Press: SpaBusiness


Eric Levine believes that there are many similarities between a spa business and a fitness club. Now running his second major chain of fitness clubs in Asia, Eric will impart many of the lessons he has learned in more than 25 years in the business, and will suggest some of the disciplines he believes the spa industry can learn.
Eric Levine, founder, chairman and chief executive officer of California WOW Xperience is considered the pioneer of the fitness industry in Asia.
Eric opened up his first branch in Hong Kong nine years ago and since then the company has grown to Singapore, Taiwan, Korea, Thailand and Malaysia, with well over a few hundred thousand members.
Eric has taken the Asian fitness industry almost single-handedly from hotel fitness centres to mainstream AAA locations that have become the landmark of every major city throughout Asia.

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Press: forbes


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Press: Hong Kong Magazine


Yoga has taken Hong Kong by storm, in the process, acquiring Hong Kong characteristics: rock-star teachers, five-star facilities and all kinds of charlatans, lavish claims and mega-hype. Still, fans say it’s all about feeling good and getting fit.
YOGA IS ONE OF THE HOTTEST TRENDS to sweep Hong Kong, quite literally, in fact at 37 degrees (98.6 F), the aptly-named Hot Yoga has sent stars around the globe, from Brooke Shields to Madonna, into a passionate frenzy. Now, it has Hong Kong happily working up a citywide sweat. But it’s not just Hot Yoga that has lit Hong Kong’s fire. Hong Kong is also hot for Warrior Yoga, Power Yoga, even UpsideDown Yoga.With so many different plans and postures, yoga offers a meditative routine to suit any schedule in what may be the most competitive – and lucrative – yoga market in the world. Yoga’s local growth is part of “a worldwide story,” notes Eric Levine, CEO of California Wow (claiming “the world’s Number One fitness centers”) as well as Planet Yoga and Bikram Yoga, two of Hong Kong’s top brands. “Yoga is big everywhere.” Still, the boom has manifested itself uniquely in Hong Kong, with some of the flashiest yoga facilities ever seen. Bikram has over 800 branches worldwide, but the nearly $2 million studio that Levine opened last March in Tsim Sha Tsui is the biggest. Even larger and more lavish is the plush 22,000-square-foot yoga palace opened a few blocks away the following month by rival Pure Yoga, in the upper floors of the swank Peninsula Office Tower.

“We’ve got the caviar of yoga in Hong Kong,” concedes Levine. “Hong Kong is used to the best. Our customers are millionaires, movie stars, CEOs. They expect the best. The best locations, the best teachers, the best yoga.” When Hong Kong’s first big studio, Pure Yoga, opened in early 2002, “everyone though we were crazy,” recalls CEO Colin Grant. “We expected to have 120 people a day. Within two months, we had 450. It was rocking!” That first facility was 9,000 square feet. Before the year ended, Grant added another nearly twice as big, in Causeway Bay. Just the day before we meet, he signed a deal for yet another Pure Yoga in Mongkok – a massive 35,000-square-foot studio. “This hasn’t peaked yet,” he says. “Yoga is going like crazy and it’s a good thing. It makes you feel good. Who doesn’t want that?” Still, some find it all incongruous. After all, even Hong Kong residents proudly boast that the local sport is shopping. As for spirituality and the search for inner serenity, that never seemed as important as speculation, of the property kind. All these factors help explain why, through the 1990s, yoga lingered in a sort of pre-historic stage in Hong Kong. Studios were either four flights up some dingy flat in Wanchi, or taught free-form on Lamma Island, famous for its alternative-lifestyle population. “In the last three and a half years, yoga really boomed,” says Frances Gairnes, editor with the Hong Kong Yoga Society. The catalyst, according to both legions of admirers and ample critics, was Kamal. A native of India, this compact, muscular and charismatic yogi came to Hong Kong at the end of the 1990s, and quickly became a superstar.