Blog by- Nidhi Priya
The market of sports and fitness has been growing ever since it set its first foot in the field of business. The main reason is that it has a high revenue growth and hence a good profit margin. And to add more to it, the never ending customer demand is what has kept this going so strong even when there is so much of competition in the market.
Thus the business of sports and fitness has been a major market and with the growing interest of people in physical performance and new technologies, this market certainly has possibilities of even bigger growth in the coming time.
Now since this business has more profit than loss, more and more people started to invest in this business. This in turn led to a lot many companies manufacturing the similar kind of products. As a result, competition grew. Now that people have so many options, to make a place in this market, companies have faced some of the toughest competitions. Small companies have been majorly affected by this as, they not only have to face completion with their peers, which are already well established but also from the new budding companies that are jumping into this field every now and then.
What causes led to the formation of a competitive market?
There are several reasons that led to this business turn into a highly competitive market. The main reason is the customers themselves. With time there demands has been increasing. Be it their ever growing hope of becoming fit and having a perfectly toned body to the day to day social media activates of other people that constantly remind them to join a fitness class, there seems to be no end of the demands coming from people for the various sports and fitness product. As a result companies saw a good response from their customers who started buying such product. This led to a profitable growth. Seeing which other startups too decided to dive into this business. And then one after the other, so many companies took birth in this market and that too in no time.
Thus the main causes that led to this completive market are-
- Customers never ending demand.
- A good revenue field in this business
- High profit margin
- Innovation of new technologies related to this field which grows the interest of people in that product.
What impact does it have on the business of sports and fitness?
The scope of doing a business in this field is so wide, that once an individual or an organization gets into this there is absolutely no turning back. This market has seen a lot of growth during the recent times. Several statistical data have shown that while in the year 2016, The Global Fitness and Recreational Sports Center Market size was $83,680 million in 2016. It is expected to reach $113,116 million by 2023. Also it has been estimated that there will be rise in the CAGR of 4.4 % from 2017 to 2023.
The Global fitness and recreational sports aim to establishing fitness centers and Gym and Yoga center and also on providing equipments to the customers. It also provides with activity center where one can do swimming, skating etc.
Now these are the ways to spread the business empire of sports and fitness. This has led to an increased number of customers who are in the search of a better lifestyle.
It has also led to increases in the manufacturing of the product which in turn has generated a good revenue growth. Also due to so many products on the market this industry has fragmented into smaller divisions.
What are the strategies of the companies to be on the top?
To establish a business in the market, it is quite essential to have a strategic plan for the ways in which the product can reach to maximum of people. And since the world holds majority of people who come from some sort of middle class background, this companies manufacture products by keeping them in mind. These companies manufacture products in such a way that there costs aren’t very high still is of a very good quality. This is done to establish a strong base of dedicated customers.
Also they launch advertisements which are motivating and provoke people to get out of their bed and head to sports and fitness center to achieve the desired health results.
This field has seen substantial growth over the year. This can be attributed to the fact that the so many health clubs and sport centers have been opened in the recent times. And the industry operators are now expanding their markets to the age group form 18-54 years old people which was earlier targeted on people whose age was between 1805 years. Also there has been a rise observed in the number of females in such sports club and fitness centers. Today nearly 40 percent of the women can be seen in such places. This is also a result in the number of rise of female-only health and fitness centers.
How well has the completion been handled so far?
Although the completion in this field is at a rise, it has been handled fairly well. The major business companies of this field have managed to gain a significant share in the market. Also different companies have been trying different marketing strategies but their main focus is on providing the best quality product to their customers at affordable prices.
Thus the completion in this market has right reasons to exist. Because in this way production and sales of products with top notch quality can be ensured. And this will ultimately lead to the benefit of the customers.