GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
Technogym
Technogym
Technogym
Health Club Management

Health Club Management

Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Get the latest news, jobs and features in your inbox
Health Club Management

Health Club Management

features

Worldwide trends

What are the opportunities for refinement and growth in the global fitness sector in 2015?

By Kristen Walsh, IHRSA | Published in Health Club Handbook 2015 issue 1
Can mid-market clubs integrate elements of successful microgyms?
Can mid-market clubs integrate elements of successful microgyms?
As many as 90 per cent of the clients of studios also attend classes or have a membership at another club

‘‘While the economy continues to present challenges for many countries, European health club operators still see opportunities, and many of the region’s leading players are planning for continued growth.” This was the conclusion of Jay Ablondi, IHRSA’s executive vice president of global products, at the end of an IHRSA European Congress panel session featuring the CEOs from three of Europe’s leading health club companies. So what did the panel believe lies in store for the sector in 2015?

Growth opportunities
Valerie Bönström, CEO of women-only franchise Mrs.Sporty, pointed to the likelihood of continued growth in the budget sector. “The competition is increasing on the low-cost side, with more companies opening smaller, low-cost clubs,” she said, noting that budget trailblazer McFit continues to thrive. “In a market that’s increasingly price sensitive, higher-end operators will have to provide a more powerful brand with a strong positioning.”

Meanwhile Olav Thorstad, CEO of Scandinavian chain Health & Fitness Nordic – which operates the SATS, Elixia and Fresh Fitness brands – noted the importance of instructors when it comes to capitalising on the profitability of the functional training trend. “We also need to look at outdoor opportunities, because people don’t necessarily want to go to the club,” he added. “This segment of the market is growing more rapidly than the traditional club market. We have a big opportunity here, but we have to do more to catch the potential members who are interested in exercising outside of the four walls of our clubs.”

For Irina Kutina, CEO of the Russian Fitness Group, the focus will be on driving social connection. “We will continue to work closely with our personal training team, because it’s a good indication of how well the clubs are doing in terms of engaging members,” she said. “We’ll also look at small group training, yoga, cycling and so on, because these activities bring people together.”

Small is beautiful
All three panellists identified the boutique model as an important trend. In addition to the women-only Mrs.Sporty clubs, Bönström already operates some small, co-ed functional fitness training studios under the LOVFIT brand, and noted the potential of these clubs to attract new segments of the population who might not be interested in joining a more traditional gym.

“There’s a market for it and we should be in it,” agreed Thorstad. “The margins and profits are bigger, and it will be positive for members” – this thanks to a highly results-focused, member-centric, interactive and experiential formula.

When speaking with European Congress attendees, Alison O’Kane Giannaras, IHRSA’s associate vice president of international development, consistently heard views on the growth of this boutique model. “Mid-market and higher-end clubs are looking at the boutique models and trying to incorporate the concept into their existing model,” she says.

“The general consensus at the Congress was that the mid-market club is not dead, and that the growth in budget and boutique clubs is only making traditional clubs refine their value proposition – that there’s space in the market for all.”

According to delegates, one key to refining the value proposition will be a greater emphasis on staffing and the importance of human resources among the traditional mid-market health clubs. “As budget clubs continue to grow in number – with brand new offerings, equipment and concepts – a key element most are still missing is staff. The mid-market clubs are therefore increasingly realising the power a great staff member can have in retaining members,” says O’Kane Giannaras.

These predictions of the continued growth of the boutique sector are consistent with the findings of The IHRSA Health Club Consumer Report, published in September 2014 and looking in-depth at the US market, but with an eye to global trends: one of the most significant of its 11 overarching insights relates to the rise of new business models, particularly boutique clubs and fitness studios – specialising in barre, indoor cycling and CrossFit training, for example – and a movement away from the traditional multi-purpose model the industry has embraced for the past 20 years.

According to the report, more than 20 per cent of all members of multi-purpose clubs now hold more than one membership, and as many as 90 per cent of the clients of studios also attend classes or have a membership at another club. This trend could bode well for the industry in the months and years ahead: club operators might consider partnering with select niche studios to offer reciprocal discounts or joint memberships, for example, or even to trade client/marketing lists.

A new vision
The report also documents the decline in traditional fitness equipment use over recent years. The most frequently used items – treadmills, resistance machines and free weights – remain strong, but the data shows overall usage has decreased: in 2013, consumers used traditional equipment less than at any time in the past four years. Indeed, in some cases, use fell by as much as 20 per cent.

That’s not to say equipment has lost its importance: there’s still a greater share of members using equipment than there are participating in group exercise. However, operators whose business model is dependent on equipment may want to consider taking inventory of equipment use, and look at reintroducing members to how specific equipment can help them achieve their health and fitness goals. 

