Gyms Deserted, China’s Largest Fitness Platform Is Done, $2 Billion up in Smoke!

The trend of "closing the store and running away" is ongoing in China, this time hitting the fitness industry.
#chinaobserver
All rights reserved.

[@alhazred3718]

No need for gyms if everyone is starving anyway.

[@amano_s9159]

Starving and pennyless.

[@Schminner]

yuanless@@amano_s9159

[@hebrewyisraeliteyahawadahite]

*It doesn't cost any money to starve.*

[@genehunsinger3981]

STARVING

[@vueport99]

​@@hebrewyisraeliteyahawadahite true but it'll cost the govt to crush unrest if the people are starving

[@glenngrowe7105]

A couple of years ago I was telling a friend who lives in Beijing I was going to a local fitness center here in Kansas. I was amazed when she told me she would not join a fitness center there because so many of her friends experienced gym owners running away with membership monies. This phenomenon goes back several years in China. Sad that the CCP has crushed the private economy.

[@breakingthewall2112]

Happened to us but luckily new gym gave us that time back

[@ursulasmith6402]

That happens everywhere. It depends on the person, not the CCP. Communism is a hoax, it's just a lifestyle.

[@GNerdful]

from what I've seen during my time in China is that people are too obsessed with following trends, like the video says for a time gyms we're a big trend so people invested in gyms, but now the trend has changed so gyms are shutting down. Right now the trend is opening coffee shops, there's one mall that has 5 different coffee shops in it, I expect in a couple years we'll see a lot of closures

[@patricew.4010]

Bakeries

[@larryr.apfeljr.585]

It's called fraud.

[@Herman-hr2ti]

This same thing happened here in Perth Western Australia 40yrs ago. Laurie Potter fitness studio sold lifetime membership to people for $1500 and then closed and ran away with everyone's money. The government made a law against that happening again but the gyms still rip people off.

[@BR-hi6yt]

Ha ha, I imagine Laurie running down the road with a bag of money

[@willpugh-calotte2199]

Seeing that it's unlikely that a gym will remain in operation for the remainder of a customer's life, "lifetime" membership effectively means for the lifetime of the gym, not for the lifetime of the customer. So, in that sense, customers did indeed get "lifetime" use of the gym.

[@cphenshaw4082]

At that time, $1500 lifetime memberships was actually good (but slightly unethical) business practice. Statistics clearly showed that 4 out 5 people totally failed to attend their health club after about 6-8 weeks, regardless of their membership. It was money for jam. Later, he was charged with selling life memberships when he knew that the business was insolvent. Laurie Potter went broke because he foolishly commenced building a multimillion dollar luxury resort in Geraldton without proper planning or finance. When his finance facilities ran out (he owed huge amounts to TCS), he stupidly invested large chunks of members' funds in the project. The empire collapsed owing about $28M to the R&I bank (who bought TCS). He was simply incompetent and was not even smart enough to run away with everyone's money. He also nearly failed multiple times previously, especially when the idiot tried to expand interstate.

[@willpugh-calotte2199]

@@cphenshaw4082It would be interesting to know how many of those people bought lifetime memberships on the strength of a soon-evaporated new year's resolution.

[@hihellokitty85]

Gyms are luxury. Many can't simply afford them now due to economy.

[@CeeTeeUSA]

They're serving fake food and running scams in every sector. I'm surprised people trust anything..

[@glitter_fart]

you know what isnt a gym and still builds muscle? working

[@1439315]

Debt is for losers; always was.

[@Ukie88]

@@1439315case by case history will tell the real story. Some husbands have put their families into debt by gambling, speculation, lending, etc

[@Eddardstark9308]

@@glitter_fartmost people in the cities don’t have physical labour jobs

[@dedriannehartgers629]

And people wonder why I work out in my house....

[@VCRider]

This applies to china though, not sure where you live

[@NX6.2]

Literally nobody wonders this.

