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Challenges: Women-only operation Contours Express has been in India for five years, but says high rental and advertising costs remain an issue


CONTOURS EXPRESS INTERNATIONAL – LOCAL NUANCES


ENTRY TO INDIA: 2006 NUMBER OF SITES: Seven EXPANSION PLANS: 100 gyms in the next five to seven years


“S


pecifically within franchising, India offers more freedom than other countries, not


to mention the opportunity for potential fast growth and brand building in the fitness market,” says Keith Dziki, president of Contours Express International. “Indians are also starting to


take their health and lifestyle more seriously and are turning to professionals in the health and wellness industry to help them gain control over their lives, with proper diet and exercise. This is especially true of the female population.” Chandra Gopalan, director of


Contours International India, adds: “Women in India are not fi tness savvy – they often confuse ‘slim’ with ‘fi t’. Most are content with their half-hour power walks and don’t see strength training as essential as one ages. Only a very small percentage of women currently go to gyms. “Our typical member is rich or


‘super rich’ – other social classes struggle to make ends meet, so a gym simply doesn’t fi t in their life – and aged between 30 and 45. Older women do not go to gyms. “We’ve altered our business model


in India in response to demand. Our 29-minute workout has not been accepted that well, simply because women only feel satisfi ed if they spend an hour or more in the gym, so we’ve


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added programmes such as toning and abs, body sculpting and yoga classes, plus personal training. Members do the circuit and then opt for one or two of the added programmes. “Our biggest challenge has been


exorbitant rental costs, particularly in larger cities. Maintenance is also an issue due to the pollution levels – we need to change our displays almost annually. “Other challenges include low


awareness about women’s fi tness, particularly in ‘tier 2’ cities, with much education required. There’s also very little knowledge about franchising within the Indian culture: most potential franchisees don’t understand the need to pay a franchising fee or ongoing royalty.” She continues: “It’s a challenge to


generate enquiries and footfall too, and the cost of growing a brand here is signifi cant. Due to the clutter in India, especially in the big cities, your brand can only be visible with repeated presence in the media, on billboards and so on – but advertising is very expensive. Most gyms resort to small local promotions with hardly any brand promotion. There are therefore still a fair number of women in our neighbourhoods who are not aware of our presence at this point, despite us being here for fi ve years. “Unless your brand is very well


known – like Gold’s Gym – franchising with an international brand has little value in India. Although it remains


true that anything from the west is perceived to be superior to Indian products, women do not yet appreciate the value of our product as Contours International is still an unknown brand here. “There’s also hardly any price


differentiation between large gyms like Gold’s or Fitness First and small gyms like Contours International. The big players work on member volumes and smaller ones fi nd it diffi cult to compete.” On a positive note, Gopalan


explains: “There’s a huge untapped market here. Indians are willing to pay for good health if you can create a fi tness centre to which they aspire. Location is very important – despite the high rents, your brand must be seen in upscale locations – and price must be moderate. But people are willing to pay for a place in which they want to be seen.” However, she warns: “A franchise


route does not cut the bureaucracy and red tape, and you must perform a proper study before you launch your operations. India is very diverse, with each state very different. Your business needs will be equally diverse.”


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