“Kamal was so famous. He wasn’t just a teacher, he was like a rock star,” gushes 32-year-old Wendy Lee. She saw posters for Kamal and rushed, like her friends, to sign up. “His classes were packed. After class, you had to wait to use the shower, but nobody cared. Everybody wanted to study with Kamal.” The same thing happened before in Singapore, where Levine heard about this popular teacher who had energized yoga study. “Before, yoga in Singapore was a small room with pads on the floor. Kamal had 120 people packed in,” Levine says. “He was this magnet, like a rock star, the Mick Jagger of yoga.” Installed in one of Levine’s fitness studios, Kamal repeated the process in Hong Kong. The stir prompted Levine to launch Planet Yoga, centered around Kamal and his energetic teaching.“He created the coolest, most popular yoga around. In my opinion, he single-handedly created the yoga boom in Asia.” Therein lies ample irony. After all, yoga is an eastern teaching, drawing upon thousands of years of posturing, practice and philosophy. That it only arrived in modern Asia after a spin – and added polish – in the West strikes some as crass. Likewise, the commercialization and huge billboards of a smiling Kamal. Kamal acknowledges that yoga has a quick-fix appeal to Hong Kongers. About 90 percent of students citywide are women, most of them say they turn to yoga to lose weight.m“Women are conscious about their health and beauty, and this is a good way to keep fit,” he says. Yet, the yoga star who just launched a TV show and DVD, adds that it hardly matters what draws students to yoga. “Whatever brings them here, I guarantee they will leave feeling better.” Hong Kong’s huge expansion of yoga facilities has led to a price war, with enormous billboards advertising cut-rate introductory packages. At the same time, yoga has moved upscale, as one can see from the first steps into Pure Yoga’s luxurious Peninsula Tower studio. Women wear designer yoga gear (Louie Vitton offers a full line), applying makeup BEFORE classes. Hong Kong’s finest hotels now stock yoga mats in rooms. When Mandarin Oriental opened its new Landmark Hotel, staff included Alex Medin, the city’s first resident yoga master. One of world-leading Ashtanga Yoga practitioners, Medin (at left) sees both positive and negatives in the Hong Kong yoga trend.On the one hand, he’s dismayed at the claims of “one-hour power yoga. That’s not yoga. There are no quick fixes.” He adds: “In Hong Kong, there is more hype, but I believe it shows that people are hungry for yoga. It shows the real need.” What draws people to yoga, he notes, isn’t as important as the result. That, in business terms, is the bottom line, and it’s fattening across Asia. Levine, also a fitness tycoon, points out that the cost of equipping yoga centers requires less investment in mats than exercise machines. Lower start-up costs means more cash to splash out on premium locations. Both Levine and Grant of Pure Yoga describe ambitious expansion plans for all Asia, from Korea to Thailand. Then, there is the huge, largely untested market of China. Bikram Yoga breached the mainland this year. Taiwan native Huiping Mo has been teaching hot yoga for many months in Beijing, but won’t use the Bikram brand until a suitable studio opens. Initially students are 50 percent foreign expatriates, but she expects the mix to grow to be 80 percent mainlanders.“Many Chinese perceive yoga as a religion,” she says, but adds that this quickly changes with proper exposure. “My experience is that many Chinese do not fully comprehend the power that yoga has to physically change and heal the body.” Chinese will likely catch on fast, as they have in Hong Kong. Levine translates the trend into local terms. “Hong Kong is a funny place. People run as fast as they can to exercise,” he says. “Yoga gives them a chance to de-stress. It gives them more energy to do the job. That makes it a good investment.” And, for Hong Kong’s happy yoga barons, a bit of wealth from health.
