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FITNESS, HEALTH, WELLNESS

features

2015 predictions

What will drive sector growth in 2015, and what will be the challenges and opportunities?

Published in Health Club Handbook 2015 issue 1
As the retail, hotel and airline sectors have shown, value for money is here to stay / photo: www.shutterstock.com/JuliusKielaitis
As the retail, hotel and airline sectors have shown, value for money is here to stay / photo: www.shutterstock.com/JuliusKielaitis

After a prolonged recession, 2014 was brighter for most, with the economy finally turning a corner and both consumer confidence and the housing market picking up.

In the fitness industry, the low-cost sector had another strong year, growing 21 per cent according to the latest Mintel research. But will the improvement in the economy mean the affordable clubs will lose their appeal, with people trading up to more expensive brands? Not at all, according to CEO of The Gym Group John Treharne. “I would expect the market to at least double and for there to be some new entrants in 2015,” he says. “I think – as has happened in other markets such as airlines, hotels and retail – there will be more growth at the premium end but also significant growth at the low-cost end of the market. Research shows value for money is here to stay: people don’t automatically go for a more expensive brand in good economic times.”

Another feature of 2014 was the growth of boutique clubs – the emerging microgym sector – where members pay premium prices for a small, personal, high spec club that focuses on one discipline. Will we see new entrants into this sector? How will the products evolve, and will even more niches emerge?

The obesity crisis was never far from the 2014 news headlines. Despite health club penetration levels nudging up very slightly, the nation is getting fatter. Will we start to see some progress with this problem in 2015, with new ideas brought forward to drive behaviour change on a mass scale?

Last but definitely not least, on the back of growing consumer interest in wearable technology, the Apple Watch will go on sale in 2015. What impact will such products continue to have on the industry? Will tech-savvy consumers take workouts into their own hands, bypassing the expertise of gyms – and maybe even gyms themselves – or will operators learn to take advantage of the technology? We ask the experts for their thoughts...

Arron Williams,

Special projects,

Life Fitness

Arron Williams
Arron Williams

‘‘Last year we had 13.2 per cent penetration, which was deemed a good year – but this only represents 1.4 per cent growth since 2007, so the industry is relatively stagnant. The Turning the Tide of Inactivity report vividly highlights the extent of chronic disease and inactivity throughout the UK, which suggests the current model isn’t working and something has to change.

The most buoyant section of the market is the boutique gym sector. This is a very urban trend, but in 2015 we might start to see these clubs expand into the suburbs. So far we’ve identified 23 different types of boutique gym, in the main HIIT-based, highly functional, group exercise-based, social and communal. As this trend evolves, we’re likely to see more developments such as the fitness mall model, or the ‘multiple’ boutique model where health clubs are deconstructed and then reconstructed along the lines of a series of specialised, packaged boutique gym offerings. With boutiques offering pay as you go and bulk buy, and low-cost clubs offering no contract memberships, the days of being a 12-month contract prisoner have all but gone.

I think club locations will change and, as retail struggles on the high street, we’ll start to see studios and boutique clubs move in, as is already happening in the United States and Asia.”

The multiple boutique model will see health clubs deconstructed and then reconstructed as a series of specialised, packaged boutique gym offerings

The emergence of the microgym is a very urban trend, but in 2015 we might start to see these clubs expand into the suburbs
The emergence of the microgym is a very urban trend, but in 2015 we might start to see these clubs expand into the suburbs

Bryan O’Rourke,

CEO,

Integrus

Bryan O’Rourke
Bryan O’Rourke

‘‘We saw a robust 2014 and I think 2015 will continue in the same vein. Economic indicators suggest it will be a good year.

I think memberships will continue to rise, with more formats, opportunities and content-based programming.

Several developed markets will see further consolidation: I predict a couple of blockbuster transactions in Europe, the US and Asia Pacific. We’ll see continued growth in India, Asia Pacific, Australia, the US and Eastern Europe, with Poland and Hungary in particular being active.

