Fitness Industry Canada Forum - canfitpro.com › ... › 08 ›...

Fitness Industry Canada Forum

PanelOfficial Music SponsorSponsored By


Carrie KeppleOfficial Music SponsorSponsored By

GLOBAL REVENUE

INDUSTRY ADVOCACY

• GOVERNMENTS AND LEGISTLATION MET WITH MORE PRESSURE TO RECOGNISE EXERCISE AS MEDICINE

• BREAK THROUGH RECOGNITION THAT EXERCISE IS PREVENTATIVE HEALTH CARE AND WORTH THE INVESTMENT

• HISTORY MAKING PROGRESS WITH PHIT PASSING HOUSE AND ONTO THE SENATE. PAVING THE WAY FORWARD WORLD WIDE.

We Think THIS is the Competition

Less Than 6% of the World Has a Gym Membership% of Population with Gym Members

Global 162 Million Members (5.9%)

1. Sweden 21%

2. USA 20%

3. Norway 19%

4. Canada 19%

5. Kuwait 17%

6. Netherlands 17%

7. Denmark 16%

8. Australia 15%

9. UK 14%

10. New Zealand 14%

Largest % Growth of Gym Members (2017)

1. Philippines +33%

2. China +30%

3. South Korea +21%

4. Ireland +14%

5. Indonesia +12%

6. Hong Kong +11%

7. India +10%

8. UK +10%

9. Singapore +10%

10. Finland +8%

The Real Competition

TOGETHER We Are Going to Add 65 Million Members Globally in the next 12 Years

IHRSA CONSUMER REPORT 2017

EXERCISE PREFERENCES BY

GENERATION

OLD WAY

NEW WAY

MORE OF WHAT THEY

WANT

• MORE CLASS EXPERIENCES

• MORE AUTOMATION AND RETAIL TECHNOLOGY – EASY TO DO BUSINESS

• MORE BIOMETRIC DATA AND PERSONALISED TRAINING INTELLIGENCE


Patch EvansOfficial Music SponsorSponsored By


Sara KoopermanOfficial Music SponsorSponsored By

Industry Highlights & GrowthSara Kooperman, JD

CEO, SCW Fitness Education

www.scwfit.com

www.sarakooperman.com

[email protected]

NYC California Florida Atlanta Dallas Philadelphia Midwest Boston DC

Jan April May July Aug Sept Oct Dec Jan 2019

9 MANIA® Fitness Conventions

SCW Fitness OnDemand

Mature industry

• Mature = Inability to raise prices

• Stable to declining profitability

• Consolidation among brands

• Low Cost Competitors

The year of the Studio

Give them what they want

Clients know what they want And they want it now Give them what they expect and deserve

Programs

Top 10 Programs & Services offered• 1. Personal Training

• 2. Bodyweight Resistance Training

• 3. Free Weight Training

• 4. Boot Camp Classes

• 5. Functional Resistance Training

• 6. HIIT

• 7. Cycle

• 8. Senior Fitness

• 9. Pre-choreographed

• 10. Traditional Yoga

Barre,Yoga, Nutrition, Aging, Recovery Aqua has 2 rooms

Trends from MANIA® Conferences

WHAT TOPICS INTEREST YOU MOST

1. Functional Training 57.72%

2. Strength Training 51.90%

3. Active Aging 50.36%

4. Nutrition 49.50%

5. Exercise Science 47.21%

6. Personal Training 39.02%

7. Boot Camp/HIIT 38.15%

8. Group Cardio 37.20%

9. Small Group Training 35.64%

10. Sculpting/Toning 31.37%

Trends from MANIA® Conferences

WHAT TOPICS INTEREST YOU MOST

11. Yoga 28.41%

12. Cycling 27.85%

13. Barre 24.48%

14. Sports Conditioning 23.33%

15. Pilates 22.66%

16. Leadership/Management 21.06%

17. Aquatic Ex 19.81%

18. Kettle Weights 19.44%

19. Dance 18.22%

20. Kickboxing 16.20%

IHRSA top 10 Activities

• 10. Stair climbing machines

• 9. Yoga

• 8. Low impact aerobics

• 7. Stationary cycling

• 6. Abdominal machines

• 5. Stretching

• 4. Elliptical trainers

• 3. Resistance machines

• 2. Treadmills

• 1. Free weights

Shape – Top 10 Fitness Trends

• 1. Go Digital• 2. Emphasis on Recovery• 3. Express/Intense Workouts• 4. Yoga as Crosstraining• 5. Corrective Exercises• 6. Build Brain Power• 7. Nutrition• 8. Small Group Training• 9. Wearable Devices• 10. Wellness Coaching

