12 minute read
After the Year Like No Other
Industry leaders explain the challenges that fi tness faces in 2021 while also look at the opportunities for the industry
With the Coronavirus pandemic impacting the fitness industry with enforced closures and apprehensive consumers often hesitant to return to facilities, the fitness industry is looking to move on in 2021.
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Australasian Leisure Management asked key industry stakeholders what they see as the key issues facing the fitness club/gym/studio sector in 2021 and how they think the challenges can be overcome.
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Greg Oliver, Group Chief Executive and Managing Director, Fitness and Lifestyle Group
“We are very optimistic in regards to the 2021 outlook and expect to see a strong bounce towards the second half of the calendar year. Clearly, the impacts of the virus are affecting the industry to varying degrees across the globe, pleasingly for us the APAC regions have been less impacted across sales performance and member retention metrics.
“On the domestic front, at a macro level, we are confident that consumer demand for our product and services will remain high, especially as the fear of congregation subsides and the need to regain the sense of community and personal connection drives consumers back into our facilities. While there is still some concern around the removal or watering down of the government economic stimulus programs currently offered we expect that the return to economic growth and continued consumer spending will remain strong. Our products have shown their resilience through tough economic conditions due to the almost non-discretionary nature of the category, although in the management of COVID, where the restrictions and controls have been mandated outside of our control the capacity and operating restrictions were debilitating.
“While this continues to be somewhat of an issue we see it normalising over the next six months as the vaccines are rolled out across most of APAC. Efficacy of the vaccines and the speed to get a substantive proportion of the population vaccinated will also play a part in our recovery while also mitigating the issues that we see with cluster breakouts that have caused some disruption. We have seen some shifts towards at-home fitness from a content and equipment perspective although we see this as helping grow the category and provide more flexible consumption. We can see from our customer feedback that time spent working out before the pandemic was ‘me time’, and part of the satisfaction of going to the gym is being able to focus on the self and being part of a community that values self-improvement.”
Mel Tempest, fitness business influencer, speaker, podcaster and founder at Ignite Fitness Business Events
“When the crisis hit in March businesses pivoted online, and this was not just gym owners creating online classes but also events, educational training, personal training - whatever it was it went online.
“And the year saw control of our businesses taken away - our wages, our security, our hopes - we were dependent on those voted in and who now paid our wages and, unfortunately, a lot of us were at the mercy of landlords.
“The fitness domino fell and fell hard, many left voluntarily, many were forced and the ASIC website grew from three pages to 13 pages of gyms and suppliers listed as they closed the doors.
“One of the biggest issues facing club owners in 2021 will be new gyms and business models opening by those that once worked for us.
“A new appreciation of life, gratitude and the all round Aussie behaviour ‘to have a crack’ has encouraged people to have a go to be in control of their destiny.
“And while we are not a saturated market, we are a market that continues to replicate itself.
“2020 was a smack in the face on just how dependent many were. Many clubs couldn’t offer JobKeeper, this led to trainers/ instructors registering for JobSeeker.
“Many started their own business online and then when able moved their business outside - outdoor fitness business became bigger than what we knew. Bootcamps were no longer the only model, outdoor cycle classes, barbell, step, boxing, kettlebell, functional training and wellbeing, if you could teach it indoors it became an outdoor model.
The lesson learnt here from many was they were capable of running their own business.
“Real estate agents nationally have seen an increase in renting out commercial and industrial properties to the new founded COVID entrepreneur, their COVID success means they no longer need to return to life prior to 2020, no longer dependent on the turnover of another person’s business. “They have opportunity all around them, they have the skills taught to them previously and the resources from that experience, they have been active in business through the shutdown.
“This is the new competition - with some still running under their own trading name and some signing up with the many new studios/boutiques launching in Australia in 2021.
“These new boutiques are fresh, exciting, simple and financially viable to launch, with systems and structures to become more successful as they steer their own ship.”
Ben Lucas, Director of fitness and yoga studio Flow Athletic
“The key issue facing fitness clubs in 2021 from my perspective is how we are going to be able to stay open with on-going social distancing within studios due to COVID-19.
“Boutique studios with reduced numbers equals reduced income not to mention the increased expense of having to add extra classes to fit members in.
“How are you going to make up for the lost revenue plus increased class and cleaning expense with no relief in sight?”
Michael Jordan, Chief Executive, 12RND Fitness
“Last year the fitness industry endured forced shutdowns, significant operational restrictions and the pressures of ongoing public safety concerns, which prompted many to adapt or completely transform their models.