“This might be a symptom of the rise in boutiques or microgyms, which offer specialised training with activity-specific equipment,” suggests the report. It no doubt also has to do with the growing popularity of extreme exercise offerings that use unorthodox workout tools such as truck tyres and obstacle courses.

As Rick Caro, president of US-based consultancy Management Vision, concludes: “Clubs have an opportunity to ask themselves: ‘What do we want to be known for? What are our points of differentiation?’ They need to discover their strengths, capitalise on them, and make their strengths even stronger.”

FIND OUT MORE

Kristen Walsh is IHRSA’s associate publisher and can be contacted via email at [email protected]
Please visit www.ihrsa.org/research-reports to access 

The IHRSA Health Club Consumer Report, The IHRSA European Health Club Report, The IHRSA Global Report, and many other IHRSA publications.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Bönström has launched LOVFIT – co-ed functional fitness studios
Bönström has launched LOVFIT – co-ed functional fitness studios
20 per cent of full-service club members also use specialist studios
20 per cent of full-service club members also use specialist studios
The outdoor market is growing more rapidly than traditional gyms
The outdoor market is growing more rapidly than traditional gyms
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
https://www.leisureopportunities.co.uk/images/29161_22157.jpg
Insight into the trends and opportunities for growth of the sector over the coming months
KRISTEN WALSH, ASSOCIATE PUBLISHER, IHRSA ,IHRSA, Kristen Walsh, global trends, microgym, boutique, functional training, outdoor, extreme exercise
HCM magazine
This was a year when research helped transformed the gym sector into a serious political force. Two pieces of work stand out in terms of timely impact
HCM magazine
How Virtuagym and Thebodycontent created an ecosystem of fitness within a small community
HCM magazine
Nu Physio and Fitness has placed Egym at the heart of its protection and prevention model
HCM Magazine
Sponsored
Technogym introduced live and on-demand functionality to Mywellness in July. Here we find out more about operators who have adopted this solution
HCM Magazine
News report
A new study from the Global Wellness Institute highlights the scope of the $121bn mental wellness market, as Katie Barnes and Megan Whitby report
HCM Magazine
Sponsored
Andy Hall, COO of data and tech solutions brand, Volution, looks at the trends we can expect to see emerging in the global fitness market in 2021
HCM Magazine
Profile
The chair of énergie and vice chair of BMF talks to Kate Cracknell about creating an omnichannel approach that brings together indoor, outdoor, online and VR
HCM Magazine
Supplier showcase
Bulmershe Leisure Centre, run by Places Leisure, is providing its community with state-of-the-art fitness machines from Octane Fitness
HCM Magazine
Research
New research from the Karolinska Institutet in Sweden, has established why people who exercise when suffering from cancer generally have better outcomes
HCM Magazine
Active ageing
With many older people in crisis due to the pandemic, ukactive’s head of health and wellbeing development, Kenny Butler, explains why the organisation is launching an active ageing consultation and how you can get involved
HCM Magazine
Latest News
HCM editor, Liz Terry, has launched a Parliamentary Petition calling for gyms to be in ...
Latest News
The failure to tackle the UK's obesity crisis is down to successive governments being guilty ...
Latest News
Les Mills has launched a new digital content solution to support health and fitness operators ...
Latest News
Gymbox has entered the hospitality space with the signing of a deal to deliver in-room ...
Latest News
Nuffield Health has launched a series of free, online classes focused on emotional wellbeing. The ...
Latest News
Resistance training is just as beneficial for men and women over the age of 50, ...
Latest News
Fitness, sport and leisure sector professionals who have continued to deliver services to their communities ...
Latest News
A national survey has launched to chart the mental health of the fitness and physical ...
FREE WEBINAR
promotion
This free webinar on 26 January will see our panellists reflect on the changes to work in 2020, and their priorities for 2021.
Opinion: 2021 is the year to prioritise global culture
Featured supplier news
Featured supplier: The Retention People unveil 2020 Member Experience Awards winners
Member engagement software provider The Retention People (TRP) has unveiled the winners of its annual 2020 Member Experience Awards (MEA).
Featured supplier news
Featured supplier: Red Light Rising teams up with ITRM Clinic to supply red light therapy for injured athletes
Red light therapy equipment supplier, Red Light Rising, has partnered with Aidan Robinson of ITRM Clinic in the UK
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Company profiles
Company profile: Bungee Super Fly
We have developed our own Bungee harness and cords with CE certificate....
Supplier Showcases
Supplier showcase - Powering through
Catalogue Gallery
Click on a catalogue to view it online
Directory
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Flooring
Uniforms
Service Sport: Uniforms
Wearable technology solutions
MyZone: Wearable technology solutions
Software
Volution.fit: Software
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Skincare
Sothys: Skincare
Fitness equipment
Precor: Fitness equipment
Management software
fibodo Limited: Management software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

features

Worldwide trends

What are the opportunities for refinement and growth in the global fitness sector in 2015?