[@diedampfbrasse98]

@@VCRiderthe west has more then enough bankruptcies of such private businesses with costumers having little to zero chance of getting fees back as banks usually get priority pick on whatever money is left. Sure, that happens not nearly to such drastic extends as in china but still enough to get smart and simply not pay months or even a year in advance for services with an uncertain longterm demand / reliability. Its not just gym membership which is ridiculous to pay under such conditions, plenty of other services have the same silly payment scheme and countless of costumers crying about not getting their money back when the service shuts down or breaks in another way ... thats the risk fools take whenever they try to save a buck in the most naive way.

[@savagebeastking8703]

If I tried to workout in your house you’d close down like all the others. You can’t fool me!

[@gh-dw3tg]

ghost companies rampant as a front for IPO....amazing video...keep rockin

[@genehunsinger3981]

Me Goinow takes the loot and runs.

[@laowai2000]

Purchased a Gold's Gym membership years ago in Shanghai pre-opening as had faith in the Gold's Gym name. It managed to go broke before opening during fit-out. Luckily another owner picked up the Franchise, finished the gym and very kindly respected the original members by providing memberships per original deal.

[@luisjimenez9440]

Was on purpose to get your membership fees is all. Never was “Gold’s Gym” to begin with .

[@laowai2000]

Rubbish. Was a Offical Gold's Gym Franchise set up by an American guy in association with Gold's. Lost his money with the contractor and being overextended. Project failed on the 2nd contractor close to completion. Gym was fantastic once it opened.@@luisjimenez9440

[@rrheipel]

My gym has been hounding me to renew my contract. They want to give me a one year deal, then a two year deal, and the I said I was not sure if I would be in China for very long, they said ok how about 6 months. My membership does not expire until July. The writing on the wall is there for this place. I have had two gyms close on me in the last 6 years. Membership drives are always a bad sign.

[@censorbleep3018]

These stories keep happening on the daily in China . . . how many times must the Chinese be betrayed before there's a revolution?

[@blightedgrounds]

Working out and building muscle requires a lot of protein, which many Chinese can't even afford right now, much less the gym membership fees, transportation fees, and the time it takes out of your daily life. Everyone is working side hustles and have extra jobs to survive 😕

[@shanghaiffgg]

It’s amazing how frequently Chinese people buy loyalty cards to get discounts and inevitably lose money when the places close. It happens to my wife dozens of times. I just pay as I go on everything in China. There are tons and of gyms in China and lot of people can afford them but like every sector in China it’s very difficult to make money and the churn is high.

[@MartelloClaudio]

I confirm this. Same thing happened to many of my friends

[@CeeTeeUSA]

Didn't think there was enough wealthy people to have gyms in China..

[@eragonfreedman9228]

There are some extremely wealthy people. But they're all leaving which is why this is happening.

[@junicohen7918]

​@@eragonfreedman9228socilism does that

[@magi115]

you should visit an average city in mainland China. every other car is a Mercedes or Porsche. you are mistaken.

[@Muddyres]

@@magi115the equity in those vehicles depreciate so quickly not a long term investment or actual wealth this isn’t the flex you think it is

[@DD-ld1xq]

@@Muddyres It's a massive house of cards you're right. Potemkin wealth.

[@colemarsh13]

Excellent coverage

[@talanthian]

This used to happen a lot in the US during the 90's and early 2000's. Pop-up gyms signing up a lot of members then closing very suddenly and keeping people's money.

[@tuomasholo]

Beware low prices and discounts is the sign of distress.

[@VastChoirs]

Not really related to this video that much, but one thing I've noticed after living here for 9 years is that in the winter time the gender ratio is around 90/10 male to female in gyms, but then in the spring and summer it flips around to around 40/60 male to female. It's because of all the weird superstition about "coldness energy" and stuff in this culture I think.

[@shanghaiffgg]

I think you’ll find it’s because not many women wear bikinis in the winter

[@JB-xl2jc]

Coldness energy? I'm a westerner but I am curious.

[@breakingthewall2112]

Chinese women are really afraid of the cold and thinks it makes them sick@@JB-xl2jc

[@a.westenholz4032]

@@shanghaiffgg Something of the sort- though not bikinis in particular, just the summer wardrobe. Women there more focused on their figure rather than actual fitness, and men probably switch to doing more outdoors activities and sports.

