NIELSEN: LES MILLS GLOBAL CONSUMER FITNESS SURVEY (2013)

AUGUST 2014

CONSUMER FITNESS TRENDS STATISTICS & INSIGHTS FOR FITNESS

FACILITIES

RESEARCH

NORWAY

FINLAND

SWEDEN

GERMANY

ITALY

SPAIN

FRANCE

NETHERLANDS UNITED KINGDOM

DENMARK

BRAZIL

AUSTRALIA

WEST COASTSOUTH

CENTRAL

EAST COAST

SAMPLE: 4,610 across 13 countries

WEIGHTING:After the survey closed, weighting was used to correct any minor imbalances. Variables used for weighting were based on official population figures for age, gender and region.INDEPENDENT:Online survey, with consumers randomly invited to participate from Survey Sampling International, a leading global panel provider representing of the market demand.

85%

FACTS & INSIGHTS

1. WHO EXERCISES?

2. WHAT ARE EXERCISERS DOING?

3. WHERE AND WHY ARE THEY EXERCISING?

4. WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

6. LES MILLS5. GROUP FITNESS EXERCISERS

1. WHO EXERCISES?

WHO EXERCISES?Globally, 78% of the adults over 18 years old exercise or would like to

Another 39% are not currently exercising to keep fit and healthy but would like to

22% 39%

39%

22% have no interest in exercising

39% exercise regularly with 87% exercising 3 or more times

a week

FACTS

81% of Millennials (18 to 34 year olds) exercise or would like to (vs. only 61% of Boomers)

36% are not currently exercising to keep fit and healthy but would like to

20% 45%

36%

20% have no interest in exercising

45% exercise regularly

27% of the adult population (18+) attend a fitness facility

27%

24% 22%

18%

9% Never been

Lapsed

Have no interest in exercising

Member

Casual member

WHO WOULD CONSIDER JOINING?20% of regular exercisers who are not member of a gym would

25% of exercise considerers who are not member of a gym would

60% of lapsed members would

36% of Millennials (aged 18-34) would

43% of Millennials (aged 18-34) would

(24% of the adult population)

INSIGHTS WHO EXERCISES?

Fitness centers have real growth opportunities in specific areas.

The vast majority of the adult

population either exercise

regularly or would like to.

The market of people

in the exercise contemplation stage is equally important

to the regular exercisers one (39%

of the adult population).

A HUGE OPPORTUNITY IF OPERATORS CAN UNDERSTAND THEIR REQUIREMENTS AND GAIN A DEEPER UNDERSTANDING OF THE STAGES OF CHANGE (CONTEMPLATION, PLANNING AND RELAPSE) FOR INDIVIDUALS IN EACH CATEGORY.

of regular exercisers who are not currently attending a gym would consider doing so

20% of exercise considerers who are not currently attending a gym would consider

25%

81% of lapsed members, would consider rejoining their local gym

60% 61% for Boomers.

The Millennials

>>exercise or would like to versus

2. WHAT ARE THE EXERCISERS DOING?

WHAT ARE THE EXERCISERS DOING?

FACTS

FITNESS IS THE WORLD’S BIGGEST ‘SPORT’

29%27%31%

59%

12%13%4% 7%

13%15%10%

15%7%

22%21%18%

7%12%

GYM-TYPE ACTIVITIES = 61%

61% of regular exercisers are currently doing gym-type activities.

36% of regular exercisers do fitness class type of activities.

37% of regular exercisers are currently doing equipment-type activities.High frequency exercisers using

equipment type activities are also likely to attend between 3-5 group fitness classes per week.

76% of regular exercisers are aged 18 to 34 years old

69% of exercisers that aren’t doing gym-type activities would consider.

36% FITNESS CLASS

ACTIVITIES

37% EQUIPMEN

T TYPE ACTIVITIES

Runn

ing/

Tri

Swim

min

g

Cycl

ing

Wal

king

Team

spo

rts

Indi

vidu

al s

port

s

Grou

p tr

aini

ng –

out

door

s

Grou

p tr

aini

ng –

indo

ors

Fitn

ess

clas

ses

in m

usic

Yoga

Pila

tes

Dan

ce

Wor

king

out

PT

Free

wei

ghts

Wei

ghts

mac

hine

s

Card

io m

achi

nes

Boxi

ng

Oth

er

29%27%31%

59%

12%13% 13%15%10%

15%22%21%18%

12%4% 7% 7%7%

FACTS

MILLENNIALS DOMINATE ALL FITNESS CLASS ACTIVITIES.

