INTERVIEW
Having the low-cost operation Fresh Fitness allows Health & Fitness Nordic to compete in a different segment of the market
systems, it would be much more affordable for the customer to do a few exercises on their own, with PTs using their competencies to monitor results and track progress. I want our PTs to spend the majority of their time following up with customers, whether that’s congratulating them or encouraging them to get back to their programme, and only occasionally training with them. “We’ll have members who pay just £2
a month and others who’ll pay £300, and we’ll see where it averages out. Above all, each member has to feel they’re getting good value for money.” While currently focused on
developing the right products for the Nordic market, could all this ultimately lead to a global reach rather than a purely local audience? “If it works in the Nordics then yes, quite possibly. We don’t need to own all of it – we’re already in conversation with overseas operators to see if we can do something together – but I think we’ll have a minority interest in some technology companies, so it’s something we could potentially white label for other operators. We’ll see how that develops.”
SOCIAL CONNECTIONS But it’s not just about technology for Indahl: “Our physical gyms remain extremely important, however much I talk up the digital strategy. We live in a digitised world where real intimacy and connections are fading away. Our gyms provide that social contact, which is something that can’t be replaced by digital means. However, you do need a strong synergy between the two. “For example, I want us to become
an excellent platform for self-organising groups – connecting and co-ordinating
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people who want to train together outside the club. Maybe there’s no gym in their community: we can provide a platform for them, offering education and follow-up as well as linking people together using social media.” He continues: “We could even liaise
with former athletes, employing them in some way whereby they offer group exercise classes and education, both inside and outside our gyms. “Ultimately we have to integrate
much more with the local community – local sports clubs, the after-school market, creating products for the elderly. We can’t just create nice gyms for affluent parts of society if we’re going to make a difference.”
BEING USEFUL There have been quite a few mentions of ‘making a difference’ throughout our interview, so I ask Indahl to elaborate on his personal approach to investment. “My philosophy is to select companies that have the potential to contribute to society,” he says. “That should be the very purpose of business, but we’ve somehow forgotten that over the last 20–30 years. “When you look at the fitness industry,
for example, it has a huge potential to contribute to society, but to date I don’t think it’s been particularly useful. Its impact on public health has been marginal – you can’t even see it in the statistics and trends over the years. We’re not doing any research on what’s making people healthier, not putting the data together, systemising it or using it to develop a useful product. We’re just looking around and picking up the latest new idea without even knowing if it’s actually the best way of helping people reach their goals.” He continues: “As a general rule,
the fitness industry has been far too focused on how to squeeze the last
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dollar out of every customer, instead of thinking in a customer-centric way. But I’m not too focused on revenue per member – for me, number of members and how long they remain a member is much more important. My strategy is ‘a member for life’, and you can only achieve that by being genuinely useful to people. I want to have products that develop with our members: wherever they live, whatever they can afford, whatever their training needs or goals, we’ll be able to follow them throughout their changing needs and lifecycles and keep them as a member for life. “I recently challenged our management
team to spell out what would define our success in five or 10 years, and all the usual answers came up: revenue growth, market share, EBITDA. In my view that’s all very fine, but as the number one player in the Nordics with half a million members, if I can’t see the health statistics of the Nordic countries shifting – evidence that we’re making an impact – in my mind we won’t have been successful.” He concludes: “SATS and Elixia are
two of the largest, most profitable fitness players in the world – I think there are very few others that have been as successful financially – but I still view it as a turnaround project for us. But the problem is, I don’t think the industry sees itself as being in need of a turnaround. “I personally believe the train has
already left the station and we have to run extremely fast to catch it up and jump on the last carriage, and a large part of the fitness industry hasn’t even realised that. I do think we can accomplish it, but it’s a hell of a job. “We have to completely shift the
mindset of the whole sector. If not, we’ll be disrupted and will prove the world right that we are indeed a mature, stagnating market.” ●
July 2014 © Cybertrek 2014
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