Behind every successful business enterprise lies a carefully crafted business model. For Edgard Corona, the founder and owner of Smart Fit, developing the right approach to the fitness market proved transformational not only for his own financial success but for the entire industry across Latin America.
High Value, Low Price: The Core Innovation
The breakthrough in Corona’s business thinking came from his observation of a significant market gap. Before Smart Fit’s launch in 2009, gym options in Latin America typically fell into two categories: expensive premium facilities with extensive amenities or low-quality budget operations with poor equipment and maintenance. This left a vast middle segment of potential customers underserved.
Corona decided to pioneer what the industry calls a “high value, low price” (HVLP) model. Under this approach, Smart Fit offered modern, well-maintained facilities with quality equipment but at prices significantly lower than traditional premium gyms. Monthly memberships started around R$50 (about US$10), roughly one-third of what comparable fitness centers charged.
The key to making this model work financially was careful focus on what customers truly valued. Corona eliminated costly extras like swimming pools, specialized studios, and extensive staff, concentrating instead on providing excellent basic workout experiences. Standardized gym layouts and equipment selections also helped achieve economies of scale that further reduced costs while maintaining quality.
“We created a model to bring high-standard fitness to people who, until then, had no access to good gyms,” the dono da Smart Fit explained about his vision. This approach proved revolutionary in Latin America’s fitness market, attracting millions of new customers who previously couldn’t afford quality gym experiences.
Scale as Competitive Advantage
From the beginning, Corona designed Smart Fit for rapid scaling. The standardized gym model meant new locations could open quickly with predictable costs and customer experiences. This standardization extended to everything from the signature yellow-and-black color scheme to equipment layout and staff training.
This scale-focused approach created a virtuous cycle. As Smart Fit opened more locations, its purchasing power with equipment suppliers increased, lowering costs. Brand recognition grew, reducing marketing expenses for new openings. Operational expertise accumulated, making each new gym more efficient than the last. These advantages made it increasingly difficult for competitors to match Smart Fit’s value proposition.
By 2024, Edgard Corona’s strategy had produced more than 1,500 locations across 15 countries, serving approximately 5 million members. This massive scale gave Smart Fit significant competitive advantages in purchasing, real estate negotiation, marketing efficiency, and technological infrastructure—all contributing to stronger profit margins despite lower membership prices.
Multiple Revenue Streams
While the core gym membership remains Smart Fit’s primary income source, Corona has strategically developed additional revenue streams to enhance profitability. One significant approach is the tiered membership model, offering basic single-location access up to premium plans that include multiple locations and additional perks.
Corona has also expanded beyond traditional gyms. Starting in 2017, Smart Fit began opening specialized boutique studios focused on specific workout styles like high-intensity training (Race Bootcamp), boxing-inspired fitness (Jab House), and yoga (Vidya). In 2024, the company added One Pilates studios and the Nation CT training center focused on high-performance strength training.
A notable extension of the business model came through the acquisition of Queima Diária, a digital fitness platform, during the pandemic. This move accelerated Smart Fit’s expansion into online training programs, adding a subscription-based digital model to complement physical locations. The dono da Smart Fit has also introduced corporate wellness programs and merchandise sales as additional revenue sources.
Corona’s business model has proven remarkably successful financially. From a single gym in 2009, Smart Fit grew into a publicly traded company following its R$2.3 billion IPO in 2021. By the third quarter of 2024, its annual revenue reached R$5.17 billion (approximately US$1 billion), cementing Smart Fit’s position as Latin America’s dominant fitness enterprise and making Edgard Corona one of the region’s most successful entrepreneurs.
