LET'S HIT THE GYM:China's ExplodingFitness IndustryRADIOHIPTop TracksC2C2 GLOBALLET'S HIT THE GYM:CHINA'S EVOLVING FITNESS INDUSTRYc2Executive SummaryChina's fitness market has grown steadily for years,boosting the value of global brands like Nikeand Adidas,as well as local Chinese brands such as Li-Ning and Anta.However,while much ofpast growth has been driven by lifestyle sportswear and sports-influenced fashion trends,we arenow seeing substantial expansion in actual sports participation across a broader segment of theChinese population.This trend is evolving quickly-an identifiable acceleration in the rate of sports and fitnessparticipation among Chinese citizens.And COVID-19 appears to have boosted this change acrossseveral subsectors:in-home fitness,gyms and outdoor sports and fitness.At the same time,we see a marked shift in the standard conceptions of beauty and body imagein China-especially among women.Looking thin has long been the fitness ideal in China,butwe are now seeing movement toward increased muscle definition and overall strength.In C2Global's current survey of 1,1 59 consumers in China,respondents cite "gaining muscle definition"as the primary motivation to work out(51%),followed by losing weight(40%)and preventinghealth ailments (33%).KEY HIGHLIGHTS FROM OUR SURVEY INCLUDE:Women Prefer Yoga,Dance and Group Classes while Men Prefer Spin,Cycling RunningWhen looking at overall responses from our survey the top fitness activities were:yoga(40%),spin(37%),cycling(32%),dance(27%),running(25%)and group classes(24%).However if you look atgender responses the top activities shift a bit by gender.The Rise of Niche Outdoor and Fitness BrandsTop fitness brands were led by the largest brands in China:Nike,Adidas,Li-Ning and Anta.However,we also saw strong support for outdoor and specialty brands including New Balance,Arc'teryx,Lululemon and Columbia.We expect new and innovative brands to continue to gain inpopularity,including Chinese brands such as Maia Active.Olympics,NBA and FIFA Top the List for Popular Sporting EventsTop sports events cited by respondents included Summer Olympics,NBA,FIFA,Winter Olympicsand the World Bodybuilding competition.We expect the Olympic excitement to continue to buildas we gear up for the Summer Olympics hosted in Japan and for the Winter Olympics hosted inChina.We expect the Winter Olympics to be a significant catalyst for winter sports participation inChina-similar to the boost in summer sports following the 2008 Beijing Olympics.2LET'S HIT THE GYM:CHINA'S EVOLVING FITNESS INDUSTRYc2China Fit:What's Trending in China's Fitness IndustryThe pursuit of fitness is as old as men,and China's long civilization has cycled through countlessstandards of beauty and good health.Across the nation today,the tradition of elderly Tai Chipractitioners rising with the sun endures,and armies of dancing grannies still gather in park squaresafter dusk.However,the business of fitness has targeted younger generations with an appetite forWestem cultural imports.These influences have played a major role in building the fitness industrywe know today,one of gilded gyms,protein shakes,and distance-running groupies.China is one of the fastest growing markets for fitness-related products and services.Chineseconsumers as a group have immense purchasing power and growing interest in fitness.Gymsfrom local boutiques to foreign chains are adapting fast to meet evolving fitness demands.Onlineplatforms are remodeling how fitness is experienced,and fitness apparel brands are appealing toconsumers on all fronts in order to carve their space in a competitive landscape.China's fitnessindustry is simultaneously challenging and rife with opportunity.Market OverviewFrom competitive bodybuilders and triathletes to at-home yogis and live-streaming gym bunnies,everyone can have a place in the world of recreational fitness.And this world speaks money:theGlobal Wellness Institute estimates the worldwide market for physical activity to be valued at amuscular US$828 billion in 2018,part of a US$4.5 trillion wellness market.By 2025,the globalwellness industry is projected to reach an eye-watering 6 trillion $USD.Many things come to mind under the umbrella concept of physical activity.Take a given physicallyactive individual:she might have an annual gym membership,subscribe to her favorite onlinefitness influencer,play volleyball once a week,collect colorful