1.
Poised For Expansion
The Future Of The Fitness Industry
300% Growth In 10 Years ?
@BryanKORourke, CSO, CEO, Principal
Houston Golds Gym, FIT-C, Vedere Ventures
bryankorourke.com

2.
bryankorourke.com @bryankorourke

3.
GREATEST TIME IN HISTORY
TO BE IN OUR INDUSTRY

4.
AND BUSINESS AS USUAL IS DEAD

5.
HOW WILL YOU RESPOND ?

6.
MY STORY STARTS IN 1983

7.
1993
I INNOVATED ACROSS INDUSTRIES

8.
1996
INTRODUCED AUTOMATED ESPRESSO

9.
1997 GOT INTO HEALTH CLUBS

10.
2005 GOT INTO GROUP FITNESS

11.
STARTED INNOVATING AGAIN
2006 #TheCloud

12.
AND AGAIN
2007 @bryankorourke @GaryVee

13.
PAST 10 YEARS ENTERED AGE OF ACCELERATIONS

14.
2016

15.
http://www.fittechcouncil.org/podcast/
WE KEEP INNOVATING

16.
GROWTH REQUIRES INNOVATION

17.
1 BILLION MEMBERS
GROWTH REQUIRES
DISRUPTION

18.
SAPERE VEDERE
DA VINCI “TO
KNOW IS TO SEE”

19.
RISING TIDES LIFT
ALL BOATS

20.
DISRUPTION IN THE ERA
OF MASS ACCELERATION

21.
DISRUPTION EXAMPLES :
RESTAURANTS OFFER A
DINNING EXPERIENCE

22.
THIS OFFERS A DINING
EXPERIENCE

23.
BANKS OFFER
FINANCIAL SERVICES

24.
THIS AI OFFERS
FINANCIAL SERVICES

25.
CONCERTS OFFER
MUSICAL ENTERTAINMENT

26.
THIS APP DOES THE SAME

27.
THIS CLINIC OFFERS
MEDICAL CARE

28.
THIS APP OFFERS
MEDICAL CARE

29.
HEALTH CLUBS OFFER
HEALTH & FITNESS EXPERIENCES

30.
DISRUPTION: THIS OFFERS
HEALTH & FITNESS EXPERIENCES

31.
DISRUPTION: THIS OFFERS
HEALTH & FITNESS SERVICES

32.
THIS OFFERS
HEALTH & FITNESS EXPERIENCES

33.
DISRUPTION: THIS OFFERS
FITNESS EXPERIENCES

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AND SO DOES THIS

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INDUSTRY DEFINITIONS HAVE CHANGED
THE LINES ARE BLURRED

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WHAT ARE FITNESS EXPERIENCES BECOMING ?

37.
HOW WILL THE INDUSTRY EVOLVE ?

38.
WHAT WILL MEMBERS REALLY WANT ?

39.
HEALTH CLUBS HELP PEOPLE GET
HEALTHY & FIT.. AND

40.
WE’VE ENTERED A NEW ERA

41.
YOU MUST APPLY FRESH THINKING
TO REACH MARKET POTENTIAL

42.
PEOPLE TECHNOLOGY
GLOBALISM ECONOMICS
DISRUPTION BY CONVERGENCE
OF TRENDS

43.
PEOPLE’S BEHAVIORS
HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS

44.
Old school definitions don’t apply - dizzying diversity

45.
Bifurcation : mass affluence driving niche luxury models
and middle class driving utility businesses.

46.
Urbanization : cities are driving global growth
and represent the majority of health club operations.

47.
48

48.
Power has shifted to fitness consumers
Exane : 10% luxury is digital now 40% by 2020

49.
3 CONSUMER
TRENDS

50.
GREATER UTILITY AND
CONVENIENCE & RELEVANCE FOR
USERS
PERSONALIZATION
ACKNOWLEDGEMENT AND
RECOGNITION EMBRACING
A MISSION
ENGAGEMENT
FLAUNT CULTURE
NOT JUST FITNESS
BENEFICIAL
INTELLIGENCE
NEW WAYS OF DELIVERY
THAT INCREASE USE
AND RELEVANCE
SERVICE REDEFINITION
OMNI-PRESENCE
TRENDS + VISION = REINVENTING MODELS
3 KEY CONSUMER TRENDS
PERSPECTIVE SHIFT
STATUS

51.
Personalization: greater utility, convenience & relevance

52.
BENEFICIAL
INTELLIGENCE
Enhancing User Experience Through
Built In Intelligence

53.
OMNIPRESENCE
New Channels, Nuanced With Context
In The Right Place At The Right Time

54.
Personalization is hard

55.
Engagement: acknowledgement recognition mission

56.
STATUS:
Experiences Via Design,
Gamifying, UX, Community

57.
FLAUNT
CULTURE
Allow Users To Remove Barriers And
Celebrate And Flaunt An Authentic
Transparent Experience

58.
Service redefinition : delivering new and different

59.
PERSPECTIVE
SHIFT:
Reposition Renew, and Refresh
Service Offerings In New Ways

60.
NOT JUST
FITNESS:
Lifestyle, Mindset, Nutrition,
Holistic, Longevity

61.
GREATER UTILITY AND
CONVENIENCE & RELEVANCE FOR
USERS
PERSONALIZATION
ACKNOWLEDGEMENT AND
RECOGNITION EMBRACING
A MISSION
ENGAGEMENT
FLAUNT CULTURE
NOT JUST FITNESS
BENEFICIAL
INTELLIGENCE
NEW WAYS OF DELIVERY
THAT INCREASE USE
AND RELEVANCE
SERVICE REDEFINITION
OMNI-PRESENCE
TRENDS + VISION = REINVENTING MODELS
3 KEY CONSUMER TRENDS
PERSPECTIVE SHIFT
STATUS

