how the low-cost gym sector will transform the uk health and fitness industry
DESCRIPTION
Presentation given to sporta CEO's at the Leisure Industry Week Conference, Birmingham, UK, September 2010TRANSCRIPT
How the low-cost gym sector will
transform the UK health &
fitness industry
Presentation to sporta
LIW 2010, Ray Algar
www.oxygen-blog.blogspot.com
MY DEFINITION OF A LOW-COST GYM
MINIMUM OF 50% LOWER
THAN INDUSTRY
PRICE
HEAVY TECHNOLOGY AND WEB USE
GYM-ONLY PROPOSITION
ABILITY TO OPERATE CLUB WITH A SINGLE
PERSON
SCOPE TO OPERATE 24
HOURS
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
SPORADICATTENDANCE
CONSUMERS ARECHANGING
SUPPORTING INFRA-
STRUCTURE
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
SPORADICATTENDANCE
CONSUMERS ARECHANGING
SUPPORTING INFRA-
STRUCTURE
I CareI CareI CareI Care
Consumers now have
considerable experience
of low-cost services
11
“Fly for the price
of a pair of jeans”
12
Spend a little, live a lot
13
14
Look good, pay less
Think of a sector…you will
find low-cost
300 million units
annually by
2013
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
SPORADICATTENDANCE
CONSUMERS ARECHANGING
SUPPORTING INFRA-
STRUCTURE
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
SPORADICATTENDANCE
CONSUMERS ARECHANGING
SUPPORTING INFRA-
STRUCTURE
“I can join online – no pushy
sales staff to deal with!”
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
SPORADICATTENDANCE
CONSUMERS ARECHANGING
SUPPORTING INFRA-
STRUCTURE
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
SPORADICATTENDANCE
CONSUMERS ARECHANGING
SUPPORTING INFRA-
STRUCTURE
36
Word of mouth
on steroids
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
SPORADICATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
“Why am I paying
for a club I
occasionally use ?”
“Why am I paying
£50 just to use
a treadmill?”
What do low-cost gym
consumers say?
“It is almost free”
“I have never been to a
gym that is £15 before. I
thought I would walk in
and find a lot of
broken equipment”
49
50
51
52
53
56
McFit Financials 2007
Euros
(millions)
% turnover
Turnover 86
Staff costs 3.4 3%
EBITDA 28 32%
Interest charge 0.1 -
Net assets 34
Clubs 88
budgetgymresearch.ning.com
oxygen-blog.blogspot.com
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