Market report: Technogym in China
Technogym was founded in 1983, headquartered in Cesena, Italy. Due to its continuous development and innovation, Technogym has now become one of the world leaders in the products and services industry for training and rehabilitation. The company also promotes the wellness lifestyle, a way of living that incorporates regular physical activity, a balanced diet and a positive mental approach. The company also has 12 direct branches worldwide including North America, Europe, and Asia, and exports 85% of its equipment to 100 countries across the globe.
China Marketing Research on Technogym and the Chinese Fitness Market
Technogym has achieved great success in China, but they are still not satisfied with what they have accomplished because the Chinese fitness market condition is far worse than the western market. A recent marketing research study in China showed that over 16% of people in the US take part in some form of exercise everyday, compared to the poor 0.6% in China. Moreover, the consumption rates on fitness products of people in the 0.6% is extremely low. Currently, China only has about 2500 fitness clubs, which is fairly close to the amount of fitness club found in New York, Chicago and Miami combined. With such low demand for fitness products and services, the Chinese fitness market does not look like it presents much of an opportunity. Even with the industry’s unfavorable outlook, Technogym is still very confident about the Chinese market because they believe that the lack of culture in Chinese fitness and exercise is the reason behind the slump in the industry.
Consequently, Technogym defined itself in the Chinese market as the fitness market educator. Technogym wants to take on the role of nurturing the Chinese fitness market.
Market Study for the Entrance and Development of Technogym in China
Most people in China got to know about Technogym because of its advertising in the Beijing Olympic Games in 2008. But actually Technogym has been in the Chinese market for over 15 years, with the famous Chinese Astronomer Yang Liwei as one of its first batch of costumers. According to a recent market study in China, there are already over 1000 gyms in China using Technogym’s products, and meanwhile, Technogym also provides products and services for some hotels.
In 2008, Technogym was given the opportunity to sponsor the Beijing Olympic Games. Additionally, Technogym was also one of the sponsors for the Asian Games in 2006 in Doha as well as many other famous sports events. Sponsoring such popular sporting events has helped Technogym spread its brand name and gain the attention of Chinese consumers. After the Beijing Olympic Games, Technogym continued to help the Chinese consumers to pursue wellness and continued its endeavors in the Chinese market.
Daxue China consulting