The corona virus pandemic has put
global systems on a standstill with respect to functioning, and industries in
Saudi Arabia are no different. The fitness services industry was
planning for expansion and diverse inclusion as part of the government’s Vision
2030 plan, when the pandemic hit the Kingdom, resulting in a major jolt to the
industry. As a response to the spread of the virus, the General Sports
Authority (GSA) announced the indefinite closure of fitness and sport centres
in the Kingdom on 14th March, 2020. The impact of the virus has been
severely felt across the fitness services industry in the Kingdom; however,
some players are bucking the trend by adopting innovative strategies and
outlooks to stay afloat.
Impact on Fitness Service
Offerings: Fitness
service players are seeing virtually no new demand due to the impact of the
curfew imposed in the country. The partial lifting of the curfew on April 26th
did not make the situation any better for gyms, as fitness centers in the
country weren’t allowed to re-open. While Saudi gym owners supported the
decision of the government, they were identified to be worried about their
finances and long-term business operations. Many fitness players considered the
said decision a great idea for the health and welfare of all people. However they also urged people/members to
help gyms survive the financial impact that coronavirus will undoubtedly have
on their business. They requested the members not to freeze their accounts or
not to stop paying the gyms, as the smaller businesses/fitness centers might
close down if member subscriptions are not kept active.
Government Initiatives to
Keep Saudi Population Fit: The Saudi government in March 2020, launched the “Your Home, Your Gym” campaign,
encouraging citizens to workout at home and share their videos online. The
initiative has been supported by the Ministry of Sports and the Saudi Arabian
Olympics Committee.
Strategies Adopted by
Fitness Services Players: It is expected that the cascading effects of the pandemic will
continue for another 3-4 months and every player is and will bear the brunt of
what the world is going through. However, the situation is more worrisome for
small players as they don’t have the budget to go digital and to spend big on
digital advertising. However, big brands or established fitness studios are
coming up with different initiatives to make sure that their consumers stay
healthy inside their homes. They are increasingly launching online training
sessions, a mix of both live and pre-recorded classes, where gym members are
instructed on how to perform their workouts at home, with or without certain
equipment. They have also been putting more into their digital marketing budget
to make workout from home possible. Gyms
such as Fitness Time, Body Masters, Fitness Time, NuYu, BeWellCrossfit, Gracie
Jiu Jitsu and Interval Plus Crossfit among other gyms, have been posting online
workout videos on their social media handles allowing their members to stay fit
at home.
Unorganized and small sized players are now rethinking their
strategies of expansion, and now are focusing more on staying afloat. With a
remarked focus on
NuYu Fitness: The largest female exclusive
gym operator in the Kingdom, NuYU recently introduced Online Team Training
sessions for its members, allowing them to stay fit at home. It is also offering
Online Personal Training sessions along with free home workout exercises
through online videos. The brand is also offering its members the option of
renting out its Spinning Bike, Olympic Bar, Plate Set, Dumbbells and
Kettlebell, to facilitate a seamless transition from gym workout to home
workout.
Fitness Time: The largest fitness
services brand in the Kingdom, Fitness Time has led the way for the industry,
through its three-point strategy to combat the effects of Covid-19. As part of
its Cash flow strategy, the company is holding onto cash reserves and is
delaying non-critical expenses for the brand. As part of its customer strategy,
the brand is allowing members to freeze their membership absolutely free of
charge and encouraging them to workout at home, by posting online workout
videos and fitness content. With regards to its workforce, the company has
imposed a travel ban on its employees and implemented a Work from Home policy
throughout the organization.
Other Players: Many other fitness players
in the Kingdom has also embraced the digital innovation in their service
offerings such as players like ‘RK Fit’ is sending their clients’ daily workout
plans to keep them active and fit while away. ‘BeWellCrossfit’ is also providing
online classes for their clients and is thinking to expand its digital service
portfolio. On the other hand, ‘Gracie Jiu-Jitsu’, is providing their clients, training
at home, with tailored classes, as long as they have an exercise partner and
internet access.
The Changing Shift in the
Industry: Many
fitness influencers are also exploiting the current business opportunity to
promote exercise in the context of general well-being when people are unable to
go to the gyms and mental stress is taking a toll on many amidst lockdown.
Fitness coaches are now holding daily live PE sessions on YouTube and
Instagram. This is helping many influencers with increased engagement as they
rely on monetization from these social networks, making it a smart move all
around. For influencers who previously focused on gym-based workouts, there is
an opportunity to capitalize on the changing habits of consumers, and to branch
out into content that focuses on health and well-being when everyone is scared
due to the spread of the virus.