Press: Wall Street Journal


BANGKOK, Thailand – Seven days a week, Pongchuk Pissathaporn, the 31-year-old owner of an interior-design business, drives 25 kilometers into central Bangkok to exercise at his gym. The drive and workout take up about four hours of his day — much more if there are traffic jams — but Mr. Pongchuk isn’t concerned. “This is my home,” he says, only half joking, pointing at the Silom Road high-rise office building where California Fitness has a gargantuan facility — five floors housing row after row of exercise machines, plus rooms for everything from “spinning” classes (frenzied, en masse peddling of stationary bicycles) to “body combat” (stylized martial-arts moves to music). If not a home, it’s at least a second home. At California Fitness, Mr. Pongchuk estimates he knows 200 people — his entire social circle. “All my close friends come here,” he says. “Here I can relax, see my friends, and be very happy.” Across Asia, young adults like Mr. Pongchuk are flocking to fitness centers, many of them gleaming multifloor facilities with the latest equipment, in cities that only a few years ago offered just a handful of small, dingy gyms. As a result, these new converts to fitness are coming to see themselves, their bodies and the concept of physical beauty in ways their parents could never have imagined. “For Thais previously, exercise was not important; they paid no attention to their body,” says Sumet Viwatmanitsakul, a 29-year-old Bangkok travel agency manager who visits California Fitness several days a week. “For the old generation, exercise was just like working at a job. The new generation cares about how their bodies look.” Mr. Pongchuk says that “the lifestyle of Asians was just to spend all their time working. Their only entertainment was to eat and drink. But I think about the future. When I grow old, I want to be healthy.” Asians have always been interested in feeling good — Asia, after all, is where such things as acupuncture and herbal and ayurvedic medicine have their roots, and the health-giving qualities of certain foods are enshrined in lore. But, traditionally , exercise was confined to activities with a more spiritual component such as tai chi and yoga. Competitive sport was not a high priority and muscles were considered the hallmarks of people who were forced to do physical labor. Even a few years ago, “family life was different in Asia,” says Steve Clinefelter, Hong Kong-based president of California Fitness. “The emphasis was on grades, test scores and getting into college, while in the U.S., sports and physical fitness were equally important. As a result, fitness levels here were significantly lower than in the U.S.” But Asians’ perceptions about exercise, fitness and body image have gradually shifted over the past decade, largely as a result of the growing gym culture. The first California Fitness Center opened in Hong Kong eight years ago, and the British-based Fitness First arrived in 2001. Between them, these privately held chains, the two biggest in Asia, now have 17 branches in Hong Kong, 22 more throughout the region in cities including Tokyo, Bangkok and Shanghai, and a combined total of 213,000 members. In May, Hong Kong-based privately held chain Pure Fitness will open a 2,800-square-meter facility in Hong Kong’s tallest building, Two International Finance Center, that will literally carry the concept of a fitness center to new heights, with a rock-climbing wall and an altitude chamber where members can train for high-mountain expeditions.
Despite the array of exercise choices available, Asian gym customers aren’t interested in building bulging muscles. Where skinny was enough for their parents, skinny and firm is the rule for both men and women of the younger generation. “Asians want a sleek and toned look rather than a muscular look,” says Eric Levine, the founder of California Fitness. “Sleek like a cat.” The major exception, he says, “is that men are into muscles much more in Singapore and the Philippines, and I can’t explain why.”
Mr. Levine adds that the ideal body emphasizes the stomach area. “Men now want a six-pack, which means six ripples in their stomach, and they want a vein showing in their biceps. A lot of women are wearing their pants low and want a perfectly flat stomach.”
Mr. Pongchuck agrees that the muscular look is definitely unfashionable. When he first joined California Fitness three years ago, he worked out for four hours a day instead of the current two hours. His weight dropped from 90 kilograms to 65 — he proudly shows off photos he keeps in his wallet of his old, porky self — but he found he was getting too muscular, so he cut his workout in half. “I use lower weights so my muscles don’t get too big,” he says. Now, his daily workouts include not only weight lifting, but also alternate aerobic exercise classes: body combat, spinning and stomp — the latter featuring participants stomping on stair-climbing machines to the beat of loud music. “Thai women look at guys and want someone athletic and skinny, not musclemen,” Mr. Pongchuck says. “American women like muscular guys, but Thai women think the perfect look is skinny. Some girls tell me they think the body of a big, muscular guy is disgusting. And scary too; they say he could beat her up any time.”