FITNESS CLASS ACTIVITIES*

GROUP TRAINING INDOORS

FITNESS CLASSES TO MUSIC - INDOORS

YOGA PILATES DANCE WORK OUT WITH PT

FREE WEIGHT

WEIGHT MACHINE

CARDIO MACHINES

BOXING

* Fitness class activities defined as 'Group training – indoors' OR 'Fitness classes to music – indoors' OR 'Dance' OR 'Yoga' or 'Pilates'

18-34 years

35-54 years

55+ years

WHAT ARE THE EXERCISERS DOING?

46%

39%

27%

10%

5% 5%

19%

11%

8%

20%

15%

7%

16%

7% 6%

24%

10%10%

13%

5% 4%

30%

20%

12%

24%

16%

12%

30%

20%

12% 13%

3%1%

INSIGHTS WHAT ARE THE EXERCISERS DOING?SHIFTING FOCUS TOWARD MILLENNIALS. 48% of exercisers do gym-type activities - Half the target market.

The huge majority Millennials who regularly exercise are doing gym-type activities

OPERATORS WILL BENEFIT

BY

Re-engineering their overall value proposition and marketing towards them despite all the commentary

Designing and promoting assisted

exercise with Millennials

in mind.

Promoting and offering more fitness class activities

• Equal in popularity to equipment type activities

• Almost twice as popular for considerers

The principle of ‘caveat emptor’ applies as the range of offering and

investment increases, trying to be all things to all people. Lower risk

investment exists with the promotion and delivery of fitness class activities for both users and considerers. Further retention and

referral opportunities exist in the cross promotion of fitness classes to

high frequency equipment users.

around ‘Baby Boomers’, who are a tougher market to reach and less-likely to consider gym-type activities.

3. WHERE AND WHY ARE THEY EXERCISING?

FACTS

LARGE MULTI-PURPOSE GYM/FITNESS CENTER/HEALTH CLUB

SMALL BOUTIQUE GYM WITH A SINGLE ACTIVITY

LOCAL/COMMUNAL/RECREATION/CHURCH HALL

PERSONAL TRAINING STUDIO

AT YOUR HOMEDEDICATED DANCE, YOGA OR PILATES STUDIO

FITNESS CLASSES TO MUSIC TEAM TRAINING PERSONAL TRAINING

WHERE ARE THEY EXERCISING?

MILLENNIALS (18 – 34 YEARS)

HOME EXERCISERS

82%

82% of Gym members & casual gym members also exercise at home

45% of high frequency gym attendees also use a DVD/pre-recorded workout at home

45%

52% of all gym members are doing either a DVD and/or gaming and/or online workout program (rising to 70% for high frequency gym attendees)

52%

37%

37% of the market (defined as those who are either regularly exercising or those who aren’t currently exercising but would like to) are doing either a DVD and/or gaming and/or online workout program at home

ALL AGES48%

49%

41%

23%

35%

25%

20%25%24%

18%23%

30%

20%16%

21% 19%15%

17%

25%44%

38%

25%

37%

26%

17%

24%27% 26%

19%

36%30%

19%19%

26%31%

24%

USER FACTS WHY ARE THEY EXERCISING?

MAIN DRIVERS THAT PEOPLE EXERCISE:

40%27%

32%37%

GET HEALTHY / MAINTAIN HEALTHGET IN / MAINTAIN SHAPE (LOSE WEIGHT, TONE-UP ETC.)

31%33%

FUN

23%16%

CALM / RELAXING CONVENIENT

23%20% 17%

CHALLENGING

ALL AGES

THE IDEAL FITNESS EXPERIENCE IS:

MILLENNIALS

USER FACTS WHY ARE THEY EXERCISING?WHEN THE GOING GETS TOUGH, THE REASON PEOPLE EXERCISE IS:

Knowing it is good for me

Knowing it will give me a pick-me-up Achieving my

end fitness goal

61%

47%

32%35% 31%26%

ALL AGESMILLENNIALS

FACTS WHY ARE THEY GOING TO BOUTIQUE GYM’S / FACILITIES?

The type of people that go there

The atmosphere/vibe

I get more personalised attention / coaching from staff

I like to follow new trends in fitness activities

63% 63%

47% 42%40% 38%

29% 34%

ALL AGESMILLENNIALS

INSIGHTS WHERE AND WHY ARE THEY EXERCISING?

Hugely popular with the Millennials who crave assisted ad social exercise, authentic experiences, atmosphere and opportunity to connect with ‘like-minded’ people in their workouts.

Large multi-purpose fitness facilities remain the most popular venue across all activities…

…However they are losing market share quickly to new

business models, in particularly

micro-gyms.

Dedicated types of spaces are best suited

to achieve these desires.

