David Minton's 2020 vision for the fitness industry

The fitness industry doesn’t need a Tom, Dick, Harry or Hugh…it needs a Greta.

The “Greta Thunberg effect” is infectious; it’s one of the driving forces behind global climate strikes and carbon offsetting worldwide. Whilst climate action is a clear and unequivocal necessity, could all industries learn from the 16-year old?

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Fitness cocktails and boutique cannibalisation

Fitness and technology expert David Minton shares insights from his latest report on the evolution of boutique fitness and explains how technology will help to power ‘Fitness 2.0’

What were the key findings from your recent report on boutique fitness?

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World Indoor Climbing Summit

Yesterday David attended the World Indoor Climbing Summit in Sofia, Bulgaria. Held at the impressive Sofia Tech Park, the event aims to gather members of the climbing community from all over the world.

David was invited to discuss the UK Fitness market and how the climbing industry can learn from it. He joined a panel with Ivaylo Penchev (Walltopia), Doug Miller (Sales Makers) and Per-Anders Dagborn (Sports Club Vallentuna).

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Peloton is about to IPO

The company’s streaming service, which allows customers to participate in live workouts or stream recorded ones, has been one of the keys to its success, said David Minton, founder of The Leisure Database Company, a market research firm. Those programs have added an element of fun and interactivity to its equipment that rival gadgets typically haven’t had, he said.

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Connecting the World to Wellness

Hosted by David Minton, Director at LeisureDB and David Caygill, Head of Innovation at Iris, alongside a panel of industry experts.

Together, we’ll:

Delve into the technology that’s disrupting the marketplace. Reveal the businesses that are innovating to future-proof themselves and discover how brands are attracting new audiences in the age of digital and social.

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December: Gym Owner Monthly

UK FITNESS MARKET

The total UK fitness market has just over 6,700 gyms and an overall penetration rate of 14.9%. England, the largest and most populous country, is home to most of the UK’s gyms; it also has the highest penetration rate (15.3%). Northern Ireland, Scotland and Wales all have penetration rates over 10%. How much growth will the industry see in 2018?

 
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Original Source: Gym Owner Monthly

November: Gym Owner Monthly

UK Fitness Members

The 2017 State of the UK Fitness Industry Report states that membership within the UK gym sector is growing. In 2015, the total number of fitness members was 8.8 million which increased to 9.7 million in 2017. For the first time in 2016, the total number of fitness members exceeded 9 million. Will 2018 be the year that membership surpasses 10 million?

 
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Original Source: Gym Owner Monthly

October: Gym Owner Monthly

Public Sector

The 2017 State of the UK Fitness Industry Report reveals that 1 in every 20 people are members of a public gym. The public sector has over 2,700 gyms across the UK and Greenwich Leisure Limited (GLL) is the top operator. For the first time in five years, the public sector has seen a slight decline in membership numbers. Is this due to a combination of operating budgets being reduced and the impact of the private low cost market?

 
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Original Source: Gym Owner Monthly

September: Gym Owner Monthly

2018 Milestones

The 2017 State of the UK Fitness Industry Report revealed that the UK health and fitness industry is continuing to grow. David Minton, Director of LeisureDB said: “It may be premature to call the period to 2020 “the golden age of fitness” but further growth will only be limited to the imagination of those pushing the boundaries. The signs are there that the industry is likely to hit several milestones in 2018. The number of gyms is on course to go over 7,000 for the first time, total membership to exceed 10 million and market value to reach £5 billion”.

 
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Original Source: Gym Owner Monthly

August: Gym Owner Monthly

The private low cost market

The 2017 State of the UK Fitness Industry Report reveals that the UK health and fitness industry is continuing to grow. This growth is being primarily driven from the private sector, which has more clubs, more members and a greater market value than ever before.

The low cost market has continued to be the main driving force behind the private sector growth. There are now over 500 low cost clubs which account for 15% of the market value and 35% of membership in the private sector. The UK’s leading low cost operator is Pure Gym with over 180 gyms.

