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Shape-Up Bandwagon

Posted on: Monday, 3 October 2005, 12:01 CDT

By Sukanya Jitpleecheep, Bangkok Post, Thailand

Oct. 3--After years of making Thai women swoon on their scales through the high-fat offerings at their many fast-food chains, Americans have come to their senses and are rushing to the rescue with new businesses offering exactly the opposite -- to help Thai ladies get rid of obesity and lose weight.

Executives of the second- and third-largest US "express" fitness and weight-loss firms for ladies -- Contours Express and Slim and Tone -- have recently visited Thailand to get their master franchisees to tap into the high-potential fitness and weight-loss business here.

Will Arvin, director of International Development of Contours Express Inc, said Contours Express was an international fitness and weight-loss studio that matched the new busy lifestyle of women.

"Contours Express lets women with busy schedules have complete workouts in less than 30 minutes and burn up to 600 calories. Our business has proven to be enormously successful in its launch in the US and we hope to have a similar experience in Thailand," said Mr Arvin.

According to a recent study by the American Journal of Public Health, more than 65 percent of women in the United States do not exercise regularly because they do not believe they have the time to work out in a gym. Women are also attracted to the security of working out in a gym where men are not present.

According to Mr Arvin, the company aims to open 50-75 outlets in Thailand over the next three years. A franchisee must pay an initial charge of US$40,000 (1.64 million baht).

The company operates in 12 countries. It plans to increase the number of outlets worldwide to 1,000 over the next three years from 450 currently.

Meanwhile, William Edwards, president of Edwards Global Services Inc, an international franchise development firm and representative of Slim and Tone, said Slim and Tone Express Fitness & Weight Loss Studio, a fitness franchise operation launched in the US in 2002, had built up its presence in Asia over the last two years.

"We've had positive feedback in the Chinese market. Our recently completed marketing analysis for this region reflects good business prospects for fitness and exercise franchisees. So we will expand more in Thailand, Malaysia and Indonesia," said Mr Edwards.

Virginia Cha, a Chinese-American businesswoman based in Shanghai, owns the master franchise for Slim and Tone in China. She is also working with Mr Edwards to expand the fitness chain by selling province-level franchises throughout the mainland and Hong Kong.

While others may have popularised themselves with 30-minute express workouts, Slim and Tone has differentiated itself by offering nutritious products and express fitness programmes.

The company aims to have over 1,000 outlets worldwide in 2008, up from 125 last year.

For the Thai market, it is set to open 30 outlets within the next five years. The entry cost is about $60,000 (2.46 million baht) per franchisee.

According to a representative of the US Embassy, about eight franchise firms are expected to participate in franchise matching at the Conrad Hotel.

Theptarin Hospital and Nanthida Kaewbuasai, a popular singer, have also expressed strong interest in entering the two-billion-baht fitness and weight-loss industry.

Five major brands now dominate the market: Body Shape, Marie France, Philip Wain, Fitness First and California Fitness.

"These days, Thai women have grown to be much more interested in physical fitness, shape and beauty. This has led to the fast growth in fitness centres, gyms and, particularly, weight-control and loss businesses," said Ms Nanthida, managing director of C&N Enterprise Co.

However, she insists she will remain active in the music industry and plans to launch a new album next year.

Not only new players are eager to participate in the business, existing firms, such as Body Shape, also foresee a bright outlook in the fitness and weight-loss business in Thailand.

Pranee Suebwonglee, president of Body Shape International Co, the country's largest slimming centre, said the company would open three new Body Shape outlets at Fashion Island shopping complex, Siam Paragon and Sukhumvit 35, bringing the total to 22 by the end of this year.

It has spent about 90 million baht on Body Shape's Exclusia, its new slimming format at Siam Paragon to open next month to serve high-end customers.

Apart from this, the company will start distributing its slimming products at retail channels and plans to expand into fitness centres in the future.

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Copyright (c) 2005, Bangkok Post, Thailand

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Source: Bangkok Post

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