PREFERRED EXERCISE SPACES

SHIFTING

ADAPT OR …

AMPLIFY MESSAGING AROUND ‘GETTING AND MAINTAINING HEALTH’.

FOCUS ON OVERCOMING BARRIERS, PROMOTING AND OFFERING AN EFFORTLESS, CONVENIENT ACCESS TO EXERCISE AND SUPPORTING MEMBERS IN THE CHALLENGING PROCESS OF CREATING AN EXERCISE HABIT.

This is the main reason for people to exercise; research shows that it delivers higher attendance than the more superficial goals relating to appearance.

Millennials - 'Getting/staying in shape' ranks higher than 'getting/maintaining health’, which should be reflected in the messaging and offering.

‘Feeling too tired’ is the most used excuse to not exercise regularly, closely followed by 'busy schedule' and ' lack motivation’. Motivational messaging to improve attendance should reinforce the WHY. Key messages include:

• 'exercise is good for me’• 'exercise provides a pick-me-up’ • 'exercise acts as a means to an end fitness

goal’

THE 'IDEAL EXERCISE EXPERIENCE – PROMOTE AND DELIVER.

Fun and convenience - key drivers regardless of age. Millennials (18-34 years) - 'challenging' replaces 'calm/relaxing'.

Operators can create the optimum mix and volume of 'ideal exercise experiences' by assessing the % of challenging versus calm/relaxing workouts benchmarked against membership age demographics.

INSIGHTS WHERE AND WHY ARE THEY EXERCISING?

HOME SPACE FUELS THE GYM SPACE.

HOME EXERCISE COMPLEMENTS GYM

PARTICIPATION RATHER THAN

COMPETES WITH IT.

Promoting the 'live club version' of the home activities. The motivational benefits of the venue and working out with others.

Offering free home workouts, especially free weights, yoga, dance and fitness classes to music.

DVDs/Gaming and online platforms provide the greatest opportunity to engage members and educate prospects at home through the various stages of exercise change.

INSIGHTS WHERE ARE THEY EXERCISING?

4. WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

USER FACTS WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

22%

14%9%

50%

36%31% 29% 28%

TOP DRIVERS WHY PEOPLE ATTEND THEIR CURRENT FITNESS FACILITY ARE:

Convenient location

Great atmosphere Great

equipmentGreat fitness classes to music

My friends go there

WHEN ASKED THE MAIN REASON

Convenient location (22%)

Great fitness classes to music (14%)

Great equipment (9%)

Location is convenient to me

The atmosphere/ vibe is good

The equipment

They offer fitness classes to music

My friends go there

CONSIDERER FACTS

WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

THE TOP THREE THINGS GROUP FITNESS CONSIDERERS LIKE ABOUT GROUP FITNESS CLASSES ARE…

CONSIDERATION OF GROUP FITNESS:31% of gym members who don’t currently do fitness classes to music would consider

21% of casual members who don’t currently do fitness classes to music would consider

21% of lapsed members/never been a member who don’t currently do fitness classes to music would consider.

37%

28%

Great music

27%

Exercise style/ structure/

method

Motivation

31%

21%

21%

INSIGHTS

• Apart from 'convenient location' which is the primary driver, the mix of people, atmosphere, equipment and great fitness classes are key value drivers.

• ‘Affordable' and 'offer a good deal' only rank as the 6th & 11th drivers respectively.

• #1 'controllable' draw card

• Create synergies with other drivers; i.e. 'great atmosphere' and 'my friends go there‘.

3rd highest driver for all ages and very important to Millennials.

WHAT DRIVES PEOPLE INTO FITNESS FACILITIES?

SHIFT FOCUS TOWARDS

BUILDING VALUE VERSUS

DISCOUNTING

AMPLIFY THE PROMOTION AND

OFFERING OF ‘GREAT FITNESS

CLASSES

SELECTION AND

MAINTENANCE OF EQUIPMENT

REMAINS FUNDAMENTAL

5. GROUP FITNESS EXERCISERS

WHO IS DOING FITNESS CLASS ACTIVITIES?

THE LARGEST SEGMENT

ACROSS ALL AGE GROUPS

MILLENNIALS (18-34) ARE MORE LIKELY TO BE DOING FITNESS CLASS ACTIVITIES

2.5 TIMES BIGGER

THAN GEN X (35 TO 49

YEARS)

6 TIMES BIGGER

THAN BABY BOOMERS (50 TO 60 YEARS).

FEMALES, and more specifically FEMALE MILLENNIALS, are more likely to be doing fitness class activities

THE DOMINANT PROFILE FEMALE OUTNUMBERING MALES 5:1

36%

52%OF REGULAR EXERCISERS CURRENTLY PARTICIPATE IN FITNESS CLASS ACTIVITIES.