 
 

Original Source: Gym Owner Monthly

July: Gym Owner Monthly

Focus on London...

The 2017 State of the UK Fitness Industry Report reveals that there are now 6,728 fitness facilities in the UK with 12% of the sites being in London.

London alone has a staggering 1.7 million fitness members, that’s 1 in every 5 people in London being a member of a gym compared to 1 in every 7 within the UK.

The fitness industry within London has a market value of £1.14 billion (24% of the overall UK market value) and a penetration rate of 20%.

 
 

Original Source: Gym Owner Monthly

Flame2017

Wednesday was the annual #Flame2017 event run by UKActive & what a brilliant event it was. The day was spent attending a varied range of talks hosted by Olympic athletes to tech experts and the night was a fun-filled evening of awards, dancing & gin. 

The event kicked off with a thought provoking talk by Steven Ward, CEO of UKActive as he discussed the growing importance of promoting physical activity within the UK. Followed by Dave Wright, CEO of Myzone, who recently launched free virtual classes and a chat feature for trainers. 

Two keynote speakers then took over the stage - Jonathan MacDonald, the founder of Thought Expansion Network followed by Luis Huete, a business school professor & author. 

For the breakout sessions we attended two talks. The first by professional skipper, Alex Phillips who has spent an astounding 17 years at sea and travelled over 150,000 miles on the water. Back in 2000 she managed the yacht "Quadstone" in the BT Global Challenge, also known as "The World's Toughest Yacht Race". The race involves navigating a 70ft steel yacht 29,000 nautical miles around the world starting in Portsmouth and heading West to East.  

The afternoon keynote speaker was none other than track cyclist Jason Kenny, team GB's 6 Olympic Gold medal holder. Kenny and Tanni Grey-Thompson discussed what its like to be a world class athlete and of Kenny's experiences at the Beijing, London and Rio Olympics. A fantastic talk with fascinating insight into the world of professional sport!

The final breakout session of the day was with Professor Andy Miah, a futurist and lover of all things tech. Miah discussed technology trends, the future of sport and fitness and possibility of augmented reality gyms. Miah stated that the "crucial tech parameters of physical activity are mixed reality, mobile health and gamification". The future of sport and fitness is developing through a wide range of tech such as health based mobile apps, esports, wearables, artificial intelligence and ingestible sensors. What sort of possibilities could technology bring to the industry? Why isn't sport made more immersive with the use of technology? An example by Miah was the possibility of projecting the Olympic swimming races live onto pools so spectators could watch and feel part of the experience. And finally, what will it take to create an augmented reality gym? Play. Compete. Develop. Exercise. Research. 

The evening was brilliant and team LeisureDB smashed their daily step count by dancing into the early hours of Thursday morning. Sat with the wonderful (& nominated) Jubilee Hall Trust team during the awards ceremony...Congratulations to all of the award winners and runners up! A huge thank you to UKActive for another fantastic Flame event. See you next year! 

June: Gym Owner Monthly

Gym Owner Monthly's June issue was published today and stats from our 2017 State of the UK Fitness Industry report have been featured on pg.11 ...

 

The 2017 State of the UK Fitness Industry report highlights that the UK fitness industry is continuing to grow, with increases of 4.6% in the number of fitness facilities, 5.1% in the number of members and 6.3% in market value.

There are now over 9.7 million fitness members in the UK which has boosted the penetration rate to an all-time high of 14.9%.

David Minton, Director of LeisureDB says: “It may be premature to call the period to 2020 “the golden age of fitness” but further growth will only be limited to the imagination of those pushing the boundaries”.

June: Health Club Management

A golden age for the health club industry

The latest numbers from The Leisure Database Company show the market is growing strongly and anticipating a golden age between now and 2020. David Minton reports...

The number of gyms and members, the market value of the sector and penetration rates for memberships are the key metrics detailed in the 2017 State of the UK Fitness Industry Report published by LeisureDB and they all show the UK fitness industry to be in rude health.

