Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Industry sees membership growth and revenue stabilization
- Memberships hold steady in 2009 but likely to decline as contracts expire
- Performance of leading national chains is mixed
- Smaller footprint clubs and home fitness games gain momentum
- Health clubs borrow ideas from art and entertainment
- Innovations follow larger societal trends
- Ad campaigns push low price points and appeal to the everyday consumer
- Core demographic of 18-35 year olds pays the most and is hardest to please
- Financial constraints are greatest barrier to new membership and renewal
- Perception of health clubs show signs of improvement
Insights and Opportunities
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- Health clubs need to demonstrate added value during recession
- Health club experience should follow social internet trends
- Health clubs to become fitness destinations with diversified revenue streams
Inspire Insights
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- Trend: A Simple Balance for Health
- What it’s about
- The learning curve
- Taking it to the streets
- Trend: Staying Connected
- What it’s about
- I belong
- Keep it simple, not stupid
Market Size and Forecast
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- Key points
- Health club revenues hold ground despite slowing economy
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- Figure 1: Health and fitness clubs’ total revenues, at current prices, 2003-13
- Figure 2: Health and fitness clubs’ total revenues, at inflation-adjusted prices, 2003-13
- Membership begins to catch up to physical club expansion
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- Figure 3: U.S. health and fitness club membership and number of locations, 2003-08
Competitive Context
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- Clubs with smaller footprint growing faster
- Participation in “free” sports increases
- Prolonged recession favors lower-cost clubs over mid-priced
- New home fitness video game targets women
- Gaming for seniors
Segment Performance
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- Key point
- Non-profit segment sees biggest gain in membership
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- Figure 4: Memberships in health and fitness clubs, by segment, 2006 and 2007
Market Drivers
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- Membership holds steady for now
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- Figure 5: Health club membership status, 2008 & 2009
- Saturation of health club leads to highly competitive pricing
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- Figure 6: Number of health clubs and revenue per member, 2002-06
- Initiation fees and personal training suffer most
- Town Sports International
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- Figure 7: Revenue stream growth at town sports international, Q1 2008 & Q1 2009
- Life Time Fitness
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- Figure 8: Revenue stream growth at Life Time Fitness, Q1 2008 & Q1 2009
Leading Companies
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- Key points
- Leading health club chains post mixed performance
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- Figure 9: Sales of leading health and fitness club chains, 2006 and 2008
- 24 Hour Fitness targets the family value market
- Two top chains enter bankruptcy
- Life Time Fitness and TSI show increase membership but curb expansion plans
Brand Qualities
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- UFC launches gym brand
Innovation and Innovators
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- Group classes: Crunch spreads wings with anti-gravity yoga
- Social networking: Health clubs to tweet to broader audience
- Going green
- Chelsea Piers announces dedication to green goals
- University recreational facilities finding innovative ways to be environmentally conscious
- Computerized training: Koko FitClub provides personalized fitness dashboard
Advertising and Promotion
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- Major ad campaigns cut back on media spend
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- Figure 10: Media expenditures for major health and fitness club campaigns, 2006-07
- Gyms continue to compete on price points in a difficult economy
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- Figure 11: Bally Total Fitness: Free Enrollment, April 2009
- Figure 12: Planet Fitness: One Dollar Promotion, April 2009
- Gyms seek to inspire the ordinary consumer
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- Figure 13: 24 Hour Fitness: Ali Vincent Testimonial, January 2009
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- Figure 14: Gold’s Gym: Rowing Off Calories, March 2009
- Female-focused concepts push strength and confidence
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- Figure 15: Women’s Workout World, January 2009
- Local advertising offers new approaches
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- Figure 16: American Family Fitness Centers: Son Has Cancer, January 2009
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- Figure 17: OZ Fitness: Free Groceries, March 2009
Health Club Usage Trends
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- Key points
- Private club penetration increases among under-45s
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- Figure 18: Incidence of exercise and private health club usage, by age, May 2006-September 2008
- Membership holds steady from a year ago but new memberships slowing
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- Figure 19: Health club membership status, 2008 & 2009
- Respondents 18-34 remain the core demographic but are more difficult to retain
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- Figure 20: Health club membership status, by age, March 2009
