Taiwan Today

Taiwan’s fitness equipment industry is growing at full tilt.

Ever since entering the labor force, office worker Christine Su (蘇筱筠) has placed top priority on maintaining a regular workout routine. “There’re so many great reasons to exercise—from improving energy, fitness and sleep to reducing anxiety, depression and stress,” the 27-year-old said. “Going to the gym majorly boosts my overall quality of life.”

The outbreak of COVID-19 in late 2019, however, forced Su to start exercising at home in order to reduce her risk of catching the disease. She wound up buying a stationary bike, which she found to be an incredibly worthwhile investment. “The indoor bike has a ­built-in touchscreen that I can use to stream workouts or connect with training apps to watch classes on my phone or television. It can also automatically adjust the incline, decline and resistance,” she said. “These features ensure that I get a challenging yet fun workout from the comfort of home.”

Demand for home gym equipment has surged globally amid the pandemic as people like Su stayed home to protect themselves and others. This is evidenced by Taiwan’s exports of fitness machines, which posted stellar annual growth of 35 percent in 2020 and 68 percent in 2021, according to tallies compiled by the Taiwan Sporting Goods Manufacturers Association in Taipei City. Of the country’s outbound sporting goods shipments, fitness devices accounted for the largest share, making up more than 60 percent of the total.

Rising demand for both commercial and home fitness machines over the years has enabled Taiwan producers to flourish. Many local enterprises entered the industry with a focus on original equipment manufacturing (OEM) for some of the world’s biggest brands in the 1980s before transitioning to original design manufacturing (ODM) in the 1990s. A number of such companies later went on to specialize in original brand manufacturing (OBM) as a way of building customer recognition and securing sustainable operations.

Continuous Evolution
The growth story of Johnson Health Tech Co., the largest gym equipment brand in Asia and third largest in the world, epitomizes the history of Taiwan’s fitness equipment industry and demonstrates how local companies maintain competitive advantages through integrated branding, design, production and marketing capabilities. Established in 1975 in the central city of Taichung, Johnson initially produced OEM weightlifting barbells and created an R&D team to explore ODM opportunities only five years later. Following an aggressive expansion ­strategy, the company developed its brand Vision in 1996, Horizon in 1998 and Matrix in 2001, with each catering to the distinct needs of different customer groups. Today Johnson manufactures exercise equipment for both commercial and home use including elliptical ­trainers, exercise bikes, rowing machines, smart mirrors, strength training machines and treadmills. The multinational company operates marketing subsidiaries in 33 countries and works with dealers in 60 countries.

  According to Johnson Vice President May Lo (羅雅芳), the company’s success lies in tailoring its products and services to different market segments. Matrix, for example, targets the high-end market comprising health clubs and ­five-star hotels seeking advanced ­functionality, sleek design and greater durability. Meanwhile Vision supplies apartment complexes and companies based on their respective budget and space requirements, and Horizon offers user-friendly equipment at affordable prices to individual consumers.

“At the same time, digital fitness is gaining in popularity, so we’re pulling out all the stops to develop top-notch machines with high connectivity in recognition of the trend,” Lo said. “Digital services can be used in health centers for client-trainer communication and equipment management, as well as at home to deliver engaging experiences, helping transport exercise routines from fitness studios to living rooms.” Connected fitness machines can replicate the gym experience by providing access to live and on-demand classes led by professional trainers, Lo explained, adding that they also provide real-time feedback on users’ health via apps. Johnson’s digital subscriptions allow customers to choose from a library of over 1,000 constantly updated workouts, competitions and exergames encompassing boxing, dance, Pilates and yoga for people of all ages and fitness levels.

Vital Adaptability
Ted Hsieh (解朝峰), executive assistant at HealthStream Taiwan Inc., likewise sees demand for internet-connected smart gym equipment as the dominant force in today’s fitness market. Founded in 1998 and headquartered in the northern city of Taoyuan, the company is working to integrate the latest interactive technology into its products to boost user engagement and passion for wellness. It provides comprehensive OBM, ODM and OEM services, manufacturing elliptical trainers, recumbent and upright bikes, stair climbers, treadmills and weight vests. Of such equipment, 90 percent is exported to over 60 countries.

  HealthStream started out as a trading company of at-home fitness machines, later setting up a production line for ODM services in 2005. To increase profit margins and achieve sustainable development, the company then shifted its focus to the commercial market with the launch of its own brand Intenza in 2012. More recently, the emergence of COVID-19 prompted the company to adopt a diversification strategy, ­resulting in the addition of OEM services last year.

“In dealing with market uncertainty, flexibility and innovation are key,” the executive assistant said. “We’ve been adjusting our business models and product offerings to respond to changing customer needs during critical times like the global financial crisis of 2008 and the coronavirus pandemic.” The ability to react swiftly to such events has allowed HealthStream to successfully overcome challenges and build a stronger business, he added.
  Today the fitness equipment manufacturer strives to introduce innovative products with appealing aesthetics and top-grade quality. Its Escalate Stairclimber, notable for adjustable step heights and customizable incline, speed and exercise settings, won a Germany-based Red Dot Design Award as well as a Ministry of Economic Affairs-organized Taiwan Excellence Award. The company runs a green factory equipped with automated assembly lines, solar panels and wastewater recycling systems in the southern city of Tainan. Hsieh said going green has given HealthStream a competitive edge as a growing number of European and U.S. clients opt to cooperate with environmentally friendly suppliers as part of their sustainability initiatives.

Multipronged Approach
Dyaco International Inc., established in 1990 in Taipei, underwent an expansion process similar to HealthStream’s, going from a trading business to OEM/ODM contracts to brand development. The company offers commercial and home fitness equipment including elliptical trainers, exercise bikes and treadmills with distinctive design styles and features under the four brands of Fuel, Sole, Spirit and Xterra.

  According to Alain Tseng (曾裕翔), chief operating officer at Dyaco, having a wide range of product lines increases the ability to meet the needs of large numbers of customers and thus ­maximizes revenue. To this end, the company has obtained 172 patents at home and abroad, allowing it to create high value-added products and unique user experiences. Dyaco has ­additionally inked a licensing agreement with U.S.-headquartered Ultimate Fighting Championship, a premium global sports brand and the world’s largest pay-per-view event provider, to manufacture and distribute martial arts equipment for competitions, entertainment and physical health. It also cooperates with Jonathan Goldberg, the South African inventor of indoor cycling ­program Spinning, in developing next-generation stationary bikes for group classes.

“Our multibrand strategy has enabled our company to enlarge its business scope, better serve customer needs and increase sales,” Tseng said. “We’ve built a strong brand portfolio through acquisitions, licensing and ­partnerships.” Currently, Dyaco collaborates with 130 business partners worldwide including hypermarkets, online retailers and sporting goods stores such as U.S.-based Amazon.com, Costco Wholesale Corp., Dick’s Sporting Goods and Walmart Inc. to bolster brand ­exposure and diversify sales channels. Besides setting up six overseas subsidiaries, it is rapidly expanding global reach with a distribution network spanning 86 countries.

With decadeslong experience in accommodating users ranging from ­amateur exercise enthusiasts to professional athletes, Taiwan’s fitness equipment manufacturers have established a strong global presence and are well poised to capture an increasing market share. “COVID-19 has heightened people’s health awareness and boosted their motivation to exercise, so we’re upbeat on growth prospects,” Johnson’s Lo said. “We’ll continue evolving along with changing markets and emerging technology as we pursue our mission to improve people’s quality of life and promote healthier lifestyles.”
 

Write to Kelly Her at kher@mofa.gov.tw