There are now over 9.7m fitness members (an increase of 5.1 per cent from 2016), which has boosted the penetration rate to an all-time high of 14.9 per cent, compared to 14.3 per cent 12 months ago. The market value has continued to grow and is now estimated to be £4.7bn, a 6.3 per cent increase. Now, in the UK, 1 in every 7 people are members of a gym – the most ever.

Budget success
The low-cost market has continued to be the main driving force of the industry. With over 500 sites, they now account for 15 per cent of the market value and an impressive 35 per cent of membership across the private sector.

Some trusts, management contractors and in-house operators across the public sector are also operating low-cost gyms and many of the low-cost brands have discovered that the strength of the market in some areas enables them to raise and move into the mid-market.

Fitness brands, with transparency of pricing and offering, are continuing to grow and by utilising good social media practices and constantly listening and responding to their customers, they are meeting and exceeding their needs.

Investment
However, they are not alone in pushing the boundaries and experimenting with innovation. Both the private mid-market operators and many public sector sites are also investing and expanding their market. Franchise brands have also had their best year to date and some top end brands are quoted as having more members now than ever before.

For the first time in five years, the public sector saw a small decline in membership numbers after closing more sites than it opened for the second year running. With almost 50 per cent of public sites still to go out to tender, the trusts and contract management companies have an opportunity to turn this decline back to growth in 2018 and beyond.

The trend data shows how the industry has grown over the last five years and in 2017 the industry now offers the widest possible choice of fitness options. New technology and innovation feeds into the existing industry at all levels and could in-part be responsible for helping expand the market.

Diversification
Location search, live timetables and deeper booking integration will be commonplace very shortly through search engines, social media platforms and apps. Online class bookings, currently available across 41 per cent of the private sector and 61 per cent of the public, shows good levels of adoption, even if some of the interfaces are still clunky to use for the more tech-savvy consumers.

Meanwhile new fitness experiences, via travel companies, community groups and highly curated events, are often reliant on the consumer having higher levels of fitness to take part.

Boutiques and the growing fitness-for-free sector are all anecdotally helping expand the market, and opportunities at activewear shops, park gyms and meet-ups via apps all seem to be feeding into the core fitness industry.

The consumer brings greater expectation for a better and more connected experience, and despite the current political and fiscal uncertainties, the report remains very positive about the future. It may be a little premature to call the period between 2017 and 2020 the “golden age of fitness” but the industry is likely to reach some key milestones in 2018, including the number of fitness sites surpassing 7,000 for the first time, total membership exceeding 10m, market value totalling £5bn and the penetration rate easily surpassing 15 per cent of the total population. Obviously, the devil is in the detail and the detail is exactly what’s is in this report.

Details from www.leisuredb.com/publications

Original HCM article here

We've been quoted!

Following the release of the 2017 State of the UK Fitness Industry report we're pleased to announce our stats have been quoted across the media!

The Guardian - "The budget gym boom: how low-cost clubs are driving up membership"

The Times - "It's Life, Gym"

The Times - "Budget gyms are flexing their muscles"

Leisure Opportunities/Health Club Management - "Private sector drives UK fitness industry growth"

Fitness News Europe - "Public sector dip in buoyant UK market"

Leisure Industry Events

Active Net

On 29-30th March, Natalie and David attend ActiveNet's annual event in Nottingham.

David presented a breakout session discussing "fitness with no boundaries" and how technology will impact the future of our industry.

Meanwhile, Natalie networked as part of the supplier-buyer sessions. 

David discussing how technology is changing the future of the fitness industry and how each gym operator needs to adapt - #ActiveNet2017

David discussing how technology is changing the future of the fitness industry and how each gym operator needs to adapt - #ActiveNet2017

"If restaurants have no seats, cars have no drivers, deliveries have no couriers, then fitness will have no boundaries" - David Minton, #ActiveNet2017

"If restaurants have no seats, cars have no drivers, deliveries have no couriers, then fitness will have no boundaries" - David Minton, #ActiveNet2017

 
 

BUCS

Later that week, David presented at the BUCS Sport Health, Fitness & Physical Activity Network event again discussing the impact of technology witihin the leisure industry. 

