INDUSTRY RESEARCH
OPPORTUNITY A Land of
New research provides valuable insights into the fitness industry in Australia and New Zealand. Trent Brown offers an analysis of the two markets based on the key findings of the report
T
he Australian economy has been the envy of much of the world in recent years. However, while it’s true most
sectors of the fitness industry have fared comparatively well in globally tough times, that’s not to say that business owners are resting on their laurels. The fi tness landscape in Australia and
New Zealand has changed considerably in recent years, most notably with the growth of small footprint and 24-hour clubs challenging the big players. This, coupled with reduced discretionary consumer spending caused by economic uncertainty, has resulted in a highly competitive environment.
But in spite of the challenges, it’s
encouraging for the industry that more than 50 per cent of Australian and New Zealand clubs saw a growth in membership in 2013: 33 per cent saw growth of 1–10 per cent, while 26 per cent saw more than 10 per cent growth. These are some of the topline fi ndings
of this year’s Australia and New Zealand Fitness Industry Survey (ANZFIS), conducted by Ezypay and involving almost 20,000 responses: 1,1,50 clubs and 18,940 members and non-members. We take a look at some of the key
fi ndings and trends highlighted by this year’s report.
Current issues faced by clubs
Smaller facilities Although big chain clubs can be found in major cities and towns in Australia and New Zealand, privately owned single clubs enjoy a considerable slice of the market. Franchise clubs are also prominent, and PT studios and CrossFit facilities (or ‘boxes’ or ‘box clubs’ as they are also known) are also making an impact. Indeed, more than half of the facilities that responded to this year’s survey had fewer than 500 members, reflecting the market share enjoyed by small to medium-sized fitness businesses.
On average, and in order of importance, the most significant issues identified by clubs in Australia and New Zealand this year are:
• Government legislation
• Obtaining fi nance • Staff retention • Finding an effective software system
• Motivating staff • Managing staff • Finding good staff • Competition from other operators
• Marketing • Member retention • Membership sales
84 • Better understanding of how to use social media
Facilities and services Free weights have overtaken fixed resistance machines in popularity over recent years: in 2011, 79 per cent of clubs offered fixed resistance machines, and 64 per cent offered free weights; in 2013, those numbers had changed to 73 per cent and 82 per cent respectively. This is an interesting turnaround, and ties in with the growth in popularity of
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functional and bodyweight training. In leaner financial times, it may also be an indication that some clubs have embraced training formats that use smaller, cheaper free weight equipment. In terms of group exercise, 57 per
cent of responding clubs had at least one studio – an increase from the 2011 ANZFIS, when the fi gure was 43 per cent. The higher prominence of CrossFit facilities also refl ects the recent growth in popularity of group training formats. Over one-third of clubs say they
intend to invest in gym equipment in the coming fi nancial year: 41 per cent plan to invest in cardio equipment and 35 per cent in weight training equipment.
Changing formats Among members who have, at one time or another, lapsed their membership, lack of time was cited as the most common reason for the decision. The industry seems to be responding, however, with the introduction of short, tough, results-focused exercise workouts – high-intensity interval training (HIIT) formats such as Tabata, CrossFit, Les Mill’s GRIT series – and even whole club concepts, such as Fitness First’s The Zone in Sydney. Indeed, the most signifi cant growth
areas for the fi tness industry – as identifi ed by clubs responding to this year’s survey – include new workout concepts such as CrossFit, express workouts, small group training and small group fi tness studios, and obstacle course events and classes. Clubs could potentially benefi t from focusing on the provision of these training opportunities in their marketing and promotions. Clubs offering budget memberships
(under $10 a week in either Australian or New Zealand currency) and 24-hour facilities were also identifi ed as potential future growth areas, as was personal training and catering for new niches – specifi cally adult and childhood obesity, and the growing seniors market.
November/December 2013 © Cybertrek 2013
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