“These challenges will likely continue in 2021 as we’ve seen already through sporadic lockdowns globally, so our industry will need to remain nimble and resilient this year. The areas that we have focused on at 12RND to stay engaged with our members and our franchisees, and in order to overcome these challenges are: innovation, communication and support.
“Innovation has been one of our biggest drivers of growth throughout the impacts of COVID-19, with the introduction of apps and in-club technological developments last year allowing us to elevate the training experience for members, and continue to engage with them both in and out of the club environment. Communication was vital throughout this time, firstly to ensure our network was fully equipped with the information and resources they needed to effectively roll out these new releases, and to ensure that they could remain connected with their members during club closures.
“Most of all, the extensive support our franchisees and coaches provided members and the wider community during the hardships of 2020 created strong bonds and goodwill. This led to quick reactivations and strong membership sales post lockdowns. Our strategy this year is to continue to streamline and increase effectiveness across these areas, starting with the Premium release of our Train: On Demand app. This release is the latest step in our smart club evolution towards a hybrid model that enhances value for our members, and will drive membership and network growth throughout 2021.”
Deborah Goldberg, fitness catalyst and connector
“The key issue facing the fitness club/gym/studio sector in 2021 is sustainability (and) what this means is the brick and mortar fitness business must build a sustainable business for it to survive 2021.
“The business must focus on building a sustainable ongoing service that will retain active paying members by providing a Hybrid delivery of programming, classes and mental health support.
“Humanising the way the digital is offered will be a key to success for 2021 and of course, attracting new active paying members with a global reach with a unique virtual approach to technology.
“Other key issues I identify as being • Adapting to technology and being digitally aware • Staff retention and training • Ensuring hygiene budget • Staying relevant to a global community • Hyper local marketing • Personalised programming • Overcoming the fear that Peloton, Apple Fitness and other disruptors will take over the industry
Justin McDonell, co-founder, Anytime Australia Pty Ltd
“Uncertainty in operational restrictions placed on clubs/studios is one of the biggest challenges that will continue from last year into 2021, especially with each state/territory in Australia approaching and managing COVID differently.
“We need to ensure our members and customers feel safe and ensure that the health departments are aware that Fitness Facilities are safe places. We have the data to prove that our facilities are not a place where there is a high risk of COVID transmission.
“Until the vaccine is rolled out in Australia and a large part of the world we need to adapt and work as best we can in the uncertainly of what we have.”
Tim Schleiger, Director The Sports Clinic of Melbourne and founder of Train 24/7 Fitness and VicActive
“2020 could be easily forgotten by all of us, especially those in the fitness industry who wore the full brunt of the harsh lockdowns due to the COVID-19 pandemic. Victorian gym owners were unable to open their fitness facilities for seven months causing both economic disaster and a mental and physical health catastrophe with fitness enthusiasts unable to get to their all-important happy place.
“(Looking forward) there is still a lot of water to travel under the bridge regarding the impact of COVID-19 on the fitness sector in 2021.
“So often last year the state premiers told us that the troubles faced in Europe, the US and the UK were a completely different narrative to what happened in Australia. Yet both here and abroad, bottle shops stayed open, construction stayed open while gyms and fitness facilities were slammed shut.
“The proudest moment I had last year was observing key players of the international fitness industry collaborating to gain as much data as possible to prove that gyms are an essential service, and they are COVIDSafe. In the space of six months, we went from an industry that was perceived less safe than pubs, night clubs, and even brothels, to an industry with top class COVIDSafe standards. We achieved this by utilising science and real, irrefutable data that not even politicians could deny.
“Looking ahead to this winter, we only need to observe the past to see the ease in which our state premiers have shifted into lookdown mode at the slightest hint of a positive case or two. For this reason alone, we need to stay united and on the front foot in reminding governments and our local communities to listen to the data, listen to the science and that we are here to keep our communities healthy, happy and safe.
“2021 for the fitness industry in Australia is all about the rebuild. The rebuild of the mental and physical health of Australia’s population. In order for this to be achieved, we need to ensure that we keep our parks, studios, fitness facilities, recreation centres and gyms open. We need to continue to unite as an industry and work together as a professional unit that can be perceived only as an essential service. I believe there is still a long way to go on this, but in the meantime let’s start by getting Australian’s physical and mental health back on track by doing what we all do best.”
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