IHRSA EUROPE UPDATE
Hans Muench reports on the success of Fitness World in Denmark, and its goals going forward
to an estate of 72 clubs in Denmark, catering for 250,000 members – that’s almost half of all gym members in this small country, which has a population of just fi ve million and in which only four cities have more than 100,000 inhabitants.
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the fitness world model In 2008, Fitness World shook up the Danish market with a simple yet irresistible model: fees of 229 Danish Crowns (approximately €33) a month with no minimum contract length. T is undercut the market pricing of the major Scandinavian chains (SATS, Fitnessdk and Elixia) by almost 40 per cent. Many Danes prefer to be outside during
the summer, so Rossing also allows them to freeze their memberships at no cost. “We do not lose these members,” he explains. “In September this year, for example, we had 30,000 people reinstate their memberships, which had no associated marketing or sales costs.” Fitness World does not believe in pre-
selling memberships, but this does not mean that they do not advertise, or that they start the club operation slowly. In fact, a recent opening yielded 1,000 members on the fi rst day. “We rely heavily on social media
such as Facebook,” explains Rossing. “We have a sophisticated monitoring system which tells us, based on the ‘chatter’ about the club, whether extra promotional work is necessary.” A new Fitness World club in
Copenhagen, scheduled to open in December, was a former SATS location which closed in August. A nearby Fitness World club, at almost 10,000 members – very crowded at times – will benefi t from a transfer of some of the membership to a location close by, with new equipment and more space to move. However Rossing, who serves on the Danish Fitness and Health Organisation
22 Fitness World relies heavily on social media, with sophisticated monitoring of online ‘chat’ about its clubs
(DHFO) board, also plans future growth in smaller towns with a population as low as 15,000. “We feel our concept can attract 3,000 to 4,000 members in such markets,” he predicts, adding that these fi gures are independent of the level of competition in those markets.
driving penetration While the national penetration rate is 12 per cent, Rossing’s goal is to get 30 per cent or more of the population in his clubs’ catchment areas as members. Rossing’s loſt y goal is not unrealistic.
At the Fitspiration event in den Bosch, Holland, on 16 September, keynote speaker Mark Mastrov (formerly of 24 Hour Fitness, and currently involved in over 800 clubs across 20 countries – brands including Hard Candy, Mrs. Sporty and UFC Fitness Clubs) stated that 24 Hour Fitness alone had a 31 per cent penetration rate in parts of southern California. When other (competitor) clubs were included, the total local health club penetration rate surpassed 40 per cent. In smaller markets, higher penetration
can also be achieved. For example, Hardy’s in Greifenberg (a town of 12,000 people, 40 minutes west of Munich, Germany) has 3,000 members, which translates into a 25 per cent penetration rate.
the competition responds... “Grudging acceptance and respect for what they have achieved so far,” is how Rasmus Ingerslev summarises his
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thoughts on Fitness World. Ingerslev operates six Fresh Fitness value clubs in Denmark – a joint venture with SATS, which also operates three clubs under the Fresh Fitness brand in Norway. With 16,000 members in Denmark,
plus 8,000 in Norway, Fresh Fitness has just 10 per cent of Fitness World’s membership base, but it believes it can make inroads into the market. “Our price is lower than Fitness World, but cost of membership is not the only criteria members consider when making their purchase decision,” explains Ingerslev. Fresh Fitness therefore also uses elements such as online membership sales, technological innovations (see news item on previous page), indoor cycling and group exercise video classes on demand to attract clients to its low-cost clubs. Meanwhile Tom Hoel of Aerobic
Garden in Frederiksund, one hour south of Copenhagen, felt the eff ect of Fitness World entering his city immediately. “We lost over 100 members,” states Hoel, who is also on the DFHO Board. “However, we have local knowledge and relationships built up with members and the community, which will buff er medium- term eff ects of this large competitor.” Other major chains in Denmark, as cited
in T e 2011 IHRSA International Report: Size & Scope of Key Health Club Markets, include: Fitnessdk (36 clubs), Dansk Fitness (19 clubs), Motion & Trivsel (15 clubs), Butterfl y Women (15 clubs), Sport og Fitness (14 clubs) and SATS (13 clubs).
november/december 2011 © cybertrek 2011
ver the course of six years, founder and owner Henrik Rossing has grown Fitness World
NEWS great danes: lessons from denmark
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