Digital technology will have an impact: there will be a proliferation of digital competitors related to advancements in wearable technology, apps and smartphone adaptations. This will put pressure on clubs to use the technology for payment and engagements. However, although the digital delivery model will grow, there’s no research to suggest this will negatively impact on bricks and mortar participation.

There will be continued growth in niche format models – both boutiques and low-cost – but I think some middle-tier players may tweak their business model to offer a bit of each, and some hybrid concepts will emerge that can offer a ‘best of both worlds, club within a club’ approach.”

I predict a couple of blockbuster
transactions in Europe, the US and Asia Pacific

There will be a proliferation of digital competitors: wearable tech, apps and smartphone adaptations / photo: www.shutterstock.com/Maridav
There will be a proliferation of digital competitors: wearable tech, apps and smartphone adaptations / photo: www.shutterstock.com/Maridav

David Minton,

Director,

The Leisure Database Company

David Minton
David Minton

‘‘In 2015, the industry will have to adapt or lose out. New technology is making the consumer more powerful and clubs will have to react. Innovations like the Apple Watch and the iPhone 6 with iOS 8 – which includes the new Health app – will become the most useful repository of all sorts of health and fitness data, with some collected automatically by the barometer inside the new phones.

A recent Harvard report showed US waistlines are getting even bigger; the UK is close behind. Our industry must do something radical, like offering free PT to help get results, if it’s to be taken seriously.

As the economy picks up, I think the growth of the low-cost sector will slow. People like to pay for a bit of comfort, luxury and broader facilities, otherwise everyone would stay at budget hotels. Microgyms are adding value to the sector with a good product; these will continue to grow, as people value unique experiences. However, the biggest growth will come from the public sector, which is embedded in the community and puts the customer first in a way private sector clubs can’t. Use of public sector facilities is going up enormously: the top seven operators had almost 100 million visits last year.”

The industry needs to do something radical – like offering free
PT to help people get results – if it’s to be taken seriously

The Apple Watch will become a useful repository of all sorts of health and fitness data
The Apple Watch will become a useful repository of all sorts of health and fitness data
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
https://www.leisureopportunities.co.uk/images/850917_173409.jpg
What will drive sector growth in 2015, and what will be the challenges and opportunities?
Life Fitness Integrus The Leisure Database Company,2015, predictions, Arron Williams, John Treharne, low-cost, boutique, consolidation, technology, David Minton, Bryan O’Rourke
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features

2015 predictions

What will drive sector growth in 2015, and what will be the challenges and opportunities?

Published in Health Club Handbook 2015 issue 1
As the retail, hotel and airline sectors have shown, value for money is here to stay / photo: www.shutterstock.com/JuliusKielaitis
As the retail, hotel and airline sectors have shown, value for money is here to stay / photo: www.shutterstock.com/JuliusKielaitis

After a prolonged recession, 2014 was brighter for most, with the economy finally turning a corner and both consumer confidence and the housing market picking up.

In the fitness industry, the low-cost sector had another strong year, growing 21 per cent according to the latest Mintel research. But will the improvement in the economy mean the affordable clubs will lose their appeal, with people trading up to more expensive brands? Not at all, according to CEO of The Gym Group John Treharne. “I would expect the market to at least double and for there to be some new entrants in 2015,” he says. “I think – as has happened in other markets such as airlines, hotels and retail – there will be more growth at the premium end but also significant growth at the low-cost end of the market. Research shows value for money is here to stay: people don’t automatically go for a more expensive brand in good economic times.”

Another feature of 2014 was the growth of boutique clubs – the emerging microgym sector – where members pay premium prices for a small, personal, high spec club that focuses on one discipline. Will we see new entrants into this sector? How will the products evolve, and will even more niches emerge?

The obesity crisis was never far from the 2014 news headlines. Despite health club penetration levels nudging up very slightly, the nation is getting fatter. Will we start to see some progress with this problem in 2015, with new ideas brought forward to drive behaviour change on a mass scale?

Last but definitely not least, on the back of growing consumer interest in wearable technology, the Apple Watch will go on sale in 2015. What impact will such products continue to have on the industry? Will tech-savvy consumers take workouts into their own hands, bypassing the expertise of gyms – and maybe even gyms themselves – or will operators learn to take advantage of the technology? We ask the experts for their thoughts...

