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How the low-cost gym sector will transform the UK health and fitness industry

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Presentation given to sporta CEO's at the Leisure Industry Week Conference, Birmingham, UK, September 2010

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How the low-cost gym sector will transform the UK health and fitness industry

  1. 1. How the low-cost gym sector will transform the UK health & fitness industry Presentation to sporta LIW 2010, Ray Algar
  2. 2. www.oxygen-blog.blogspot.com
  3. 3. MINIMUM OF 50% LOWER THAN INDUSTRY PRICE SCOPE TO HEAVY OPERATE 24 TECHNOLOGY HOURS AND WEB USE MY DEFINITION OF A LOW- COST GYM ABILITY TO OPERATE CLUB GYM-ONLY WITH A SINGLE PROPOSITION PERSON
  4. 4. SIMPLICITY SUPPORTING INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS SPORADIC ATTENDANCE
  5. 5. SIMPLICITY SUPPORTING INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS SPORADIC ATTENDANCE
  6. 6. I Care
  7. 7. Consumers now have considerable experience of low-cost services
  8. 8. “Fly for the price of a pair of jeans” 11
  9. 9. Spend a little, live a lot 12
  10. 10. 13
  11. 11. Look good, pay less 14
  12. 12. Think of a sector…you will find low-cost
  13. 13. 300 million units annually by 2013
  14. 14. SIMPLICITY SUPPORTING INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS SPORADIC ATTENDANCE
  15. 15. SIMPLICITY SUPPORTING INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS SPORADIC ATTENDANCE
  16. 16. “I can join online – no pushy sales staff to deal with!”
  17. 17. SIMPLICITY SUPPORTING INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS SPORADIC ATTENDANCE
  18. 18. SIMPLICITY SUPPORTING INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS SPORADIC ATTENDANCE
  19. 19. 36
  20. 20. Word of mouth on steroids
  21. 21. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS SPORADIC ATTENDANCE
  22. 22. “Why am I paying for a club I occasionally use ?”
  23. 23. “Why am I paying £50 just to use a treadmill?”
  24. 24. What do low-cost gym consumers say?
  25. 25. “It is almost free”
  26. 26. “I have never been to a gym that is £15 before. I thought I would walk in and find a lot of broken equipment”
  27. 27. 49
  28. 28. 50
  29. 29. 51
  30. 30. 52
  31. 31. 53
  32. 32. McFit Financials 2007 Euros % turnover (millions) Turnover 86 Staff costs 3.4 3% EBITDA 28 32% Interest charge 0.1 - Net assets 34 Clubs 88 56
  33. 33. budgetgymresearch.ning.com oxygen-blog.blogspot.com Google: “Ray Algar”

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