Alberto Perlman, the CEO of Zumba Fitness who was praised by US magazine Inc. in December as one of five top CEOs to watch, has attracted 14 million followers in 150 countries with the company’s Latin-influenced aerobics program. Now Perlman plans to take Zumba to China in early 2014, Global Entrepreneur magazine reports.
The other four CEOs on Inc.’s list came from internet companies, including Facebook’s Mark Zuckerberg. Zumba Fitness, which has only 250 employees, is estimated to have an annual income of more than US$500 million. Perlman said the company’s income grew 4,000% between 2007 and 2010, and rose an additional 750% over the past three years, the report said.
Zumba’s secret lies in its business model. Practitioners pay a single fee for access to gyms worldwide, and no other company is involved in the operations, funneling 100% of the profit to Zumba.
Although Zumba has yet to officially enter China, it already has instructors in the country, with Wang Guangcheng the best-known international instructor.
On Feb. 15, Wang attended a Zumba annual instructor conference in Los Angeles, where Perlman told him of the company’s plan to enter the Chinese market. Wang told Perlman how to use Chinese credit cards to obtain fees from customers, where to place ads and where to hold promotional events.
The annual instructor conference attracted at least 3,000 members, mostly fitness coaches around the globe, taught by Zumba founder, Alberto Perez.
Zumba Fitness began its business by selling Zumba’s instructional CDs, getting people to work out without feeling like they are even trying through dance. Perlman was asked by an increasing number of customers whether they could become certified to teach Zumba. From there the sensation spread across the globe.
Anyone who wants to be a Zumba instructor can pay US$250 for three days of training and a monthly member fee of US$30 for the right to open their own classes.
Zumba Fitness has never rejected anyone seeking to become a Zumba instructor. As of spring last year, the number of coaches had soared to 100,000, who are Zumba’s unofficial ambassadors worldwide.
Instead of building its own gyms, 65% of coaches are hired to teach at gyms; only 2% have opened their own independent classrooms. The tactic has greatly reduced risk and costs.
After paying the monthly fees of US$30, instructors can also access the Zumba Instructor Network to get the newest dance moves, music and teaching methods, and instructions on marketing.
They also get 10% commission for Zumba fitness wear they sell to their students. Zumba Fitness sold 3.5 million sportswear items last year.
Zumba Fitness has sold more than 6 million instructional tapes worldwide. It ranked the top in sales in 2011 for fitness tapes in North America.
China will soon get a taste of Perez’s Colombian roots, the report said.
bron: wantchinatimes 21-04-2013