By Kristen Walsh, IHRSA | Published in Health Club Handbook 2015 issue 1
Can mid-market clubs integrate elements of successful microgyms?
Can mid-market clubs integrate elements of successful microgyms?
As many as 90 per cent of the clients of studios also attend classes or have a membership at another club

‘‘While the economy continues to present challenges for many countries, European health club operators still see opportunities, and many of the region’s leading players are planning for continued growth.” This was the conclusion of Jay Ablondi, IHRSA’s executive vice president of global products, at the end of an IHRSA European Congress panel session featuring the CEOs from three of Europe’s leading health club companies. So what did the panel believe lies in store for the sector in 2015?

Growth opportunities
Valerie Bönström, CEO of women-only franchise Mrs.Sporty, pointed to the likelihood of continued growth in the budget sector. “The competition is increasing on the low-cost side, with more companies opening smaller, low-cost clubs,” she said, noting that budget trailblazer McFit continues to thrive. “In a market that’s increasingly price sensitive, higher-end operators will have to provide a more powerful brand with a strong positioning.”

Meanwhile Olav Thorstad, CEO of Scandinavian chain Health & Fitness Nordic – which operates the SATS, Elixia and Fresh Fitness brands – noted the importance of instructors when it comes to capitalising on the profitability of the functional training trend. “We also need to look at outdoor opportunities, because people don’t necessarily want to go to the club,” he added. “This segment of the market is growing more rapidly than the traditional club market. We have a big opportunity here, but we have to do more to catch the potential members who are interested in exercising outside of the four walls of our clubs.”

For Irina Kutina, CEO of the Russian Fitness Group, the focus will be on driving social connection. “We will continue to work closely with our personal training team, because it’s a good indication of how well the clubs are doing in terms of engaging members,” she said. “We’ll also look at small group training, yoga, cycling and so on, because these activities bring people together.”

Small is beautiful
All three panellists identified the boutique model as an important trend. In addition to the women-only Mrs.Sporty clubs, Bönström already operates some small, co-ed functional fitness training studios under the LOVFIT brand, and noted the potential of these clubs to attract new segments of the population who might not be interested in joining a more traditional gym.

“There’s a market for it and we should be in it,” agreed Thorstad. “The margins and profits are bigger, and it will be positive for members” – this thanks to a highly results-focused, member-centric, interactive and experiential formula.

When speaking with European Congress attendees, Alison O’Kane Giannaras, IHRSA’s associate vice president of international development, consistently heard views on the growth of this boutique model. “Mid-market and higher-end clubs are looking at the boutique models and trying to incorporate the concept into their existing model,” she says.

“The general consensus at the Congress was that the mid-market club is not dead, and that the growth in budget and boutique clubs is only making traditional clubs refine their value proposition – that there’s space in the market for all.”

According to delegates, one key to refining the value proposition will be a greater emphasis on staffing and the importance of human resources among the traditional mid-market health clubs. “As budget clubs continue to grow in number – with brand new offerings, equipment and concepts – a key element most are still missing is staff. The mid-market clubs are therefore increasingly realising the power a great staff member can have in retaining members,” says O’Kane Giannaras.

These predictions of the continued growth of the boutique sector are consistent with the findings of The IHRSA Health Club Consumer Report, published in September 2014 and looking in-depth at the US market, but with an eye to global trends: one of the most significant of its 11 overarching insights relates to the rise of new business models, particularly boutique clubs and fitness studios – specialising in barre, indoor cycling and CrossFit training, for example – and a movement away from the traditional multi-purpose model the industry has embraced for the past 20 years.

According to the report, more than 20 per cent of all members of multi-purpose clubs now hold more than one membership, and as many as 90 per cent of the clients of studios also attend classes or have a membership at another club. This trend could bode well for the industry in the months and years ahead: club operators might consider partnering with select niche studios to offer reciprocal discounts or joint memberships, for example, or even to trade client/marketing lists.

A new vision
The report also documents the decline in traditional fitness equipment use over recent years. The most frequently used items – treadmills, resistance machines and free weights – remain strong, but the data shows overall usage has decreased: in 2013, consumers used traditional equipment less than at any time in the past four years. Indeed, in some cases, use fell by as much as 20 per cent.

That’s not to say equipment has lost its importance: there’s still a greater share of members using equipment than there are participating in group exercise. However, operators whose business model is dependent on equipment may want to consider taking inventory of equipment use, and look at reintroducing members to how specific equipment can help them achieve their health and fitness goals. 