[@shanghaiffgg]

I was part joking regarding the bikinis, Chinese women tend to not wear them. The obsession with shape as opposed to fitness is an Asian thing not just a Chinese thing. I have never met a Chinese woman who cares about their fitness level but most are obsessed with being as thin as possible. @@a.westenholz4032

[@ChinaInsider-news]

The economy is tough right now, it's probably true that everyone needs to tighten their spending so no one comes to practice😳

[@mikebreslaw9651]

the old pump and dump....

[@sensi6457]

China made a huge mistake when it sided with Russia against the West - Devastating mistake 😪😪

[@HughJass-jv2lt]

😂😂 No.

[@sensi6457]

@@HughJass-jv2lt - All the facts prove what I say is true. Go ask your economy and declining international influence - Hahaha

[@Toramt]

5:39 'less serious' is they haven't paid salaries for several months? Seems pretty serious... Once this pattern is known I don't know why the workers would stay after the first missed paycheck.

[@topsuperseven7910]

You can't understand it because you think China PRC and employment works the way it does in your society. It does not.

[@led0073]

If people are struggling to fed themselves, they certainly don't go to spend money joining a gym.

[@Charvo75]

People can go walk and run at the park for free.

[@vincentyeo88]

Walking up staircases for free.

[@cctvzul770]

Its the same in Malaysia, especially during the Covid pandemics.

[@Sick_Pencil]

In 2018 I lived in KL and subscribed to Celebrity Fitness for 1 year because they had a swimming pool which was my main reason. After 3 months they closed it for maintenance which takes over a year. I stopped giving money to gyms since then.

[@hiroshinagoya2469]

Gyms are considered a luxury; how is supposed the Chinese people keep access to this luxury hobby when the economy is in free fall?

[@user-lb8bg6kj9m]

It can't cost that much to join a gym there. Also not being healthy may have a higher cost. That being said, practically all Chinese are thin and only a handful are overweight.

[@findout9444]

I recently decided to start working out last year in October, they payments options where 300 yuan a month, 900 yuan 6 month and 1200 a year. After starting one month in feeling the progress the gym closed, they said something about renovating and kept postponing the opening date until today. I'm just surprised finding out today that this is what's happening. Little mad right now. Freaking scammers 🤬

[@shanghaiffgg]

That’s very common in China. I have attended over a dozen gyms in China that have closed over the years.

[@user-lb8bg6kj9m]

​@shanghaiffgg Damn. What else closes unexpectedly there? Hopefully not banks.

[@shanghaiffgg]

most restaurants and retail services. No, not banks.@@user-lb8bg6kj9m

[@MNcoquicoqui]

​@shanghaiffgg Why can't the government go after these fraudulent owners, detain them and charge them with fraud?

[@shanghaiffgg]

@@MNcoquicoqui why would they? Too many cases and the police didn’t lose anything. The police are not there to work on the citizens behalf. That’s not how communism works.

[@Sick_Pencil]

Look at the good side, you can buy these equipment for cheap and use it at home.

[@evangelicalsnever-lie9792]

This news does _not_ displease me at all.

[@rollyjolly3076]

Do you mean you are not not pleased to hear this news?

[@chooch5728]

All gyms never last. Especially here in America.

[@minifunkable]

Fantastic news 🎉🎉🎉🎉🎉🎉

[@breakingthewall2112]

Our Chinese gym closed and boss ran. So sad because was so close and had a poll. Poorly run and bad upkeep. Now we go to 2 rmb gym. It has poor facilities though

[@maverickMVK]

Reminds me a line from MTV's Poga for politicians: " Build up your thigh to give you muscle power to run from CBI".

[@1mouseman]

Prepaid dues? Yikes! That goes on the books as a liability 🤦‍♂️

[@user-lb8bg6kj9m]

Pay as you go.

[@Doo_Doo_Patrol]

I tried to quit the gym and they said I had to talk to the manager. I was all paid up. That is the last gym I ever join.

[@BR-hi6yt]

I see young people getting away from music and clubbing and becoming fitness obsessives instead - that's healthy food, healthy fitness machines and more facilities for heath (not body building or fighting, just good health).

