The emergence of the UK low-cost gym sector

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Presentation by Ray Algar to students on Fitness Management and Personal Ttraining degree at Southampton Solent University - November 2011

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The emergence of the UK low-cost gym sector

  1. 1. The emergence of the UK low-cost gym sector Southampton Solent University Ray Algar, Oxygen Consulting November 2011Tuesday, 22 November 11
  2. 2. oxygen-consulting/think-tank oxygen-consulting/blogTuesday, 22 November 11
  3. 3. Why is the low-cost gym sector emerging?Tuesday, 22 November 11
  4. 4. Digital infrastructure Low attendance Simplicity MARKET DRIVERS Changing Affordability consumer Consumer sentiment towards clubsTuesday, 22 November 11
  5. 5. Tuesday, 22 November 11
  6. 6. “Spend  a  little,  live  a  lot  “ 6Tuesday, 22 November 11
  7. 7. Digital infrastructureTuesday, 22 November 11
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  15. 15. Low club attendanceTuesday, 22 November 11
  16. 16. Mid-market club with 4,000 membersTuesday, 22 November 11
  17. 17. Why does low club attendance matter?Tuesday, 22 November 11
  18. 18. Consumer sentiment towards clubsTuesday, 22 November 11
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  20. 20. www.reviewcentre.co.ukTuesday, 22 November 11
  21. 21. “Why am I paying for a club I rarely use?”Tuesday, 22 November 11
  22. 22. “Why am I paying £55 just to use a treadmill?”Tuesday, 22 November 11
  23. 23. Affordability & simplicityTuesday, 22 November 11
  24. 24. £46 for four weeksTuesday, 22 November 11
  25. 25. £19 per month - no contract to signTuesday, 22 November 11
  26. 26. £12 per month - 18-month contractTuesday, 22 November 11
  27. 27. Same monthly price as a TV licenseTuesday, 22 November 11
  28. 28. Attractive offer for ‘machine members’Tuesday, 22 November 11
  29. 29. What do UK consumers think of the low-cost gym experience?Tuesday, 22 November 11
  30. 30. Text The Gym Group ex-membersTuesday, 22 November 11
  31. 31. 17% Males - 60% 83% First gym Previous gym experienceTuesday, 22 November 11
  32. 32. How much do you agree with the following statements? 0 = strongly 5 = strongly disagree agreeTuesday, 22 November 11
  33. 33. How much do you agree with the following statements? 3.4 3.5 3.7 3.7 4 4 4.1 Staff available to provide free advice All the facilities I needed Friendly atmopshere Helped me become healthier person Always felt safe Email with advice Provided eveything promised on websiteTuesday, 22 November 11
  34. 34. How likely are you to recommend this gym? 0 = Not all 10 = Definitely all likely recommendTuesday, 22 November 11
  35. 35. How likely are you recommend The Gym? 7 8 9 7.4 7.5Average Response 7.5 7.6 8.5 Members with previous club experience All members Males Females The Gym was first gym member joinedTuesday, 22 November 11
  36. 36. How likely to recommend to a friend - by club Birmingham 7.9 8.5 Brighton 7.4 7.4 Liverpool 7.4 7.4 Males FemalesTuesday, 22 November 11
  37. 37. “No frills, low-cost gym. Especially important for us students!” Female member The Gym, Birmingham 10Tuesday, 22 November 11
  38. 38. “The friendly atmosphere, knowing you are safe and not being judged by staff” Female member The Gym, Birmingham 10Tuesday, 22 November 11
  39. 39. “Cleanliness and amount of equipment available” Female member The Gym, Birmingham 10Tuesday, 22 November 11
  40. 40. “There was a lack of staff. I searched for 15 minutes before finding staff. I cancelled after going just once” Male member The Gym, Liverpool 2Tuesday, 22 November 11
  41. 41. “Provide more supervision from staff” Female member The Gym, Brighton 6Tuesday, 22 November 11
  42. 42. “I would have liked a private changing cubicle” Male member The Gym, Birmingham 5Tuesday, 22 November 11
  43. 43. How long a member? Unsure 5% More than one year 7% 0-3 months 27% 7-12 months 26% 4-6 months 35%Tuesday, 22 November 11
  44. 44. Where are members now? 31% Male 66% 69% Joined a different gym Not joined another gymTuesday, 22 November 11
  45. 45. What is an authentic low-cost gym?Tuesday, 22 November 11
  46. 46. 50% lower than country average price Scope to Heavy operate 24 technology hours and web use DEFINITION LOW COST GYM Ability to operate Predominantly a with a single gym-only person propositionTuesday, 22 November 11
  47. 47. The brand launched in 2008Tuesday, 22 November 11
  48. 48. D2 consent with 24-hour access High visibility City centre locations locations PROPERTY SPEC 100,000 12,000 - population 20,000 10-minute Square feet driveTuesday, 22 November 11
  49. 49. Vauxhall gym London. Case studyTuesday, 22 November 11
  50. 50. Gym opened August 2009Tuesday, 22 November 11
  51. 51. St George Wharf 16,000 Ground square Floor + feet mezzanine THE GYM VAUXHALL 200 24-hour strength opening and CV machinesTuesday, 22 November 11
  52. 52. 10 Personal Trainers (freelance) PT’s ‘donate’ 2 salaried 10 hours managers per week VAUXHALL STAFFING/ OPERATIONS 1,000 - 1,500 All other member functions visits per day outsourcedTuesday, 22 November 11
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  55. 55. 40% 60% Membership mixTuesday, 22 November 11
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  64. 64. Questions and discussion at: www.oxygen- consulting.co.uk/blogTuesday, 22 November 11

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