Fitness First Magazine1. LIIT – walking at variable intensities

2. Self-Limiting Movement

3. Cryotherapy, infrared lighting & saunas

4. Virtual Reality Workouts

5. Food Tracking

6. Team Coaching

7. Group Classes –Cycling, HIIT, Yoga

The Telegraph – United Kingdom1. Pre-Hab (not rehab)

2. Data- Driven Classes

- fat/muscle %, step-counters, sleep trackers

3. Virtual Yoga

4. New Gym Memberships – movegb.com

5. Immersive Fitness – floor to ceiling screens

6. LIIT (Low Intensity Interval Training)

or LISS (Low-impact Steady State cardio) or Wellness Circuit

7. Brolates – Pilates for Men (bad backs & aging)

8. HIIT & Yoga Combinations

9. Body Scans – the New BMI : scan muscle, bones & fats DEXA X-rays

10. Pet-sersize – ACSM = pet owners are more fit

11. Play-Time – teams, games, hoops, tree climbing, quidditch

12. Hot Pilates

13. 50+ Female Tri-athletes

14. Mindfitness – train harder fighting depression

15. Indoor Rowing – the new spinning

Readers Digest1. HIIT w/muscle confusion

2. HIIT in the Pool

3. Yoga Alternatives – LT Warrior Sculpt

4.Rhythmic workouts – Pound, SoulClap

5. Mind/Body/Spirit Classes

6. Obstacle Course Racing Classes – American Ninja

7. Recovery Classes

8. Social Running Groups

NBC –The Burn Workout

1. Boutique Boxing

2. Functional Training 2.0

- med balls, bands, plyo

- Olympic weight lifting

3. Revved-Up Recovery – myofascial release, sleep

4. Going Hot or Cold

- cryotherapy, infared saunas

5. Exercise in 3D – immersive

6. Journey Workouts

7. Mindful Movement – meditation

8. Breathwork

ACSM 2018 Trends• 1. HIIT (was #1, then #3, then again #3)• 2. Group Exercise (was #6)• 3. Wearable technology (was #1, again #1)• 4. Body weight training (was #2, again #2)• 5. Strength training (was #4, then #5)• 6. Educated, certified and experienced fitness professionals (#1, then #3, then

#5, then #4)• 7. Yoga (was #10, then #8)• 8. Personal training (was #6, was #9)• 9. Fitness programming for older adults (NEW!)• 10. Functional fitness (was #12, was #8, then #7)

Industry Highlights & GrowthSara Kooperman, JD

CEO, SCW Fitness Education

www.scwfit.com

www.sarakooperman.com

[email protected]


Colin MilnerOfficial Music SponsorSponsored By

What is your technology strategy?

Wearables offer personalized solutions and a market that will reach over $150 billion annually by 2027

Source: August 15, 2017. IDTechEx

Wearables 2.0Wearables 1.0

Measure what your body is

doing internally: real time

glucose measurements, blood

pressure, heart rate variability,

functional nutrition, measures of

inflammation, and sleep quality.

Wearables 3.0

Pedometers Activity trackers

+ AI


Dr. Paul OhOfficial Music SponsorSponsored By

The Medicine – Fitness Divide

45

Physicians WantTo Provide

Patients WantTo Achieve

~70% of Canadian Adults live with Chronic Disease

46PHAC 2013

47

Diabetes

HeartDisease

Cancer

Lung Disease

Smoking

Nutrition Alcohol

Inactivity

80% of Canadians have at least 1 Behavioural Risk

48

Costs of Chronic Diseases in Canada

• 67% of all direct health care costs

• $190 B annually• $ 68 B medical• $122 B lost productivity

K. Elmslie, Against the Growing Burden of Chronic Disease, PHAC

What Works in Disease Prevention?The Example of Diabetes

NEJM 2002; 346:393-403

Circulation Nov 2016

Fowles et al., 2015 (CSEP Abstract)

SometimesAsk

OccasionallyAdvise

RarelyPrescribe

Current State: Exercise Prescription in Primary Care

Exercise is Medicine Canada

Healthy Canada Everyday

Educate Activate Accelerate


Mark WilliamsonOfficial Music SponsorSponsored By

What’s All the Rage?Non-digital Trends Shaping the Future of the Global Fitness Industry

Adoption TrendsFunctional Training Accessories – Traditional and Non-Traditional

86%

73%

73%

68%

64%

63%

56%

55%

51%

50%

40%

33%

91%

77%

76%

76%

82%

69%

70%

75%

69%

71%

53%

47%

Traditional Functional Fitness Equipment

Non-Traditional Functional Equipment

Flexibility/Mobility Equipment

Foam Rollers

Treadmills

Suspension Training Equipment

Upright Bicycles

Elliptical Trainers

AED

Recumbent Bikes

Traditional Body Composition Testing Equipment

Selectorized Resistance Equipment

E Q U I P M E N T A D O P T I O N L E V E L S F O R 2 0 1 7T O P T R E N D S

C A N A D A V S U . S .

