World Fitness Asia Limited (WFAL), the largest fitness operator in Taiwan has announced it will launch its first mainland China club this year, with plans to open an additional 100 stores within five years. “We have obtained a dominant position in our market (Taiwan) making it relatively easy to expand rapidly in greater China,” said John Caraccio, WFAL founder and President.
WFAL currently operates 24 fitness clubs in Taiwan, and plans to double that number within the next two years, said Michael Sanciprian, CEO and partner of WFAL.
WFAL plans to target 16 cities in China in which to expand, with per capita middle class incomes of $16,425 — such as Shanghai, Beijing and Shenzhen.
Citing the lack of a dominant competitor in China and high consumer growth rates as the motivation for expansion, Sanciprian speculated that today’s Asian consumers were slowly becoming American-style consumers. “Today’s Asian consumer spends just as much on monthly dues, personal training and retail items as their counterparts in the U.S.,” said Sanciprian.
WFAL opened its second “World Gym Elite,” — a more exclusive club than regular WFAL centers — in Taipei, Taiwan in February 2012, following the success of the first location in Taipei’s 101 Building, the world’s second tallest building. “The Taipei 101 club put us on the map in Asia, since so many Asian tourists pass through there every day, especially from mainland China,” said Sanciprian. “It’s become a natural extension that we go into China, given the language and cultural similarities with Taiwan.”
WFAL memberships cost between $45 and $65 per month depending on the location, and average about $97,000 in monthly revenue for personal training per club.