Industry’s Future-The Way
Forward:
As of 26th May 2020, Saudi Arabia will join other Gulf countries in lifting
restrictions. Dubai, a part of the United Arab Emirates, has shortened nightly
curbs on movement and allowed businesses such as gyms and cinemas to reopen. Saudi
Arabia government is also planning to begin a three-phase plan on May 28. In
the first phase, which will be initiated during May 28th to May 30th,
the curfew in all parts of Saudi Arabia, except Makkah, will be lifted daily
from 6am-3pm. Business activities such as malls as well as wholesale and retail
shops will be allowed to reopen outside of the curfew hours. In the second
phase, which will be implemented between May 31st to June 20th,
the curfew will be lifted daily from 6am-8pm across the country except in
Makkah and by the third phase, due to begin by June 21st , all
restrictions will be lifted to allow a return to normal. Saudi Arabia, which
gets most of its revenue from crude exports, has also announced a slew of
austerity measures to cope with the impact of the pandemic and the fallout from
the collapse in oil prices by tripling value-added tax from 5% to 15% and
cutting cost-of-living allowances for government workers.
It is expected that post Ramadan and lifting of
restrictions/curfew in the country, a significant number of people will join fitness
centers across Saudi Arabia to re-focus on physical and mental wellbeing and
therefore the industry might witness a V-shaped growth in the number of members
and market revenue within the coming 1-2 years. However, the improvement of
online fitness content, availability of and accessibility to free courses and
online support are a few silver linings that have emerged during these
uncertain times and the industry is expected to adopt and focus more on these
disruptions post the pandemic scenario as well.
Key Segments Covered:-
By Market Structure
Organized
Unorganized
By Revenue Stream
Membership
Personal Training
Supplementary Services
By Regions
Riyadh
Jeddah
Dammam
Al Khobar
Makkah and Madinah
Others
By Subscription
3 Months
6 Months
1 Year
Others
By Gender
Male
Female
By Age
Below 18 years
19 to 30 years
31 to 60 years
Above 60 years
By Income Group
Below SAR 38,000
SAR 38,000 to SAR 94,000
SAR 94,000 to SAR 150,000
Above SAR 150,000
Key Target Audience:-
Fitness Service Providers
Fitness Service Equipment
Manufacturers
Ministry of Sports
Industry Associations
Investors/VC’s
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2019-2025
Fitness Brands Covered:-
Fitness Time
Body Masters
NuYu
Golds Gym
9 Round
Interval Plus Crossfit
Fitness First
Arena MMA Fitness
The Power Gym
Active Time
Lava Fitness
Spectrum Wellness for Women
Kore
Glow Fit
Studio 55
Pulse Studio
Kinetico
World Gym
Tytans Fitness
Curves
Glamour Fitness
Fit Zone
Fitness Maker
Muscles Factory
Other Players include G-Fit, B-Well Center, Fitness
Inn, Areka, Iron Hill Crossfit, Fitness World, Marom Club, Rio Gym and Wazen
Gym
Key Topics Covered in the Report:-
Benchmarking of Saudi
Fitness Services Market and Global Fitness Services Market
Business Model of Fitness
Service Operators in Saudi Arabia
Market Sizing Analysis of
Fitness Services in Saudi Arabia
Market Segmentation
Analysis of Fitness Services in Saudi Arabia
Emerging Trends and Developments
in Saudi Arabia Fitness Services Market
Issues and Challenges in Saudi
Arabia Fitness Services Market
Customer Decision Making
Parameters
Pain Points of Customers
Competitive Landscape
Market Share of
Unorganized Players in Fitness Services Market in Saudi Arabia
Company Profiles of Major
Players (Fitness Time, Body Masters, NuYu, Fitness First, Glamour Fitness,
NuYU, Gold’s Gym and Others)
Covid Impact on Saudi
Arabia Fitness Services Market
Future Outlook of Saudi
Arabia Fitness Services Market
Analyst Recommendations
for New Entrants and Existing Players
B Platform Choosing Criteria for Packaging manufacturers
Penetration of Online Retail Products & their Packaging
Implications
For More Information
on the research report, refer to below link:-
Related Reports By Ken Research:-
UAE Fitness Services Market Outlook to 2022 - By Market Structure (Organized and Unorganized), By Subscription Period (1month,
3months, 6months and 1year), By Region (Dubai, Abu Dhabi, Sharjah and others),
By Revenue Stream (Membership Fee and Personal Trainer Fee)
Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
