The Fitness And Weight Loss Business In Africa – How To Exploit This Interesting Industry That Is Set To Explode!

orm of physical exercise.
I decided to do some research into the fitness
business in Africa. Is there a trend and growing
demand for physical fitness and weight loss services
in Africa? How large is the market? Who are the best
potential customers to target? And what are the
important things to consider in order to succeed in
the fitness business in Africa? In this article, I’ll
introduce you to this interesting industry and its
amazing business potentials in Africa.
A Quick Introduction to the Fitness Industry
In developed markets like North America and Europe, the fitness
industry makes over $30 billion every year. It’s an industry that is
widely regarded as recession-proof and popular in countries with a
large middle class population and most often, an obesity problem.
This industry is broadly classified into two main sectors. First are
fitness centres or health clubs, which are more popularly known as
the ‘gym’. The second, and fast-growing sector, is weight loss. I
think it’s a good idea to explain both sectors a bit more so you can
fully appreciate the scope of this industry…
i. Gyms
Gyms generally offer exercise equipment for physical exercise that
focus on building muscular and/or cardiovascular strength. There
is a wide range of simple and complex equipment that exist on the
market for the gym business. Free weights (dumbbells and
barbells), treadmills, stationary bikes and elliptical trainers are
some of the most popular gym equipment available.
It’s quite typical for gyms to provide group exercise classes (like
aerobics) and personal training to its members. Some modern
world gyms provide yoga, self-defence classes, spa/sauna
services and sports facilities (like swimming pools, basketball and
tennis courts).
Gyms typically charge a membership or subscription fee to use the
equipment and facilities. These fees could be charged on a daily,
weekly, monthly or annual basis. (photo credit:
pinterest.com)
ii. Weight loss programs
Weight loss programs provide a structured therapy that helps
people to slim down and lose weight. There are several different
types of weight loss programs on the market that offer different
solutions to weight loss. Customised diets, exercise plans, surgery,
counselling, drugs and supplements are just some of the methods
used by these programs.
Studies show that women are more likely to want to slim down or
lose weight. As a result, the Weight Loss market is generally
targeted at women, However, there is a growing opportunity to
provide similar services to the menfolk.
Why Is Africa An Interesting Place For The Fitness
Industry?
Poor people are unlikely to want to join a gym or subscribe to a
weight loss program. But that’s if you think all of Africa is poor. In
fact, Africa is far more interesting than that. The continent is fast
becoming a huge demand pool for the fitness industry.
South Africa leads the continent in the fitness industry.
Available statistics show that about 60 percent of South
Africa’s population is overweight. No wonder the country has
the highest density of gyms and health clubs on the continent.
Nairobi (Kenya) and Lagos (Nigeria) have also become
booming markets for the fitness business. Impressive
economic growth, rapid urbanization and changing lifestyles
due to the growing influence of western cultures and diets are
just a few of the factors responsible for the growing demand
for fitness services in several countries on the continent.
(photo credit: citypress.co.za)
Countries like Ivory Coast, Ghana and Kenya already have body
builders’ associations. In March 2013, Ivory Coast hosted the 6th
edition of the Open West Africa Bodybuilding competition. A year
earlier, Zimbabwe hosted the All Africa Olympia, a body builder’s
competition featuring both women and men.
In this section, I’ll share with you a couple of additional facts and
drivers that are responsible for the growing demand for fitness and
weight loss services in Africa.
1. Africa’s middle class is expanding.
Like I mentioned earlier, poor people are hardly interested in
fitness or weight loss. The growth in demand for fitness and
weight loss services in Africa is coming from a fast-growing and
consumption-driven section of its population; the middle class.
A 2010 report by McKinsey and another report released by the
Africa Development Bank (AfDB) in 2011 both agree that Africa’s
middle class has grown into a significant consumer pool. It’s also
one of the fastest growing middle class populations in the world.
According to the AfDB report, the current size of the continent’s
middle class is over 350 million people.
Another (more recent) report on Africa’s middle class released by
the Standard Bank Group shows that most middle class
households in Africa spend between $15 and $115 a day. This is
an indication that Africans who fall into the ‘middle class’ category
have more disposable or ‘extra’ income to spend.
When people have more money to spend, they eat more (because
they can afford it) and their lifestyles are very likely to change. It’s
no surprise that obesity (excess body weight) is a common feature
in countries and regions with significant disposable household
income. The United States and Australia are good examples in this
regard.
2. More people are becoming conscious of their health and
fitness
With a growing middle class and increasing urbanisation on the
continent, unhealthy ‘Western’ diets and lifestyles are contributing
to the rising rates of obesity and chronic diseases like
cardiovascular conditions (hypertension, heart attacks and stroke),
cancer and diabetes.