Arron Williams,

Special projects,

Life Fitness

Arron Williams
Arron Williams

‘‘Last year we had 13.2 per cent penetration, which was deemed a good year – but this only represents 1.4 per cent growth since 2007, so the industry is relatively stagnant. The Turning the Tide of Inactivity report vividly highlights the extent of chronic disease and inactivity throughout the UK, which suggests the current model isn’t working and something has to change.

The most buoyant section of the market is the boutique gym sector. This is a very urban trend, but in 2015 we might start to see these clubs expand into the suburbs. So far we’ve identified 23 different types of boutique gym, in the main HIIT-based, highly functional, group exercise-based, social and communal. As this trend evolves, we’re likely to see more developments such as the fitness mall model, or the ‘multiple’ boutique model where health clubs are deconstructed and then reconstructed along the lines of a series of specialised, packaged boutique gym offerings. With boutiques offering pay as you go and bulk buy, and low-cost clubs offering no contract memberships, the days of being a 12-month contract prisoner have all but gone.

I think club locations will change and, as retail struggles on the high street, we’ll start to see studios and boutique clubs move in, as is already happening in the United States and Asia.”

The multiple boutique model will see health clubs deconstructed and then reconstructed as a series of specialised, packaged boutique gym offerings

The emergence of the microgym is a very urban trend, but in 2015 we might start to see these clubs expand into the suburbs
The emergence of the microgym is a very urban trend, but in 2015 we might start to see these clubs expand into the suburbs

Bryan O’Rourke,

CEO,

Integrus

Bryan O’Rourke
Bryan O’Rourke

‘‘We saw a robust 2014 and I think 2015 will continue in the same vein. Economic indicators suggest it will be a good year.

I think memberships will continue to rise, with more formats, opportunities and content-based programming.

Several developed markets will see further consolidation: I predict a couple of blockbuster transactions in Europe, the US and Asia Pacific. We’ll see continued growth in India, Asia Pacific, Australia, the US and Eastern Europe, with Poland and Hungary in particular being active.

Digital technology will have an impact: there will be a proliferation of digital competitors related to advancements in wearable technology, apps and smartphone adaptations. This will put pressure on clubs to use the technology for payment and engagements. However, although the digital delivery model will grow, there’s no research to suggest this will negatively impact on bricks and mortar participation.

There will be continued growth in niche format models – both boutiques and low-cost – but I think some middle-tier players may tweak their business model to offer a bit of each, and some hybrid concepts will emerge that can offer a ‘best of both worlds, club within a club’ approach.”

I predict a couple of blockbuster
transactions in Europe, the US and Asia Pacific

There will be a proliferation of digital competitors: wearable tech, apps and smartphone adaptations / photo: www.shutterstock.com/Maridav
There will be a proliferation of digital competitors: wearable tech, apps and smartphone adaptations / photo: www.shutterstock.com/Maridav

David Minton,

Director,

The Leisure Database Company

David Minton
David Minton

‘‘In 2015, the industry will have to adapt or lose out. New technology is making the consumer more powerful and clubs will have to react. Innovations like the Apple Watch and the iPhone 6 with iOS 8 – which includes the new Health app – will become the most useful repository of all sorts of health and fitness data, with some collected automatically by the barometer inside the new phones.

A recent Harvard report showed US waistlines are getting even bigger; the UK is close behind. Our industry must do something radical, like offering free PT to help get results, if it’s to be taken seriously.

As the economy picks up, I think the growth of the low-cost sector will slow. People like to pay for a bit of comfort, luxury and broader facilities, otherwise everyone would stay at budget hotels. Microgyms are adding value to the sector with a good product; these will continue to grow, as people value unique experiences. However, the biggest growth will come from the public sector, which is embedded in the community and puts the customer first in a way private sector clubs can’t. Use of public sector facilities is going up enormously: the top seven operators had almost 100 million visits last year.”

