MARKET ANALYSIS
Operators need to be the lynchpin that connects the online space to the club
Neil Harmsworth
Co-founder
PayasUgym.com
T
here’s little doubt that the fitness industry has occupied the ‘mature’ phase of the product lifecycle for some time – a period during which market share
has been won and lost by individual operators, but overall market value has hardly changed. At the same time, however, the demands of our customers have evolved more rapidly than at any time in the previous 20 years. This is great news for the sector, as it represents
a real opportunity for innovative operators to develop effective extension strategies and deliver genuine market growth. But to achieve that, more must be done to understand and infl uence the factors that will drive that growth. At
PayasUgym.com, we’ve been working to
understand what these factors may be, and our analysis repeatedly shows that the two biggest factors that genuinely infl uence the decision- making process of a potential customer remain price and convenience of location, in that order. On that basis, it’s easy to see why the budget
sector has grown so rapidly through a strategy of modest price points and intense competition for prime locations. It’s also encouraging to see just how many operators have started to embrace technology in order to minimise costs for the customer, and to reach them regardless of their location. This can be delivered through something as simple as improving website user experience, or the integration of expensive wearable devices. These factors also explain the rise of ‘single
experience’ venues, which focus on being famous for one thing rather than average at a lot. These venues require less space and can therefore be innovative with the locations they select. By focusing on one activity, they also minimise wastage and reduce costs for the customer. Price and convenience of location will be the
factors that grow our industry once again, with winners and losers emerging over the coming years based on the willingness and ability of operators to recognise and infl uence these growth factors.
Arthur McColl
COO LA fi tness
I
often compare health clubs to the hotel sector, where the landscape has changed over the past 15 years, with an emerging low-cost market including brands such as Days Inn. Mid-market has turned into ‘midscale’ and ‘upper midscale’ in order to
differentiate, and the boutique and luxury market has prospered. A key difference for the health club sector is the emergence of
technology. Nearly 75 per cent of regular exercisers use technology in their workouts, and 69 per cent of participants in the US are now self-tracking. That makes it hardly surprising that there was an expected growth of 25 per cent in the fi tness tech market in 2014. Member experience is key. In a consumer-focused, technology-
savvy world, we can no longer rely on traditional routes to consumption. We need programmes and interaction to engage, educate and motivate our members. These need to be convenient, fun and motivational to get the disengaged active, fi t and healthy. The emergence of microgyms, albeit gradual, embraces the changing requirements of the consumer for more convenient, personalised, social interactions. We must adopt these principles and offer the ‘microgym’ experience in our clubs. We’re in danger of becoming too insular, focusing too much on
each other to notice the changes around us. We’re also guilty of being led by manufacturers and often fi t out our clubs based on untested assumptions, with new machines that prove unpopular. We need to put members at the heart of our product and service
and extend our reach beyond just bricks and mortar. Look to adopt the use of new technology to create a 24/7 service for members. This could take the form of virtual classes, Skype PT sessions, online goal tracking, online nutritional and fi tness support. We must encourage our members to embrace devices that will support a healthier lifestyle, but vitally we need to be the lynchpin that connects the online space with the in-club experience. The future is bright for the industry. The 20%er’s will always
thrive in the gym environment, so we need to continue to develop products and services to appeal to the remainder of the population and be open to change. We need to be willing to embrace new technology to ensure we can deliver a motivational, highly personalised and educational service. ●
86 Read Health Club Management online at
healthclubmanagement.co.uk/digital January 2015 © Cybertrek 2015
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