Canada

U.S.

79%

74%

70%

69%

69%

52%

45%

44%

43%

42%

40%

40%

40%

86%

82%

75%

77%

76%

66%

58%

50%

65%

64%

49%

49%

66%

Personal Training (Individual)

Bodyweight Resistance Training

Functional Resistance Training

Boot Camp Classes

Free Weight Training (Ind. or Group)

HIIT GX (> 6)

Fee-Based SGT (<6)

Nutritional Counseling/Coaching

Cycling GX

Traditional Yoga

HIIT SGT (<6)

Suspension Training GX

Pre-Choreographed GX (e.g., Les Mills,Zumba, Jazzercise)

P R O G R A M A D O P T I O N L E V E L S F O R 2 0 1 7T O P P R O G R A M T R E N D S

C A N A D A V S U . S .

Canada

US

Adoption TrendsFunctional and Group Fitness

HIIT Small Group < 6 - Functional

HIIT GX >6

Suspension Training GX

Traditional Yoga

Group Cycling

Bootcamp Classes

Disruptor #1: Budget GymsDifferentiation by Price

Why budget clubs are disruptive:

🏵 In a sea of sameness they use the lowest possible price to create differentiation.

🏵 They are highly scalable due to low overhead and can be placed anywhere and operated by nearly anyone…that means they can grow rapidly.

🏵 Consumers perceive value in low price, especially when the competitive market looks the same.


Budget Clubs

40%

29%

13%

6%

7%

5%

< $25 a month

$25 to $49 a month

$50 to $74 a month

$75 to $99 a month

$100 to $149 a month

> $150 a month

What U.S. Members Paid Monthly in 2017Percentage by Monthly Rate

Budgets


69.6%

34.8%

2.0% 1.0%

21.4%

10.7%

2.2% 1.1%

2 - Year Net Growth Rate Avg. Annual Growth Rate

Cumulative and Average Growth Rates for Commercial Facilities 2013 to 2015

Budget commercial (<$25 month)

Mid-market commercial ($25 to $74)

Premium commercial ($75 to $99)

Luxury commercial (>$100 a month)

Disruptor #1: The Whales of the Budget Gym Segment

Europe500+ gyms

Europe230+ gyms

England80+ gyms

England180+ gyms

Global1,400+ gyms

U.S.225+ gyms

U.S.60+ gyms

Canada70+ gyms

Latin America290+ gyms

U.S.70+ gyms

10 Groups3,000+ Clubs

Disruptor #2: Boutique Fitness StudiosCraft and Tribal Consumerism

Why they are a disruptive:

🏵 They offer consumers highly specialized fitness offerings that cater to their needs

🏵 They speak to those seeking a tribe

🏵 They speak to the consumer’s desire for a local and authentic experience

🏵 They provide a “high touch” guided experience

🏵 They are intuitive and fun


5%

18%

21%

25%

30%

41%

Corporate/Business

YMCA/YWCA/JCC

Commercial Multipurpose

Not for Profit

Commercial Fitness-Only

Boutiques Overall

Consumer Fitness Facility Preferences in 2016Percentage of Consumers Who are Members by Type of Facility

Ripped Fitness, NY

1Rebel, UK


-16%

-10%

-6%

-3%

15%

95%

YMCA/YWCA/JCC

Corporate/Business

Not for Profit

Commercial Fitness-Only

Commercial Multipurpose

Boutiques Overall

Relative Percent Change in Consumer Club Membership Preferences

2013 thru 2016

Boom Cycle, UK

Soul Cycle, US


32%

23%

18%

11%

9%

7%

Consumer Boutique StudioPreferences in 2016

Percentage of Consumers who are Members of the Various Fitness Studio Offerings

Personal and Small GroupTraining Studio

Yoga/Pilates/Barre

Indoor Cycling/Rowing

Boot Camp/Cross Training

Boxing/Martial Arts/MMA

Sports Specific

Crossfit, Global

Fuel Fitness, Canada

Disruptor #2: Whales of the Boutique of Fitness Studio Segment

U.S. Franchise450+ Barre studios

Global Franchise700+ HIIT Studios

Global13,000+ Boxes

U.S. Franchise170+ Yoga Studios

11 Groups16,000 Studios

European Franchise250+ EMS Studios

U.S. Franchise200+ Pilates studios

U.S. Franchise70+ Cycling

Studios

U.S. Franchise110+ Barre Studios

Global Franchise35+ HIIT studios

U.S. Franchise35+ HIIT Studios

Global Franchise500+ Boxes

Disruptor #3: Mobile Virtual TrainingCollaborator or Competitor

Why it’s a disruptor:

🏵 Offers an alternative form of training that can be pursued outside the gym, lessening the intimidation factor.

