English
Profit Model Flaws in China’s Fitness Industry Exposed: Strategies to Address Market Demand
Like most service industries, the fitness sector operates on a prepaid model. Annual membership cards and personal training sessions generate cash flow for the gym the moment they are sold—cash that covers services to be rendered over the next year, or even three, five, or ten years. This approach allows for an extremely quick payback period; some gyms can recoup multiple times their initial investment just from pre-opening membership sales, while also locking in customers.