For women, says Bangkok California Fitness Center trainer Angel Chan, “they just want to be firm. They’re not educated about the function of muscles. Especially in Taiwan — the women in Taiwan want slim, slim, slim, just skin and bones. We tell them muscles are good for you; you need to have muscles but they don’t have to be big. Women look in the mirror and always want to be thinner and thinner.”
What lured young Asians to fitness centers initially wasn’t the vision of pumping iron or peddling bicycles to get into shape. Instead, it was Eric Levine’s clever marketing. The blond, blue-eyed Jewish muscleman from Montreal used every device in the book to convince Asians that whatever fitness involved, they had to be part of it because it was so trendy. “Eric was single-handedly responsible for the boom in fitness in Asia,” concedes one of his competitors, Peter Prichett, chief operating officer of Pure Fitness, which has plans to expand across Asia.
Mr. Levine, who once worked for two years as a club stripper (“300 or 400 women a night would be screaming for you; they’d kiss you; they’d give you money. It was so exciting.”), would be dismissed as too outlandish if he were a character in a novel. At the age of 15, he took the money he had received from his Bar Mitzvah — a celebratory religious ceremony for Jewish boys — and ran off to backpack through India. Several months later, he agreed to return home only if his parents wouldn’t make him go back to school. “At that time no Jewish boy quit school,” he says. “It just wasn’t done. But for me, life is the teacher.”
After 17 years in the fitness business in the U.S., Mr. Levine, who is now 48, came to Hong Kong with the philosophy that “you’ve got to experiment; you’ve got to be ahead of everybody.” With two partners, his “experiment” was to take a hugely expensive 10-year lease on six floors of a prime Hong Kong office building, just below the popular Lan Kwai Fong entertainment district, then sink $3.5 million into building a state-of-the-art health club. Mr. Levine says the rent he agreed to pay — US$250,000 a month — was more than eight times what a similar-sized facility would have cost in the U.S. “Everybody told me Chinese people won’t work out; they don’t want to sweat,” he states. “They said the culture was not exercise-friendly — it’s a massage, a facial, looking good passively.” Even before the club was finished, Mr. Levine created an open-air ground-floor entrance and sales room, complete with blaring rock music, balloons, posters of movie stars, and scores of smiling young salespeople. “There were no doors, and the energy spilled right out onto the street,” he says. “Everybody loves energy. We had Cindy Crawford in our ads and the best local stars. We created a new industry called ‘exertainment.” When we opened the club after seven weeks of pre-sell, we already had 3,500 members. I must say that 80% of the people when they woke up that morning didn’t know they were going to join California Fitness Center that day.” One reason they were enticed to join so quickly: California’s salespeople got their customers by accosting passersby and using hard-sell tactics, including the absence of a price list for memberships, that to this day make California Fitness infamous. In fitness centers in the U.S. and elsewhere around the world, young adults work out side-by-side with retirees and teenagers. In Asia, however, they have the centers all to themselves. California Fitness, for example, says that only about 15% of its members are older than 45, and many of those are foreigners. Mr. Clinefelter, California’s president, notes that “age 25 to 35 is our heart and soul.” (In most Asian cities, female fitness center members outnumber male, while in Hong Kong it’s about 50-50.)
Indeed, some older Asians struggle to understand the concept of fitness. In 1997, Angel Chan left her job as a jewelry merchandiser, taking a 50% cut in salary, to become a fitness instructor in Hong Kong. “My family asked me, ‘Why don’t you want to be in a good business where you’re around diamonds all the time?” ” Ms. Chan, 34 years old, recalls. Today, although she’s a highly paid fitness-training manager at California Fitness in Bangkok, “they still think I’m crazy.” Mr. Clinefelter says that the parents of his young employees “have no concept of what we do. Is this a real career? It doesn’t add up for them.”
