Last Updated 13 Apr 2020

Nz Fitness Industry

Category Fitness, Industries
Essay type Research
Words 421 (1 page)
Views 210

Within New Zealand a growing number of people are using the fitness industry as a convenient means of improving and maintaining their well-being. In recent times a market boom has taken place with more and more gyms being built throughout the country, and with them new business opportunities arising. One of the most renown gyms in New Zealand, Les Mills is an example of one of these modern business franchises.

In the 43 years since Phillip Mills family started running their first Les Mills gym in New Zealand, the gym has since gone international with over 14,000 gyms now spread throughout 75 countries worldwide and an estimated net worth of (……….. ) (citation). It is estimated that in New Zealand alone the gym industry generated over (………. ) in 2008 (citation). Along with the increase in gyms being established a large proportion of the fitness industry is now focusing on nutrition as an additional market for generating profit.

This report serves to analyse and interpret both individual markets along with relevant figures, and will outline the potential future business prospects for investment or creating a new franchise in both markets. New Zealand has a large fitness industry as exercise has become a very important part of everyday life. Today’s gym goers are opting for low frills operators trading away high end services in favour of convenience, price and flexible contracts.

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With more than 10% of New Zealand’s population now seeing an exercise professional regularly, there is a total of 400,000 people on average seeing 1500 exercise professionals on a regular basis. (cited) Some of the top gyms in New Zealand are Les Mills, Next generation and Jetts. Les Mills has a competitive advantage of having fun while exercise via the fitness classes that are suitable for all ages and sizes, such as Body Combat. Les Mills is a large firm that has privately owned companies headquarters in Auckland only which are valued at $130 million.

Les Mills believes that by 2020 they will open a further of 10 gyms in Auckland (cited Mills). The health and fitness market has been described as blandly premium as there is little deffirentiation between service offerings, indicating that there is opportunity for competitive advantage to be achieved through quality. In order to open a new franchise sufficient funds must be available. Competition exist with a newly opened Les Mills Britomart, which was set up with a total cost of $10 million dollars. Margins are very slim for smaller gyms, so would need to be a large player to be successful.

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Nz Fitness Industry. (2016, Dec 19). Retrieved from

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