Some people in the industry have analyzed the reasons for the closure of gymnasiums: First, gymnasiums are a project with large initial investment. If the capital preparation is not sufficient, it will easily lead to the break of the capital chain; Second, vicious competition, if several gyms are close and the differentiation is not enough, in order to attract customers, they can only fight price wars, and the final result is to disrupt the market. According to the report released by Zhiyan Consulting on 20 17, from April 20 15 to March 20 16, the number of gymnasiums in eight of the top ten cities with the largest number of gymnasiums in China increased by more than 50%. In the fierce market competition, the decreasing membership card fees and rising operating costs make the operation of many gymnasiums difficult.

According to CCTV reports, 60% fitness clubs in China have losses to varying degrees, and economic disputes caused by running away from gyms are often reported in newspapers. However, most gyms did not take the initiative to return the goods and inform consumers of the balance in the pre-sale card before closing, resulting in consumers having nowhere to defend their rights. Chris, an investor in the fitness industry, said that the biggest cost of the gym is land rent.

Compared with large-scale comprehensive traditional gymnasiums, if you change your mind and make a small and beautiful fitness studio, you can not only reduce the rental cost, but also increase profits through differentiated competition. Traditional gyms are not easy to pursue cash flow in the early stage, but have difficulties in the later stage, which indirectly reduces the possibility of closing down and running.