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features

SIBEC review: Question time

SIBEC Europe in Madeira opened with an industry debate. Chaired by editor of Health Club Management Kate Cracknell, the discussion covered wearable tech and Sports Direct’s £5 memberships

Published in Health Club Management 2015 issue 1

MEET THE PANEL
Jim Graham (JG) COO The Gym Group
Sarah Leonie (SL) Group fitness manager, Places for People Leisure (PfPL)
Diane Vesey (DV) Director of European operations, Anytime Fitness
Dave Wright (DW) CEO, CFM and MYZONE

Kate Cracknell (KC): Sports Direct has announced that it will be offering gym memberships for £5 a month. What impact might this have on the rest of the market?
JG: It’s difficult to comment until we see whether £5 really is the new low-cost price floor, or if it’s a pre-sale marketing tactic. If Sports Direct really is offering memberships for £5, then the mid-market bracket has
been redefined again.

It’s impossible to make a profit charging £5 a month, so this would clearly be a loss leader to drive retail sales. A key challenge will be finding quality staff who are happy to work for a loss-leading product.

DW: This could redefine what we consider affordable fitness. A few years ago that space was occupied by Fitness First and LA fitness. In the US, Planet Fitness has 838 clubs and 4 million members enjoying memberships as low as US$5 a month. If anything, this Sports Direct play could be a fantastic marketing ploy from Mike Ashley, who is looking to make waves in the industry.

KC to SL: Would you consider competing on cost?
SL: Half of our centres now offer gym-only membership and can be reactive on price when low-cost competition opens up on the doorstep. That said, we recognise the need to differentiate our product from the budget clubs.

We’re family orientated and offer much more than just gym and classes. We operate with the wider view of being perfectly placed in the community and able to respond to the health agenda. Rather than go head to head, our plan is to differentiate and not just drop prices. We need to focus on our services and be confident in our strategy. We certainly won’t be throwing all that away to compete with a £5 membership.

DV: You could take the view that anything that gets more people engaged in exercise is a good thing. But I would question, for this price, what the member experience will be like, the service levels and so on.

Tara Dillon (floor): The whole sector needs to stop acting like a shop – we’re selling fitness on the cheap, but ultimately you get what you pay for and I don’t think it will work.

As a sector we’re diversifying, but we need to do more if we’re to expand from the 13 per cent of the population who currently go to the gym. We need to look at the health agenda and consider how we can truly make an impact. We need to grow up as a sector and take ourselves seriously.

SL: My concern is the quality of service people will receive in these budget clubs. If they haven’t been to a gym before and have never used equipment, and they join a gym for a short amount of time with no interaction, will we lose them forever?

JG: When I joined the sector, the one thing that really surprised me was the lack of understanding that we’re in the hospitality and service industry. We put relatively low-paid staff in front of customers, many of whom would rather not be buying the product, find it painful to consume and find the environment intimidating. It’s a complex emotional situation – and that means we need to work even harder to deliver good service.

Robin Gargrave (floor):A gym in a retail store with very low prices could certainly reduce cultural barriers to exercise and potentially engage the hard to reach inactive audience.

KC: With the likes of Apple entering the fitness tech market, and wearables getting smarter all the time, we’re set to see a massive growth in individuals tracking and monitoring their own health and fitness. How will the gym sector be impacted by this?
DW: I believe operators need to own the data of their members. Many clubs have no choice but to allow members to BYOD – ‘bring your own device’ – but that data then sits in the silos of the users’ personal accounts, invisible to the facility unless it invests in an integrated solution.

DV: The wearables sector has seen huge growth, with lots of diverse offerings all creating more awareness of physical activity levels and personal health, which is a positive thing. We’re embracing this technology and infusing it into our brand, which we believe will increase our value proposition. Our device of choice at the moment is the Fitbit, which we’re trialling, and we’re also working on integrating Map My Fitness into our customer app.

KC: As these wearables get smarter, is there still a role for the club?
DV: You can’t beat social interaction at the club level. We don’t sell fitness – we sell motivation.

SL: We’re looking at the wider health agenda and public health’s constant need for data. These devices can be powerful tools to help us manage, monitor and track. Data is certainly key to cementing our relationships with GPs and the wider health community.

KC: How close is wearable tech to really going mainstream, providing the sort of data that makes it an invaluable part of daily life?
DW: The ability to measure and record complete types of health data – glucose levels, cholesterol, blood pressure and so on – is there in various formats, but it will be at least five to seven years before that data is captured in a device that’s a totally frictionless, palatable and commercial proposition for the consumer.