It’s little wonder that Asia’s new fitness industry attracts a youthful clientele. Mr. Levine, for example, still fanatically adheres to his philosophy of giving California Fitness the cachet of trendiness. “There’s a rule that all the programs on the TV monitors have to be positive, exciting things, like MTV, fashion and sports,” he says. “I once walked into the Singapore club and I was straining to hear the music. That means you’re losing energy instead of gaining it. I threw the audio player onto Orchard Road.”
No matter how silly the attempts to create a buzz might sound — at some California Fitness Centers, all employees are required to gather in a big circle every hour, lock arms and shout “wow” — they are clearly effective. Mr. Pongchuck says that his friends at California Fitness believe that with their membership, “they can upgrade their lifestyle, they can be trendy.” He points out that he could exercise at a fitness center close to his house and save the long daily commute, but he dismisses that fitness center as being “like a cemetery.”
Mr. Levine says the investment in his first Hong Kong facility in 1996 paid itself back in 11 months. Within a year, he had opened two more Hong Kong centers and one in Singapore. Three years later, in 1999, he and his partner Ray Wilson, a prominent entrepreneur in the U.S. fitness industry, sold California Fitness to the U.S. chain 24 Hour Fitness for $41 million in cash and stock. (Mr. Levine remains a consultant to California Fitness, and he has since bought back ownership of the clubs in Thailand and South Korea, plus the right to expand in those countries.) He says the proliferation of fitness centers in Asia combined with the high cost of setting up centers hasn’t eroded profits. “We’ll spend $4 to $5 million on a 30,000 square foot [2,780 square meter] facility in Asia,” he says, “which in the U.S. would cost $1.5 million. In Asia, there’s a higher expectation in service, equipment and staff. If there’s a new machine, we’re going to get it. But our clubs in Asia have an average payback time on investment of 20 months.” Mr. Levine acknowledges that fitness centers would have come to Asia even without his efforts to make them seem so fashionable. “It would have happened eventually,” he says. “Consciousness comes; the universe brings consciousness. But it wouldn’t have been as much fun. We spun it in a fun way.” And Mr. Levine continues to come up with new ideas to make California Fitness fun. He recently introduced Bikram yoga — a form of yoga practiced in high heat that is storming the U.S. — to his Thai club and will soon spread it across Asia. And next month, his Thai and South Korean clubs will have a name change, staking their claim to trendiness. The new name: California WOW Experience.
THE HARD SELL
BANGKOK — California Fitness Center not only creates a “buzz” to lure members, but also uses every sort of hard-sell tactic imaginable to make sure that passersby will join on the spot. An initial visit to California Fitness to inquire about joining in many ways resembles a visit to a used-car dealer in the U.S. There is no printed price list, and the sales force comes up with a dozen different options at an array of different prices, from month-to-month, pay-as-you-go, to lifetime prepaid memberships. They tell prospects that the price they are quoting is only good until midnight. If they meet resistance, they offer a greater discount, but say they first have to clear it with the boss.
Eric Levine, the founder of California Fitness, is unapologetic about such tactics. “Our competition is not other fitness centers, it’s procrastination,” he says. “Getting that person to commit now is the pinnacle. If they leave, they never come back.” Mr. Levine estimates that one-third of the people who walk in to inquire about a membership end up joining that same day. Of those who postpone the decision by asking for a free trial or by saying they need time to think it over, only about 8% join.
His competitors, however, are less sanguine. Peter Prickett, chief operating officer of Hong Kong’s Pure Fitness, which sells either month-to-month or one-year memberships at the same price to everyone, calls California Fitness a “churn and burn” company, and notes that “it means a lot to be working out and ask the person next to you what they paid, and it’s the same amount you paid, not half.” Michael Lamb, group managing director of Fitness First for the Asian region, says his company sells only month-to-month memberships, at the same price for everyone in a particular city. He states that “we believe that this drives customer service, if our members know they can leave the club the very next month. More than 80% of our members come to us by referrals from existing members.” (Others who have approached Pure Fitness and Fitness First inquiring about memberships report that the sales people will come up with alternate plans if you stamp your feet hard enough.)