[@johnmccarthy7195]

China is toast...

[@user-tu4qg1hq1i]

I feel sorry for the Chinese people, not their government.

[@StevenLee-gw4cm]

Yes, Running away 💨💨💨💨 becoming reality Kronika New Era 🤡🤡🤡🤡😌😌😌😌

[@your_bases_are_belong_to_us]

any business that depends on middle class spending is done. the middle class in china has regressed to the peasant class. you can thank the CCP for that.

[@michaellafleur15]

Warren Buffett said in one of his recommendations to get richis...not to have a Gym membership, don't waste money.

[@apborick5796]

Funny how not having a job tanks everything but food & shelter.

[@mattanderson6672]

Rise up People of China

[@MM-mo2yc]

What’s the air quality index at most Chinese gyms?

[@shanghaiffgg]

Very good. Same as outside the gym these days. Horrible pollution is a thing of the past thankfully

[@nitsaastro2162]

​@shanghaiffgg since when is pollution a thing of the past..look at the AQI of China...worst pollution in the world.

[@shanghaiffgg]

since around 2015. Dramatically improved. fro example its 53 now in Beijing as I type. It's almost entirely blue skies now across China. I assume you dont live here otherwise you wouldn't be so clueless on this. @@nitsaastro2162

[@fabianeng8605]

It's hard to sustain Gym so obviously when times are hard, they cannot survive. In Singapore the only large Gym chainstore closed down a few years ago (a few years before covid19 pandemic started) too.

[@szvqorwnpstahskypfwmp9821]

This happens all the time in Korea. A lot of thieves.

[@cindatelis]

Wait… SEVERAL MONTHS of non payment to staff? After two weeks I’m OUT. I dont work for free and i am not a slave. NOPE

[@whilewaitingforthemothersh5366]

The has little to do with the economic downturn as gyms have been playing that game in China for over a decade .

[@sbeers88]

It seems this company can't "Keep" up.

[@BR-hi6yt]

Gyms have good machines and facilities for fitness so I think they have a future.

[@genehunsinger3981]

Won Ping Ding's physique will suffer greatly due to gym closures.NOW Shi Wu Dong will shop elsewhere for her "pork".

[@cs2007new]

I checked KEEP share price is really in a downward spiral 6 mths ago. Economy is slowing down for China.

[@randolphbienmateo8174]

Who needs a gym when starving is the diet routine

[@psychoaztecs]

this is what happens when a lot of your middle class left the country.

[@shanghaiffgg]

Silly comment. 99.9% of the middle class is still in the country. They just have a lot less money than before.

[@psychoaztecs]

how do you know that wumao? are you part of the middle class?

[@shanghaiffgg]

I am a European living in China for the last 16 years. you on the other hand have probably never set foot in the country which is why you make such non sensical comments from a distance.@@psychoaztecs

[@gaius_enceladus]

No point at all in going to the gym if all of your country's air, water and food is toxic.

[@1439315]

Toxic thinking, brainwashed, conditioned, programmed government schools . . .

[@patricew.4010]

They have to try

[@lorenzo575]

I was scammed to a 5 year membership 😢. Never again

[@user-qr5bm7ek6r]

I remembered Hangzhou Kronika New Era running 💨 away reality in China

[@El-Ge]

Because all the members are healthy and physically strong, so they do not need it anymore.

[@battlebotts]

If you own everything you can make good money.

[@Heyoka222]

They trained to catch cats. Cmon

[@situationalawarenes]

The party is ensuring a carb free diet anyway.

[@wayneho71]

So the members are paying and the gym owner(s) decided to close down and went away with the money. It doesn't make sense.

[@tarey05]

I thought Peleton went bankrupt. Again, China's expert at copying. Like it's hard?

[@JBro-gu2ys]

resell & export as secondhand to other countries?

[@jonathonfreeman9233]

They've been practicing their cardio, given how fast they can run away

[@willscheck8072]

in the USA we pay by the month. looks like you better know who the owners are and where they live.

[@SithLordAnakin]

China people went to the gym? Wow.

