Fitness Equipment Market India Fitness Equipment Market ‐ May 2013
Executive Summary Market
• Indian fitness market is at a nascent stage with very few reputed domestic manufacturers • Fitness equipment market is currently valued at INR X1 units and is expected to reach INR X6 units by 20‐‐, at a CAGR of approximately X%
Drivers
Drivers & Challenges
Trends
Challenges
Favorable Demographics Rise in Middle Class Population and Increasing Affordability Rising Number of Fitness Chains and Clubs Unhealthy Lifestyle among Urban Population
High Dependence on Imports Rise in Alternative Fitness Options Severe Space Shortage
Corporate Houses Setting Up In‐house Gyms Seasonal Discounts Offered on Equipment
Online Shopping Teleshopping
Key Players
Competitive Landscape
Player A
Player B
Player C
Player D
Player E
Player F
FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
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•Macro Economic Indicators •Introduction •Market Overview •Export & Import •Drivers & Challenges Di & Ch ll •Business Channel •Key Trends •Key Trends •Competitive Landscape •Major Dealers j •Recent Developments •Strategic Insights •Appendix FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
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Economic Indicators (1/3) GDP at Factor Cost: Quarterly
SAMPLE SAMPLE
INR tn d1 c1 b1 a1
d2 c2 b2 a2
Q1
Q2 20‐‐ ‐ ‐‐
20‐‐ ‐ ‐‐
20‐‐ ‐ ‐‐
d3 c3 b3 a3
c4 b4
Q3 20‐‐ ‐ ‐‐
Q4
a4
Inflation Rate: Monthlyy % C
A
B
Oct 20‐‐ ‐ Nov 20‐‐
Nov 20‐‐ ‐ Dec 20‐‐
D
E
Dec 20‐‐ ‐ Jan 20‐‐
Jan 20‐‐ ‐ Feb 20‐‐
FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
Feb 20‐‐ ‐ Mar 20‐‐ 4
Fitness equipment comprises a variety of equipment under cardio and strength genre • India’s modern metropolitan population is projecting a growing aspiration towards complete wellness rather than just staying fit There is an increasing trend of looking fit and well groomed that is propelling health and wellness business in India A marked growth in sports culture is also driving fitness consciousness among young Indian population A marked growth in sports culture is also driving fitness consciousness among young Indian population Television also plays a very significant role in raising the level of desirability for well toned body
• Fitness equipments are gradually moving out from gymnasiums and health clubs to offices and homes • Fitness equipment can be broadly categorized into cardio equipment and strength equipment
Equipment designed for general fitness purpose Cardiovascular Equipment
Treadmills
Ellipticals
Climbmills
Stationary Cycles
Rowers
Steppers
Fitness Equipment Equipment designed for body building Strength Equipment
Weight Lifting Machines
FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
Barbells
Various types of Bench bars and R k Racks
5
Foreign manufactured equipment dominate the Indian fitness market to a large extent Market Overview
Market Size and Growth
• Indian fitness market is at a nascent stage with very few reputed domestic manufacturers
INR bn
• Demand for fitness equipment and services is seeing a Demand for fitness equipment and services is seeing a robust growth due to changing lifestyle and higher disposable income in the hands of India’s young working population • India has immense potential in the market since it is still India has immense potential in the market since it is still underpenetrated and is majorly dominated by foreign equipment manufacturers • Indian manufacturers face stiff competition from foreign fitness equipment players fitness equipment players
X6 X% X2
X1
20‐‐
20‐‐e
X3
20‐‐e
X5 X4
20‐‐e
20‐‐e
2017e
Market Segmentation A
B
Imported equipment dominate Indian market due to its upgraded technology and reliability of products Indian manufacturers face difficulty in investing huge amount on R&D and sales partnering with dealers and retailers p g
b%
• Indian fitness service sector being majorly unorganized retards the equipment manufacturing companies Most independent fitness clubs and gyms in India are too small and lack sufficient space and capital to invest in equipment a%
FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
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EXIM: Gymnasium & Athletics Equipment b2% a2%
b1%
INR units
A3
a1% A2 A1
B1
20‐‐ ‐ ‐‐
B3
B2
20‐‐ ‐ ‐‐ A
20‐‐ ‐ ‐‐ B
HS Code: 950691 that includes Gym equipment, such as horizontal and parallel bars, Balance Beams and Springboards, Dumbbells and Barbells, Medicine Balls , Hurdles, Pole Vault and High‐jump Equipment , Punch Bags and Boxing or Wrestling Rings
