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A global power in fitness equipment manufacturing

By Zhao Yanrong (China Daily) Updated: 2013-01-12 08:57

The office also organizes seminars and training to help companies meet the requirements of foreign countries.

"Thanks to the help of local government, the quality of our products has been highly approved and we were also able to obtain important information in a short time to adjust our business strategy globally," said Wei Zhaogui, general manager of Xiamen K-power Sports.

Wei, a local entrepreneur, started the business with 50 workers nine years ago. His company now exports fitness equipment worth up to $100 million to more than 70 countries around the world.

A global power in fitness equipment manufacturing

A woman tests a newly developed fitness machine in Xiamen, Fujian province. [Photo/China Daily]

K-power has also contributed to the creation of a new national fitness equipment standard by providing production and testing statistics. The new standard is due to be launched in the first half of this year.

In K-power's showroom, many new products combine the functions of entertainment and exercise, such as a treadmill that simulates Xiamen's beautiful environment on a digital screen, and exercise bikes that have access to Apple products.

These upgraded products are selling well in growing new international markets such as Russia and Brazil. Compared with a steady growth rate of 20 percent in traditional Western markets such as Europe and the US, development in emerging economic countries has more than doubled each year since 2009.

"All of this is far beyond what I expected when we started the business in late 2003," Wei said.

The industry generally has experienced a transition in the past three years from original equipment manufacturing to selling own brands in the domestic market.

Originally from Taiwan, Xiamen Cowell Industrial is the single largest OEM for the world's leading fitness facility company, ICON, which owns brands including NordicTrack, ProForm and iFit.

"Being an OEM, we also face all kinds of challenges such as the increase in manufacturing costs," said Ryan Lee, Cowell's general manager. "And after long-term cooperation, we are now capable of design work, and so have become a strategic partner, participating more in ICON's business from manufacturing to R&D and promotion."

The partnership has also turned Cowell into the world's largest fitness equipment maker.

After years of experience in the world market, Cowell is starting to transfer business to the fast-growing domestic market.

The State Council released a nationwide fitness program in its 12th Five-Year Plan (2011-15).

More than 1.2 million local community sports fields, gyms and public fitness facilities are planned.

Since 2011, Cowell has been developing its own brand, called Salud, for the domestic market.

According to Lee, Western consumers like to purchase fitness equipment at big shopping malls or supermarkets, but Chinese people prefer to buy it through specialized shops or agents.

"We are new to the market, but with its big potential, we are willing to face all challenges," he said.

zhaoyanrong@chinadaily.com.cn

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