This document analyzes the fitness industry in New Zealand. It finds that while the country was hit hard by recession, the gym industry has proven recession-proof with memberships and spending increasing annually. New Zealand also has high obesity rates, but programs like HEHA have helped reduce obesity. As a result, demand for gyms is rising as Kiwis seek to lose weight and be more active. The document recommends that now is a good time to enter the industry by opening one or two gyms in major cities first.

1. INDUSTRY ANALYSIS

2. Thinking about entering the New Zealand
fitness industry? Consider these first...
 Competitors
 Recession
 Obesity
 Demand

3.  Les Mills
 New Zealand’s leading gym, operated internationally and offers
state of the art equipment and services
 Club Physical
 Franchise operated. It is very trusted in the New Zealand market
and is a leading gym. First gym to introduce the Rocket Circuit in
New Zealand. This is for ‘everyday people’
 Contours
 New Zealand’s leading female gym. Offering a wide range of
services and equipment, especially for busy mothers.

4. New Zealand has been hit hard by the global
recession, however...
 The New Zealand gym industry has been described as recession-proof
 New Zealand gym memberships continue to increase annually
 New Zealand gym members spend on average 500NZD pa on their
membership
 Less people are cancelling their memberships meaning gyms are in
high demand

5. New Zealand has an ever growing obesity
rate, gyms are helping to combat this ...
 New Zealand’s obesity population is similar to that of Australia’s
 One programme the New Zealand government has introduced is HEHA,
which has helped reduce the obesity rate in New Zealand
 As the obesity rate is high, and Kiwis are keen to lose weight, gym
demand in New Zealand is on the rise

6. New Zealander’s love to get physical and gym
memberships are sky rocketing ...
 New Zealander’s are among the top in the world when it comes to gym
memberships - 10% of the population hold a membership
 Gyms record a rise in memberships every year, showing that more
kiwis are joining up
 A new trend, is the over 60s cohort now rapidly signing up because
they – along with the majority of the population - have realised the
prolonged benefits of regular exercise

7.  It is a good time to enter the New Zealand
gym industry – memberships are in high
demand as Kiwis become more physical
 Open in the main centres of the country first
 Open one or two gyms to start with

8.  A World Wide Business Trend, 19 November 2008, retrieved 15 April 2009 from
www.franchisebusiness.co.nz
 Beddie, R, Fitness Life Magazine, May 2009, p119, Issue 42
 Contours, New Zealand Franchise, retrieved 15 April 2009 from www.franchisebusiness.co.nz
 Greig, T, Publishers Note, January 2009, Fitness Life Magazine, Issue 40.
 Ihaka, J, Chasing Bucks Just Doesn’t Measure Up in the Obesity Battle, 12 September 2006, The
New Zealand Herald, retrieved 15 April 2009 from www.nzherald.co.nz
 Information for Students on the New Zealand Fitness Industry, 2009, retrieved 15 April 2009
from www.fitnessnz.co.nz
 Lewis, R, Gyms Booming, 23 November 2008, The New Zealand herald, retrieved 15 April 2009
from www.nzherald.co.nz