 
 

Tech Will Shape Our Industry

Gerald Ratner, in 1991, achieved notoriety in the UK after making a speech in which he jokingly denigrated two of the jewellery products sold by his company. The so called ‘Ratner Effect’ caused the company’s near collapse. In the USA the hashtag #DeleteUber started trending in January and so far, 2017 for Travis Kalanick, Uber’s CEO, it’s been annus horribilis. Although Kalanick has stepped down from Trump’s advisory council, prompting another mea culpa, the embattled ride hailing company is still surrounded by controversy.  Uber’s troubles have resulted in market share gains for Lyft, it’s main competitor, according to TXN Solutions which tracks debit and credit spending. Uber spend across the US has declined since January by 2% while Lyft has jumped 30% on average. In Uber’s home city, San Francisco, spend was down 8% while Lyft jumped 24%.

For IHRSA attendees in Los Angeles the ride hailing service Lyft became the de facto service and for those with ApplePay, a Lyft (get it?) was just a finger touch away…how simple and intuitive. Lyft’s use of the latest technology provides a seamless digital gateway of choice and many lessons for the fitness industry.  Consumers are in control and brands need to stop interrupting with bad technology and trying to sell unwanted products or services and instead start having smart conversations and start listening. Lyft has that conversation and is listening after every ride and if it wasn’t perfect, how could it have been better. When did you receive a request to rate your instructor, the class, the PT, the club even. For me? Never. Those fitness brands who offer transparency of pricing are growing faster than ever and the same brands are open about the good, and maybe not so good, conversations they are having with their customers but they listen and respond. Peer reviews of the workout, instructors and the all-important experience keeps everyone on their toes. 

At the Networking Roundtable chaired by Bryan O’Rourke, operators degraded the heritage CRM systems that the industry is suffering under. So, will traditional CRM systems be dead in 5 years time? Probably. Some heavy competition is being tested in California. Reserve with Google, gives deeper booking integration so local search, which relies on live timetable APIs, becomes more transactional. Previously booking buttons would link away to a third party provider but now its deeply integrated. Mindbody, Full Slate, Front Desk, Appointy are all currently live on Reserve with Google and ZingFit, MyTime and Genbook are coming soon. Only Mindbody were demonstrating this integration at IHRSA but hopefully all will be there next year in San Diego. More competition is coming from Facebook who have recently added local reservations and integrated bookings. Its Events calendar has been turned into a standalone app, allowing groups of friends to book and buy activities together. Airbnb are linking the consumer to a world of fitness experiences which taps Airbnb’s community to offer highly curated opportunities. Even Yelp is accelerating adoption of local listings to include payments and bookings. It won’t be long before Amazon make an announcement in this area, linked to Alexa searches.  All these companies, plus Apple, have fitness teams analysing the industry and how they can disrupt it, search and bookings is an obvious one.

Reserve with Google was live in LA so IHRSA delegates could logon to experience the granular search, from APIs of live timetables, linked to seamless integrated booking. Reserve puts the consumer at the centre of the search and through Artificial Intelligence (AI), constantly learning what type of class or activity you like, will deliver your personalised push notifications that addresses the question of which class, where and what time before you’ve thought of it. Those poised to take advantage of this new era are the boutiques, fitness without boundaries, community activities and meet-ups. In the UK public sector sites and trusts have been early adopters of live timetables and APIs, concretely demonstrating the value of digital. For those of you who are still using Pdf’s, and heaven forbid, a Pdf on an app, then help is at hand.  AiT (Active in Time) http://info.activeintime.com/operator-software-explained/ a UK start-up company provide the free software and for a small monthly charge APIs for those who want to be part of the digital revolution. Over 500 sites in the UK and Ireland are now live and pushing digital innovation.  AiT offers to integrate your live timetables into these new search and booking services as they become available in the UK.

