Fitness First believes a lot of international locations are now ripe for expansion
PAUL LORIMER-WING CEO • easyGym
“I
think we’re ready for the next wave of international expansion,
especially in the low-cost sector. As the world gets wealthier, the spending power of the middle class gets stronger; and as the world gets less healthy, the awareness of good health grows. All this will fuel the appetite for health clubs. I think there are strong opportunities all over the world,
especially in emerging markets. Even though the US is the market leader, I still see many opportunities for growth there, as well as across Europe, in parts of Asia, Brazil and Mexico. South Africa has opportunities and Nigeria has a large economy. The Middle East is also a strong contender. The strongest, most capital-rich companies will go out
and exploit these opportunities. If you don’t have the capital capacity or the appetite for risk, you won’t stand a chance – all these opportunities come with risk. The main threats are not understanding the market and
not having a local partner. A copy and paste approach is not the path to success: adaptation is necessary. Neither is it a ‘get rich quick’ situation – it will require
significant commitment and dedication, and finding the right properties at the right price will be crucial.
” October 2014 © Cybertrek 2014
JAMES BALFOUR CEO • 1Rebel
markets can offer a huge amount of growth going forward. Meanwhile, both at home and in mature markets, there’s the opportunity for a shake-up. However, I don’t think the industry is set for the next wave of international expansion, as a lot of the major operators are laden with debt and acting cautiously. One of the risks of expansion overseas is that operators take
“F
their eye off their core assets at home, neglecting their ageing estates and failing to attract new members. It’s important for businesses to stay ahead of the game in all their businesses while they are pushing ahead with international expansion. Various franchise operators are seeing continued overseas
growth, as franchising offers speed to markets, and this is 1Rebel’s preferred route for overseas expansion. We will be launching an international franchise department to take advantage of growing demand from key international cities, but we’re still taking a conservative approach. We think 20 clubs over five years is appropriate. Our brand works best in transient markets where the population changes, so we will be looking at locations such as Hong Kong and Singapore.
” Read Health Club Management online at
healthclubmanagement.co.uk/digital 35
or companies that have an appetite for risk, the emerging
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