Get to know more about the growth of exercise equipment industry in Indonesia
The industry of exercise equipment in Indonesia seems promising with the revenue amounts to USD 4,035 million in 2021. Clothing, footwear, and accessories specialists account for the largest proportion of sales in the Indonesian sports equipment market, generating USD 134.9 million, equivalent to 2.4% of the market’s overall value. There are some foreign companies like Decathlon, Nortus Fitness, and Pro Gym Supply expanding their business to the country, knowing the opportunity that will follow. In addition, the COVID-19 pandemic caused many restrictions on activities in Indonesia. Many entertainment venues and sports venues were forced to close, the fitness center one of them. Therefore, many Indonesians choose to exercise at home and use their exercise equipment.
How is the sports equipment industry in Indonesia? What are the opportunities that this industry offers? Read this article to know more!
A Glimpse of Exercise Equipment Industries in Indonesia
Most Indonesian who grew up in the 80s era are familiar with aerobics classes scattered around the city. Entering the millennium era, a new craze hit Indonesia, gymnasiums that formerly were only available in luxury hotels became accessible to the general public. This is behind the number of fitness centers in various places in Indonesia. Not only hotels and apartments but also malls and even small shophouses in Indonesia. According to Indonesia’s central statistics agency, the number of fitness centers in Indonesia in 2014 was 4,991 and in 2018 it was 8,711. This shows that the fitness center business in Indonesia increased by 73% over 4 years.
This is also supported by the rise of healthy lifestyle campaigns among young people in Indonesia. More and more young people are sensitive that maintaining fitness is important to their lives. Although only 20% of Indonesians adopt a healthy lifestyle, the rate always rises significantly by 3-4% per year. For young people who are busy with their careers, of course, it is difficult to go to the gym every day. Therefore, buying fitness equipment is one of the alternatives. It is also followed by elderly people in Indonesia who are sensitive to maintaining their health and fitness.
Therefore, fitness tools such as yoga mats, resistance bands, skipping ropes, foam rollers, dumbbells, kettlebells, fitness balls, pull bars, disc sliders, ab wheels, and static bikes are in the Indonesian market. In addition, not a few Indonesians who have a high income prefer to buy gym equipment such as treadmills at home and provide a gym space in their homes. According to one unicorn marketplace in Indonesia, sales of fitness equipment increased dramatically during the pandemic, which is 3 times compared to before the pandemic.
In addition to fitness equipment, sportswear is also widely sold in the Indonesian market because Indonesians are aware that to maximize their sports activities, it takes high-quality clothing to be able to absorb sweat. According to one sportswear brand, public interest in buying sportswear increased by 60% during the pandemic.
Foreign Exercise Equipment Company in Indonesia
Here is a list of exercise equipment companies that successfully expanded their business to Indonesia:
- Nortus Fitness
Nortus Fitness is a trusted and renowned commercial fitness equipment manufacturer from Delhi. Nortus Fitness has more than 5000 clients all over the world. Despite the tough competition, this commercial fitness equipment has come a long way and become one of the trusted manufacturers of Commercial Gym Equipment in Indonesia. Nortus Fitness supplies gym equipment such as weight lifting machines, gym cardio machines, exercise bikes, hammer strength machine, stretching equipment, and full body workout machines.
- Pro Gym Supply
Pro Gym Supply is an international gym equipment supply company based in the United States that has been in the industry for the last 20 years. The company rebuilds and re-sells commercial grade fitness equipment to commercial gyms in Indonesia. Pro Gym Supply provides cardio equipment, strength equipment, gym packages, and accessories.
Decathlon is a French sporting goods retailer company that provides complete sporting goods with affordable prices in Indonesia. Decathlon provides many sports equipment from hiking, football, running, watersports, badminton, fitness and even horse riding. Decathlon opened their first outlet in Indonesia in December 2017 and is still surviving even during the pandemic.
Opportunity to Enter Exercise Equipment Industries in Indonesia
The fitness industry is experiencing a significant increase in the Asia Pacific. This industry is strongly influenced by healthy lifestyles that are being widely applied by Asian people, especially young people. According to a report published by ApacMarket.com, the fitness equipment market in the Asia Pacific reached USD 2.4 billion by 2020, with a CAGR of 7.5% during 2015-2020. Among the different types of fitness machines, fitness equipment for cardiovascular will dominate the market during those five years.
What about the fitness market in Indonesia? According to Francis Wanandi, CEO of Gold’s Gym Indonesia, the potential of fitness centers in Indonesia is just under 1.2%. That’s much smaller than in Singapore at 8% and in Malaysia at 4.3%. Although the percentage looks small, do not forget that Indonesia has a compound population. So, in value, the fitness industry in Indonesia amounted to IDR 2-3 trillion.
However, of course, exercise equipment is not only distributed to fitness centers in Indonesia. The hospitality business has become a big consumer in the exercise equipment industry in Indonesia. Because, hotels and apartments must certainly have complete facilities for consumers, one of which is a fitness place. The number of hotel establishments in Indonesia in 2018 was 28.230. In the following year, 2019, the number of hotels in Indonesia increased to 29,243. In addition to hotels, apartments have also experienced similar increases. The number of apartments in 2018 and 2019 increased by 14%.
However, although the hospitality industry is down during the current pandemic, it does not affect the health equipment market in Indonesia. On the contrary, during a pandemic like today, many people choose to buy their equipment and make a gym in their homes. This can be seen from revenue in the exercise equipment segment in Indonesia this year reaching USD 4,035 millions in 2021. That’s an increase of 10.2% from a year ago and is expected to jump 5.44% in 2022. Therefore, the opportunity to enter the fitness equipment market in Indonesia is very large.
Expand Your Exercise Equipment Industry to Indonesia with Local Partner
BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.
BRIGHT Indonesia provides several services such as Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:
- Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arrange business meetings, and act as a liaison.
- Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
- Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.
For more information, email email@example.com.
*This article is written by Debora Septenia and Sintya Nur Muftiana