bum-sculpting workout leggings,wear a smart fitness tracker,and save for high end home-fitness equipment.Many products andservices make up the market for physical activity,but for starters it can be broken down into abinary structure.The recreational fitness activities sectors comprise of providers for fitness,mindful activity,andsports sectors.The enabling sectors include apparel footwear,equipment,and technology.Eachof these sectors is experiencing major movements in technological innovation,shifting consumerattitudes,and new economic models(i.e.post-pandemic era economy)that threaten some playersand give life to others.LET'S HIT THE GYM:CHINA'S EVOLVING FITNESS INDUSTRYc2China's US$54 billion recreation fitness activities sector can be broken down into three subsets:sports and active recreation,mindful movement,and fitness.The Global Wellness Instituterecords the size and participation rate across each sector:Sports and active recreation-general group and individual activerecreation;US$42.5 billion market with 43.5%participation rate;Mindful movement-dominated by Yoga,followed by Pilates,barre,Tai Chi,Qi gong,and more niche activities in the mindfulness realm;US$5.8 billion market with 7.1%participation rate;Fitness-commercial gyms,health clubs,studios,etc;US$5.5 billionmarket with 0.8%participation rate.Participation rate of physical activities in China in 2018,by type50%43.5%40%30%20%10%7.1%0.8%0%Sports and active recreationFitnessChina:2018Statista 2020statistaThe fitness sector is an outlier and could be the key to how the market evolves.When taking alook at the ratio of dollars consumed to the percentage of participating Chinese for each activity,fitness commands the most dollars consumed among the least number of people.Although only0.8%of the Chinese population participate in fitness activities,their average spend is nearly 600%higher than a given participant of sports and active recreation and mindful movement.The fitnessmarket will be explored in depth in the "Let's Hit the Gym!"section of this report.LET'S HIT THE GYM:CHINA'S EVOLVING FITNESS INDUSTRYc2The Chinese ConsumerThe increased attention to health and fitness in Chinese society can be attributed to seismic shiftsin China's recent history.The nation's opening of markets and global trade relations in the 80sand 90s gave rise to a powerful emerging economy that shook up demographics in a short periodof time.Middle and upper middle classes emerged and with it increased spending power andleisure time.The influx of people from rural to urban environments swelled up cities,which wereconcentrated grounds for Western influences.Economic activities evolved from agriculture to industry to services,and this movement from aprimary to a tertiary economy replaces physical jobs with physically sedentary ones.The single-generational turnaround from carefully consuming rationed,minimally processed,and home-cooked foods to excessive ly consuming highly processed,meat-heavy,and restaurant-produceddiets,have wreaked havoc on population health.As a result of these various factors,Chinesepeople are responding and pursuing recreational physical fitness.C2 Global surveyed 1,159 consumers in China in November 2020 to learn more about thelatest attitudes and behaviors related to fitness.The survey sample consisted of roughly equalrepresentation of gender but skewed toward urban,educated,and employed respondents.Over95%of the sample are adults under the age of 45.Respondents were filtered by indicating apreference for engaging in fitness activities for at least one hour per week.Fitness Participation Frequency MotivationsAbout 2/3 of the survey sample reported to workMotivation to Work Outout at least 4 times a week,dedicating about 4-6hours weekly to recreational physical activity.39.9%Look good and fitMen and women had distinct reasons for exercise.36.6%Improving my health and wellnessMen work out in order to achieve visible strengthand muscle gain.Women's primary objective was33.1%Being able to wear more types of clothesweight loss.However,this is closely followed bystrength and muscle gain.Attitudes toward muscle27.2%|Meeting my friends to work out togetheron women have changed;traditionally youngwomen have avoided putting on muscle at anycost,but now many aspire to build lean muscle20.2%Being able to indulge in mealsdefinition while keeping a slim figure.Source:C2 Glo bal https://ww.c2-globalcom/C2