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Viewing cable 07MOSCOW5831, FEEL THE BURN: FITNESS CLUBS IN RUSSIA

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Reference ID Created Released Classification Origin
07MOSCOW5831 2007-12-17 09:42 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Moscow
VZCZCXRO3297
RR RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
DE RUEHMO #5831/01 3510942
ZNR UUUUU ZZH
R 170942Z DEC 07
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 5877
INFO RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHYG/AMCONSUL YEKATERINBURG 2907
RUEHVK/AMCONSUL VLADIVOSTOK 2570
RUEHZN/EST COLLECTIVE
RUEHPH/CDC ATLANTA GA
UNCLAS SECTION 01 OF 02 MOSCOW 005831 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR OES/IHA AND EUR/RUS 
USAID FOR GH, E&E 
HHS FOR OGHA 
 
E.O. 12958: N/A 
TAGS: TBIO SOCI SCUL RS
SUBJECT: FEEL THE BURN: FITNESS CLUBS IN RUSSIA 
 
REF: MOSCOW 1834 
 
MOSCOW 00005831  001.2 OF 002 
 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED.  PLEASE PROTECT 
ACCORDINGLY. 
 
1. (SBU) SUMMARY:  Russian fitness clubs are expanding and becoming 
increasing popular, suggesting that the notion of a healthy 
lifestyle may slowly be taking root in Russia.  END SUMMARY. 
 
------------------------ 
Fitness Clubs Pumping Up 
------------------------ 
 
2. (U) Although there are no publicly available statistics on 
fitness businesses in Russia, the Magram Market Research firm 
estimates that the industry generates annual sales and membership 
fees of about $500-$600 million and an annual sales growth rate of 
about 40 percent.  In July 2007, several large fitness club chains 
merged to form the Russian Fitness Group (RFG), which now includes 
the World Class, R-Fitness (formerly a gym franchise of Reebok 
Shoes), and Maxi-Sport fitness clubs.  RFG now boasts 45 fitness 
clubs with two more in construction, making it the market leader. 
Planet Fitness, another successful chain, has 37 locations, and 
Stria Partners owns 25 gyms.  International brands have also gained 
a foothold in the Russian fitness market:  Gold's Gym now has 
branches in Moscow, Samara, and Abakan.  Even with recent 
expansions, no more than two percent of Russians are working out at 
gyms, according to market analysts.  Over 70 percent of clubs in 
Moscow are in the premium segment of the market that caters to 
customers who can afford to pay $1,500 or more for a yearly 
membership. 
 
---------------------------------- 
Fitness for Health, and for Profit 
---------------------------------- 
 
3. (SBU) Senior managers at two central Moscow fitness clubs told us 
that 70-80 percent of patrons frequent their clubs for health 
reasons, though some members do come to network and socialize.  Even 
though basic membership fees at these full service clubs are pricey 
($2,000-$3,500 per year), both chains have seen steady growth.  Both 
chains also have significant programs for children.  One chain with 
2,000 members has 120-200 children enrolled in various activities, 
including tai kwon do, fencing, swimming, rollerblading, and 
dancing.  Families with children make up about one third of the 
other club's membership.  While acknowledging that basic memberships 
at the central Moscow clubs are not affordable to the average 
Russian, one chain's managers told us they run "more democratic" 
gyms offering fewer services and located farther from the center 
where memberships can be less than $70 per month.  Dr. Kirill 
Danishevskiy, a senior health consultant at the Open Health 
Institute, told us that the big fitness chains had sometimes 
expanded by buying up older "Soviet" gyms, making basic 
improvements, and then raising prices.  Naturally, this raised 
questions about whether fitness club expansions had really increased 
the average Russian's options for getting fit. 
 
-------------------------------------- 
The President's Physical Fitness Plan? 
-------------------------------------- 
 
4. (SBU) Some observers have wondered whether President Putin's 
attempts to generate popular interest in a healthy lifestyle through 
his own personal example has played a role in the sector's 
development.  Putin is an avid martial artist with a black belt in 
judo, and the press has covered his attendance at martial arts 
events with action film stars like Jean-Claude Van Damme. 
Danishevskiy told us that he was skeptical that President Putin's 
attempts to promote a healthy lifestyle appealed to wealthier 
Russians who had then signed up for fitness club memberships, though 
he acknowledged that Putin's healthy public image was probably more 
appealing to the less well-heeled Russian.  Managers at Planet 
Fitness disagreed and thought that Putin's healthy public image had 
a broad appeal and led to a bit of "fitness mania" among Russia's 
professional classes.  In their view, Putin's attempts to popularize 
a healthy lifestyle had been one factor in the chain's growth. 
 
5. (SBU) COMMENT: It is not yet clear how much of a trickle-down 
effect that Putin's image of a healthy lifestyle has generated among 
the masses, but there is certainly some evidence that the fitness 
bug is catching on among well-off Russians who can afford the 
membership fees at a posh club.  With only two percent of Russians 
working out at gyms, there is still plenty of room for growth in the 
sector.  In addition to private sector growth, some regional 
 
MOSCOW 00005831  002.2 OF 002 
 
 
governments with budget surpluses have unveiled health and fitness 
plans.  Orenburg Oblast will open four new sports facilities next 
year and requires government employees to take part in fitness 
programs.  Interest in physical fitness could eventually become one 
factor helping to reverse the demographics crisis and improve 
Russia's high mortality figures and low life expectancy, much of 
which is driven by poor lifestyle choices like smoking and heavy 
drinking of hard alcohol (Reftel).  However, there is a danger that 
if growth is concentrated in the premium segment of the market, 
expensive clubs could crowd out affordable gyms and leave fewer 
outlets for Russians of modest means. 
 
BURNS