🏵 Blurs the lines between what can be achieved in a club and on one’s own.

🏵 It’s both a competitor and a monetization opportunity for clubs.

🏵 It appeals to Gen Z, Millennials and other digital natives.

Daily Burn

Peloton


42%

18%

9%

Percentage of smart phoneusers that use at least 1

fitness app

% of those with fitness appthat use virtual

coaching/training servicesapp

% of all consumers who usea virtual coaching/training

services app

Consumers and Mobile Virtual TrainingAccenture and Parks Associate Research

fitcloud connect

PT Distinction


52%

70%

% Fitness club members who also useonline workout at home

% Frequent fitness club users who useonline workout at home

Fitness Club Members and Mobile Virtual TrainingNielsen Research 2014

Crunch

FORTE


38%

40%

22%

Technology & FitnessLab 42 Study

Technology encouragesthem to workout

Technology improvesweight loss

Use Smartphone tosupport workout

Tandem

Les MillsGold’s

Disruptor #4: Internet MiddlemenAll the privileges of membership w/o the sales pitch

Why they are a disruption:

🏵 It offers consumers a convenient way to access an enormous variety of classes without having to be a member.

🏵 It allows consumers an easy way to shop and purchase the classes and services they want without visiting a club.

🏵 It appeals to consumers who are tech savvy.

🏵 It changes the marketing and sales paradigm for the entire industry.

🏵 It places control in the hands of consumers, not clubs.

ClassPass

FitReserve


7%

0%

6%

12%

5%

8%

26%

Private Club (member owned country club orathletic club)

Commercial Budget Club (under 20 US or 20 Euroa month)

Commercial Mid-market Club (21 US/21 Euro to69 US/69 Euro a month)

Commercial Premium Club (70 US/70 Euro to 125US/Euro a month)

Commercial Luxury Club (greater than 125US/Euro a month)

Commercial Boutique Fitness Training Studio(e.g., personal training, HIIT, small group training,

etc.)

Commercial Boutique Group Exercise Studio(e.g., group exercise, Pilates, barre, etc.)

Adoption of Internet Middlemen Services in 2017

DIBS

Reserve with Google


Move GB

PayasUgym

Lymber

ZeamoPOP!n

Final Thoughts

🏵 Over the next decade the pace of creative destruction will accelerate as more innovations come to fruition.

🏵 Private equity has fueled the accelerated growth in budget club and boutique fitness studio franchises.

🏵 Independent, entrepreneurial fitness studios appear well positioned for growth in the short-term due to urban migration, Millennials, craft consumerism and tribal consumerism.

🏵 Internet Middlemen, while now the exception, will likely become the norm over the next decade.

🏵 Virtual in-club and mobile training will continue to influence how and where people train, and are most likely to become essential tools for clubs who desire to remain relevant in the future.

About ClubIntel (www.club-intel.com)ClubIntel is member and brand insights and consulting firm that is focused on helping businesses understand, appreciate and leverage the needs, wants and personal journeys of employees, customers and members. We have worked as a team for more than 20 years, spanning multiple brands across the globe assisting businesses achieve their goals.

Mark Williamson, Co-founder and Principal

Mark has more than 20 years experience in market research, and consumer insights, including 17 years within the club and hospitality industry at ClubCorp USA, which comprises an elite collection of private golf, country, business, sports and alumni clubs. He also lead Consumer Insights teams for industry-leading restaurant brands such as Applebee’s, Chili’s, Maggiano’s, On The Border, Romano’s Macaroni Grill, and Corner Bakery. Outside of the hospitality industry, Mark led the consumer insights team at match.com and owns his own small research consulting business, Retention Measurement Solutions. He is a guest lecturer at national conferences and frequent panelist on a series of webinars.

76


Scott WildermanOfficial Music SponsorSponsored By

The Fitness Industry Council of Canada’s role is to create conversation surrounding topics that are relevant to the entire fitness industry.

We have changed our bi-laws to be a more inclusive association, with representation from commercial facilities, non profit and municipal facilities, vendors, educational providers and registries.

We rely on the support from our member clubs and partners.

The fitness industry is very fragmented.

We have brilliant minds from various organizations working towards common goals. Either in competition or parallel to other organizations

This is inefficient and ineffective.

FIC proposes that we bring organizations from all segments of our industry to the same table to collaborate.

The outcomes will benefit the consumer.

I will highlight two examples

Both organizations are striving to have medical professionals prescribe fitness services to Canadians.

Both organizations have passionate fitness and medical professionals working towards an objective.

However they are working in parallel. Not together.

The industry needs your support!

If PTGA does not receive funding from our partners, PTGA will not be sustainable.

I am making a personal request from owners and managers to become a sponsor TODAY!

Q&A

Merci!

Fitness Industry Canada Forum - canfitpro.com › ... › 08 ›...

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