
Temple (left) and Johnson: Flexibility is our selling point. Back to basics
In June last year, another well-known fitness chain abruptly shuttered its outlets, this time in Thailand and Malaysia. True Fitness, a Singapore-based company, said those businesses were no longer financially viable but that its eight gyms in Singapore would stay open. These prominent closures have made gym goers leery of being locked in for lengthy periods and of hefty upfront fees. Temple, who spent seven years with Pure Fitness in Hong Kong and witnessed California Fitness’ demise in Hong Kong and South Korea, has had a front-row seat to the industry’s struggles. “California [Fitness]was a big box trying to be low-priced by undercutting brands such as Pure [Fitness] and Fitness First. The business model was not sustainable. They had big overheads,” he explains. Striking out on his own, he is mindful of keeping costs in check. Platinum Fitness runs on overheads that are 5% to 10% of those at large-format, premium gyms, he says. To do this, its gyms are kept compact. Bells and whistles are kept to the minimum. At its OUE Downtown branch, cardio machines and strength equipment are packed into 400 sq m of space, leaving only a small area for group classes of about eight. Classes fall into categories of HIIT (high-intensity interval training), boot camp or TRX suspension training. Shower facilities are limited, with three for the ladies and two for the men. Staff numbers are skeletal, with just two full-time personnel per gym. However, Temple and Johnson stress that there has been no skimping on gear or furnishings. “We’re back to basics. Something that’s convenient, affordable but doesn’t feel cheap,” says Johnson. Fitness apparatus is sourced from Matrix, a leading brand in the commercial fitness equipment industry, and accounts for about half of the fit-outs at each gym, making it the single largest-cost item. At $80 a month, the price tag at Platinum Fitness is half to a third less than the kinds of fees charged by global players such as Virgin Active, which offers frills such as hydrotherapy pools and salt inhalation rooms as well as a smorgasbord of classes from aerial yoga to kickboxing.
Aside from being less keen to commit to costly clubs, consumers are leaning towards the freedom to sample new and varied workouts. Boutique studios specialising in Pilates or rebounding have sprouted up. Smaller gyms focusing on HIIT, such as Ritual Gym, or CrossFit, a hardcore strength and conditioning regime favoured by military units and elite athletes, have muscled onto the scene. Interest in mixed martial arts has skyrocketed and Singapore has emerged as the epicentre for MMA in Asia, driven by its popular ONE Championship, amateur leagues and numerous combat sport gyms. In June, Ultimate Fighting Championship, the Las Vegas-based MMA organisation, unveiled an aggressive plan to set up 15 franchise gyms here over the coming decade. The marketplace has also been disrupted by internet fitness start-ups. There are now apps that let users tap a spectrum of classes, stretching from Barre, a ballet-inspired workout that is gaining mileage with women, to Pound, a cardio exercise based on drumming. For a monthly fee, these digital fitness passports, which include Singapore-based GuavaPass, Malaysia-based KFit and newcomer ClassPass from the US, let users attend classes not just in Singapore but in other cities across Asia-Pacific when they travel. On top of all that, there are plenty of cheap or free wellness choices. Anyone with a WiFi connection can follow a celebrity coach or Instagram star’s bite-sized sessions on YouTube. Alternatively, folks can join a free K-pop dance class or circuit training session organised by the Health Promotion Board, which is stepping up efforts to get Singaporeans to lead more active lives. These sessions are held at public parks as well as gyms, such as Fitness First, that the HPB has tied up with. Temple and Johnson are aware of the competition they are up against. However, they reckon that developments such as multi-activity passes and new fitness trends complement their gym model. Someone might buy a package at a yoga studio then want a gym where they can go to on other days, Temple notes. “We’re not revolutionising workouts. Videos have been around for 20 years,” he points out. And yet, many people still need the discipline of a brick-and-mortar gym or a real-life coach. So far, response to Platinum Fitness’ two branches in Manila has been really positive, says Temple, adding that they have over 1,000 members now. A third location is on the way. The Philippines was chosen as the entry point, as Manila did not have a lot of fitness concepts, Temple notes. Singapore was next, as it was seen as a test bed for the Malaysian and Indonesian markets and further out, Vietnam. The near-term plan is for two to three gyms in the Lion City and 10 in the Philippines. The numbers could go higher if they opt for a franchise model. Currently, Temple and Johnson are the sole investors in the business, putting in US$300,000 ($412,780) to $400,000 per branch, which they target to turn cash flow positive within the first two to three months. The two fitness junkies met in Hong Kong, where Temple was born and bred. Temple, 28, spent much of his youth playing on the tennis circuit, where he was ranked within the Juniors League of the International Tennis Federation. He began his career at The Pure Group in sales and marketing before moving to other gyms such as TopFit, a fitness centre in Hong Kong that runs classes and rents space to freelance trainers.
Sunita Sue Leng, formerly an associate editor at The Edge Singapore, needs to go to the gym more frequently.