The State of the Fitness Industry

Posted: Wed, 09 Sep 2015 13:27

The State of the Fitness Industry

For twenty years I've been writing about, commenting on and providing analysis covering the fitness industry. For most of these years I get first view of the results from the detailed annual audit so I can write the forward to the State of the Fitness Industry Report. It's been quite refreshing to write about the fitness industry over this period because the sector has been seen to be recession proof and apart from the flat lining in 2009 and 2010 has shown positive growth year on year.

This year, the fifteenth edition, shows the industry is in good health. The headline figures show the total number of fitness sites has grown to 6312, over 6% increase and the largest number so far. These sites have between them 8.8 million monthly direct debit members, a 10% increase on the previous year, so the penetration rate based on total population figures jumps to 13.7% of which 5.2% are in the public sector. All key KPI numbers are the highest they have ever been and largely driven by the low-cost sector which this year has three pages of analysis. Although there's only 319 low-cost sites they have on average 143 stations, charge on average £18.23 and between them have grown membership to 1.3m. Dramatic growth in this sector is driven by adoption of new technology and others need to wise up to the data collection techniques of the 21st century.

This year, there is clear evidence that the industry has winners and losers. Some former big private brands, like Fitness First and LA Fitness have shrunk, while the largest fitness brand, with 126 sites - is 'Better' in the public sector run, by GLL. The strength and continuing success across the public sector, where sites are often more embedded in the local community, with a combination of good programming and local investment, keeps well over 3 million paying over £30 a month. The public sector have also been early adopters to new free technology like live timetables, links to apps and third party websites providing wider promotion.

The 2015 Report has new infographics which are excellent at showing off the industry trends over longer periods, many graphs and charts going back to 2007 and for the first time we look at operators use of social media platforms. The results do not make good reading, for example four out of the top ten private and nine out of the top ten public sector are not on Instagram. Fitness needs to compare itself to the 'activewear' brands that have taken fitness beyond the gym to become a lifestyle. Nike, Adidas, Vans, Converse, Puma, Under Armour and New Balance have all seen between 144-252% growth rates in their followers. Are fitness brands neglecting a highly engaged and over indexing platform?

Growth I'm sure will continue and will be driven by new technology controlled by the consumer. Aggregators, trackers and monitors, bookings within two clicks, smooth payment, identity screening and sensor infrastructure will link fitness opportunities to the consumer faster than ever. The gym of the future is around the corner and I can't wait.

Both reports can be order from the TLDB website www.leisuredb.com/publicationsThe Fitness report is £335 +VAT and swimming is £235 + VAT

David Minton is an advisor to the Sports Think Tank. With 30 years experience in the health and fitness industry, he holds a unique insight and perspective on the developments in the health and fitness sector. David is widely sought after as mentor, analyst, advisor and consultant by a range of worldwide health and fitness organisations and leisure investors.

Tags: Fitness, Sport

Comments

No comments yet, why not be the first?

Leave a comment

Your email address will not be published.