Asia pays for inner peace
By Pietro Ventani

It is 8:30 on a Saturday morning in downtown Singapore. At True Yoga, the largest yoga studio in the city-state, about 70 people are sitting down quietly and waiting for their favorite class to start. Most of them had to book the class online and days in advance to get a slot. "How is it possible?" says a member. "Even at 8:30 in the morning I need to book the class in advance, otherwise I can't get in."

Blame it on the soaring popularity of yoga, a form of exercise originated in India 2,000 years ago that is becoming the exercise of choice for thousands of urbanites across Asia.

Yoga is already widely practiced in such countries as Australia and United States. In most Asian cities, however, in just the past few years, yoga has become one of the most popular forms of exercise and, in some cases, a very profitable business. What are the reasons for such popularity, and, more important, is yoga just another exercise fad or is it here to stay?

Yoga in Asia is also becoming a big business, with an estimated regional turnover well in excess of US$500 million. The business model can be very attractive and the "mega-studios" that have been contributing so much to the popularity of yoga are rumored to be extremely profitable.

Once the crucial decision of location is made, the up-front cost is relatively contained, as a school doesn't require much fixed investment in equipment or renovation. A robust initial marketing effort ensures that a critical mass of customers are enrolled in long-term membership programs that provide the studio with a baseline stream of constant revenues.

Once such a target is achieved and the initial investment is covered, each additional membership becomes very profitable, as other costs are relatively low, with rent and utilities representing the largest part. Instructors are typically freelancers and their number can be scaled up depending on need. Sometimes schools recruit instructors from India on a term-contract basis, however, as those instructors typically command lower salaries. Such an approach provides the center with the opportunity to minimize costs and enhance profitability.

A mega-studio can generate revenues of several million dollars per year, and some of the more successful centers around the region are believed to have recouped their initial investment after only six months of operations.

If you live in Hong Kong, Singapore or Taipei it is difficult not to notice how popular yoga has became. Newspapers and magazines run yoga-studio ads on a daily basis. Switch on the television and you can watch ads for such products as food, banking or telecommunications using yoga as a theme. New studios open almost weekly and yoga classes are offered at gyms, beauty salons, clubs and community centers.

In some markets there is a scarcity of information on the number of people practicing, probably because of the relative novelty of the phenomenon and the variety of establishments offering yoga classes.

In Hong Kong, though, there are more than 60 studios, and Pure Yoga, the largest chain, has an estimated 18,000 members across four locations. In Singapore the practice of yoga has surged in the past few years almost to a national craze. According to a survey of the Singapore Sport Council last year, an estimated 55,000 people practiced at least once a week - a large number in a country of only 4 million people.

Information on the number of people practicing yoga in Bangkok, Seoul, Taipei and major Chinese cities is harder to get. Nonetheless, it doesn't take much to notice the healthy growth that yoga is enjoying in those cities too as the number of schools has been growing steadily.

A large number of beginners, especially females, seem to be attracted by the belief that yoga helps them lose weight. That also explains the growing popularity of the so-called "hot" yoga styles. This type of yoga is practiced in studios heated for the occasion at 42 degrees Celsius to make people sweat copiously. Many like practicing yoga because is a way to build strength and, at the same time, to increase flexibility. There is also a growing number of physicians recommending yoga to their patients for a variety of conditions, from high blood pressure to back pain.


...cont'd

Patrick Wee, the founder of True Yoga, a company that owns five studios in Singapore, Bangkok, Taiwan and Kuala Lumpur, believes that the growing popularity of yoga is also due to the growing need to pursue a healthier lifestyle. "People are now more focused on quality of life as opposed to making ends meet, and this has had a huge impact on the growth of the fitness culture in Asia," said Wee.

Perhaps a less obvious reason for the popularity of yoga in Asia is that this ancient tradition is especially effective in creating a sense of peace and relaxation. According to Patrick Oancia, director of YogaJaya in Tokyo, people practice yoga "primarily to balance out stressful lifestyles in modern Asian societies and to complement the search for inner peace" - not a small benefit as the pace of life in so many cities creates people a level of stress never experienced before.

