The founder of One Trillion Wade, who once posted a video saying that "he is a soldier and will never run away", still "disappeared". His Douyin account has been emptied, and the videos of "selling houses for payroll" and "never running away" that previously liked thousands of likes have all been deleted. One more person to the team of gym run bosses.
In fact, a trillion Wade gym owner ran away with a long warning. In May of this year, a red seal stamped with one trillion Wade and an announcement that one trillion Wade "did not operate well, funds were broken, so the refund work was launched" circulated online. Although One Trillion Wade quickly denied it, the subsequent revelations of arrears of wages and refusal to refund fees still plunged him into controversy. One trillion Wade did not respond to these, but announced a day later that the company had completed its first round of financing of 115 million yuan. After that, Jin Yuqing, the founder of One Trillion Wade, released several videos on social platforms one after another, first announcing that he would sell cars and houses to pay salaries to employees, and then promised consumers that "he is a soldier and will never run away", which did save his declining reputation for a while. However, with the "disappearance" of Kim Woo-ching, consumers' trust in One Trillion Wade has fallen off a cliff.
At the same time that founder Jin Yuqing "disappeared", Wade Wade, which once had 150 stores and 1.3 million members across the country, closed like crazy, and even the headquarters in Shanghai was closed because of arrears of property fees. The few remaining staff said they had been unable to reach company executives. On the other hand, the 115 million financing announced by One Trillion Wade has not arrived.
For this crisis, One Trillion Wade officially believes that it was mainly affected by the epidemic. And more than one trillion Wade has been affected by the epidemic, and the days of Sanskrit yoga are not good.
At the beginning of this year, the country's first-class yoga chain Sangyin Yoga was revealed to have owed wages for half a year, and members could not refund fees, followed by the news that stores across the country were closed for rectification. Although founder Rao Qiuyu said that he would settle his salary and membership dues anyway, many offline consumers still did not successfully defend their rights.
Not only Sanskrit Yoga and Yizhao Wade, the closure rate of domestic fitness venues in 2022 is 10.39%. That is, one out of every ten gyms goes out of business. So why do gyms keep closing?
The fundamental reason lies in the pre-sale model of gyms, and many gyms have begun to sell cards before they open. Consumers can do it for a few years, and a charge is tens of thousands. Often after a few days of opening the store, the gym can return its money. The gym will use this money to continue to open stores, quickly "profitable", or to pay high rent, equipment costs, labor costs, water and electricity bills, etc., to maintain the normal operation of the gym. However, there is an illusion behind this, and the dues paid by consumers are not the profit of the gym.
When membership dues are directly tied to the gym's cash flow, the gym's focus is on sales rather than improving service levels. For consumers, the most intuitive feeling is that fitness coaches do not teach fitness, but urge you to apply for a card. When consumers find that this gym cannot provide satisfactory service, they will naturally choose other gyms. If you lose your membership, you lose cash flow, and gyms that can't operate have to go out of business.
Nowadays, many gyms have abandoned the sale of annual cards, or even do not apply for cards, I believe that this method will become more and more popular with consumers. As for whether not applying for a card can break the curse of gyms always closing, it will take time to verify.