IHRSA is known for its roundtables, as mentioned above, and keynotes. Soraya Darabi, a Young Global Leader of World Economic Forum said we can’t create emotional attachment if we stand for nothing. So Lyft drivers stand for great service, good value and working for a company they admire. From Soraya’s experience at her local gym in Brooklyn she wonders if the fitness industry, which has the potential, will ever develop the same emotional attachment. Martin Lindstrom, a brand futurist, suggested ‘living with the client’ or listening to the consumer because how many fitness sites have anything more than a feedback form? Lindstrom used the supermarket Lowes to show how it was ‘small data’ that helped turn around a failing brand, not big data. Lowes relaunch has some fun elements but Jonny Earle, alias Jonny Cupcakes was off the wall. He created a brand and inspired customer loyalty from shops that don’t sell cupcakes but t-shirts. My favourite was the breakfast t-shirt which you could only buy between 7-11am.

The 21st annual IHRSA financial panel moderated by Rick Caro emphasized that detailed knowledge of the industry is limited even when big investments are being made. l hope Rick will come to London in October for IHRSA Europe and put a panel of UK investors together who have access to the most detailed data on the industry thanks to LeisureDB. LeisureDB will be presenting in October its data analysis platform and the historical trends from its annual State of the UK Fitness Industry Report and live monitoring of the industry from its Social Media Fitness Index.

Historically prospectors in the Californian gold rush needed a shovel and a sieve, now influencers do the spade work for you. ‘Cycologists’ create 45 minute experiences you want to pay $30 for and who ignite avid followers. I’m following Shannon at Aura on Third, https://www.auraworkout.com  and Nick at Cycle House on Melrose, http://cyclehousela.com...Who are you following?

- David Minton, Director of LeisureDB - IHRSA 2017

Social Media Tips from Industry Leader

In this month's Health Club Management (Issue 3, 2017, pg.61-62), the social media manager at Xercise4Less discussed what lead them to win our Social Media Fitness Index Q2, Q3 & Q4 2016 reports. 

 
Xercise4Less consistently posts about the success of its members on its various social media channels...

Xercise4Less consistently posts about the success of its members on its various social media channels...

 

Joe Hall writes...

"We live in an era where people can turn themselves into a squeaky talking fox on Snapchat, or hit an ‘angry’ button at a piece of news content on Facebook. In fact, the nature of what you can do has become so varied that the whole concept of ‘social media’ – what exactly this now is – becomes quite hard to define.

I’d consider social media to be a mass get-together which no longer takes place in the park or in the pub, but in a Millennial third space: online. There might not be a see-saw or a pint of Tetley’s Smooth Flow in sight, but humans interact in this digital social media space in much the same way as they do offline in the local park or pub. That’s a result of psychological traits and human instinct.

But social media goes one step further: it amplifies human behaviour. It cuts out the routine, unexciting, dreary, monotonous matters that happen in the real world and just gives us the more dramatic, action-packed, high-end pleasure or high-end pain experiences.

As marketing decision-makers, we need to respect that the end consumer on social media is out for the thrills and spills. They’re certainly not scrolling through Twitter, Instagram or Snapchat to bask in any dullness or absorb meaningless promotional waffle.

At Xercise4Less, it’s my duty to ensure our social media appeals to our audience’s wants and needs. I’ve outlined four ways in which we do this.

  1. Deliver emotional conten
  2. Contests and gift
  3. A sense of belongin
  4. Post for your audience

Even when Xercise4Less was nominated for the Best Use of Social Media by the Leisure Database Company, we ensured the announcement was very much all about our members.

What lies ahead for the world of social media?
...Human behaviour and psychological traits should always be at the heart of any social media and marketing strategy". 

Original source: Health Club Management