Dr. Hajira Mashego identified a gap for gyms in South African municipalities and peri-urban areas. In an interview with How we did it in AfricaHe discussed the untapped potential in the country’s gym industry, its most effective marketing initiatives, and why most Fitness Junction members don’t primarily come to the gym to work out.
Life before being an entrepreneur
Mashego began her career as a physical therapist and later became a teacher in the field. In 2007, she joined the National Department of Sports and Recreation as Director of Science Support Services, and in 2014, she was appointed Acting Chief Director of Sports and Recreation in Mpumalanga Province. However, she was frustrated with public sector work because she felt that her work had little impact. In 2017, after completing her PhD and a part-time course in social entrepreneurship at the GIBS Business School in Johannesburg, she left her government position to open her own gym. She collected her pension to finance the equipment of the first gym.
Mashego’s decision to enter the fitness industry stemmed from her doctoral thesis, which examined physical activity among South African adolescents. Their research found that in most townships—underdeveloped urban areas that, until the end of apartheid, were reserved for non-whites—people had little access to physical activity facilities, contributing to high rates of obesity leading to hypertension, diabetes, heart failure and many other chronic lifestyle diseases.
Although South Africa has a relatively evolved gym industry, with big players like Virgin Active and Planet Fitness, Mashego saw an underserved market in townships and peri-urban areas. Most people turn to running or walking clubs for exercise. “If you drive into a township in the morning, you see people running on the main roads. Is not safe. In some municipalities you get robbed while running, ”she explains.
Get the business up and running
Securing their first site proved to be a challenge as Mashego had no track record to show owners. After several rejections, the owners of the Madeira Shopping Center in Danville, Pretoria agreed to offer him a lease. The location was perfect; situated between the western townships of Pretoria and the CBD, where many work. Mashego surveyed motorists at traffic lights in the area to validate his assumptions that there was a demand for a gym in the area.
Fitness Junction opened its doors on February 23, 2018. On the first day, the company let everyone try out the equipment for free. He received a large number of registrations that first day and even ran out of receipt books.
Fitness is not the main reason people visit
While Mashego’s initial value proposition was to provide its customers with a facility to improve their health, it soon discovered that most of its members were there for much more than exercise. They were there to socialize.
“In South Africa, gyms, car washes and nightclubs are more or less the same. People dress up to go to a car wash; they look good, buy a cooler and sit in the car wash and socialize, drink meat and drink while the car is washed.
“A gym in our community is similar. They dress up and put on the latest makeup to go to the gym. It is more of a social area; a place where you find a partner or make new friends… It is where you see that you are in the right social class, you carry the right bag, you wear the right shoes. Only about 25% go there primarily for exercise.”
Mashego adds that the majority of its members, 65% of whom are women, come to aerobics and spinning classes. They don’t use much exercise equipment.
covid-19 mishap
The pandemic lockdown was a huge setback for Fitness Junction. In 2020, gyms were not allowed to operate for several months, and even when they were able to open, they had to do so at a reduced capacity. Many people froze or canceled their contracts. Mashego expects business to return to pre-Covid-19 levels only by September this year.
Marketing: brochures work better
Handing out flyers in the surrounding areas has given the best results for Fitness Junction. The company pays people in the community R100 (US$7) a day to distribute leaflets to houses and at traffic lights.
It also carries out activities such as aerobics marathons in shopping malls. “Every month, we hold an aerobics marathon in a parking lot. Everyone is welcome; they do not need to be members. People end up joining the gym because they have so much fun.”
While the company has a website and social media presence, it is geared towards younger people. “Students find us on social media, but older adults find us through flyers. They are less savvy about social media.”
income streams
At the time of this writing, Fitness Junction had about 1,400 members, of which 1,000 are “active members.” “Our active members fluctuate due to bouncing debit orders,” reveals Mashego.
Although Fitness Junction’s main income comes from memberships, it generates additional income by leasing space from the operator of a juice bar inside the gym. It also collects rent for a children’s dance school, which uses its facilities on Saturdays.
expansion plans
Mashego sees potential to replicate its business model in several outlying municipalities. “If I can get the funds, I can expand it to all the municipalities where the big guys are not willing to go. People have disposable income but there is not much to do in the townships; They work, they go home, they eat braais, they drink, and that’s it.”
She hopes to open her second gym by the end of 2022, depending on whether she can get funding. “The jump from the first to the second gym is difficult because the money we are earning is not enough to support the opening of a second. Installation costs are quite high with equipment, renovations, and other items; you need a minimum of R3 million ($195,000)”.
Contact information for Dr. Hajira Mashego, CEO of Fitness Junction
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