• The sector has high import dependence that forms approximately x% of total imports in the country as on 20‐‐ ‐ ‐‐ that is highlighted by the presence of numerous foreign brands sold by retailers and dealers • India's imports for Gymnasium & Athletics Equipment represent t% of world imports thereby putting India in the fth position in world imports • The average trade balance (import deducted from export value) for the last 3 financial years has been approximately Th t d b l (i td d t df t l ) f th l t 3 fi i l h b i t l INR r units FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
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Drivers & Challenges
Challenges Drivers
High Dependence on Imports
Favorable Demographics
Rise in Alternative Fitness Options
Rise in Middle Class Population and Ri i Middl Cl P l i d Increasing Affordability
Severe Space Shortage
Rising Number of Fitness Chains and Clubs Unhealthy Lifestyle among Urban Population
FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
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SAMPLE
Distribution Channel
Raw Material
Manufacturing Domestically Manufactured
Imported Equipment
Wholesalers
Distributors/ Dealers
Distributors tie up with Distributors tie up with commercial establishments requiring fitness equipment
and/ or
Retailers
Direct sales to private or i l i commercial customers
Distributors usually strike partnerships with imported equipment manufacturers from the supply side and with commercial establishments like offices and gyms on the demand side to sell the fitness equipment FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
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Key Trends
SAMPLE Corporate Houses Setting Up In‐house Gyms
Seasonal Discounts Offered on equipment
Key Trends Online Shopping
Teleshopping
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Competitive Benchmarking (1/3) Key Ratios of Major 3 Companies – Operational Basis (FY 20‐‐) (1/3) %
Operating Margin a1%
Net Margin b1%
a2% Player A
b2% Player B
•X •x
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Private: Domestic Company – Player A (1/5) Company Information Corporate Address
xx
Tel No.
xx
Website
xx
Year of Incorporation
xx
Offices and Centres – India
Delhi
Products and Services Category
Products/Services
Sports Goods
xx
Fitness Equipment
xx
Head Office
Key People N Name
Equipment Supplier
xx
Others
xx
FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
D i ti Designation
12
Private: Domestic Company – Player A (2/5) Shareholders of the Company as on xx/xx/20‐‐ Name
Ownership Structure Directors or relatives of directors
No. of Shares held
100 0% 100.0%
100 0% 100.0%
100 0% 100.0%
20‐‐
20‐‐
20‐‐
Total
Ownership structure corresponds to Date of AGM: xx/xx/20‐‐, xx/xx/20‐‐ and xx/xx/20‐‐ FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
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Private: Domestic Company – Player A (3/5) Financial Snapshot i i lS h Total Income INR units
K Key Ratios i Particulars
Net Profit/Loss INR units
n
0 20‐‐
20‐‐
Financial Summary
20‐‐
20‐‐
20‐‐
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
1.47
5.36%
3.89%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00%
0.00
0.00%
0.00%
0.00%
0.00%
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
NA N.A.
NA N.A.
NA N.A.
NA N.A.
NA N.A.
‐10.83%
1.76
1.97
1.71
2.07
‐35.86%
0.16
0.24
0.20
0.32
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Interest costs (% of Sales)
• Company earned a net profit of INR m units in FY 20‐‐, as compared to net profit of INR n units in FY 20‐‐
Liquidity Ratios
• It reported total income of INR p units in FY 20‐‐, registering an increase of t per cent from FY 20‐‐
Leverage Ratios
• The company reported a debt to equity ratio of x percentage points in FY 20‐‐, an increase of y per cent over FY 20‐‐
20‐‐
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
m
y‐o‐y change (20‐‐ ‐ ‐‐)
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
14.21%
1.16
1.02
0.50
0.50
6.57%
0.54
0.50
0.33
0.34
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
0.00
0.00
0.00
0.00
N.A.
0.00
0.00
0.00
0.00
N.A.
0.00
0.00
0.00
0.00
N.A.
0.00
0.00
0.00
0.00
N.A.
0.00
0.00
0.00
0.00
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved
FITNESS EQUIPMENT MARKET IN INDIA 2013.PPT
Decline
14
Private: Domestic Company – Player A (4/5) Business Highlights Description
News
Overview
• xx
Fitness Equipment
• xx
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SAMPLE
Private: Domestic Company – Player A (4/5)
• xx xx
• xx
S
W
O
T
• xx
• xx
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Brief Profile of Major Dealers Operating in Fitness Equipment Market in India (1/4)
SAMPLE
A
Company Logo
•X
B
Company Logo
•X
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Strategic Insights A
•x
B
•x
C
•x
D
•x
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