In 2020, the sudden epidemic swept the world, disrupting the production and operation order of enterprises. The same is true of the gym fitness equipment industry that relies on the external environment. You can feel the impact and change in the industry. During the pandemic, the global demand for home fitness has exploded, and industry orders have increased significantly. However, with the adjustment of epidemic prevention policies and the soaring freight, the main export fitness equipment enterprises have also ushered in new challenges and opportunities.

1. The fitness equipment market is hot.

After the outbreak overseas, home quarantine has undoubtedly intensified the pressure on the health club and commercial gym market. Physical fitness facilities have closed in many places, which has led to a rapid increase in demand for home fitness equipment.

According to the data released by the General Administration of Customs, the scale of China's fitness equipment and sporting goods exports in 2019-2020 showed an upward trend, increasing from $3.43 billion in 2019 to $6.06 billion in 2020. From January to August 2021, the export scale of China's fitness equipment and sporting goods was 6.35 billion US dollars, close to the level of 2020.

Note: Data as of August 31, 2021.

Due to the popularity of fitness awareness and high income levels, the United States and the European Union are currently one of the most important fitness equipment consumer markets, and the market has matured and formed a relatively stable market competition pattern. From January to August last year, the United States was China's largest export region, exports reached 2.21 billion US dollars, accounting for 34.78%; Secondly, the exports of the United Kingdom and Germany reached $340 million and $330 million respectively, accounting for 5.41% and 5.16%.

On the one hand, affected by the daily exercise demand of overseas consumers under the epidemic, the export volume of fitness equipment has increased significantly. On the other hand, this is also related to the panic consumption of some consumers under the epidemic due to the need to enhance immunity.

Second, fitness equipment industry characteristics.

Globally, the main market of the fitness equipment industry is Europe and the United States and other developed countries, affected by cost and other factors, the world's main fitness equipment production is gradually transferred from Europe and the United States to Asia. In the future, Europe, Asia and Latin America will also become the main growth points of the fitness equipment market. With the development, the industry has the characteristics of supply-demand structure dislocation, periodicity and so on.

1. Differentiation features.

As China is the largest production base in the world, products are exported to all over the world, and consumers in different regions have different needs and habits for fitness equipment. For example, under the epidemic, sales of home fitness equipment in Europe and the United States have increased rapidly, while in Japan, after a short-term increase, they have declined rapidly. The different characteristics of customer needs make the product types of fitness equipment also have different characteristics. There are great differences in specifications, parameters and functions of similar products, and great differences in product prices and applicable target groups.

2. Mismatch of supply and demand structure at home and abroad.

The supply of the global fitness equipment market is concentrated in China, and the demand is concentrated in Europe and the United States. Due to the structural dislocation of supply and demand, the fitness equipment sales market is dominated by European and American enterprises. Although Chinese enterprises have accumulated rich experience and technical advantages in manufacturing, due to the lack of brand effect, sales channels, sales channels and after-sales service, mainly ODM or OEM exports to European and American markets. Therefore, the share of independent brands in foreign markets is low, and the pricing power in the terminal market is mainly controlled by foreign enterprises.

3. Cyclical characteristics.

The periodicity of fitness equipment is reflected in the supply and demand relationship between raw materials and fitness equipment. On the one hand, steel is a major component of the cost of fitness equipment, and fluctuations in steel prices will directly lead to corresponding fluctuations in the cost of fitness equipment. On the other hand, the demand for fitness equipment is related to consumers' per capita disposable income and economic development, but with the increase of consumers' attention to fitness, economic fluctuations have weakened the cyclical impact of the fitness equipment industry to a certain extent.