

Fitness centres

Slimming products

Slimming centres

Nutrition

Health and wellness food, beverages

Dietary supplements

Alternate Therapy

Ayurveda, homeopathy, unani, etc.

Treatment centres for Ayurveda, homeopathy, unani, naturopathy etc.

Rejuvenation

Spas

From its nascent unstructured beginning in the early 90s, wellness industry in India has rapidly evolved to meet changing lifestyle trends of consumers.

2010 and after

• Customers are developing a holistic perspective on wellness.

• Wellness is becoming an integral part of the shift from remedial to preventive care.

2005 and after

• Entry of organised players (both Indian and foreign) led to increased options for consumers.

• There was greater awareness on the correlation between looking good and feeling good.

• Increasing brand consciousness and willingness to spend on non-essentials and luxuries made consumers willing to experiment with new products and services.

• Sectors like hospitals, media, retail, etc. converged on the wellness boom.

2000 and after

• Globalisation, increased disposable incomes and exposure to western culture led to high awareness levels in consumers, especially among youth.

• External appearance or ‘looking good’ became more important and the rapid penetration of satellite television fuelled this trend.

• Spurt in indulgence spends in the form of increased leisure travel and demand for

personal care and grooming was observed.

1995 and after

• ‘Fitness’ as a concept did not enjoy mainstream popularity.

• Corporate play was limited, with most participants being small and individual. Sectors like fitness and nutrition were in their infancy.

• Low consciousness about body image; Spending on pampering was limited to the affluent.

Today the wellness ecosystem in India comprises multiple stakeholders

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Consumers

End consumers of services and products

Providers

Providers of services and products to the consumer

Adjacent Industries

Industries that are extending their