INTERVIEW
Kienstra is aiming
for 50–100 UK sites in five to 10 years
remains with the company. David Brame – formerly of corporate wellbeing provider Bladerunner, which was sold to Nuffi eld in November 2010 – also joins the senior team. “David and I have been looking to do something together for a long time,” explains Kienstra. The UK portfolio – which will continue
to operate under the ECW banner for now, with learnings being shared both ways between the teams – encompasses not only corporate gyms but also a few dual-use school-based facilities. “Our biggest focus will be on
corporate going forward – it’s a huge market in the UK, and with not many players at the moment. However, we won’t look away if there are also possibilities in schools,” says Kienstra, who is clearly excited by the potential in the UK market: “We see a huge possibility to grow organically in the UK by putting the weight of High Five behind the ECW offering, both in terms of our knowledge and our fi nances. “I believe we can reach 50–100 sites just
through organic growth in fi ve to 10 years, but for me it’s not really about number of sites. It’s about number of employees, about which sites you bring on-board as clients. Of course you have to start small, and we really appreciate small contracts, but we’re also going to aim for the bigger ones. I believe we can reach an annual turnover of £15–20m in fi ve to 10 years.” It’s not just about organic growth
either: while not naming names, Kienstra confi rms he has further acquisitions in mind.
CORPORATE VS COMMERCIAL But the UK deal clearly brings ECW/ High Five up against the might of Nuffield, with over 200 corporate sites across the country and, as Kienstra himself says, “a lot of clients who are very happy with its services”. So what can his company bring to the table? “As a smaller company, we can bring flexibility and fast decisions. We also have some new IT products and new sport, activity and lifestyle programmes, so we’ll have our own signature in the market. “We also have European reach – we
already deliver services in the UK, Germany and the Netherlands, with Belgium on the table. If we can operate in those four countries, why shouldn’t we be able to do it in Switzerland and Austria as well, for example? Our clients are international businesses that purchase globally for other products and services – why not also for corporate wellness?” He continues: “Very importantly, we
also bring choice to the sector. I have huge respect for Nuffi eld – I think it has a very high quality offering – but if people don’t have a choice, that isn’t good for the market. “I believe companies are looking
for more competition, but with corporate wellness being such a niche market – so different from running a commercial club – it’s hard for new providers to get a foothold. “The fi rst big difference is that, if we’re
asked to manage an in-house facility, we’re guests in the client’s house. But their employees are also guests with
38 Read Health Club Management online at
healthclubmanagement.co.uk/digital
us in the gym. So we’re guests, and we have their guests with us, meaning hostmanship as part of our service is very, very important. One of our shareholding management team – Thomas Klaas – joined us from a hotel background, and this helps us ensure the whole company is very hospitality-minded. “Secondly, at a commercial club your
clients are your members, and they will have objectives like getting fi tter or losing weight. But in a corporate club, the fi rst client is the company, and its goal will be to have healthier employees to improve productivity. The members come after that, as the second client – and then there’ll be other clients too, such as the on-site doctor, the HR department and so on. It’s a more complex playing fi eld and there are a lot more parties involved – it’s not just a one-to-one relationship with your members.” He continues: “But although we’re
very different in these respects, when it comes to the end user of course we have competition from the commercial gyms. If we don’t offer the right product, and if we don’t make it fun, people will leave us and join a commercial club instead, so we have to keep on top of trends. However, although we will follow trends, we won’t be the fi rst and we won’t go from trend to trend. “Because in the end, our fi rst
responsibility is always to the company: we have to offer a very safe product that’s guaranteed, and where we can tell them what the impact will be. We don’t
September 2014 © Cybertrek 2014
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