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EVERYONE’S TALKING ABOUT . . . TALKBACK


Julie Cramer • Journalist • Health Club Management


industries, from fashion and beauty to hotel and restaurant chains, when you consider the health and fi tness industry there are few, if any, brands that have been truly successful on a global scale. After a phase of rapid expansion several


Global brands W


hile there are successful global brands in many


But it’s not only company-owned


years ago, Fitness First might be the closest a brand has come to enjoying the fi nancial rewards of major global expansion. The business grew at a brisk pace across Europe, Asia, Australia and the Middle East – the latter under a licence – reaching a peak of over 500 clubs. But in recent years it’s sold its portfolio in Benelux, France, Spain and Italy and closed a signifi cant number of clubs in the UK.


operations that have struggled: franchises have too. Curves, for example – once among the fastest-growing franchises in the world – has seen its estate shrink dramatically over recent years. Was recession the only reason for these


brands having to cut back, or did they just get too big, too soon? Is it simply not possible to scale a fi tness brand globally? According to Tony de Leede, CEO of Fit n Fast in Australia, operating in overseas


What are the challenges faced by fitness brands looking to expand globally, and what’s the best model for international success? We ask our panel of experts


markets holds many challenges: “For example, the rejection rate on cheque-based accounts and credit cards in Asia is fi ve to 10 times higher than in Western countries, so paid-in- full memberships are advisable.” Are there any lessons to


be learned from major global hotel chains, which seem to


have achieved international expansion, even in very new markets, relatively easily? Or is this because their customers tend to be global travellers rather than local? Are the challenges for health clubs very different from hotels, as clubs must attract and retain an indigenous market? Can clubs be global and local at the


same time, and how do they adapt brand and service standards, management systems and recruitment to ensure their relevance in culturally diverse markets?


HOW CAN FITNESS BRANDS BE SCALED GLOBALLY? EMAIL US: HEALTHCLUB@LEISUREMEDIA.COM


JOHN KERSH Anytime Fitness • VP of international development


“I


nternational expansion is resource heavy and the risks are high, and


even successful global brands in well- established industries aren’t immune to failure. In the franchising and licensing sector, even the likes of Burger King, Starbucks, Subway and other global F&B brands have been forced to pull out of numerous countries. What major global brands have in common is that they’re


actually a collection of local brands woven together with unifying systems, principles and marketing. They’re both global and local at the same time. The fitness industry is no different, and the economics of the business model itself can be significantly different across borders. This is where the franchise model excels. Franchisees apply


their culture and personality to the business, and go to great lengths to localise the offering to appeal to regional differences. Ultimately, global expansion is not for the faint of heart


or the undercapitalised. For a fitness company to gain global success, it will need to find great local partners in foreign markets who share its DNA, be open to adapting its model to local tastes, and be financially prepared for the process to take longer and cost more than planned.


” 28


BRENT LEFFEL NeV • President


every market in the world, and the main considerations are always the same. Location, location, location, and the need to localise the brand – regardless of whether you’re selling a hotel room, gym membership or apparel. We think branded fitness concepts are scaleable by applying


“O


a number of key principles: make strong real estate selections, and use the brand to create ‘sensationalism’ in the local market, build awareness and attract the best staff. Remember that, while the brand may be the thing that


first brings the customer through the door, it’s the culture and energy of a club and its points of differentiation such as programming that keep them coming back. Transport your brand’s culture and energy so it resonates


with the local market. One strategy is to create an online community for members, instructors and trainers to develop a link between the global brand and the local neighbourhood. The fitness business is all about people, and NeV is focused


on aligning with the right partners, gaining local connectivity, and accessing the ‘influencers’. Without this, global expansion of a fitness brand will fail.


” Read Health Club Management online at healthclubmanagement.co.uk/digital October 2013 © Cybertrek 2013


ur chair Mark Mastrov has built fitness brands in virtually


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