The Changing Fitness Industry
The fitness industry is changing.
A decade or so ago, 98% of gyms followed basically the same model. Take a big space, fill it full of equipment, add some extras, and start bringing in as many clients as possible.
The aim was simply to get the clients through the door and signing up for at least an annual membership. What happened after that was less important – maybe a brief tour, one guided session to teach them how to use the kit, the handing over of a basic programme to get them started. After that, they were more or less on their own.
The result of this was fairly predictable. Around 80% of the people who had signed up simply stopped coming. They weren’t seeing results, they were working out in isolation, they had little idea what they should be doing – their fitness experience was lacking support. So as soon as they end of the year came ‘round, they were out of there. If they could get out sooner, they would.
Key Takeaway
The business model was based on high churn, with lots of people paying a fairly low price, and a constant stream of new joiners to replace those that got fed up of the poor service and left.
But times are changing.
This model of fitness is starting to lose traction for a decent proportion of the population.
Competition is increasing, people are becoming more aware of what’s available and what fitness can be like (thanks to the internet), and the client is becoming a more sophisticated, discerning beast.
The Fragmenting Market
The market is fragmenting into several layers, each serving a different kind of client with different needs:
- The budget club which sells at a rock-bottom price and basically just rents equipment.
- Traditional gyms who add some team training and other extras.
- The training gym, which provides a premium, results based service and a price to match.
- The boutique gym which charges top whack for the dedicated fitness fanatics to get a highly-tailored, elite experience.
The traditional gym is currently paying the price for its approach as it loses clients to the more closely targeted offerings on either side of it.
In a world where fitness and health are becoming an increasingly visible and valued commodity, a certain market of people are looking for the best value for money. They’re looking for results. Excellent service. Hygienic, socially distanced conditions to work out in.