PHYSICAL Fitness & Beauty, founded in 1986 by Luk Ngai-keung and Ho Yuk-wah, was a prominent name in Hong Kong’s fitness and beauty sectors. Known for its extensive branch network and celebrity endorsements from stars like Aaron Kwok (2002 to early 2024), Edison Chen, and Cathy Tsui (2000 to 2002), the company was a trailblazer in the local market, boasting 23 outlets in Hong Kong and expanding to 56 in Mainland China.
Originally, PHYSICAL catered exclusively to women at its Mei Foo Sun Chuen location, integrating fitness and beauty services under one roof. By 2000, it evolved to serve both genders and had separated these services by 2016. Prior to its closure, the business operated over 900,000 square feet of space and served more than 1.5 million clients, headquartered in AIA Tower, North Point.
Despite its success, PHYSICAL’s sales tactics drew significant criticism, marring its reputation:
Key Incidents and Legal Challenges:
- 2006: A man surnamed Fang in Shanghai purchased a “Diamond Lifetime Membership,” but in 2010, he was informed that his membership was canceled due to a violation of rules. A court later ruled that PHYSICAL had to honor the contract.
- June 2011: A female teacher in Tsim Sha Tsui was detained over a membership card issue after a gym session and misled into signing a 20-year contract with much higher monthly fees than expected. This incident was later reported to the police, highlighting PHYSICAL’s misleading sales tactics.
- July 2011: A female clerk was deceived by staff at the Causeway Bay branch under the guise of checking credit card promotions, leading to her signing up for a seven-year membership and expensive personal training sessions.
- November 2011: A clerk was misled by staff member Ray Chan in Tsim Sha Tsui into signing a renewal document for 180 months, believing it was part of a free loyalty program.
- February 2012: A man with epilepsy was surrounded by several staff members at the Kornhill Plaza branch and tricked into signing a 30-year contract, exploiting his credit limit for large transactions.
- August 2015: Several executives and staff members of PHYSICAL were arrested by Hong Kong Customs for using intimidating sales tactics, suspected of violating the Trade Descriptions Ordinance.
- January 2018: PHYSICAL quietly converted a dance studio into a fee-based workshop, resulting in significant losses for many members who had purchased dance coupons.
- September 6, 2024: PHYSICAL announced the closure of all its branches but continued to sell long-term memberships without informing consumers of the impending closure. The Consumer Council received 1,725 complaints involving PHYSICAL, amounting to nearly HK$60 million. The complaints ranged from HK$99 to as high as HK$1.86 million. Additionally, PHYSICAL was exposed for failing to pay the June and July Mandatory Provident Fund contributions and additional fees for approximately 740 employees, totaling about HK$3 million.
- September 12, 2024: The Wanchai branch of PHYSICAL reopened under the name “HEALTHY.”
- October 4, 2024: The Wanchai and Mongkok branches formerly under PHYSICAL were taken over by the newly established brand “perFIT” by the medical beauty group “perFace.” These branches had been operational earlier. Starting today, perFIT began distributing consent forms to former PHYSICAL clients. After signing, it takes 3 to 5 days to confirm the details before signing an agreement with clients to confirm their services with perFIT.
Common Sales Tactics of PHYSICAL:
- Sales staff would initially measure clients’ bodies. After the assessment, they would continuously criticize the client’s physical condition, such as accusing them of being underweight or having unbalanced legs, to manipulate them into purchasing courses.
- Even if you pass the physical critique, sales staff will point out your exercise errors, creating a perceived need for further training.
- If you express an inability to afford the courses, the sales staff will offer installment payment plans to continue their sales pitch.
- Sometimes, staff even hold your membership card hostage, forcing you to listen to their sales pitches until you agree to make a purchase.
Advice for Dealing with Sales Tactics:
If you are already a member and cannot cancel, the best strategy to counteract their sales tactics is to firmly refuse. If you require professional fitness coaching, it is recommended to seek reputable gyms or use ChatGPT to formulate a fitness plan and refer to YouTube for exercise tutorials.
Here is one recommended website for creating a fitness plan:
https://www.unitapp.tech/ai-fitness-planner/