Another reason is the pollution that has became a plague in most Asian cities. In such an environment, outdoor exercise is not much of an option, while yoga provides a good indoor alternative that can be practiced virtually any time of the year.

There is no question that a new breed of yoga schools has also contributed to the growing popularity of this practice. No longer small, one-room schools tucked away in some bohemian part of town, the new temples of yoga are the mega-studios. These are in prime shopping or office locations and sprawl over 1,400-1,800 square meters, designed more with an eye for the luxury tropical resort than for the fitness club.

Given the large size and the availability of different studios, classes are scheduled virtually every hour to provide maximum convenience to busy professionals and housewives alike. They offer a large variety of yoga styles catering to the needs of the widest possible market. Schools such as Pure Yoga or True Yoga offer as many as 20 different styles to choose from in any given week; people aiming for a more vigorous practice can choose "Power Yoga" or "Ashtanga", while elder customers have the option to choose "Yoga Therapy" or "Restorative Yoga". Kids have their own classes and so do people who are looking for a more spiritual, meditative experience.

Beside yoga classes, these centers provide spa-like facilities, lounges and retail corners for yoga-related products. Members are treated to a busy calendar of seminars, retreats and various other events with the aim to create an integrated product that extends beyond the simple practice of a yoga class into a full community and lifestyle experience.

Given the growth of the yoga phenomenon and the enticing economics, it should come as no surprise that the number of studios continues to grow across Asia. Nevertheless, a number of challenges may be developing as some of the markets, especially Singapore and Hong Kong, become more mature and crowded.

Smaller, less competitive schools are starting to experience significant drops in business as students become more selective before signing on to long-term membership packages. As the more central locations often offer consumers several different options, more knowledgeable buyers start to look for a center offering the best yoga experience, primarily in terms of the quality of teachers. It is not unusual for more advanced yoga practitioners to switch membership to whichever studio has their favorite teachers. As a result, competition for top teachers is heating up and it is becoming more common for studios to poach the most popular teachers from their competitors. That may eventually lead to higher costs for the yoga studios.

For now, however, the competition seems not to worry the mega-studios as new people continue to take up yoga and the supply of excellent teachers from Australia, Europe and North America is still robust. "I think the more mature fitness markets in Asia are the most promising markets for yoga in Asia," said True Yoga's Patrick Wee.

What's more, there are plenty of markets in the region that are yet to develop; first and foremost mainland China. While the Middle Kingdom often conjures up deceitful images of "1 billion customers", the case for an opportunity in yoga in China seems to be well founded. While many classes are still taught in English and target foreigners, the demand from locals is evidently on the rise, and so is the number of schools springing up in almost every major Chinese city.

In spite of its eminently Asian roots, everyone seems to agree that the interest in yoga in China is triggered by its image of being a Western form of exercise. Nevertheless, people in Beijing or Shanghai seem to become quickly dedicated practitioners exactly because of the relief yoga offers from the pressure and noise so prevalent today in China's cities. "If there is stress, there is a need for yoga. Especially in big cities, there are no places to breathe," said Catherine Hong, director of Breeze Yoga, a Shanghai studio in the central People's Square.

With none of the major regional mega-studio chains yet operating in mainland China, the market is still in a very early phase of development. Not surprisingly, both Pure Yoga and True Yoga, the largest players in Asia, are rumored to be in the process of opening mega-studios in the People's Republic as early as next year.

In spite of its recent growth, yoga in Asia is at a very early stage of what could be a long and profitable expansion. Mega-studios seem to be positioned to continue to prosper as they make yoga accessible to the widest possible demographics and provide high-quality instructors and facilities.

As breakneck economic growth and stress continue to be part of the daily regimen for people living in Asia's sprawling urban centers, it looks as if yoga will continue to be an excellent customer-value proposition.

Pietro Ventani is the managing director of NPV Partners, a Hong Kong-based boutique consultancy firm providing strategic solutions to companies and investors with interests in the Asia-Pacific region.

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I find Yoga very relaxing. I love it.

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