Looking to open a gym? Better think outside the box.
The Big Box Gym that is!
In the world of self-improvement, the idea of joining a fitness center is not innovative. In fact, the roots of modern day fitness centers can be seen going back to the early 20th century. With the growing use of print media and the television, images of physically fit people has made for a lucrative industry.
Gyms come in a variety of forms from the inexpensive like Planet Fitness to the high – end like Equinox. These big box gyms although extremely popular may not be the most competitive. Planet Fitness is still seeing steady growth but it’s financials haven’t been as strong as investors have hoped according to Forbes.
On the contrary, boutique gyms like Orangetheory Fitness have seen large growth in a short period of time according to Forbes. Franchisees can take advantage of the premium pricing with reduced overhead as thes gyms only accommodate 20-30 gym-goers per class.
Also, an article by Market Watch points to the demand from millennials for not just fitness but for a connections and value. A quoted from the article by Matt Powell who is a sports industry analyst, “Millennials are not cheap, but frugal. They are willing to spend money if they find value. When you’re in a class, you see the same people week after week. It becomes more of a social phenomenon.” With the sense of community, a boutique gym like Orangetheory Fitness or SoulCycle, hashtags like #SoulStyle #summerofSOUL for SoulCycle or Orangetheory Fitness’s #KeepBurning, members can tag photos and check-ins on various social media platforms and to reinforce membership and help attract new members.
Marketing Lesson: Pay attention to social media when considering a business venture. Boutique trends may cost members more but they are growing rapidly because of their value proposition.
Other 2016 trends for marketers:
#BeautyCopter 