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Poised For Expansion
The Future Of The Fitness Industry
300% Growth In 10 Years ?
@BryanKORourke, CSO, CEO, Principal
Hous...
bryankorourke.com @bryankorourke
GREATEST TIME IN HISTORY
TO BE IN OUR INDUSTRY
AND BUSINESS AS USUAL IS DEAD
HOW WILL YOU RESPOND ?
MY STORY STARTS IN 1983
1993
I INNOVATED ACROSS INDUSTRIES
1996
INTRODUCED AUTOMATED ESPRESSO
1997 GOT INTO HEALTH CLUBS
2005 GOT INTO GROUP FITNESS
STARTED INNOVATING AGAIN
2006 #TheCloud
AND AGAIN
2007 @bryankorourke @GaryVee
PAST 10 YEARS ENTERED AGE OF ACCELERATIONS
2016
http://www.fittechcouncil.org/podcast/
WE KEEP INNOVATING
GROWTH REQUIRES INNOVATION
1 BILLION MEMBERS
GROWTH REQUIRES
DISRUPTION
SAPERE VEDERE
DA VINCI “TO
KNOW IS TO SEE”
RISING TIDES LIFT
ALL BOATS
DISRUPTION IN THE ERA
OF MASS ACCELERATION
DISRUPTION EXAMPLES :
RESTAURANTS OFFER A
DINNING EXPERIENCE
THIS OFFERS A DINING
EXPERIENCE
BANKS OFFER
FINANCIAL SERVICES
THIS AI OFFERS
FINANCIAL SERVICES
CONCERTS OFFER
MUSICAL ENTERTAINMENT
THIS APP DOES THE SAME
THIS CLINIC OFFERS
MEDICAL CARE
THIS APP OFFERS
MEDICAL CARE
HEALTH CLUBS OFFER
HEALTH & FITNESS EXPERIENCES
DISRUPTION: THIS OFFERS
HEALTH & FITNESS EXPERIENCES
DISRUPTION: THIS OFFERS
HEALTH & FITNESS SERVICES
THIS OFFERS
HEALTH & FITNESS EXPERIENCES
DISRUPTION: THIS OFFERS
FITNESS EXPERIENCES
AND SO DOES THIS
INDUSTRY DEFINITIONS HAVE CHANGED
THE LINES ARE BLURRED
WHAT ARE FITNESS EXPERIENCES BECOMING ?
HOW WILL THE INDUSTRY EVOLVE ?
WHAT WILL MEMBERS REALLY WANT ?
HEALTH CLUBS HELP PEOPLE GET
HEALTHY & FIT.. AND
WE’VE ENTERED A NEW ERA
YOU MUST APPLY FRESH THINKING
TO REACH MARKET POTENTIAL
PEOPLE TECHNOLOGY
GLOBALISM ECONOMICS
DISRUPTION BY CONVERGENCE
OF TRENDS
PEOPLE’S BEHAVIORS
HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
Old school definitions don’t apply - dizzying diversity
Bifurcation : mass affluence driving niche luxury models
and middle class driving utility businesses.
Urbanization : cities are driving global growth
and represent the majority of health club operations.
48
Power has shifted to fitness consumers
Exane : 10% luxury is digital now 40% by 2020
3 CONSUMER
TRENDS
GREATER UTILITY AND
CONVENIENCE & RELEVANCE FOR
USERS
PERSONALIZATION
ACKNOWLEDGEMENT AND
RECOGNITION EMBRACING
A MISSION
...
Personalization: greater utility, convenience & relevance
BENEFICIAL
INTELLIGENCE
Enhancing User Experience Through
Built In Intelligence
OMNIPRESENCE
New Channels, Nuanced With Context
In The Right Place At The Right Time
Personalization is hard
Engagement: acknowledgement recognition mission
STATUS:
Experiences Via Design,
Gamifying, UX, Community
FLAUNT
CULTURE
Allow Users To Remove Barriers And
Celebrate And Flaunt An Authentic
Transparent Experience
Service redefinition : delivering new and different
PERSPECTIVE
SHIFT:
Reposition Renew, and Refresh
Service Offerings In New Ways
NOT JUST
FITNESS:
Lifestyle, Mindset, Nutrition,
Holistic, Longevity
GREATER UTILITY AND
CONVENIENCE & RELEVANCE FOR
USERS
PERSONALIZATION
ACKNOWLEDGEMENT AND
RECOGNITION EMBRACING
A MISSION
...
