The treadmills turned to the east
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Sanctions have led to the exit from the Russian market of 20% of major suppliers of fitness equipment from Europe and the United States. These products are now delivered through third countries. Fitness clubs have to refocus on buying Asian fitness equipment, and to repair existing equipment, use components of failed equipment. For some clubs, this threatens to churn out visitors who are accustomed to exercising on European simulators, market participants warn.
Since March 2022, due to the imposition of Western sanctions, 11 out of 50 large companies supplying fitness equipment have left the Russian market, according to a study by the National Fitness Community (NFS). They do not specify which players they are talking about, but they explain that these are Russian legal entities that specialize in the supply of premium brand products. In particular, according to the President of the NSF Elena Silina, we are talking about Life Fitness, Cybex and Hammer Strength, Precor and Panatta simulators. Technogym’s partners have scaled back their presence and are now “selling off leftovers,” she adds.
The global offices of these companies did not respond to requests from Kommersant. Five major foreign equipment manufacturers have refused direct deliveries to the Russian Federation, Olga Kiseleva, president of the Association of Fitness Industry Operators, knows.
Basically, Western manufacturers that directly supplied equipment to the Russian Federation are leaving the market, Russian distributors continue to import exercise equipment from the EU through third countries, explains Sergey Ivanov, CEO of FitOn (supplier of sports equipment). Fitproject also told Kommersant that they continue to supply Panatta equipment.
The current situation leads to a gradual redistribution of the fitness equipment market, notes Olga Kiseleva: “Manufacturers from China and South Korea are replacing the departed European players.” This is confirmed by NSF data, according to which shipments from China and Taiwan are growing. But Elena Silina warns that we are talking about economy-class equipment, the market capacity of which is estimated at 20 billion rubles. in year.
At the same time, according to Sergey Ivanov, due to difficulties with supplies, premium equipment has risen in price by an average of 30-40%. Therefore, he continues, most clubs are considering reorientation to other machines. If a person is used to exercising on Technogym, it may be uncomfortable for him to switch to other simulators, notes Olga Kiseleva.
Elena Silina believes that against the backdrop of equipment suppliers leaving the market, 75% of clubs felt a shortage of components and a shortage of spare parts.
The problem is acute for premium chains experiencing difficulties with equipment repair. “Fitness club operators solve the problem in different ways: someone is looking for new supply channels in private, someone is using components of old exercise equipment,” Ms. Silina.
Olga Kiseleva adds that clubs are actively buying used equipment and spare parts in specialized groups on social networks. Repair work instead of professional dealers is carried out by third-party specialists who have gained expertise, she notes. Xfit network development director Irina Troska says that difficulties with the supply of equipment arise due to increased delivery times and rising costs.
Club equipment that has failed, according to the expert, is now really being repaired by local specialists, and not as part of warranty service. The clubs are not yet buying used equipment, but they are using parts of old simulators for repairs, she confirms.
At the same time, according to Elena Silina, difficulties with the supply of equipment and its repairs may negatively affect the perception of clubs by consumers: “If customers see a large number of faulty simulators, they will start to go to other networks.” Rising network spending on equipment could also affect subscription costs, she adds.
With small sports equipment (mats, dumbbells, etc.), the situation is easier, as there is an opportunity to reorient to purchases from Russian manufacturers, says Irina Troska. According to the NSF, now in Russia 300 companies produce such products.
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