This document provides an overview of the emergence of the low-cost gym sector. It discusses key aspects of low-cost gyms including operating 24 hours a day with minimal staff, using technology and websites, and offering memberships at 50% lower prices than traditional gyms. Low-cost gyms aim to make fitness affordable and accessible through simplicity, supporting infrastructure, and appealing to consumers who are changing their views on gym memberships and sporadic attendance.
It is not the strongest of the brands nor the most intelligent that survives. It is the one that is the most adaptable to the changing ideas by your customers, your employees or companies that would like to work with you
As a founder member of the <a><em>motability car scheme</em></a>
Vauxhall is a major supplier of vehicles to disabled
drivers and their families.
It is not the strongest of the brands nor the most intelligent that survives. It is the one that is the most adaptable to the changing ideas by your customers, your employees or companies that would like to work with you
As a founder member of the <a><em>motability car scheme</em></a>
Vauxhall is a major supplier of vehicles to disabled
drivers and their families.
Why cholesterol has a split personality and how the fitness sector can help tackle the growing number of people with high cholesterol levels through positive dietary and lifestyle changes.
Why cholesterol has a split personality and how the fitness sector can help tackle the growing number of people with high cholesterol levels through positive dietary and lifestyle changes.
1. 06/10/2010
A strategic look at the emergence of the
low-cost gym sector
FIA Seminar October 2010
Ray Algar
My perspective
neutral
towards the
sector
www.oxygen-blog.blogspot.com
MINIMUM OF
50% LOWER
THAN SIMPLICITY SIMPLICITY
INDUSTRY
PRICE
SUPPORTING SUPPORTING
INFRA- INFRA-
STRUCTURE AFFORDABILITY STRUCTURE AFFORDABILITY
SCOPE TO HEAVY
OPERATE 24 TECHNOLOGY
HOURS AND WEB USE
MY MARKET MARKET
DEFINITION DRIVERS DRIVERS
OF A LOW-
COST GYM
CONSUMER CONSUMER
CONSUMERS ARE CONSUMERS ARE
SENTIMENT SENTIMENT
CHANGING CHANGING
TOWARDS CLUBS TOWARDS CLUBS
ABILITY TO
OPERATE CLUB GYM-ONLY SPORADIC SPORADIC
WITH A SINGLE PROPOSITION ATTENDANCE ATTENDANCE
PERSON
1
2. 06/10/2010
I Care
Consumers now have
considerable experience
of low-cost services
2
3. 06/10/2010
“More of our shoppers
are using us for their
whole shop instead of
top-up shopping”
“Fly for the price Group MD Aldi UK & Ireland
of a pair of jeans”
“Spend a little, live a lot”
14
13
Think of a sector…you will
find low-cost
“Look good, pay less”
16
17
3
4. 06/10/2010
300
million units
annually by
2013
“Quality up, cost down
… way down”
SIMPLICITY
SUPPORTING
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
SPORADIC
ATTENDANCE
4
6. 06/10/2010
SIMPLICITY
SUPPORTING
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
SPORADIC
“I can join online – no pushy
ATTENDANCE
sales staff to deal with!”
SIMPLICITY
SUPPORTING
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
SPORADIC
ATTENDANCE
6
7. 06/10/2010
SIMPLICITY
SUPPORTING
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
SPORADIC
ATTENDANCE
Word of mouth Word of mouth
on steroids on steroids
40
7
8. 06/10/2010
SIMPLICITY
INFRA-
STRUCTURE AFFORDABILITY
MARKET
DRIVERS
CONSUMER
CONSUMERS ARE
SENTIMENT
CHANGING
TOWARDS CLUBS
SPORADIC
ATTENDANCE
“Why am I paying “Why am I paying
for a club I £50 just to use What do low-cost gym
occasionally use ?” a treadmill?” consumers say?
8
9. 06/10/2010
“I have never been to a
gym that is £15 before. I
“It is almost free” thought I would walk in
and find a lot of
broken equipment”
54
9
11. 06/10/2010
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
61
“Perhaps the biggest
threat we face is that
someone from outside
our sector, with a huge
war chest of cash and
proven customer-centric
business model, will
build 1,000 shiny new
facilities, and offers
budget-busting
membership deals”
Fred Turok, Chairman, FIA
(statement from 2007)
11