JUST OVER HALF OF REGULAR EXERCISERS WHO ARE NOT CURRENTLY PARTICIPATING IN FITNESS CLASS ACTIVITIES WOULD CONSIDER.

GROUP FITNESS EXERCISERS

HIGHER ATTENDANCE

34% 45%

56%

54%

10% 1%

45% gym attendees who participate in group fitness visit their

gym 5+ times per week. In comparison to only 34% for all gym attendees.

High (5+ times a week)

Medium (1-4 times per week)

Low (less than once per week)

All gym attendees

Gym attendees who participate in group fitness

USER FACTS

CANCELLATION RATES46% of group fitness users are likely to cancel their membership or stop attending their gym if their preferred class was cancelled.

LEADS GENERATION84% of group fitness attendees recommend their current facility to their friends and family compared to 76% of gym attendees. Just over half of regular exercisers who are not currently participating in fitness classes would.

LONGER TENURE AMONG MEMBERS

9% 11%

29% 38%

61% 51%

All gym attendees

Gym attendees who participate in group fitness

61% of all gym attendees are with their facility for less than 12

months.

In comparison to 51% for gym attendees who

participate in group fitness.

38% of gym attendees attending group fitness

classes remain loyal for 1 to 5 years versus 29% for

total gym attendees.

11% vs. 9% remain loyal for more than 5 years.

New (less than 12m)

Medium (1-5 years)

Long (5+ years)

CONSIDERER FACTS GROUP FITNESS EXERCISERS

KEY DRIVERS ARE:

WHEN CONSIDERING

'FITNESS CLASSES TO MUSIC', THE

FOLLOWING IS MOST

IMPORTANT TO MEMBERS.

57% 51% 44% 42%

MAIN BARRIERS TO ATTENDING :

• A DISLIKE OF BEING CROWDED. CROWDING IS CONSIDERED 2X AS IMPORTANT AS A DETERRENT.

• A DISLIKE OF WORKING OUT WITH OTHER PEOPLE.

• PRICE OF CLASSES (IF ADDITIONAL TO MEMBERSHIP).

Large room

Small amount of people in

the class

Price of class

Instructor

37%

KEY PARTICIPANTS DRIVERS:

30% 27% 26% 26%

Ener

gy o

f a b

ig g

roup

Exer

cise

sty

le /

str

uctu

re /

met

hod

Conv

enie

nt s

ched

ule

times

Inst

ruct

or

SUBSTANCE OVER

STYLE IS THE IDEAL INSTRUCTOR PREFERENCE

50%

28%

Great music

27%

Exercise style/ structure/

methodMotivation

INSIGHTS GROUP FITNESS EXERCISERS

Investing in recruitment and training of instructors. Members are demanding higher quality and more coaching.

Offering programs that are relevant to Women and Millennials

Building bigger studios – Participants rank 'the energy of big group' number

one driver and considerers rank 'a large room as the most important driver

(57%).

Promoting different aspects whether you are talking to users or

considerers. With considerers focus on:

OPERATORS CAN IMPROVE

OVERALL PARTICIPATION

BY…

GROUP FITNESS MATTERS – OPERATORS CAN HAVE CONFIDENCE THAT IF WELL EXECUTED, IT CAN DRIVE ATTENDANCE, RETENTION, REFERRALS AND MEMBERSHIP GROWTH.

• ‘Great music, a motivating environment and great programing delivered by a well educated coach’.

• ‘Assisted’ versus ‘Group’ - working out with other people is what puts non-attendees off.

• ‘Not crowded’, ‘small group training’.

6. LES MILLS

FACTS LES MILLSOFFERING LES MILLS IS THE PROVEN WAY TO INCREASE GROUP FITNESS ATTENDANCE, MEMBER LOYALTY, REFERRALS AND THEREFORE MEMBERSHIP ACQUISITION, RETENTION AND PROFIT.

A third of the market know of Les Mills

52% of gym attendees know of Les Mills

On average Les Mills users attend 3.1 classes per week

93% of Les Mills users have recommended their current facility to friends and family, compared to 84% of 'group fitness attendees' and 76% of 'gym attendees'.

INVESTING ON RESULTSLes Mills is a strategic choice for those operators looking to increase group fitness attendance, member loyalty, referrals and therefore membership and profit.

PARTNERING WITH THE BEST

INSIGHTS

Les Mills allows operators to focus on member experience execution using 'best in class resources', avoiding the pitfalls of trying to create and execute member experience programs.

Les Mills has researched backed tools to help operators survive and thrive.

www.lesmills.com