fitness australia - the australian fitness industry report 2012 (presentation)

7/29/2019 Fitness Australia - The Australian Fitness Industry Report 2012 (Presentation)

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The Australian Fitness Industry Report 20121. Background to the report

2. Approach, including data sources

3. Recent times & participation trends

4. Industry composition & costs

5. Clients6. Employment

7. Innovation

8. Industry sub sector offerings

9. Regulations and quality standards

10. Outlook


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The Australian Fitness Industry Report 20122009: Let's get physical: The economic contribution of fitness centres in Austr

2011: Fitness Industry Workforce Report 2010 2020

This state of the industry report serves to:

1. raise awareness of the economic contribution of the fitness industry2. promote ongoing advocacy efforts

3. discuss national regulation and standards

4. highlight innovation and challenges

5. identify the trends within, and their impact on, the fitness industry

6. aid decision making by Fitness Australia, including around investment opportunitie


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Recent times Fitness industry revenue grew 4% pa over the past 5 years, slowing recently due to the

economy & consequent reduction in discretionary consumer spending. 24/7 facilities

studios had greater levels of growth, 11% & 12% respectively.

Industry will have revenue of over $1.2 billion in 2012 with average operating profit m

4.5%.

Income sources

Membe

82%

Personal

Training

session/s

5%

Fitness

subcontractorrental income

4%

Other

9%


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Participation trends

Fitness activities include aerobics/fitness/gym activities, Pilates, weight training and yo

categories.

Participation in the fitness industry is 2nd only to walking in terms of overall participation w

growth 2nd only to jogging.

In 2012, 3.42m Australians aged15+ years

18.3% participate in fitnessactivities (2009-10, up 2.1% or

>420,000 people since 2005-06)


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Industry composition & costs This year, over 1,300 businesses are registered with Fitness Australia, about 50% (2,550 businesses overall).

Small businesses characterise the fitness industry - barriers to entry are low and th

limited regulatory requirements. Nearly half (47%) of industry responses were from

outdoor services, 6% independent trainers, 6% studios,

4% leisure centres and the remaining 7%

clubs/corporate/school/other.

Staff wages and rent make up more tha

half of expenses

Sources of

expenses

RMarketing

5%

Commissions

4%

Utilities

4%

Cleaning

3%

Other

21%


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Employment About 75% of all exercise professionals ( 30,000) are registered with either Fitne

or Physical Activity Australia

More females in the industry (56%)

53% (of all professionals) are aged between 22-39 years. Only 4% are >55 years

According to the ABS, 68% of the fitness professional workforce were employed a12% permanent part time, 18% permanent full time and 2% are working proprieto

partners

Further details are in Fitness Industry Workforce Report 2010 2020


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Innovation The industry is dynamic and sensitive to new fitness trends both locally and abroa

The use of technology is increasing the interaction between the club and

client and promoting online products and programs.

Survey responses indicated businesses seek to differentiate through

services provided rather than by price reductions or advertising.

Focus is on quality provided and thebenefit or overall value to the client.


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Offerings Ageing population

New spending

habits

More emphasis on

wellbeing

Allied heath services such as massage, acupuncture and allied health services are

integrated into business models to further expand market reach.

According to survey respondents, about 8% of clients are being referred to medical

health services and 11% are referrals from such services.

Influencers


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Traditional offerings still matter

0

1

2

3

4

5

6

7

8

9

10


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Regulation Regulation, codes and quality standards for the industry remain fragmented, both in s

requirements. However, survey respondents were aware of and understood regulato

general.

49% viewed regulation as a net benefit and 31% were indifferent to it. Reasons inclu

and maintains the credibility, integrity and quality of the industry. It keeps the industry

Those opposed said it was a net cost because the regulation does not apply to the in

so those who are not trained or registered to practise may provide a substandard ser

Others expressed concern around the cost of compliance, including adhering to awa

legal/insurance costs incurred, or that being registered did not provide significant ben

cost at an individual level.


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Quality standards Fitness Australia is currently in the process of developing an industry-wide quality framaims to enhance standards of professionalism, care, safety and service within the fitne

71% said the

new standardswould,

or may be,

an improvement

for their business


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Outlook

The fitness industry, relative to the broader industry group of sport and

recreation, has been growing at a faster rate in employment, wages, revenue and

value added.

Drivers are the increased wealth of Australian households, urbanisation and

increasing time pressures.

The fitness industry influences the economic wellbeing of other industries.

Economic links comprise direct and indirect economic contributions. In total, the

direct and indirect fitness industry contribution to GDP is worth $1.4 billion.

Under the projections demand is estimated to increase from 3.42 million

participants in 2012 to 7.15 million by 2020.


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Opportunity

The incidence of physical inactivity related and obesity related disease increases and the p

- the need for the fitness workforce to be able to contribute to the management of health

growing.

One of the biggest opportunities currently for the fitness industry is the potential to link in

general and allied health sector.

Australian Institute of Health and Welfare: participation in physical activity has importan

the physical and mental health of Australians, and for social and cultural values in our com

(Armstrong et al 2000).

In 2011, 7,516 potential cases of chronic disease (cardiovascular disease, Type 2 diabetes,

cancer) were averted due to fitness memberships. This equals savings of ~$77 million to th

economy.


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General information only

This presentation contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities(collectively the Deloitte Network) is, by means of this presentation , rendering professional advice or services.

Before making any decision or taking any action that may affect yo ur finances or your business, you should consult a qualified professional adviser.No entity in t he Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this presentation.

About Deloitte

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Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private cconnected network of member firms i n more than 150 countries, Deloitte brings world-class c

wherever they operate. Deloitte's approximately 182,000 professionals are committed to bec

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fitness australia - the australian fitness industry report 2012 (presentation)

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