The industry needs to do something radical – like offering free
PT to help people get results – if it’s to be taken seriously

The Apple Watch will become a useful repository of all sorts of health and fitness data
The Apple Watch will become a useful repository of all sorts of health and fitness data
Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
https://www.leisureopportunities.co.uk/images/850917_173409.jpg
What will drive sector growth in 2015, and what will be the challenges and opportunities?
Life Fitness Integrus The Leisure Database Company,2015, predictions, Arron Williams, John Treharne, low-cost, boutique, consolidation, technology, David Minton, Bryan O’Rourke
Latest News
There is speculation that Basic Fit will sell the five Spanish Holmes Place clubs it ...
Latest News
While British adults are the most active they’ve been in a decade, health inequalities remain ...
Latest News
Kerzner International has signed deals to operate two new Siro recovery hotels in Mexico and ...
Latest News
Nuffield Health’s fourth annual survey, the Healthier Nation Index, has found people moved slightly more ...
Latest News
Short-term incentives to exercise, such as using daily reminders, rewards or games, can lead to ...
Latest News
With the launch of its 49th John Reed, RSG Group is looking for more opportunities ...
Latest News
PureGym saw revenues rise by 15 per cent in 2023, with the company announcing plans ...
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Following three disrupted lockdown years, the European fitness market bounced back in 2023, according to ...
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Featured supplier news
Featured supplier news: Webinar: Building a new energy future for the leisure sector
As one of the most energy-intensive industries in the UK, leisure facilities face a critical challenge in balancing net zero goals, funding and increased costs.
Company profiles
Company profile: Precor
Precor has been a pioneer in delivering fitness experiences for commercial customers for more than ...
Company profiles
Company profile: FIBO Global Fitness
FIBO pursues the vision of a strong and healthy society and as a global network ...
Supplier Showcase
Supplier showcase - Jon Williams
Catalogue Gallery
Click on a catalogue to view it online
Featured press releases
Greenwich Leisure Limited press release: ‘FAB’ freebies for Barnet carers!
Being a carer – whether that’s looking after a young person, a senior citizen or someone with a long-term illness or disability – can be rewarding but stressful at times. These responsibilities may also limit the carer’s ability to find paid employment.
Featured press releases
FIBO press release: FIBO 2024: Billion-euro fitness market continues to grow
11 to 14 April saw the fitness industry impressively demonstrate just how innovative it is in fulfilling its responsibility for a healthy society at FIBO in Cologne. Over 1,000 exhibitors and partners generated boundless enthusiasm among 129,668 visitors from 114 countries.
Directory
Snowroom
TechnoAlpin SpA: Snowroom
Cryotherapy
Art of Cryo: Cryotherapy
Flooring
Total Vibration Solutions / TVS Sports Surfaces: Flooring
salt therapy products
Saltability: salt therapy products
Lockers
Fitlockers: Lockers
Spa software
SpaBooker: Spa software
Property & Tenders
Loughton, IG10
Knight Frank
Property & Tenders
Grantham, Leicestershire
Belvoir Castle
Property & Tenders
Diary dates
10-12 May 2024
China Import & Export Fair Complex, Guangzhou, China
Diary dates
23-24 May 2024
Large Hall of the Chamber of Commerce (Erbprinzenpalais), Wiesbaden, Germany
Diary dates
30 May - 02 Jun 2024
Rimini Exhibition Center, Rimini, Italy
Diary dates
08-08 Jun 2024
Worldwide, Various,
Diary dates
11-13 Jun 2024
Raffles City Convention Centre, Singapore, Singapore
Diary dates
12-13 Jun 2024
ExCeL London, London, United Kingdom
Diary dates
03-05 Sep 2024
IMPACT Exhibition Center, Bangkok, Thailand
Diary dates
19-19 Sep 2024
The Salil Hotel Riverside - Bangkok, Bangkok 10120, Thailand
Diary dates
01-04 Oct 2024
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Diary dates
22-25 Oct 2024
Messe Stuttgart, Germany
Diary dates
24-24 Oct 2024
QEII Conference Centre, London, United Kingdom
Diary dates
04-07 Nov 2024
In person, St Andrews, United Kingdom
Diary dates
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