62.
CONSUMERS TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS

63.
HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS
TECHNOLOGY

64.
P H I L O S O P H Y O F E . O . W I L S O N
W E H AV E PA L E O L I T H I C E M O T I O N S ,
M E D I E VA L I N S T I T U T I O N S A N D
G O D - L I K E T E C H N O L O G Y
65

65.
@Bryankorourke @Kevin2Kelly
FREE COPY OF THE BOOK

66.
The greatest products of the next 20 years
have not been created yet.

67.
Kevin Kelly’s View Of What Will Happen With Technology
12 Inevitable Forces
68
01 Becoming 02 Cognifying 03 Flowing
04 Screening 05 Accessing 06 Sharing
Move from fixed products to
constant upgraded services and
subscriptions.
Make everything smarter via
cheap AI from the cloud.
Unstoppable streaming. You are
certainly now in the data
business.
Turning all surfaces into screen
experiences.
Access to services at all times
move away from owning assets.
Mass-scale collaboration. Key
innovations built on sharing.
BE CO FL
SC AC SH

68.
SCREEN

69.
SCREEN

70.
AC & CO

71.
12 Inevitable Forces
72
07 Filtering 08 Remixing 09 Interacting
10 Tracking 11 Questioning 12 Beginning
Harnessing intense
personalization to anticipate
desires.
Unbundling products and basic
parts and recombining them in all
possible ways.
Immersing ourselves inside
computers to maximize
engagement.
Total surveillance for consumer
and citizens benefit.
Promoting good questions is far
more valuable than good
answers.
A system connecting all humans
and machines in a global mix.
Kevin Kelly’s View Of What Will Happen With Technology
FI RE IN
TR QU BG

72.
CYBER PHYSICAL SYSTEM : THE HOLOS

73.
CONSUMERS TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS

74.
CONVERGENCE DRIVERS
ECONOMICS

75.
CONVERGENCE RESULTS
IN DIVERGENT MODELS

76.
New Delivery Systems

77.
Profit Margin
Dupont Formula : Return On Equity
78
EBITDA
SALES ASSETS EQUITY
SALES ASSETS
Asset Turnover Equity Multiplier
X X

78.
Profit Margin
Dupont: Return On Assets Where
the Growth Is
79
EBITDA
SALES $3M AVG
SALES
$3M AVG
Asset Turnover
X =53% 100% 53%

79.
Profit Margin
80
EBITDA
SALES
ASSETS
$1.6M AVG
SALES
$1.6M AVG
Asset Turnover
X =34% 100% 34%
Dupont: Return On Assets Where
the Growth Is

80.
8 Distinct Fitness Delivery Channels
Health Club Models
82
High End
Full Service
Middle
Market
Low Price
HV
Boutique
Full Service, Full
Amenities, Higher
Prices, Digital
Integration
Financially Challenged,
Low Pricing Power,
Legacy Burden
Hi-Growth Space,
Low-Cost, Low-
Service, Upcoming
Digital, Lower Markets
Program Focused,
Cross Over Lifestyle,
Multiple Monetization,
Omni-Channel

81.
Health Club Models
83
Lifestyle
Community
Pure
Digital
Medically
Integrated
Alternative
Models
Outdoors, Indoors,
Lifestyle. Connection,
Data Driven, Streaming
Content, Anywhere
Anytime,Home Market
and More
Outcomes Based,
Integrated, Population
Health
Corporate, Multi-
Family, Alternative
Models
8 Distinct Fitness Delivery Channels

82.
Business Models Will Merge Different Aspects Of Each Of
These With ALL INCLUDING DIGITAL COMPONENTS
Merging Of Offerings - Key Digital
84
High End
Full Service
Community Digital
Medically
Integrated
Middle Market
Low Price
High Value
Boutique
Alternative

83.
OLD MODEL OF VALUE
CUSTOMERS
TRANSACTIONS / $
IE: Valuable Companies

84.
NEW MODEL OF VALUE
RECEPTORS
COGNITION
IE: New Valuable Companies

85.
CHALLENGE IS NOT THE TECH
ITS PEOPLE’S MINDSET

86.
Good News : A Growing Market: sick care is not sustainable and public primary
prevention is the answer. Technology will help. #PassPhit

87.
Personalized Primary Prevention
Is Here - Your DNA

88.
S CURVE REINVENTION
THE PATH FORWARD

89.
HERE WE ARE : CONSOLIDATION
AND REENGINEERING - S CURVE
91
Bricks & Mortar Biz ModelsKey Driver Is Profitability
DIGITAL
OMNICHANNEL
MEDICAL
BOUTIQUE
LIFESTYLE
COMMUNITY

90.
HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
GLOBALISM

91.
100,000 Yrs. Ago, 6 Different Human
Species Inhabited Earth - Cooperation Key

92.
How we operate and invest must be
mindful of sustainability

93.
We must cooperate globally to impact policies that
address the huge risk and opportunity of global health

94.
We must globally share our insights and
cultural diversity to drive innovation and success

95.
HOW WILL YOU RESPOND ?

96.
OBJECTIVE QUESTIONS

97.
DESIGN ENHANCED PROFIT
UX OMNIPRESENCE SERVICE SCOPE
CLUB OPERATORS FOCUS

98.
TOOLS & RESOURCES
@IHRSA
@FITTECHCOUNCIL
@BRYANKOROURKE

99.
S CURVE REINVENTION

100.
FORWARD LOOKING PLAN

101.
Poised for growth
Disruption Will Make Our Industry Better

102.
SAPERE VEDERE
DA VINCI

103.
PEOPLE TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS

104.
The greatest products of the next 20 years
have not been created yet. Kevin Kelly

105.
HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
GLOBALISM

106.
bryankorourke.com @bryankorourke