Smart Fit anticipates a boost in growth from GLP-1-like drugs, such as Ozempic and Mounjaro, which have transformed obesity treatment and could drive demand for fitness centers. The COO, Diogo Corona, highlighted this trend during the 26th Annual Conference of Santander in São Paulo.
The executive’s perception is influenced by the growing global trend towards weight loss. Rather than diminishing interest in physical activity, weight loss solutions actually motivate individuals to maintain their results through regular exercise. Recognizing this opportunity, the company is considering the positive impact on its strategic planning, intending to open over 300 new fitness centers by 2025, exceeding 2,000 units, and expanding further by 2028.
Expansion accompanied by control
Smart Fit prioritizes cautious expansion in Brazil and Latin America, as well as in new markets like Morocco, following strict criteria set by committees to approve new unit openings and the continuation of existing ones.
Corona mentioned that making decisions can be easier than accepting them, emphasizing the importance of strategic trade locations. He noted that while effective venues may thrive initially, they can face challenges once competitors enter the market. Corona also highlighted that strong businesses can withstand competition, while weaker ones struggle to do so.
Data as a competitive advantage
The company has made technology investments to support its growth. Machine learning tools are employed for forecasting demand, determining cancellation rates, and enhancing student interactions. Presently, 70% of participants utilize their own app for training, and scanning is viewed as a means to improve retention and operational effectiveness.
The brand ecosystem, particularly the TotalPass app linking businesses and employees to training centers, is a significant area for growth. Initially met with doubt, this move has now become a key support for Smart Fit.
The influence of generic products
Eugene De Zagottis, a former executive director turned health advisor, emphasized at the conference the significant impact of analogues to LPG-1 in terms of transformation potential. He mentioned that the introduction of generic versions is expected to lower drug prices, leading to increased market growth and appealing profit margins. De Zagottis cited the example of Russia, where the market for these products expanded fivefold following the introduction of generics.
Itaú BBA in Brazil forecasts margin growth for RD Saúde due to the launch of EMS’s generic version of liraglutide, indicating that increased access can impact both the pharmaceutical and health and fitness markets.
