India’s fitness industry, characterised by its rapid growth, still faces significant challenges that have hindered widespread membership adoption. Currently, there are about 64,148 gyms in India. And in India, only 0.2% of our population has a gym membership, as per market research firm Market Brew. Comparing this globally, Norway has a gym membership adoption rate of 22%, the US has 21.2%, and the UK has 15.6%, respectively. To be sure, India’s burgeoning interest in fitness is met with the reality of affordability and accessibility issues. “Affordability is a significant issue in India, where the median age is 28 years, but incomes haven’t kept pace with inflation, averaging around Rs 28,000 per month. People have to manage basic expenses, and gym memberships become a luxury. In this industry, pricing is dictated by suppliers’ costs like rent and bills, not by consumers’ ability or willingness to pay,” Akshay Verma, co-founder, FITPASS, told BrandWagon Online.
The traditional gym industry in India is largely asset-heavy, with many gyms operating at only 20% capacity, he added. This inefficiency represents a considerable market opportunity. The current market size is estimated at $1.6 billion, but the potential unserved market is around $6.4 billion, which FITPASS aims to capture.
Experts believe that one of the main issues within the industry is its supply-driven nature. Gym prices are often influenced by factors such as rent and overheads rather than consumer demand or affordability. This misalignment results in high costs for consumers, making it difficult for many to commit to regular gym attendance.
FITPASS has introduced a model in this landscape to address the issue. Adopting an asset-light, shared economy approach, FITPASS allows users to access a wide network of gyms without the constraints of high membership fees or fixed-location limitations, as Verma stated. This model is akin to the disruption seen in the transportation sector with services like OLA and OYO, which made access more affordable and flexible.
By addressing the issue of underutilised gym capacity, FITPASS claims to have enhanced the profitability of partner gyms. The platform has expanded to over 8,100 locations, offering various access plans tailored to different needs and preferences.
FITPASS’s success is reflected in its substantial market share and broad user base. The platform serves over 1.12 lakh people daily and commands a 54% share of India’s fitness market. The user demographic includes 86% individuals under 45 years old and 40% women.
In addition to its market reach, FITPASS has formed partnerships with the Indian government and IRDAI to promote fitness and wellness. Collaborations with insurance companies, banks, and corporations have further expanded its reach by integrating fitness benefits into broader wellness programmes.
“The company’s marketing strategy is heavily focused on performance marketing, with an investment of approximately Rs 1.5 crore per month. This investment supports a robust in-house digital marketing team, which drives targeted user acquisition. FITPASS’s partnerships with financial institutions also contribute significantly to reaching new customers,” Verma highlighted.
Beyond gym access, FITPASS offers additional services such as AI coaching, which has been pivotal in making fitness accessible across India. Launched in 2018, the AI coaching service supports over 7.5 lakh people monthly in more than 500 cities. Other services include FITFEAST and FITPASS Secure, enhancing the platform’s comprehensive fitness solutions.
FITPASS operates within a landscape that includes notable players like Cult.fit, which offers a range of fitness and wellness services; Gold’s Gym, known for its extensive facilities; Anytime Fitness, which provides 24/7 gym access; and Snap Fitness, which focuses on affordability and flexibility.
Despite this competition, FITPASS claims to set itself apart through its innovative shared economy model, flexible access options, and extensive market reach. By addressing key issues related to affordability and accessibility, FITPASS seems to be not only transforming the fitness industry but also making fitness more inclusive and accessible across India.