edgard corona has turned self-cannibalisation into a growth strategy, building a fitness empire that spans premium clubs and a rapidly expanding low-cost chain. The Brazilian entrepreneur launched BioRitmo in 1995 and introduced SmartFit in 2009 to capture members who might otherwise defect to rival budget operators.

Corona’s approach is simple: if members will trade down, he prefers they trade down within his brands. That philosophy underpins parallel investments in design, service and operations across both segments, so customers see BioRitmo and SmartFit as first and second choices rather than distinct quality tiers. The move reflects hard lessons learned since Corona left a career as a chemical engineer to open his first club, a venture that required nearly a decade of adjustments before breaking even.

Early innovations included shifting club aesthetics away from traditional health-club motifs toward a restaurant-like ambience, a change inspired by visits to London and implemented at a 1997 Paulista opening. Operational streamlining followed. High Brazilian interest and inflation, and steep import tariffs on equipment, forced Corona to simplify facility mixes, removing pools and focusing on group exercise studios and more efficient gym footprints. He also invested in sales training after attending an IHRSA event in 2001.

Product and experience experimentation continued across the portfolio. BioRitmo clubs introduced theatre-style lighting for indoor malls and reorganised gym floors into three distinct zones to serve beginners, competitive exercisers and heavy free-weight lifters. Staffing patterns were adjusted to match member demographics by time of day, and SmartFit was designed as a self-explanatory environment where equipment layout guides workouts and on-screen videos demonstrate exercises.

But expansion has not been without headwinds. Corona navigated a near-collapse of cashflow in 2007 and now contends with systemic challenges in Brazil: water shortages requiring new wells and trucked supplies, steep rises in electricity and water costs, a weakening currency that raises equipment prices, and constrained consumer spending. Club membership penetration in Brazil remains low at about 4 percent, with limited upside because of high operating costs that keep even low-cost monthly fees around US$20, roughly triple the US price when local incomes are considered.

Given those pressures, Corona is prioritising SmartFit growth while tempering expectations. After opening 52 SmartFit sites in one year, the company now plans more measured expansion, forecasting possible scale of 300 clubs in Brazil and another 130 to 140 in Mexico, alongside recent entries into Chile and prospects in Peru. Partnership models have supported faster regional rollouts, with 50/50 joint ventures easing market entry.

Looking ahead, Corona is exploring microgym formats and urges a forward-looking culture within his organisation, empowering younger staff to lead technological and product innovation. The long-term play remains focused on owning the market across price bands, even if that means deliberately competing with his own brands to retain members and control market share.