“This might be a symptom of the rise in boutiques or microgyms, which offer specialised training with activity-specific equipment,” suggests the report. It no doubt also has to do with the growing popularity of extreme exercise offerings that use unorthodox workout tools such as truck tyres and obstacle courses.

As Rick Caro, president of US-based consultancy Management Vision, concludes: “Clubs have an opportunity to ask themselves: ‘What do we want to be known for? What are our points of differentiation?’ They need to discover their strengths, capitalise on them, and make their strengths even stronger.”

FIND OUT MORE

Kristen Walsh is IHRSA’s associate publisher and can be contacted via email at [email protected]
Please visit www.ihrsa.org/research-reports to access 

The IHRSA Health Club Consumer Report, The IHRSA European Health Club Report, The IHRSA Global Report, and many other IHRSA publications.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Bönström has launched LOVFIT – co-ed functional fitness studios
Bönström has launched LOVFIT – co-ed functional fitness studios
20 per cent of full-service club members also use specialist studios
20 per cent of full-service club members also use specialist studios
The outdoor market is growing more rapidly than traditional gyms
The outdoor market is growing more rapidly than traditional gyms
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
Extreme exercise may be a factor in the falling use of traditional kit / photo: www.shutterstock.com/ glynnis jones
https://www.leisureopportunities.co.uk/images/29161_22157.jpg
Insight into the trends and opportunities for growth of the sector over the coming months
KRISTEN WALSH, ASSOCIATE PUBLISHER, IHRSA ,IHRSA, Kristen Walsh, global trends, microgym, boutique, functional training, outdoor, extreme exercise
Latest News
HCM editor, Liz Terry, has launched a Parliamentary Petition calling for gyms to be in ...
Latest News
The failure to tackle the UK's obesity crisis is down to successive governments being guilty ...
Latest News
Les Mills has launched a new digital content solution to support health and fitness operators ...
Latest News
Gymbox has entered the hospitality space with the signing of a deal to deliver in-room ...
Latest News
Nuffield Health has launched a series of free, online classes focused on emotional wellbeing. The ...
Latest News
Resistance training is just as beneficial for men and women over the age of 50, ...
Latest News
Fitness, sport and leisure sector professionals who have continued to deliver services to their communities ...
Latest News
A national survey has launched to chart the mental health of the fitness and physical ...
Latest News
One of England's highest ranking police officers has called on government ministers to clearly define ...
Latest News
Virtuagym, a leading provider of fitness technology for gyms and trainers, has announced the launch ...
Latest News
Fitness First has launched a new free digital fitness hub, offering users a wide range ...
FREE WEBINAR
promotion
This free webinar on 26 January will see our panellists reflect on the changes to work in 2020, and their priorities for 2021.
Opinion: 2021 is the year to prioritise global culture
Featured supplier news
Featured supplier: The Retention People unveil 2020 Member Experience Awards winners
Member engagement software provider The Retention People (TRP) has unveiled the winners of its annual 2020 Member Experience Awards (MEA).
Featured supplier news
Featured supplier: Red Light Rising teams up with ITRM Clinic to supply red light therapy for injured athletes
Red light therapy equipment supplier, Red Light Rising, has partnered with Aidan Robinson of ITRM Clinic in the UK
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Company profiles
Company profile: Bungee Super Fly
We have developed our own Bungee harness and cords with CE certificate....
Supplier Showcases
Supplier showcase - Powering through
Catalogue Gallery
Click on a catalogue to view it online
Directory
Lockers/interior design
Safe Space Lockers Ltd: Lockers/interior design
Flooring
REGUPOL/Berleburger Schaumstoffwerk (BSW): Flooring
Uniforms
Service Sport: Uniforms
Wearable technology solutions
MyZone: Wearable technology solutions
Software
Volution.fit: Software
Hydrotherapy / spa fragrances
Kemitron GmbH: Hydrotherapy / spa fragrances
Exercise equipment
Pendex Fisio S.L.: Exercise equipment
Skincare
Sothys: Skincare
Fitness equipment
Precor: Fitness equipment
Management software
fibodo Limited: Management software
Property & Tenders
11 - 25 Union St, London SE1 1SD
Bankside Open Spaces Trust
Property & Tenders
Waltham Abbey, Essex
Lee Valley Regional Park Authority
Property & Tenders
Diary dates
02-04 Feb 2021
Ericsson Exhibition Hall, Ricoh Arena, Coventry, United Kingdom
Diary dates
23-26 Feb 2021
IFEMA, Madrid, Spain
Diary dates
03-04 Mar 2021
NEC, Birmingham, United Kingdom
Diary dates
03-06 Jun 2021
Expo Centre & Riviera di Rimini, Italy
Diary dates
16-17 Jun 2021
ExCeL London, London, United Kingdom
Diary dates
21-24 Sep 2021
Messe Stuttgart, Germany
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
Technogym
Technogym