CONSUMERS TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS
HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS
TECHNOLOGY
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...
@Bryankorourke @Kevin2Kelly
FREE COPY OF THE BOOK
The greatest products of the next 20 years
have not been created yet.
Kevin Kelly’s View Of What Will Happen With Technology
12 Inevitable Forces
68
01 Becoming 02 Cognifying 03 Flowing
04 Scr...
SCREEN
SCREEN
AC & CO
12 Inevitable Forces
72
07 Filtering 08 Remixing 09 Interacting
10 Tracking 11 Questioning 12 Beginning
Harnessing intense...
CYBER PHYSICAL SYSTEM : THE HOLOS
CONSUMERS TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS
CONVERGENCE DRIVERS
ECONOMICS
CONVERGENCE RESULTS
IN DIVERGENT MODELS
New Delivery Systems
Profit Margin
Dupont Formula : Return On Equity
78
EBITDA
SALES ASSETS EQUITY
SALES ASSETS
Asset Turnover Equity Multiplier...
Profit Margin
Dupont: Return On Assets Where
the Growth Is
79
EBITDA
SALES $3M AVG
SALES
$3M AVG
Asset Turnover
X =53% 100%...
Profit Margin
80
EBITDA
SALES
ASSETS
$1.6M AVG
SALES
$1.6M AVG
Asset Turnover
X =34% 100% 34%
Dupont: Return On Assets Wher...
8 Distinct Fitness Delivery Channels
Health Club Models
82
High End
Full Service
Middle
Market
Low Price
HV
Boutique
Full ...
Health Club Models
83
Lifestyle
Community
Pure
Digital
Medically
Integrated
Alternative
Models
Outdoors, Indoors,
Lifestyl...
Business Models Will Merge Different Aspects Of Each Of
These With ALL INCLUDING DIGITAL COMPONENTS
Merging Of Offerings - ...
OLD MODEL OF VALUE
CUSTOMERS
TRANSACTIONS / $
IE: Valuable Companies
NEW MODEL OF VALUE
RECEPTORS
COGNITION
IE: New Valuable Companies
CHALLENGE IS NOT THE TECH
ITS PEOPLE’S MINDSET
Good News : A Growing Market: sick care is not sustainable and public primary
prevention is the answer. Technology will he...
Personalized Primary Prevention
Is Here - Your DNA
S CURVE REINVENTION
THE PATH FORWARD
HERE WE ARE : CONSOLIDATION
AND REENGINEERING - S CURVE
91
Bricks & Mortar Biz ModelsKey Driver Is Profitability
DIGITAL
OM...
HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
GLOBALISM
100,000 Yrs. Ago, 6 Different Human
Species Inhabited Earth - Cooperation Key
How we operate and invest must be
mindful of sustainability
We must cooperate globally to impact policies that
address the huge risk and opportunity of global health
We must globally share our insights and
cultural diversity to drive innovation and success
HOW WILL YOU RESPOND ?
OBJECTIVE QUESTIONS
DESIGN ENHANCED PROFIT
UX OMNIPRESENCE SERVICE SCOPE
CLUB OPERATORS FOCUS
TOOLS & RESOURCES
@IHRSA
@FITTECHCOUNCIL
@BRYANKOROURKE
S CURVE REINVENTION
FORWARD LOOKING PLAN
Poised for growth
Disruption Will Make Our Industry Better
SAPERE VEDERE
DA VINCI
PEOPLE TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
The greatest products of the next 20 years
have not been created yet. Kevin Kelly
HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
GLOBALISM
bryankorourke.com @bryankorourke
The Health Club Industry - Poised For Growth IHRSA 2017 - Bryan O'Rourke
The Health Club Industry - Poised For Growth IHRSA 2017 - Bryan O'Rourke
The Health Club Industry - Poised For Growth IHRSA 2017 - Bryan O'Rourke
The Health Club Industry - Poised For Growth IHRSA 2017 - Bryan O'Rourke
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The Health Club Industry - Poised For Growth IHRSA 2017 - Bryan O'Rourke

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Bryan O'Rourke presented this content to demonstrate how the global health club industry will expand by 300% by 2025 . The presentation was made at IHRSA 2017 in Los Angeles. Key trends, business models and other factors are outlined along with videos and data to establish the growth potential for health clubs and fitness in general around the globe.

