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The Fitness Industry Is Strong and Growing Stronger

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Presentation on theme: "The Fitness Industry Is Strong and Growing Stronger"— Presentation transcript:

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2 The Fitness Industry Is Strong and Growing Stronger
According to the International Health, Racquet & Sportsclub Association (IHRSA), total 2017 worldwide revenues for the health club industry were $87.2 billion. The global industry includes more than 201,000 clubs and 174 million members. In the US, total 2017 revenues were $30 billion, an 8.7% increase from 2016; the total number of clubs was 38,477, a 6.3% increase, and total memberships were 60.9 million; and 9.1 million non-members visited a club at least once. According to a September 2018 Forbes article, the proliferation of HVLP (high-value, low-price) health clubs and boutique fitness studios has driven most of the growth. HVLP’s $10–$20/month membership attracts more budget-conscious consumers.

3 Americans Need Help with Their Health and Fitness
Although the 39.8% of Americans the Centers for Disease Control and Prevention found were obese during 2016 is a sad commentary on Americans’ efforts to become healthier, it’s an obvious opportunity for the fitness industry. In its 2018 Participation Report, the Physical Activity Council stated approximately the same percentage, or 72%, of Americans 6 years of age and older were active during 2017 than 2016, but more were inactive because of population increase. Among those who were physically active during 2017, the largest percentage, or 63.8%, were participating in fitness sports, an increase of 1.1 percentage points from 2016’s 62.7% and an increase of 4.2 percentage points from 2012’s 59.6%.

4 Health & Fitness Club Members Are Affluent
According to the 2018 IHRSA Health Club Consumer Report, adults 35–44 were the most frequent visitor at a health & fitness club, an average of 113 days during 2017, while teens and children younger than 18 visited the least, or an average of 64 days. Health & fitness club members continued to be from more affluent households, with $80,300 the average annual household income of all members during 2017, and 41% of members had incomes of at least $100,000. The report also revealed health club members remain as members for an average of 4.9 years, with those 65 or older having the longest average membership, or 7.3 years, while those 18–24 were members for an average of 2.8 years.

5 Proactive Member Engagement Is Rewarding
Many clubs are finding it advantageous to promote themselves as more than a place to improve one’s health and fitness. They are creating communities with trivia nights, guest presentations and specialty programs, such as nutritional advice. Various technologies, such as apps, allow clubs to gather and share data about individual members’ performance, so they can track themselves and compete with friends and other members. Many clubs recognize that now is the time to enhance their engagement with Generation Z to generate long- term members. Some clubs are utilizing free boot camps and creating and posting short videos with tips and other suggestions.

6 Clubs Tap Into Additional Revenue Opportunities
More clubs are offering supplements, meal replacements and various accessories to generate additional revenue. The IHRSA reports in its Profiles of Success that the “pro shop/retail” category generated a media margin of 16.5% for all clubs. Many ancillary services are popular, such as floating therapy, cryotherapy, bioenergy feedback and muscle stimulation. With cryotherapy, for example, short sessions of extremely cold temperatures are said to relieve pain and inflammation. According to the IHRSA Fitness Training Report, small-group training (SGT) is particularly popular with members of Generation Z, with a participation rate of 45.8%. Parents of Gen Z members paid an average of $41.93/SGT session during 2016.

7 Poised for Future of Growth
Although the wearable market (smartwatches) is still increasing slowly, just 6.0%, globally, during 2018, their use is a perfect fit with the fitness industry, as the health data they provide can motivate members – and others to become members. As shopping centers and malls lose more anchor stores, health & fitness centers have an opportunity to rent some of this empty space at lower rates and existing stores and restaurants could benefit from their foot traffic. As more young and older adults focus on their nutrition and healthy eating, there is the possibility of health & fitness centers and restaurants creating integrated facilities, with restaurants serving nutritional fare and fitness centers offering meal planning services.

8 Advertising Strategies
With May National Physical Fitness & Sports Month, now is the time to help local health & fitness clubs create special events and/or sponsorships of local runs, cycling events, etc. and heavily promote their involvement. Local health & fitness centers with ancillary services, such as float tanks, cryotherapy, etc. can distinguish themselves from the major chains, by focusing their advertising messages on the benefits of these various therapies, especially as pain relievers for older adults. You could be an important catalyst to help health & fitness centers and restaurants with healthy menus to integrate and cross-promote their facilities to generate foot traffic and increased spending at both businesses.

9 New Media Strategies With most, if not all, major health & fitness chains having a business-specific app, smaller, local clubs must make an investment in an app a priority and use them to enhance small-group training programs with member fitness tracking and support for each other. Research in the Profiler suggests many people expect a fitness regimen to improve their mental health as much as their physical health. Use this as the basis for social media posts, especially videos from members who think fitness has improved their mental health. Target members of Generation Z members with the benefits of small-group training (SGT) via videos as social media posts. Ask current SGT participants to post videos of why they participate and possibly offer a free, intro class to a group of Gen Z friends.

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