Core Viewpoint - The recent closure of a gym in Changsha has left many members in distress, raising concerns about the recovery of their prepaid membership fees amid a rising trend of gym closures across the country [1] Industry Overview - The closure rate of commercial gyms in China is projected to reach 10%-14% in 2024, equating to nearly 10,000 gyms exiting the market annually, indicating a significant increase compared to previous years [1] - Not only small gyms are affected, but also large chain gyms, as evidenced by the complete closure of all Beijing locations of the well-known brand Will's Gym in March 2023, leaving many consumers unable to recover their prepaid fees [1] Consumer Concerns - Over 40% of consumers express concerns about gyms going out of business, particularly regarding the risks associated with annual membership cards [8][11] - The average annual spending per member in gyms has shown a decline, with figures reported at 5,486 yuan for gym clubs and 5,460 yuan for fitness studios in 2024 [13] Membership Trends - The scale of gym memberships in China has been decreasing, with a notable drop in penetration rates from 5.4% in 2019 to 4.9% in 2023 [9] - The reasons for not choosing traditional gyms include concerns over the risks associated with annual memberships and negative perceptions of brands due to frequent closure news [10][11] Refund and Consumer Rights - After gym closures, the methods for handling consumer refunds vary, with only 1.3% of cases resulting in full refunds, while 34.99% of cases are reported as not being processed [24] - Consumers are advised to retain membership documents and payment receipts to facilitate potential claims against gyms that fail to honor refunds [27] Brand Closures - Several notable gym brands have faced closures recently, including Zhongjian Fitness and Fanyin Yoga, with significant membership bases and locations across major cities [26]