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Liu Yan: We are seeing this trend where more and more Chinese people are hitting the gym, and obviously this is going to be a very big industry with a lot of potential, especially money wise. So first of all, do you really think the fitness industry in China is expanding on a daily basis?
Luo Yu: Well, definitely it's expanding because we have numerous data here. According a report by Qianzhan Industry Research Institute, the sales of China's fitness industry have increased to nearly 130 billion yuan in 2014, and that is actually whopping 84% rise over a five year period on average annual growth rate of almost 17%. And also if you look at the number of gyms, it's also being increasing all the time at an average annual growth rate of 5%. And we see rising number of gym attendees at the same time. Gym attendees in 17 major Chinese cities have increased by four to five million each year since the year 2011. So you see the growing number of facilities, the gyms, gym attendees. At the same time it's another very interesting phenomenon that people tend to be more interactive than before--they use wearable devices, they keep track of their data, they share them with other people on social media platform, and discussing, and competing with each other. So generally it's a very good sign.
Sam: But it does have its problems and the key one being profitability. Now just around 20% of gyms in China earned a profit; about 50% of gyms which offer just a few value-added services are facing tough conditions due to a limited number of customers. And this is according to facts we read information from industry insiders. And there being an abundance of suggestions now being put forward, I think the main school of thinking here is that these gyms need to offer more than just exercise classes, they should be looking at personal trainers, health lessons, diet guidance, outdoor activities and other highly value-added services because it seems we've got lots of people wanting to work out, but if the gyms aren't making money, and they're closing down, that means that we're not gonna have the means to work out in the future.
Luo Yu: Yes, that's really a very thought-provoking point you've just raised. Only 20% of the gyms are making money, earning a profit. That's really not very good for the industry.
Liu Yan: And just now Luo Yu you mentioned that, a very interesting phenomenon, is that more and more people are trying these interactive features, for example, they're wearing wearable devices and the devices are recording their data, and they can compare the data they have with other people and see how they're doing. Actually, me, personally, I'm not a big fan of this kind of behavior. I think a lot of people do that just because they want to boast. They want to impress their friends. You know, oh I can put this on my wechat circle so that people can 点赞，you know, like it. Do you think that's actually what's happening here?
Luo Yu: Partially that's what's happening. People tend to be bragging about their achievements. But Liu Yan, I really have to be frank, you don't fancy this idea because you have passed the certain stage, because I know that Liu Yan (Liu Yan: I'm too old?) No, no. Our dear listeners, you used to be, you know, (Liu Yan: Quite fat?) quite big and chubby, and now you have made and set a very good example for our listeners, because I'm the only one who is the bad example here. I have been trying to lose my weight all these years. (Sam: Not very hard.) Hard! Hard enough! But I can never achieve any tangible effects on me. So could you please tell us something more useful for us to draw upon?
Sam: Cut down on the rice. Like you wanna change your diet, cut down the carbohydrates. (Luo Yu: And you are the master.) Well, I don't see I'm a master. I think the problem is that you really got to ask why Chinese people going to the gym. If it is because they are trying to lose weight, and I think that is to a certain level, I think that is the case. I was reading a story this morning how Chinese netizens have now got this popular thing where they're holding a piece of A4 paper in front of their waist, and if they're thinner than the paper that means they're in shape. And that's actually, that's just aesthetically, though. I think you really got to ask what the consumers want--do they want to look in shape or do they actually want to be really shape? And that kind of will help you dictate in what gym should do in terms of what kind of market they need to cater towards.
Luo Yu: What's your strategy?
Liu Yan: My strategy is just to eat less and exercise more. That's true. I try not to eat any rice for dinner. I just eat fruit. That's one thing. And also I power walk every day, at least for 45 minutes. (Luo Yu: 45 minutes? Do you think that works?) Yeah, if you do it every day, and you make it your goal to keep doing that, I think you will see some results.
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