the emergence of the uk low-cost gym sector

The emergence of the UK low-cost

gym sector

Southampton Solent UniversityRay Algar, Oxygen Consulting

November 2011

Tuesday, 22 November 11

oxygen-consulting/think-tankoxygen-consulting/blog


Why is the low-cost gym sector emerging?


MARKET DRIVERS

Digitalinfrastructure

Lowattendance

Changingconsumer

Affordability

Simplicity

Consumer sentimenttowardsclubs


6

“Spend a little, live a lot “Tuesday, 22 November 11

Digital infrastructure


Low club attendance


Mid-market club with 4,000 members


Why does low club attendance matter?


Consumer sentimenttowards clubs


www.reviewcentre.co.ukTuesday, 22 November 11

http://www.reviewcentre.co.uk

http://www.reviewcentre.co.uk

“Why am I paying for a club I rarely use?”


“Why am I paying £55 just to use a treadmill?”


Affordability &simplicity


£46 for four weeksTuesday, 22 November 11

£19 per month - no contract to signTuesday, 22 November 11

£12 per month - 18-month contract Tuesday, 22 November 11

Same monthly

price as a TV

license


Attractive offer for ‘machine members’Tuesday, 22 November 11

What do UK consumers think of

the low-cost gym experience?


Text The Gym Group

ex-members


17%

83%

First gymPrevious gym experience

Males - 60%


How much do you agree with the following statements?

0 = strongly disagree

5 = strongly agree


3.4

3.5

3.7

3.7

4

4

4.1

How much do you agree with the following statements?

Staff available to provide free advice All the facilities I neededFriendly atmopshere Helped me become healthier personAlways felt safe Email with adviceProvided eveything promised on website


How likely are you to recommend this gym?

0 = Not all all likely

10 = Definitely recommend


7 8 97.4

7.5

7.5

7.6

8.5

Average Response

How likely are you recommend The Gym?

Members with previous club experience All members Males FemalesThe Gym was first gym member joined


7.9

7.4

7.4

8.5

7.4

7.4

Birmingham

Brighton

Liverpool

How likely to recommend to a friend - by club

Males Females


“No frills, low-cost gym. Especially important for us students!”

Female member The Gym, Birmingham

10


“The friendly atmosphere, knowing you are safe and not being judged by staff”


10


“Cleanliness and amount of equipment

available”


10


“There was a lack of staff. I searched for 15 minutes before finding staff. I cancelled after

going just once”

Male member The Gym, Liverpool

2


“Provide more supervision from

staff”

Female member The Gym, Brighton

6


“I would have liked a private changing

cubicle”

Male member The Gym, Birmingham

5


0-3 months27%

4-6 months35%

7-12 months26%

More than one year7%

Unsure5%

How long a member?


31%

69%

Where are members now?

Joined a different gym Not joined another gym

Male 66%


What is an authentic low-cost gym?


DEFINITION LOW

COST GYM

50% lowerthan

country averageprice

Scope tooperate 24

hours

Heavy technology

and web use

Ability to operatewith a single

person

Predominantly a gym-onlyproposition


The brand launched in 2008


PROPERTYSPEC

D2 consentwith 24-hour

access

City centrelocations

12,000 - 20,000

Square feet

100,000population10-minute

drive

High visibilitylocations


Vauxhall gym London. Case study


Gym opened August 2009Tuesday, 22 November 11

THE GYMVAUXHALL

St GeorgeWharf

The GymVauxhall

24-houropening

200 strengthand CV

machines

16,000 squarefeet

Ground Floor +

mezzanine


VAUXHALLSTAFFING/

OPERATIONS

PT’s ‘donate’ 10 hours per week

2 salaried managers

10 PersonalTrainers

(freelance)

1,000 - 1,500 member

visits per day

All other functions

outsourced


40% 60%

Membership mix


Questions and discussion at:

www.oxygen-consulting.co.uk/blog


http://www.oxygen-consulting.co.uk/blog




the emergence of the uk low-cost gym sector

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