Pure Group to pump S$20m in Singapore

Singapore

PURE Group Asia, known for its yoga and fitness studios, announced plans to invest over S$20 million in Singapore over the next two years, with two new outlets by early 2018, and three to four more in the pipeline.

It is slated to open a new fitness club in Ngee Ann City spanning 28,000 square feet in the fourth quarter of 2017, consisting of athletic turf with sport bleachers, a 30-metre sprint track and a dedicated boxing area on top of the usual gym and group class facilities.

The group is also opening a new yoga studio with its first retail storefront in the Marina Bay area, projected to launch in the first quarter of 2018.

This is expected to create up to 100 new jobs in Singapore, in addition to the 250 staff they now employ in the city-state.

The Hong Kong-headquartered group currently has five outlets in Singapore. Globally it has 30 locations across Hong Kong, Shanghai, Singapore, Taipei and New York (see amendment note). The group also has its own range of performance active wear as well as health food brand nood food.

But this expansion comes at a time when the reputation of the fitness and wellness industry has taken a big hit. Last year, mega gym chain California Fitness shuttered all its outlets in Singapore as well as Hong Kong.

Most recently, Singapore-owned True Fitness was in the spotlight for the abrupt closure of its Thailand and Malaysia outlets, even as it announced plans to expand in Singapore and China.

Colin Grant, CEO and co-founder of Pure Group, is well aware that the public's trust in the industry has been shaken.

He told The Business Times: "To us, we are in this for the long haul. We are not in this to make a quick buck."

He declined to give exact figures for the group's revenue, but said it has increased almost 50 per cent in Singapore in the last two years.

And unlike many gyms which depend on pre-paid memberships as a business model, Mr Grant said that the majority of their members pay a monthly fee.

"We are not actively looking for everybody to get on prepaid (membership) - it's the opposite. We prefer it if they pay a monthly fee."

This strategy means that the business gets regular payments instead of an upfront infusion of cash, which is essentially unearned income.

The group does sell pre-paid memberships of up to two years, but they make up only about one-third of memberships, he said.

His advice to consumers wary about the industry?

"Don't join (as a member) if you are hesitant. Do it only if you feel comfortable and confident."

Pure Group's fellow co-founders include long-time friend Hong Kong billionaire Bruce Rockowitz, Almen Wong, and Mr Grant's first yoga teacher Patrick Creelman.

Despite the proliferation of gyms and studios in Singapore, Mr Grant said he is not worried about market saturation. In fact, he sees the expansion of the industry as something positive as more people embrace a healthy lifestyle.

But this does not mean that the group is not taking its competition seriously. He said that the group is constantly innovating by introducing new classes and services. For example, the group started a free online yoga tutorial website last year where anyone can try their classes in the comfort of their own home.

Instead of thinking that it will eat into their margins, Mr Grant is hopeful that people who are afraid to try yoga can test it out on their own and this would draw them to the studio.

The group is in the midst of building a mobile application which will incorporate all the elements they offer, such as class bookings or even purchasing juices. This is expected to be rolled out at the end of the year. Eventually, there are plans to bolt on a loyalty programme where every dollar spent can be accumulated to enjoy perks.

Going forward, Mr Grant says that the group sees an increasing demand for quality fitness and wellness experiences not just in Singapore, but globally as well. China, in particular, is a market that the group is eyeing. He also observed a trend of more Millennials looking to lead a healthier life, which bodes well for the future of the industry.

But he will have his work cut out for him. Many fitness chains such as True Fitness, too, have their sights set on China. Regardless, he is sanguine about the group's prospects for the long-term.

Mr Grant said: "It's a natural course of events in most businesses where if something becomes popular, a lot of people will jump in. I think as long as you offer a good experience at a fair price, and you run your business with integrity and honesty over the long term, you will survive."

Amendment note: In an earlier version, it was stated that Pure Group has two outlets in Singapore. It was clarified that it has five. The group has also updated that it has 30 locations across Hong Kong, Shanghai, Singapore, Taipei and New York.