Published in: Health & Medicine
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The Health Club Industry - Poised For Growth IHRSA 2017 - Bryan O'Rourke

  1. 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. 2. bryankorourke.com @bryankorourke
  3. 3. GREATEST TIME IN HISTORY TO BE IN OUR INDUSTRY
  4. 4. AND BUSINESS AS USUAL IS DEAD
  5. 5. HOW WILL YOU RESPOND ?
  6. 6. MY STORY STARTS IN 1983
  7. 7. 1993 I INNOVATED ACROSS INDUSTRIES
  8. 8. 1996 INTRODUCED AUTOMATED ESPRESSO
  9. 9. 1997 GOT INTO HEALTH CLUBS
  10. 10. 2005 GOT INTO GROUP FITNESS
  11. 11. STARTED INNOVATING AGAIN 2006 #TheCloud
  12. 12. AND AGAIN 2007 @bryankorourke @GaryVee
  13. 13. PAST 10 YEARS ENTERED AGE OF ACCELERATIONS
  14. 14. 2016
  15. 15. http://www.fittechcouncil.org/podcast/ WE KEEP INNOVATING
  16. 16. GROWTH REQUIRES INNOVATION
  17. 17. 1 BILLION MEMBERS GROWTH REQUIRES DISRUPTION
  18. 18. SAPERE VEDERE DA VINCI “TO KNOW IS TO SEE”
  19. 19. RISING TIDES LIFT ALL BOATS
  20. 20. DISRUPTION IN THE ERA OF MASS ACCELERATION
  21. 21. DISRUPTION EXAMPLES : RESTAURANTS OFFER A DINNING EXPERIENCE
  22. 22. THIS OFFERS A DINING EXPERIENCE
  23. 23. BANKS OFFER FINANCIAL SERVICES
  24. 24. THIS AI OFFERS FINANCIAL SERVICES
  25. 25. CONCERTS OFFER MUSICAL ENTERTAINMENT
  26. 26. THIS APP DOES THE SAME
  27. 27. THIS CLINIC OFFERS MEDICAL CARE
  28. 28. THIS APP OFFERS MEDICAL CARE
  29. 29. HEALTH CLUBS OFFER HEALTH & FITNESS EXPERIENCES
  30. 30. DISRUPTION: THIS OFFERS HEALTH & FITNESS EXPERIENCES
  31. 31. DISRUPTION: THIS OFFERS HEALTH & FITNESS SERVICES
  32. 32. THIS OFFERS HEALTH & FITNESS EXPERIENCES
  33. 33. DISRUPTION: THIS OFFERS FITNESS EXPERIENCES
  34. 34. AND SO DOES THIS
  35. 35. INDUSTRY DEFINITIONS HAVE CHANGED THE LINES ARE BLURRED
  36. 36. WHAT ARE FITNESS EXPERIENCES BECOMING ?
  37. 37. HOW WILL THE INDUSTRY EVOLVE ?
  38. 38. WHAT WILL MEMBERS REALLY WANT ?
  39. 39. HEALTH CLUBS HELP PEOPLE GET HEALTHY & FIT.. AND
  40. 40. WE’VE ENTERED A NEW ERA
  41. 41. YOU MUST APPLY FRESH THINKING TO REACH MARKET POTENTIAL
  42. 42. PEOPLE TECHNOLOGY GLOBALISM ECONOMICS DISRUPTION BY CONVERGENCE OF TRENDS
  43. 43. PEOPLE’S BEHAVIORS HEALTH & FITNESS INDUSTRY CONVERGENCE DRIVERS
  44. 44. Old school definitions don’t apply - dizzying diversity
  45. 45. Bifurcation : mass affluence driving niche luxury models and middle class driving utility businesses.
  46. 46. Urbanization : cities are driving global growth and represent the majority of health club operations.
