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.
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?
The gym industry is in good shape as it is expected to produce good reliable growth at least through to 2020. Even developed markets are still producing growth and this means globally the picture is very favorable. However there are some distinct changes occurring and some of the largest gym operators of the last twenty years are starting to fall by the wayside as new aggressive competitors enter the market.
The whole health and fitness industry is adapting to the changes that technology has brought. New apps, online resources, fitness communities, online data and free expert advice has changed the nature of the gym customer to being less reliant on certain services that gyms provide, which is slowly changing the gym business model.
The rise of the budget gym has been rapid and comprehensive. Companies such as Pure Gym and Planet Fitness identified that many consumers want access to a gym and are willing to pay for it, but the majority are unwilling to go above a certain price point no matter what facilities are provided. Budget gyms are now squeezing the mid-tier gyms and even buying them up in some cases.