- Household income remains the largest determining factor of membership
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- Figure 21: Health club membership status, by HH income, March 2009
Membership Types
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- Key points
- Month-to-month memberships decline as recession favors long-term contracts
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- Figure 22: Type and cost of health club memberships, by year, 2008 and 2009
- Females pay less on average and may favor smaller gyms
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- Figure 23: Type and cost of health club memberships, by gender, March 2009
- Younger respondents spend more on membership and are more likely targets for high-end
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- Figure 24: Type and cost of health club memberships, by age, March 2009
- Middle-income group seeks value in long-term contracts
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- Figure 25: Type and cost of health club memberships, by HH income, March 2009
Reasons Not to Join a Health Club
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- Key points
- Cost remains primary barrier to membership
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- Figure 26: Reasons for not belonging to a gym, 2008-09
- Females may feel more welcome but increasingly look for free alternatives
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- Figure 27: Reasons for not belonging to a gym, by gender, March 2009
- Perception of health club value improved among over-35s
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- Figure 28: Reasons for not belonging to a gym, by age, March 2009
- Gyms commonly perceived as too expensive even among higher-earners
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- Figure 29: Reasons for not belonging to a gym, by HH income, March 2009
Membership Renewal
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- Key points
- Large majority of current members would renew
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- Figure 30: Probability of renewal, by gender, March 2009
- Over-55s are more likely to renew
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- Figure 31: Probability of renewal, by age, March 2009
- Lower earners show lowest likelihood of renewing
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- Figure 32: Probability of renewal, by HH income, March 2009
- Most common reasons for not renewing are financially driven
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- Figure 33: Reasons not to renew, March 2009
- Price discounts are most likely way to increase renewal rates
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- Figure 34: Reasons not to renew, March 2009
Attitudes
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- Key points
- Perception of health clubs improves but turnover rate is unchanged
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- Figure 35: Attitudes towards health and fitness clubs, March 2009
- Female demographic is more price sensitive and feels more time pressure
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- Figure 36: Attitudes towards health and fitness clubs, by gender, March 2009
- Social environment is more important for over-55s, while under-35s are harder to please
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- Figure 37: Attitudes toward health and fitness clubs, by age, March 2009
Cluster Analysis
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- Big Spenders
- Who they are
- Opportunity
- Fitness Firsts
- Who they are
- Opportunity
- Lifers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 38: Health club member clusters, March 2009
- Figure 39: Health club membership, by health club member clusters, March 2009
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- Figure 40: Type and cost of health club memberships, by health club member clusters, March 2009
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- Figure 41: Attitudes toward health and fitness clubs, by health club member clusters, March 2009
- Figure 42: Probability of renewal, by health-club member clusters, March 2009
- Cluster demographics
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- Figure 43: Health club member clusters, by gender, March 2009
- Figure 44: Health-club member clusters, by age group, March 2009
- Figure 45: Health club member clusters, by HH income, March 2009
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- Figure 46: Health club member clusters, by race/Hispanic origin, March 2009
- Methodology
Custom Consumer Groups
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- Key points
- Private club penetration
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- Figure 47: Incidence of exercise and private health club usage, by gender and age, July 2007-September 2008
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- Figure 48: Incidence of exercise and private health club usage, by marital status and children in the household, July 2007-September 2008
- Reasons not to join
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- Figure 49: Reasons not to join a gym, by gender and children in the household, March 2009
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- Figure 50: Reasons not to join a gym, by marital status and children in the household, March 2009
Appendix: Other Useful Consumer Tables
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- Probability of renewal
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- Figure 51: Probability of renewal, by gender, March 2009
- Attitudes toward health and fitness clubs
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- Figure 52: Attitudes towards health and fitness clubs, by HH income, March 2009
Appendix: Trade Associations
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