Ningjin muscles way into gym niche

Ningjin may not be a familiar name to gymgoers in South Korea, Germany, the United States and Brazil, but the inland county in East China's Shandong province has an outsized presence in gyms around the world.

Three out of every 10 commercial fitness machines, such as treadmills, exercise bikes and strength-training machines, sold worldwide are made in Ningjin, the result of a decades-long transformation from a traditional metalworking base into a global fitness equipment manufacturing hub, according to local government data.

The concentration is even greater at home. Seven out of every 10 commercial fitness machines sold in China are produced in Ningjin under Dezhou, underscoring the scale of the manufacturing cluster that has taken shape in the county.

Zhang Qiang, director of Ningjin's center for education and sports development, said the county is home to more than 3,000 fitness equipment manufacturers and supporting businesses.

"More than 98 percent of components can be sourced locally, and companies can find all the parts needed to assemble a complete fitness machine within 30 minutes," said Zhang.

That dense supply chain has become one of Ningjin's biggest advantages, allowing manufacturers to shorten delivery time, save operational cost and adjust products quickly for customers in different markets. Fitness equipment made in the county is now shipped to more than 160 countries and regions.

Liu Xinli, president of MBH Fitness Co Ltd, a Ningjin-based fitness equipment manufacturer, said his company has stayed away from original equipment manufacturing, or OEM, over the years, as contract manufacturing typically offers thin profit margins.

"Instead, we have focused on developing our own products and brands, with research and development spending accounting for more than 5 percent of our annual revenue," said Liu.

He said orders have risen 30 percent this year, with both domestic and overseas orders booked through the end of November. The company's exports are on track to reach 600 million yuan ($89.28 million) this year.

MBH Fitness operates R&D centers in Beijing and Shenzhen, Guangdong province, where an 86-member team works on product design and intelligent software. The company has obtained more than 100 patents and introduced automated manufacturing equipment from Germany and Japan.

It has also developed an intelligent fitness system combining equipment with cloud-based services, incorporating technologies such as facial recognition, exercise monitoring and data analysis. Its products are sold in nearly 100 countries and regions.

Newer manufacturers are also finding opportunities by focusing on specific overseas markets.

Shandong Shuyoute Fitness Technology Co Ltd, another fitness equipment manufacturer in Ningjin, has transformed itself from a producer of agricultural machinery and plastic components into a fast-growing player in the sector. The firm generated 250 million yuan in revenue in the first seven months, with overseas sales accounting for 70 percent of the total.

"Our production capacity remains strong, with orders for 10,000 water-resistance rowing machines keeping us busy for the next four months," said Meng Fanrui, the company's chairman.

Rather than competing only on price, Shandong Shuyoute has developed products for specific markets. The company said its stair climbers account for 85 percent of the South Korean market for such equipment.

The overseas expansion of Ningjin's manufacturers is part of a broader push by Shandong-based companies to tap global markets.

Shandong's foreign trade reached 2.12 trillion yuan between January and July, up 4.3 percent year-on-year. Exports rose 1.8 percent and imports increased 8.1 percent, Jinan Customs said.