Core Viewpoint - The emergence of "Jiuhui" gym, offering a low-cost fitness model at 3 yuan per hour, is disrupting the traditional high-end gym market in Shanghai, attracting a younger demographic seeking affordable and accessible fitness options [1][3][5]. Group 1: Business Model - Jiuhui gym has maintained its 3 yuan per hour pricing for seven years, eliminating membership cards and allowing pay-per-use access, which contrasts sharply with traditional gyms that rely on annual memberships and personal training sales [3][5][9]. - The gym operates on a model that minimizes costs by avoiding sales personnel and offering basic equipment, thus keeping operational expenses low [23][25]. - Jiuhui's unique approach has allowed it to expand rapidly, opening over 20 new locations in 2022, even as the fitness industry faced challenges [15][29]. Group 2: Market Positioning - Jiuhui gym's strategy focuses on community-based locations, often situated near residential areas or workplaces, making it convenient for users to integrate fitness into their daily routines [15][30]. - The gym's pricing and no-commitment model have alleviated the psychological burden on users, encouraging more frequent visits and fostering a loyal customer base [13][19]. - The gym's success has sparked interest in community fitness centers across China, with similar low-cost models emerging in various regions [34][36]. Group 3: Consumer Behavior - The shift towards affordable fitness options reflects a broader trend of moving away from elitist perceptions of gym culture, allowing for a more inclusive environment where individuals of all backgrounds can participate [38][40]. - Jiuhui gym has effectively addressed common consumer concerns about gym reliability and value, positioning itself as a trustworthy alternative in a market previously marred by prepayment scams [5][36]. - The gym's environment promotes a focus on fitness for health rather than social status, appealing to a demographic that values practicality over luxury [45][48].

Core Insights - ACME, a fitness brand in Beijing, announced its closure after just five months of operation, marking it as one of the shortest-lived fitness brands in China [1][2] - The closure of ACME reflects broader challenges in the fitness industry, particularly in the group class segment, where competition and pricing pressures are intensifying [11][12] Company Analysis - ACME's business model relied on high pricing and a premium service offering, with monthly fixed costs estimated between 450,000 to 500,000 yuan, including rent and operational expenses [7][9] - The pricing strategy of ACME, with classes priced between 159 to 199 yuan, was significantly higher than competitors, which deterred price-sensitive customers [7][10] - Despite attracting some initial customers due to its premium offerings, the limited market demand could not sustain the high operational costs, leading to its rapid decline [9][10] Industry Trends - The fitness industry is witnessing a shift towards lower-priced offerings, with brands like 乐刻 (Leke) and 超级猩猩 (Super Monkey) adjusting their pricing strategies to remain competitive [16][19] - The emergence of new fitness brands and the diversification of fitness offerings, including outdoor activities, are fragmenting the market and challenging traditional gym models [22][23] - The group class market is facing saturation, with many brands offering similar content, making it difficult for consumers to justify premium pricing for comparable services [21][23] Competitive Landscape - The closure of ACME and the struggles of other traditional fitness brands highlight the need for differentiation in the crowded fitness market [11][21] - Brands like Savage are adapting by lowering prices and enhancing course offerings to attract users, indicating a trend towards more flexible and responsive business models [20][21] - The fitness industry is increasingly focused on balancing quality, pricing, and user experience to survive in a competitive environment [21][24]

Core Viewpoint - Fitness is increasingly recognized as an emotional outlet for urban dwellers, transforming gyms into spaces for psychological healing and emotional release [1][4][34]. Group 1: Emotional Benefits of Fitness - Gyms provide a multi-dimensional space where individuals can exercise, socialize, escape from daily life, and heal emotional wounds [10][12]. - Various fitness classes, such as boxing and cycling, are designed to help individuals release stress and anxiety, serving as a form of emotional therapy [2][13][15]. - The Class in New York promotes fitness as an emotional release outlet, focusing on the challenges faced by modern urban women [17][18]. Group 2: Market Demand and Supply - The rise in demand for emotional support through fitness has led to gyms offering services beyond physical transformation, emphasizing emotional value as a key to customer retention [11][22]. - A report from Simple Psychology indicates that emotional issues stem from interpersonal, workplace, and relationship factors, highlighting the need for emotional management [23][24]. Group 3: Psychological Impact of Exercise - Regular exercise has been shown to reduce mental health issues significantly, with a study indicating a 43.2% decrease in psychological problems among frequent exercisers [30]. - Fitness activities not only provide a temporary escape but also contribute to long-term emotional resilience and self-confidence [35][36]. Group 4: Future of Fitness and Emotional Health - The integration of emotional management into fitness routines is becoming essential, with gyms evolving into safe spaces for emotional regulation and healing [40].