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Health Club Management

Health Club Management

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Health Club Management

Health Club Management

News

World Class eyes low-cost brand and franchises

Premium Russian fitness operator World Class plans to build a budget gym brand and grow its franchise operation as part of its growth strategy.

Speaking in the latest Health Club Management, its chief executive Nikolay Pryanishnikov outlined "three pillars for growth" that the company would be pursuing.

One of the pillars is diversification. The group has been piloting a boutique concept but Pryanishnikov is "not overly optimistic" about the model and does not see it making "serious money".

He said: "I don’t think many boutiques are really making much money, and it will be even harder to do so in Russia because working practices mean off-peak hours will be empty.

"We’ll also be exploring the low-cost segment, either on our own or in partnership. I’d like to make some progress on that in the next year. We already have some budget clubs operating under the Fitzkult brand, as franchises, but I want to create a true low-cost brand."

Another pillar for growth is franchising. World Class has around 40 franchise sites but is looking to grow that to 150 or even 200 over the next five years.

As well as Russia, Pryanishnikov said the business could possibly open franchises in non-Russian speaking countries, including the UK, Germany and France.

The third pillar is maintaining its market leader position in the premium sector in Moscow.

The group, which has been operating in Russia for 24 years, has 82 clubs: 74 in Russia, five in Kazakhstan, and one each in Kyrgystan, Belarus and Monaco.

It has 30 clubs in Moscow but Pryanishnikov said the company wanted to grow its estate in the city to 40 clubs over the next five years to reinforce its "market dominance".

Click here for the full interview.

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Premium Russian fitness operator World Class plans to build a budget gym brand and grow its franchise operation as part of its growth strategy.
HAF
Nikolay Pryanishnikov said the business could possibly open franchises in non-Russian speaking countries
Les Mills
Les Mills

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People
People
We want to elevate the experience of residential gyms and create a boutique feel, so members don’t need to join an off-site gym
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Interview
We very deliberately set out to be destructive – to go against the market and create something completely new
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If you look at the most successful clubs in the world, they have large studios, some as big as sports halls, and these are rammed at six o’clock in the morning throughout the evening
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We certainly hadn’t set out to own our own business and clean its toilets, but that’s where we found ourselves – Robert Rowland
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We tap into the group exercise mentality, so people feel they’re working out with friends, and set the whole thing to funky beats mixed by our full-time DJs
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People
Getting inside the minds of members should be the driving force behind the design of all fitness clubs
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We now have the appetite to grow faster. We’d even consider acquisitions if the right deal were to present itself
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Property & Tenders
Gravesham Borough Council
Property & Tenders
Gravesham Borough Council
Property & Tenders
Diary dates
07-29 Oct 2017
Ten Health & Fitness Hatton Garden, London, United Kingdom
Diary dates
17-20 Oct 2017
Gran Via Exhibition Centre, Barcelona, Spain
Diary dates
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