The absence of a price list, and the willingness to negotiate, especially on the cost of membership renewal, means that some of the contracts sold by California Fitness can be inexpensive, substantially undercutting its competitors. For instance, two California Fitness members in Bangkok showed me the contracts they had negotiated after their two-year initial membership expired recently. The new prepaid contracts for a 46-month period worked out to just $15 a month, with a guaranteed lifetime renewal after that of $10 a month. For that, they got not only state-of-the-art fitness equipment that is constantly being upgraded, but also free parking for up to three hours a day in Bangkok’s central business district.
Mr. Levine dismisses the notion that such low-price deals might represent an effort to keep the club filled with people and thereby maintain the “buzz.” “Loyal members should always be rewarded,” he says. “They’ll be with us for a lifetime. How many new members have they brought in? These people are advertisements.”
HOT STUFF
BANGKOK — “If you’re feeling dizzy, lightheaded or nauseous, that’s normal,” the instructor said encouragingly as he began the class in a stiflingly hot room. His reassurance came just after I had signed away my right to sue for any injury incurred during the following 90 minutes.
Welcome to Bikram Yoga, the newest offering in the Asian fitness center industry, where “new” means “trendy,” and “trendy” means lots more customers. “Bikram” refers to Bikram Choudhury, who emigrated from Calcutta to California three decades ago to become a guru to Hollywood stars. His Bikram Yoga — whose key difference from other forms of yoga is that it’s done in a room heated to 40 degrees Celsius, working on the theory that a heated muscle can stretch further — is one of the hottest workouts in the U.S., with several hundred outlets throughout the country. It’s a natural for Asia, where regular yoga is now one of the most popular classes given by fitness centers. Since yoga tones the body but doesn’t build bulging muscles, it fits perfectly with the idealized Asian body type.
Now Eric Levine, founder of the California Fitness Center chain and owner of the Bikram Yoga franchise rights for several countries in Asia, is envisioning a continent equally dotted with Bikram studios. “Being able to survive that 90 minutes of intensity, you have to find inner strength,” he says.
My sampling of Bikram Yoga came at Mr. Levine’s first Bikram outlet in the California Fitness Center in central Bangkok. Here, Bikram is being promoted as a cure-all that rivals the most exaggerated snake-oil remedy.
A sign in front of the Bikram studio boasts, among other things, that it “increases energy and sexual vitality,” “reduces stress,” “detoxifies every system in your body,” “relieves back pain,” and “helps heal thyroid problems and diabetes.”
It also, as I can testify, makes you dizzy, lightheaded and nauseous.
About 50 of us were herded into a room so hot and humid that I found myself gasping for air. No way, we were told, would we be allowed to leave early. The instructor, 38-year-old Rich Nichols, a former chef from San Francisco, was as good as his word. When a sick-looking young Thai woman got up to leave halfway through the class, he persuaded her, sympathetically but firmly, to stay.
During the yoga exercises, Mr. Nichols added some items to the cure-all list, telling us that one stretch was “a Roto-Rooter for the heart, breaking up the plaque” (Roto-Rooter is the name of a U.S. drain-cleaning company).
But I was paying little attention to his constant talk, nor to the yoga positions themselves, most of which I failed at miserably. Instead, I was thinking about escape — held back only by the thought that I had never before run away from a story. There was no clock; Mr. Nichols in a cheerful voice droned on incessantly, allowing us only a couple of brief water breaks. Meanwhile, I was pouring sweat. My notebook became too wet to write on with a ballpoint pen; my glasses became too sweaty to see.
I’m sure that others in the class — many of whom were repeaters and seemed hardly at all affected by the heat — were thinking more benign thoughts than I. But two words kept coming into my mind: Guantanamo Bay. Now I know what it must be like.