Interview

We have a team of 350 professional instructors, many of whom are the best in Europe

CBE: What is your target market?

IR: In Russia, there are business class, economy, and luxury clubs. However, we have declined such artificial classification. Our target market is people who want to live a healthy lifestyle regardless of age, physical condition or other factors.

CBE: Will you open more clubs in 2010? Will they be franchises or company-owned?

IR: Yes. We plan to open our third club in Kiev in the Ukraine. It will be a 3,700m2 company-owned club, offering a favourable location, a variety of fitness programmes in the gyms and in the swimming pool, and a range of other services.

CBE: What is the state of the Russian economy now? What is the outlook? How has the economy affected your business?

IR: While the recession is over, there is no steady economic growth yet. Forecasts for the next few years are optimistic, though many analysts predict that the economy will progress slowly. Most of the major players in the

industry overcame the recession and stayed on the course. However, some smaller players went bankrupt. Others abandoned plans for further develop- ment due to the high bank charges for loans—from 12% to 35% depending on the type of loan.

Snapshot 2010

As for Planet Fitness, I think the set-

backs we have seen have tested our strength and motivated us to become better. Russians have become more careful in matters concerning their fam- ily budgeting; consequently the choice of the fitness club has become a matter of careful consideration. We are striving to understand new trends and better meet the needs of our members.

CBE: Your clubs range in size from 520m2 to 9,000m2 offer.

. Please describe what they

IR: Each is unique in that it designed for the people who live in the area. All of our clubs have group exercise studios and one or more gyms with equipment for strength training and flexibility. Nearly all offer additional services, such as a solarium, massage and a fitness bar. We have activities for kids in the gym, the pool, the aerobics room, and in the children’s playroom, in order to encour- age their full development. We also have two brands in the field

of beauty—Beauty Planet beauty salons and Oriental Express spas, which oper- ate at our clubs.

CBE: Please tell us about the group exer- cise classes that you offer.

• Locations: 41 clubs operating, seven of which are franchises. Four projects are now under construction. The company has plans for additional facilities in Belgorod, Rostov-on-Don, Krasnodar, Nizhny Novgorod and Voronezh.

• Club size: 520m2 to 9,000m2

• Members: 120,000 in Russia, Ukraine, Belarus and Sweden.

• 2009 Revenues: USD $70-million (51-million Euros)

• 2010 Revenues: USD $82-million (59.7-million Euros)

IR: We offer about 150 different group exercise classes, which include power training, dance, mind and body, aqua-aerobics, and of course, classes for chil- dren. We track new fitness trends worldwide, adjust them for the Russian con- sumer, and include them on our group-classes schedule. We have a team of 350

• Market share: Approximately 25% in Russia.

professional instructors, many of whom are the best in Europe. They often win international contests. For example, in January, one of our instructors won the first prize in the “Election du Meilleur Espoir Leaderfit Event 2010” held in Paris.

8 Club Business Europe n SPRING 2010 n www. ihrsa.org

CBE: How many employees do you have? How do you train them and keep them up to date on fitness trends?

IR: Today we have about 5,000 employees, and we spare no expense for training. All of our instructors and personal train- ers must upgrade their skills at our own Fitness Academy, which we founded in 1998. In 2009, we held 155 workshops and master classes for more than 1,300 attendees. The Academy also held 56 other fitness events all over the country.

CBE: How do Russians view fitness? Are many physically active? What are the opportunities in the Russian fitness industry right now?

IR: Statistics in 2009 show that only 3-4% of Russians regularly practice fitness. The rest prefer other activities or lead a sedentary life. Only wide promo- tion of healthy lifestyles by the govern- ment will change that. The industry is still in the formative

stage and there is much room for expan- sion. In the near future, I see consolida- tion. Some players will leave the market and strong chains will prevail. The task now is to open clubs within reasonable walking distance for people. Right now, there are not enough clubs of reasonable quality and price in close vicinity to the home or office. We have started to open some, but there is a big opportunity here. Also, the main tool fitness companies

used to attract members is price. However, it is hard for members to know what they’ll get for a price. In my view, the measure of quality is if members feel good, work out with enthusiasm, and meet their goals. Then, members get value for money.

CBE: Finally, what kind of fitness pro- gramme do you enjoy?

IR: I like to try everything; I love new programmes. I enjoy power training, rather than dance. My latest hobby is boxing. Perhaps that is why I have lasted so long in this business. n

PATRICIA AMEND is the managing editor

of CBE. Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12