The emergence of the UK low-cost gym sector
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The emergence of the UK low-cost
gym sector
Southampton Solent UniversityRay Algar, Oxygen Consulting
November 2011
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oxygen-consulting/think-tankoxygen-consulting/blog
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Why is the low-cost gym sector emerging?
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MARKET DRIVERS
Digitalinfrastructure
Lowattendance
Changingconsumer
Affordability
Simplicity
Consumer sentimenttowardsclubs
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6
“Spend a little, live a lot “Tuesday, 22 November 11
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Digital infrastructure
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Low club attendance
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Mid-market club with 4,000 members
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Why does low club attendance matter?
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Consumer sentimenttowards clubs
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www.reviewcentre.co.ukTuesday, 22 November 11
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“Why am I paying for a club I rarely use?”
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“Why am I paying £55 just to use a treadmill?”
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Affordability &simplicity
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£46 for four weeksTuesday, 22 November 11
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£19 per month - no contract to signTuesday, 22 November 11
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£12 per month - 18-month contract Tuesday, 22 November 11
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Same monthly
price as a TV
license
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Attractive offer for ‘machine members’Tuesday, 22 November 11
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What do UK consumers think of
the low-cost gym experience?
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Text The Gym Group
ex-members
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17%
83%
First gymPrevious gym experience
Males - 60%
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How much do you agree with the following statements?
0 = strongly disagree
5 = strongly agree
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3.4
3.5
3.7
3.7
4
4
4.1
How much do you agree with the following statements?
Staff available to provide free advice All the facilities I neededFriendly atmopshere Helped me become healthier personAlways felt safe Email with adviceProvided eveything promised on website
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How likely are you to recommend this gym?
0 = Not all all likely
10 = Definitely recommend
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7 8 97.4
7.5
7.5
7.6
8.5
Average Response
How likely are you recommend The Gym?
Members with previous club experience All members Males FemalesThe Gym was first gym member joined
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7.9
7.4
7.4
8.5
7.4
7.4
Birmingham
Brighton
Liverpool
How likely to recommend to a friend - by club
Males Females
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“No frills, low-cost gym. Especially important for us students!”
Female member The Gym, Birmingham
10
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“The friendly atmosphere, knowing you are safe and not being judged by staff”
Female member The Gym, Birmingham
10
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“Cleanliness and amount of equipment
available”
Female member The Gym, Birmingham
10
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“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
2
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“Provide more supervision from
staff”
Female member The Gym, Brighton
6
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“I would have liked a private changing
cubicle”
Male member The Gym, Birmingham
5
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0-3 months27%
4-6 months35%
7-12 months26%
More than one year7%
Unsure5%
How long a member?
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31%
69%
Where are members now?
Joined a different gym Not joined another gym
Male 66%
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What is an authentic low-cost gym?
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DEFINITION LOW
COST GYM
50% lowerthan
country averageprice
Scope tooperate 24
hours
Heavy technology
and web use
Ability to operatewith a single
person
Predominantly a gym-onlyproposition
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The brand launched in 2008
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PROPERTYSPEC
D2 consentwith 24-hour
access
City centrelocations
12,000 - 20,000
Square feet
100,000population10-minute
drive
High visibilitylocations
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Vauxhall gym London. Case study
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Gym opened August 2009Tuesday, 22 November 11
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THE GYMVAUXHALL
St GeorgeWharf
The GymVauxhall
24-houropening
200 strengthand CV
machines
16,000 squarefeet
Ground Floor +
mezzanine
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VAUXHALLSTAFFING/
OPERATIONS
PT’s ‘donate’ 10 hours per week
2 salaried managers
10 PersonalTrainers
(freelance)
1,000 - 1,500 member
visits per day
All other functions
outsourced
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40% 60%
Membership mix
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Questions and discussion at:
www.oxygen-consulting.co.uk/blog
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