TALKBACK everyone’s talking about . . .
2012 predictions W
e’re back to January, when the gym fl oors should be buzzing and the race is on for operators
to sign up those who have ‘get fi t’ on their list of New Year’s Resolutions. Some perennial challenges remain
to be tackled: questions such as how we can be taken more seriously by the healthcare sector and lock onto funding, how to activate the deconditioned market, and how to make sure members see the benefi t of their efforts. Could this be the year when we make a breakthrough in one or all of these areas? It will be interesting to see if there will be any major innovations.
Meanwhile, the London Olympics
will push sport to the forefront this year – but will that give a mid-year boost to gym memberships? Or will it mean people stay away from the gym to watch the Games while having a BBQ and a few beers? With almost everyone in society
continuing to feel the pinch – apart, perhaps, from the very wealthy – and signifi cant unrest in many European economies, this year operators need to pull out all the stops to retain members. Simon Harrison, director of corporate fi nance advisory at Deloitte LLP, says clubs must focus on member recruitment and retention by allowing
mark mastrov new evolution ventures • chair / 24 hour fitness • founder
“I
think, for most markets, 2012 will be a more positive year than
2011. The US has come through the curve and is slowly starting to ramp up again. Europe will remain flat to slightly down; outside of Germany, the UK and Scandinavia, the European markets are still very choppy. Asia will continue to be up, as it remains under-clubbed, with
mainland China growing at a very solid rate. Overall, Asia’s price points remain high, so low-cost won’t come into play as the rents are too high. The only exception is mainland China, where overall membership prices are still quite low. Elsewhere, budget clubs will grow the most as they will
continue to activate new members who are price-conscious. It’s yet to be seen if lots of budget clubs can be operated in close proximity of each other – time will tell as the competition heats up. Mid-market clubs will have to decide to go up or down in price to stay competitive; my view is that they will have to play on their amenities and push their prices up in order to perform. I think upmarket is a great market and will continue to perform well, in line with the high income market. I think we will also see more niche studios, such as yoga, group cycling, dance and PT.
john treharne the gym group • chief executive
largely the same in 2012: overall it will be flat. However, that shields the detail of what is happening, because the budget sector is growing aggressively, the local authority/trust market is strong, and there is some growth in the premium end – but the mid-market is in decline.
“M The economy is showing no signs of improving: the debt market
in the UK is getting worse, and with the economic problems in Europe, and insecurity about jobs, consumers will continue to move towards low-cost offerings. Our research shows that our members are attracted both by the price and by the freedom of no contract. The health club industry is antiquated in the way that it ties people in for 12 months. Membership by compulsion doesn’t work. The budget model reflects what people do, allowing them to drop off in December, the summer months and Ramadan, and join again in January and autumn. In the year to March 2011, there were 89 health club closures
”
and I think this year that number will increase. The mid-market will be forced to either trade up or trade down. However, I am very optimistic for my business: we have 20 new sites planned.
34 Read Health Club Management online
healthclubmanagement.co.uk/digital ” january 2012 © cybertrek 2012
y feeling is that the UK fitness industry will continue to be
WORLD WORLD
FOCUS
The year of the London Olympics – and the year Nostradamus predicted the earth would be devastated by a comet – is here. So what does it mean for our industry?
greater fl exibility in format and fees. So will contracts start to be phased out? All of our columnists agree that
the low-cost sector will continue to go from strength to strength in 2012, although Harrison believes it will experience increased competition from local authority trusts. Meanwhile Mark Mastrov says the high-end market is still performing well – will we see more operators chasing this market? Zumba has taken the industry by
storm, so will any similarly exciting new concepts emerge this year? Or will the industry fi nally get the weight-loss product it so needs? What does 2012 hold in store? We ask the experts...
WHAT DO YOU THINK 2012 HAS IN STORE FOR THE SECTOR? EMAIL US:
HEALTHCLUB@LEISUREMEDIA.COM
kath hudson • journalist • health club management
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