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SINGAPORE : Dampened economic conditions in recent months have hit many sectors of Singapore's economy, but one has stayed in the pink of health.
Players in the spa and fitness industry in Singapore are positive about their outlook and are planning to open new outlets in the next few years.
Gym goers in Singapore will soon be spoilt for choice, with fitness groups like Fitness First, Amore and True Yoga on an expansion track.
A Fitness First gym at one-north will officially open on Wednesday, while the company's Paragon outlet will expand.
Amore plans to open one more outlet by the end of the year, while True Yoga has just bought over the Planet Fitness chain here, and is looking for more opportunities ahead.
Fitness First noted that only 2 per cent of Singapore's population works out in commercial clubs and gyms.
Anthony Tottman, managing director, Fitness First Singapore, said: "In the US it is 16 per cent, UK it is 10 per cent, and in Australia it is 10 per cent. There is a lot of latent demand still in the market in the next 10 years."
Patrick Wee, Group CEO, True Group, said: "It is (due to) rising affluence and rising expectations of people. People want to live longer, and enjoy healthier lives. The only way to do that is to exercise."
Observers said that the sector has grown spectacularly in the past five years, with some chains expanding by 60 per cent.
Mr Wee said: "Overall, the industry has doubled its revenue base in the fitness industry over the last five years as well."
Going forward, the True Group is looking at revenue growth of about 30 per cent year-on-year.
Mr Wee said: "Even with these economic conditions, I think people are going to give up on some luxuries. Maybe (they will give up) going out for dinner, (to) discos and bars, but they will not give up on their fitness membership."
Mr Tottman said: "It would be naive to think that the current environment will not have an effect. (That said) though, if you asked what is important in people's lives they will always say family, friends, health and money.
"Fitness, working out, being active is a key component and that is why I think there will be a softening, but most people will consider it recession-resistant."
Fitness First will spend S$20 million in the next few years for its expansion. Mr Tottman elaborated: "In Singapore, we have expanded one or two clubs a year for the last 5 years and that will continue - more so in the heartlands, suburban areas."
The average customer for a fitness group is a woman in her 20s. She goes to the gym three times a week during lunch or after work, and spends two hours working out.
Growth in the wellness industry is not just limited to Singapore. True Yoga and Fitness First are both taking aggressive growth stances in the region, with India right on top of their lists.
Mr Wee said: "The business opportunities in Asia are fantastic. We have expanded from Singapore into Malaysia, Thailand, Taiwan, and we are now opening a 60,000 square feet fitness spa chain in Mumbai."
Mr Tottman added: "Fitness First will continue to expand within the 18 territories we currently operate in, with major aggressive expansion into India." - CNA/ms
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