Gyms & Health Clubs: Budget gyms rising from below, specialist gyms expanding from the top

Technologies have breathed new life in to the gym business redefining it in the process. What was a simple business model that had stayed the same since the mainstream gym became popular in the 1990s is changing dramatically. Now the business environment is different, consumers have access to all the training, data and advice that they could ever need, which reduces their reliance on the gym itself and they either want super cheap prices, luxury facilities or unusual fitness concepts. Long term contracts, big out of town box gyms and mid-range prices have dropped out of fashion and there are burgeoning aggressive new companies with brand new business models that are out-competing the old format businesses and in some cases acquiring them. Apps and online platforms have been key to facilitating this change, and membership offices and their staff are increasingly becoming obsolete and a waste of gym space, as customers can join, pay, book classes, cancel contracts, add facilities, speak to staff, track their activities and get advice all via the internet.

Scope

Examining the rise of the budget gym.

Looking at the squeezing of the mid-tier gym market.

Analysing the rise of the new breed of luxury concept gym.

Seeing how new technology is changing the nature of the industry.

Reasons to buy

Who are the big market players in the US and UK budget Gym market?

Which incumbents are suffering because of the change in the market?

Who are the emerging players in the new luxury and concept gym market?

Companies mentioned

None

Table of Contents

Overview

Catalyst

Summary

The Gym Industry is in good health

The gym industry is producing good growth globally

The key players are beginning to change with the times

New Tech changing the fitness industry

New self-motivated data analyzing members powered by apps

Strava is a cycling & running website which has taken the world by storm

My Fitness Pal is a calorie counting and exercise app that collates everything

The rise of the budget gym and health club

Budget users are flexible, self-motivated and price conscious

Budget gyms are implementing new ways of doing business

Hour Fitness, Pure Gym and Planet Fitness are typical

hour fitness is a large US operation with round the clock access

Planet Fitness has over gyms in the USA and can be $ a month

Pure Gym in the UK has over gyms and has bought up major rival

The Specialist gym and unique concept gym

Specialist customers are typically bored, wealthy and busy

The rise of the boutique gym is a powerful trend in the industry

SoulCycle, Rebel, and Equinox are typical of this business

SoulCycle is a unique take on spinning classes, endorsed by celebrities

Rebel has budget gym techniques in the high end sector

Equinox analyzes its customers and applies a specific program to improve fitness

Conclusions

The new customer is discerning, motivated and knowledgeable

The new gym has to be good value or have a unique concept

The future of the gym market is secure and stable

Appendix

Sources

Further Reading

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Disclaimer

List of Tables

None

List of Figures

Figure 1: Regions compared in the gym industry 2015 $bn

Figure 2: Key developed gym markets compared

Figure 3: European gym industry revenues, 2015 ($bn)

Figure 4: Planet Fitness training room

Figure 5: 1Rebel’s training room

Figure 6: Equinox yoga room

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