BUSINESS MODELS
consumer segments will be targeted in the future. In fact, what some may consider the original microgym concept – Curves – targeted an older demographic.” “Microgyms have the potential to
appeal to all sorts of people and bring in brand new audiences if the timetable, the marketing and the coaches are managed correctly,” agrees Lapetra. “They need to be specialised, but
without being so specialised that they only appeal to one market,” adds David Cooper, operations director at Gymbox.
“With a unique product offering, I think microgyms will be successful in pulling new customers into the industry, especially those who have preconceptions of gym workouts being boring.”
Location, location, location But would the model work outside of major cities? Cooper suggests perhaps not yet. “Until the concept matures, it will stay in the major cities rather than spreading to provincial towns,” he says. But Lapetra believes there’s scope
for a broader geographical spread: “I believe we’ll see more and more microgyms opening outside the wealthy, high footfall areas of London, with new models targeting new markets and new cities. In the US, we’ve already seen newcomers challenging the original model from SoulCycle and Flywheel Sports, and I think we’ll start to see all that in the UK a lot sooner than many people anticipate, with some really interesting concepts being launched. These are exciting times – a wake-up call for existing gyms to up their game.”
Mills adds: “The majority of
successful microgym chains have typically focused on urban hubs such as New York and Los Angeles. However, we’re beginning to see new players – such as Kosama and Orangetheory Fitness – focus on smaller cities. “And microgyms have grown rapidly
in recent years, particularly in the US market, often through adopting a franchise model. For example, Orangetheory Fitness launched in 2010 and has already awarded over 130 franchises across the US and Canada, while CrossFit was founded in 2000 and now has over 6,000 affiliated CrossFit
‘boxes’ across the globe.” And Mills believes the emergence
of virtual classes could now make microgyms even more widespread.
“Virtual classes will be a disruptive force and will facilitate microgyms – a couple of instructors could run a microgym with the help of virtual technology,” he observed at this year’s ukactive FLAME conference.
Friend or foe?
“While the rise of the boutique health club might cause concern to mainstream operators, I feel this could be turned on its head,” says fitness industry consultant Dean Hodgkin. “The hip marketing campaigns that accompany the launch of the trendy specialist clubs may well stir interest in a different consumer than our traditional approach to member recruitment achieves. “If these people develop a regular fitness habit, they may become bored of the
Les Mills clubs charge a booking fee to guarantee a spot in premium classes
narrow activity on offer in the microgym and could look for variety, naturally leading them to more full-service clubs.” David Minton, director at The Leisure
Database Company in the UK, agrees: “I love these so-called ‘microgyms’ as they offer a product and experience people value and are prepared to pay a premium for. These same people become ambassadors and spread the word very quickly. This adds real value to an industry that’s been lacking disruptive innovation for too long. My current favourites are Boom!Cycle in Shoreditch and Heartcore in Notting Hill.” Not only that, but as Mills explains:
“Unlike budget gyms, the growth of the microgym has not negatively impacted traditional clubs. That these clubs have grown without eating into traditional membership rates suggests that either a new breed of consumer is being welcomed into the fitness industry, or those with gym memberships are also adding a microgym experience.” But will this be the case going
forward? People’s buying habits are already shifting – witness the growth in
‘pay as you go’ fitness facilitated by the likes of payasUgym and Fitness Freak. With the help of technology such as fitness apps and heart rate monitors, consumers are also increasingly willing to take fitness into their own hands. Going forward, they may therefore choose to pay only for premium, specialist delivery of the activities they love the most,
“WE’LL SEE MICROGYMS OPENING OUTSIDE OF LONDON’S HIGH FOOTFALL AREAS, WITH NEW MODELS TARGETING NEW MARKETS AND CITIES”
38 Read Health Club Management online at
healthclubmanagement.co.uk/digital October 2013 © Cybertrek 2013
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