[@blinklost]

Bahahahaha

[@shanghaiffgg]

The gym I go to in Beijing is always packed.

[@blue-phoenix115]

Gyms closing are minor, almost irrelevant compared to everything else happening. People will be fine not going to the gym.

[@gabriel.hongkong]

Must be a slow day of news. What? It's your first time seeing a liquidation of a business?

[@RaniVeluNachar-kx4lu]

Be fearful when other's are greedy. Who said that? And be greedy when other's are fearful. Come on, you all know him.

[@nileswright8915]

soooooo has China started doing the 'print back better' like we do?!? :(

[@RaniVeluNachar-kx4lu]

You know it's bad when they sell the employee's.

[@markgarin6355]

Ah ..... I'm confused, did keep have any thing they sold? What money did they generate? Who was getting paid money from the ads and investor money? There's nothing behind this product to have invested in.... How was that ever valued at 20 million?

[@user-ee7bz3ip2b]

China needs some serious reforms to their economy that will not happen

[@WallyTony]

The sound is real bad in this. It pops my headphones

[@jules263]

Sh@t and run 😂

[@thatguy7085]

Same done in America

[@bigdaddylongstroke3559]

Does china not have business insurance!?!??

[@Arid379]

Sue them

[@jericoeric]

just a suggestion when mentioning amounts in yuan, atleast put in the video the total USD amount too.

[@MasticinaAkicta]

So another QUICK UP and QUICK CRASH business. It comes in waves after all. Suddenly there is a market/need, poof a lot of these things open. Once that need stabilizes the closures begin and once it begins to crash, well...

[@m_ianO]

I went to wills gym. The same thing happened to me.

[@TheeRomantic]

Keep. We warned you.. We KEEP your money 😅

[@MA_KA_PA_TIE]

Lift cinderblocks at home

[@Ukie88]

Where are they running to and are the police not after them? 🤥🤡. Fraud/theft by the owners.

[@shanghaiffgg]

Why would they? The police didn’t lose anything

[@user-qr5bm7ek6r]

Yeah running away 💨💨💨💨 new reality Kronika New Era 🤡🤡🤡🤡

[@ErnPrivado]

Time to buy low-ball second-hand gym equipment. :|

[@ywsx6489]

I find it silly that people need an app to exercise.

[@polkalamypekopeko2969]

And this is why you do outdoor cuts and no gym calisthenics

[@user-ry7sl1eu6l]

it is called domino effect, even in morality

[@onlineshoppingjakarta7338]

Buy your own gym equipment

[@magi115]

this doesn't really work in China as the majority of the population lives in apartments. you aren't putting a squat rack in a 100 square foot bedroom.

[@andreasb3347]

​@@magi115a powerrack doesnt need much space. this could be done but most chinese dont think so far

[@magi115]

@@andreasb3347 the rack is too high for ceiling height and you need to have either a concrete building construction or a reinforcced subfloor. and then theres the fact that it takes up half the room. dumb idea.

[@magi115]

@michaelscarport great. how do you do deadlifts, bench press and inclines?🤔

[@andreasb3347]

@@magi115 i live in chengdu and lived in 5 different apartments in china. i have homegym at home in germany. most apartments can easily have a powerrack and ceiling height is not a problem.

[@superdiver.]

aguiculture needs invest

[@RoniiNN]

Very Chinese to run in the night with the money.

[@FelipeKai]

i don't understand sometimes you show China "empty" and a few weeks ago the island of Hainan was FULLY PACKED with millions of people for CNY.....

[@michaelotoole1807]

i only work out at my house..... your welcome...

[@watomb]

Not enough free weights just a show me gym

[@napleswolverine7189]

In China, keep ain’t a keeper 😂 and the owner is probably being a Leeper. Take the money and run. I bet you that runner would run faster if you had a whole mob of people chasing after him with baseball bats👊🏻🫵🏻

[@mikebreslaw9651]

gym? who can afford that? thre govt has a free gym ,it's called a labor camp

[@maapaa2010]

This is disgusting..

[@rowelski]

Can anyone here verify that the actual Chinese spoken in these videos are accurate?

[@midimusicforever]

OOF!