strategic insights into the european low-cost gym sector
DESCRIPTION
Presentation delivered by Ray Algar at the IHRSA European Congress held in Barcelona, Spain 18th October 2010TRANSCRIPT
Strategic insights into the European
Low-cost Gym Sector
IHRSA 2010
Barcelona
Ray Algar
2
www.oxygen-blog.blogspot.com
How the low-cost gym
sector is transforming
the European
club market
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
LOW
ATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
LOW
ATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
I CareI CareI CareI Care
Consumers now have
experience of
low-cost services
12
“Fly for the price
of a pair of jeans”
13
14
“Spend a little, live a lot “
15
16
Think of a sector…you will
find low-cost
300 million units
annually by
2013
“Quality up, cost down
… way down”
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
LOW
ATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
LOW
ATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
Join online
and avoid me!
“When I need
advice, I will
pay for it”
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
LOW ATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
37
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
LOW
ATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
40
41
www.reviewcentre.co.uk
Word of mouth
on steroids
MARKET
DRIVERS
SIMPLICITY
AFFORDABILITY
CONSUMER SENTIMENT
TOWARDS CLUBS
LOW
ATTENDANCE
CONSUMERS ARECHANGING
INFRA-STRUCTURE
“Why am I paying
for a club I do not
often use?”
“Why am I paying
€60 just to use
a treadmill?”
What do low-cost
gym consumers say?
“I pay €17, which is a
giveaway (big smile).
It’s for free really!”
“I have never been to a
gym that is €18 before. I
thought I would find a
lot of broken quipment”
“There’s plenty of staff
around. They’re
incredibly helpful
and friendly”
“I get an email; I think
it’s once a week. They
tell you their top
tips...(for example)…”
58
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64
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66
?
OPERATIONAL
EXCELLENCE
MEMBER
INTIMACY PRODUCT
LEADERSHIP
Presentation: oxygen-blog.blogspot.com
Report: budgetgymresearch.ning.com
Google: “Ray Algar”