More middle-class and rich Africans are becoming health and
fitness-conscious because they understand the benefits of being fit
and healthy. Regular exercise and an ideal body weight
significantly reduce the likelihood of falling sick. This is one of the
biggest reasons why people are motivated to stay fit and healthy.
To satisfy the need to stay fit and healthy, fitness clubs (or gyms)
and weight loss programs are setting up within and around
neighbourhoods, residential and office areas where people who
need these services can easily access them. (photo credit:
kemifilani.com)
3. It’s more expensive to own personal equipment
Setting up a comprehensive gym facility usually requires
significant capital. Most individuals cannot afford the luxury of a
full-range gym at home. The cheaper and more convenient option
is usually to join a local gym and pay to use the exercise
equipment on a daily, weekly, monthly or yearly payment plan.
To satisfy this need, most gyms provide a wide range of exercise
equipment, from free weights to leg presses and treadmills. Some
others have a more diversified range of services that include
swimming pools, spas, and sports arenas (like basketball and
tennis courts.)
4. People often need a source of commitment and motivation
Many people lack the self-motivation and commitment to exercise
or lose weight on their own. They need a community, personal
trainer or gym subscription to stay motivated and committed to
their fitness and weight loss goals.
The most successful businesses in the fitness and weight loss
industry provide a personal touch with their services. Most people
need inspiration, encouragement and support in order to achieve
the fitness goals they want.
Two of Africa’s Biggest Success Stories in the
Fitness Business
As proof of the potential of the fitness and weight loss business in
Africa, I’ll introduce you to two companies that are leading the
expansion of the fitness industry in Africa. Although both are
based in South Africa, they are currently executing their plans to
expand aggressively across the continent. Here they are…
1. Virgin Active
Virgin Active is definitely the largest fitness centre and health club
chain in Africa. With over 600,000 members, it currently operates
114 clubs in South Africa and one in Namibia. Most clubs in the
chain are equipped with four-to eight-lane heated swimming pools,
mind and body studios, professional dieticians, therapists and
several other services.
Photo credit: johnnyafrica.com
Virgin Active, which launched in South Africa in 2001, is a member
company of the Virgin Group owned by Sir Richard Branson, one of
the world’s most celebrated serial entrepreneurs. Virgin Active has
over 250 clubs in nine countries across the world in Europe, Asia
and Africa. In 2013, Virgin Active opened five clubs in South Africa.
In 2014, it opened another four clubs in the country.
Over the next few years, Virgin Active plans to expand into more
countries in Southern Africa. This just proves how huge the
demand and lucrative potential of the fitness industry is in Africa.
This company remains one of the top companies to watch as the
fitness industry expands and matures across Africa.
2. Planet Fitness
Planet Fitness is arguably the second largest chain of gym and
fitness centres in Africa. Founded in 1995, the company has over
23 health clubs on the continent with just over 160,000 active
members. It plans to double the number of its clubs in the next five
years within and outside South Africa.
Who Are The Best Customers To Target For The
Fitness Business?
Knowing your target market and customers is one of the most
important keys to success in any business. If you’re considering
the fitness and weight loss business in Africa, there are five major
categories of potential customers you should look out for. Here
they are…
Working class professionals – These are people who typically
work at a day job or run their own business. They typically fall
within the 25-45 age bracket, are well-educated and appreciate the
health benefits of physical exercise. They fall into the middle-class
we talked about earlier and can afford a reasonably-priced gym
membership. As many of them are young and socially active, a
gym is usually a great opportunity to stay fit, hang out and
interact.
Fitness enthusiasts – This category refers to people who buy a
gym membership because they love to work out. They could be
athletes, body builders or individuals who live by a health and
wellness philosophy. Fitness enthusiasts are actively looking out
for places with the best exercise equipment and services. When
you open a fitness business, these are usually the first people to
show up.
Women – Women are more likely to feel insecure about their
physique and weight than the menfolk. As a result, women are a
great target market for weight loss programs. Stay-at-home moms
(housewives) who have a less-active lifestyle are more likely to put
on weight and will usually be interested in a service that helps
them stay in shape. (photo credit:
themodernme.wordpress.com)
In recent years, brides have also become an interesting niche
market. Most brides sign up for fitness and weight loss programs
so they can look great on their wedding day.
Senior citizens – Fitness is not only reserved for the young.
There is a growing opportunity to provide wellness therapy for the
not-so-young. This category of potential customers understands
that physical exercise is great for their health and could extend
their life. One way to appeal to this market is to add amenities for
health maintenance and monitoring like checks for blood sugar,
blood pressure and bone density.
Expat community – Many foreigners who come over to Africa
for visits, business or pleasure, may already be fitness enthusiasts
and will definitely be on the lookout for fitness centres and health
clubs. Targeting the expat community in major urban areas would
be a great strategy!