  47. 47. 48
  48. 48. Power has shifted to fitness consumers Exane : 10% luxury is digital now 40% by 2020
  49. 49. 3 CONSUMER TRENDS
  50. 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. 51. Personalization: greater utility, convenience & relevance
  52. 52. BENEFICIAL INTELLIGENCE Enhancing User Experience Through Built In Intelligence
  53. 53. OMNIPRESENCE New Channels, Nuanced With Context In The Right Place At The Right Time
  54. 54. Personalization is hard
  55. 55. Engagement: acknowledgement recognition mission
  56. 56. STATUS: Experiences Via Design, Gamifying, UX, Community
  57. 57. FLAUNT CULTURE Allow Users To Remove Barriers And Celebrate And Flaunt An Authentic Transparent Experience
  58. 58. Service redefinition : delivering new and different
  59. 59. PERSPECTIVE SHIFT: Reposition Renew, and Refresh Service Offerings In New Ways
  60. 60. NOT JUST FITNESS: Lifestyle, Mindset, Nutrition, Holistic, Longevity
  61. 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. 62. CONSUMERS TECHNOLOGY GLOBALISM ECONOMICS 4 HEALTH CLUB INDUSTRY CONVERGENCE DRIVERS
  63. 63. HEALTH CLUB INDUSTRY CONVERGENCE DRIVERS TECHNOLOGY
  64. 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. 65. @Bryankorourke @Kevin2Kelly FREE COPY OF THE BOOK
  66. 66. The greatest products of the next 20 years have not been created yet.
  67. 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. 68. SCREEN
  69. 69. SCREEN
  70. 70. AC & CO
  71. 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. 72. CYBER PHYSICAL SYSTEM : THE HOLOS
  73. 73. CONSUMERS TECHNOLOGY GLOBALISM ECONOMICS 4 HEALTH CLUB INDUSTRY CONVERGENCE DRIVERS
  74. 74. CONVERGENCE DRIVERS ECONOMICS
  75. 75. CONVERGENCE RESULTS IN DIVERGENT MODELS
  76. 76. New Delivery Systems
  77. 77. Profit Margin Dupont Formula : Return On Equity 78 EBITDA SALES ASSETS EQUITY SALES ASSETS Asset Turnover Equity Multiplier X X
  78. 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. 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. 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. 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. 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. 83. OLD MODEL OF VALUE CUSTOMERS TRANSACTIONS / $ IE: Valuable Companies
  84. 84. NEW MODEL OF VALUE RECEPTORS COGNITION IE: New Valuable Companies
  85. 85. CHALLENGE IS NOT THE TECH ITS PEOPLE’S MINDSET
  86. 86. Good News : A Growing Market: sick care is not sustainable and public primary prevention is the answer. Technology will help. #PassPhit
  87. 87. Personalized Primary Prevention Is Here - Your DNA
  88. 88. S CURVE REINVENTION THE PATH FORWARD
  89. 89. HERE WE ARE : CONSOLIDATION AND REENGINEERING - S CURVE 91 Bricks & Mortar Biz ModelsKey Driver Is Profitability DIGITAL OMNICHANNEL MEDICAL BOUTIQUE LIFESTYLE COMMUNITY
  90. 90. HEALTH & FITNESS INDUSTRY CONVERGENCE DRIVERS GLOBALISM
  91. 91. 100,000 Yrs. Ago, 6 Different Human Species Inhabited Earth - Cooperation Key
  92. 92. How we operate and invest must be mindful of sustainability
  93. 93. We must cooperate globally to impact policies that address the huge risk and opportunity of global health
  94. 94. We must globally share our insights and cultural diversity to drive innovation and success
  95. 95. HOW WILL YOU RESPOND ?
  96. 96. OBJECTIVE QUESTIONS
  97. 97. DESIGN ENHANCED PROFIT UX OMNIPRESENCE SERVICE SCOPE CLUB OPERATORS FOCUS
  98. 98. TOOLS & RESOURCES @IHRSA @FITTECHCOUNCIL @BRYANKOROURKE
  99. 99. S CURVE REINVENTION
  100. 100. FORWARD LOOKING PLAN
  101. 101. Poised for growth Disruption Will Make Our Industry Better
  102. 102. SAPERE VEDERE DA VINCI
  103. 103. PEOPLE TECHNOLOGY GLOBALISM ECONOMICS 4 HEALTH & FITNESS INDUSTRY CONVERGENCE DRIVERS
  104. 104. The greatest products of the next 20 years have not been created yet. Kevin Kelly
  105. 105. HEALTH & FITNESS INDUSTRY CONVERGENCE DRIVERS GLOBALISM
  106. 106. bryankorourke.com @bryankorourke

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