INDUSTRY INSIGHTS Fitness First faces


FIGURE 2: MCFIT VERSUS FITNESS FIRST GERMANY


strong competition from budget chain McFit in Germany


consumer proposition that fundamentally disrupts the rules upon which the industry was fi rst built. Low-cost gyms essentially have mid-market health clubs


in their sights. The competitive play used to be mid-market versus premium clubs, with the former claiming they could offer more for less. The problem now is that these previously ‘affordable’ mid-market clubs now look fl abby and poor value compared to the new super-lean, low-cost operators. Figure 1 (p77) illustrates how a low-cost gym differentiates itself from a mid-market operator. It’s very important to understand that a low-cost


gym does not offer an inferior, but simply a narrower, experience. The low-cost gym operator chooses not to offer ancillary services such as a swimming pool, café bar, treatment areas and so on, instead focusing on creating a


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very good gym-only experience. This means the gym design, ambience and equipment must benchmark well against mid- market alternatives if it is to attract and retain a suffi cient number of members.


LOW-COST GROWTH FACTORS I now see fi ve key factors driving growth in the UK low-cost gym segment: simplicity, affordability, sporadic attendance at traditional clubs, consumer sentiment towards traditional clubs, and inconspicuous consumption.


inconspicuous consumption Not so long ago, conspicuous consumption prevailed. Surrounding oneself in ‘aspirational’ items and showing them off at every opportunity helped to defi ne our place in the


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