Strategic insights into the European
Low-cost Gym Sector

IHRSA 2010
Barcelona

Ray Algar
www.oxygen-blog.blogspot.com
 2
How the low-cost gym
sector is transforming
    the European
     club market
MINIMUM OF
                50% LOWER
                   THAN
                 INDUSTRY
                   PRICE



 SCOPE ...
SIMPLICITY


  INFRA-
STRUCTURE                    AFFORDABILITY



                 MARKET
                 DRIVERS


   ...
SIMPLICITY


  INFRA-
STRUCTURE                    AFFORDABILITY



                 MARKET
                 DRIVERS


   ...
I Care
Consumers now have
    experience of
  low-cost services
“Fly for the price
of a pair of jeans”
 12
13
“Spend a little, live a lot “
                            14
15
16
Think of a sector…you will
      find low-cost
300
million units
annually by
2013
“Quality up, cost down
… way down”
SIMPLICITY


  INFRA-
STRUCTURE                    AFFORDABILITY



                 MARKET
                 DRIVERS


   ...
SIMPLICITY


  INFRA-
STRUCTURE                    AFFORDABILITY



                 MARKET
                 DRIVERS


   ...
Join online
and avoid me!
“When I need
advice, I will
pay for it”
SIMPLICITY


  INFRA-
STRUCTURE                    AFFORDABILITY



                 MARKET
                 DRIVERS


   ...
37
SIMPLICITY


  INFRA-
STRUCTURE                    AFFORDABILITY



                 MARKET
                 DRIVERS


   ...
40
www.reviewcentre.co.uk
                         41
Word of mouth
on steroids
SIMPLICITY


  INFRA-
STRUCTURE                    AFFORDABILITY



                 MARKET
                 DRIVERS


   ...
“Why am I paying
for a club I do not
    often use?”
“Why am I paying
 €60 just to use
  a treadmill?”
What do low-cost
gym consumers say?
“I pay €17, which is a
giveaway (big smile).
It’s for free really!”
“I have never been to a
gym that is €18 before. I
thought I would find a
lot of broken quipment”
“There’s plenty of staff
around. They’re
incredibly helpful
and friendly”
“I get an email; I think
it’s once a week. They
tell you their top
tips...(for example)…”
58
59
60
61
62
63
64
65
66
?
OPERATIONAL
           EXCELLENCE



MEMBER
INTIMACY             PRODUCT
                     LEADERSHIP
Presentation: oxygen-blog.blogspot.com
Report: budgetgymresearch.ning.com
Google: “Ray Algar”
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Strategic insights into the European Low-Cost Gym Sector
Upcoming SlideShare
Loading in …5
×

Strategic insights into the European Low-Cost Gym Sector

2,871 views

Published on

Presentation delivered by Ray Algar at the IHRSA European Congress held in Barcelona, Spain 18th October 2010

Published in: Business

Strategic insights into the European Low-Cost Gym Sector

  1. 1. Strategic insights into the European Low-cost Gym Sector IHRSA 2010 Barcelona Ray Algar
  2. 2. www.oxygen-blog.blogspot.com 2
  3. 3. How the low-cost gym sector is transforming the European club market
  4. 4. 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
  5. 5. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS LOW ATTENDANCE
  6. 6. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS LOW ATTENDANCE
  7. 7. I Care
  8. 8. Consumers now have experience of low-cost services
  9. 9. “Fly for the price of a pair of jeans” 12
  10. 10. 13
  11. 11. “Spend a little, live a lot “ 14
  12. 12. 15
  13. 13. 16
  14. 14. Think of a sector…you will find low-cost
  15. 15. 300 million units annually by 2013
  16. 16. “Quality up, cost down … way down”
  17. 17. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS LOW ATTENDANCE
  18. 18. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS LOW ATTENDANCE
  19. 19. Join online and avoid me!
  20. 20. “When I need advice, I will pay for it”
  21. 21. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS LOW ATTENDANCE
  22. 22. 37
  23. 23. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS LOW ATTENDANCE
  24. 24. 40
  25. 25. www.reviewcentre.co.uk 41
  26. 26. Word of mouth on steroids
  27. 27. SIMPLICITY INFRA- STRUCTURE AFFORDABILITY MARKET DRIVERS CONSUMER CONSUMERS ARE SENTIMENT CHANGING TOWARDS CLUBS LOW ATTENDANCE
  28. 28. “Why am I paying for a club I do not often use?”
  29. 29. “Why am I paying €60 just to use a treadmill?”
  30. 30. What do low-cost gym consumers say?
  31. 31. “I pay €17, which is a giveaway (big smile). It’s for free really!”
  32. 32. “I have never been to a gym that is €18 before. I thought I would find a lot of broken quipment”
  33. 33. “There’s plenty of staff around. They’re incredibly helpful and friendly”
  34. 34. “I get an email; I think it’s once a week. They tell you their top tips...(for example)…”
  35. 35. 58
  36. 36. 59
  37. 37. 60
  38. 38. 61
  39. 39. 62
  40. 40. 63
  41. 41. 64
  42. 42. 65
  43. 43. 66
  44. 44. ?
  45. 45. OPERATIONAL EXCELLENCE MEMBER INTIMACY PRODUCT LEADERSHIP
  46. 46. Presentation: oxygen-blog.blogspot.com Report: budgetgymresearch.ning.com Google: “Ray Algar”

×