KC: Is wearable tech something every health club must embrace?
JG: We’re not yet rushing into the digital space just yet. When we do, we will be platform agnostic and let members choose their own wearable devices and apps. The real question for me is that, although people love measuring stuff and sharing it on social media, how can we help them use their data to improve their fitness? I’m not sure we’ll ever get to take the expertise of the personal trainer out of the loop.

That said, while we have 100 per cent accurate data on usage of our gyms, we have a big gap in terms of knowing what individual members do when they’re working out. That blind spot reduces our ability to craft the most engaging proposition. In the future, the network-enabled gym will help us close that gap, and that’s a critical element of the tech roadmap for any fitness businesses. But the technology isn’t quite where we need it to be yet.

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
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features

SIBEC review: Question time

SIBEC Europe in Madeira opened with an industry debate. Chaired by editor of Health Club Management Kate Cracknell, the discussion covered wearable tech and Sports Direct’s £5 memberships

Published in Health Club Management 2015 issue 1

MEET THE PANEL
Jim Graham (JG) COO The Gym Group
Sarah Leonie (SL) Group fitness manager, Places for People Leisure (PfPL)
Diane Vesey (DV) Director of European operations, Anytime Fitness
Dave Wright (DW) CEO, CFM and MYZONE

Kate Cracknell (KC): Sports Direct has announced that it will be offering gym memberships for £5 a month. What impact might this have on the rest of the market?
JG: It’s difficult to comment until we see whether £5 really is the new low-cost price floor, or if it’s a pre-sale marketing tactic. If Sports Direct really is offering memberships for £5, then the mid-market bracket has
been redefined again.

It’s impossible to make a profit charging £5 a month, so this would clearly be a loss leader to drive retail sales. A key challenge will be finding quality staff who are happy to work for a loss-leading product.

DW: This could redefine what we consider affordable fitness. A few years ago that space was occupied by Fitness First and LA fitness. In the US, Planet Fitness has 838 clubs and 4 million members enjoying memberships as low as US$5 a month. If anything, this Sports Direct play could be a fantastic marketing ploy from Mike Ashley, who is looking to make waves in the industry.

KC to SL: Would you consider competing on cost?
SL: Half of our centres now offer gym-only membership and can be reactive on price when low-cost competition opens up on the doorstep. That said, we recognise the need to differentiate our product from the budget clubs.

We’re family orientated and offer much more than just gym and classes. We operate with the wider view of being perfectly placed in the community and able to respond to the health agenda. Rather than go head to head, our plan is to differentiate and not just drop prices. We need to focus on our services and be confident in our strategy. We certainly won’t be throwing all that away to compete with a £5 membership.

DV: You could take the view that anything that gets more people engaged in exercise is a good thing. But I would question, for this price, what the member experience will be like, the service levels and so on.

Tara Dillon (floor): The whole sector needs to stop acting like a shop – we’re selling fitness on the cheap, but ultimately you get what you pay for and I don’t think it will work.

As a sector we’re diversifying, but we need to do more if we’re to expand from the 13 per cent of the population who currently go to the gym. We need to look at the health agenda and consider how we can truly make an impact. We need to grow up as a sector and take ourselves seriously.

SL: My concern is the quality of service people will receive in these budget clubs. If they haven’t been to a gym before and have never used equipment, and they join a gym for a short amount of time with no interaction, will we lose them forever?

JG: When I joined the sector, the one thing that really surprised me was the lack of understanding that we’re in the hospitality and service industry. We put relatively low-paid staff in front of customers, many of whom would rather not be buying the product, find it painful to consume and find the environment intimidating. It’s a complex emotional situation – and that means we need to work even harder to deliver good service.

Robin Gargrave (floor):A gym in a retail store with very low prices could certainly reduce cultural barriers to exercise and potentially engage the hard to reach inactive audience.

KC: With the likes of Apple entering the fitness tech market, and wearables getting smarter all the time, we’re set to see a massive growth in individuals tracking and monitoring their own health and fitness. How will the gym sector be impacted by this?
DW: I believe operators need to own the data of their members. Many clubs have no choice but to allow members to BYOD – ‘bring your own device’ – but that data then sits in the silos of the users’ personal accounts, invisible to the facility unless it invests in an integrated solution.

DV: The wearables sector has seen huge growth, with lots of diverse offerings all creating more awareness of physical activity levels and personal health, which is a positive thing. We’re embracing this technology and infusing it into our brand, which we believe will increase our value proposition. Our device of choice at the moment is the Fitbit, which we’re trialling, and we’re also working on integrating Map My Fitness into our customer app.

KC: As these wearables get smarter, is there still a role for the club?
DV: You can’t beat social interaction at the club level. We don’t sell fitness – we sell motivation.

SL: We’re looking at the wider health agenda and public health’s constant need for data. These devices can be powerful tools to help us manage, monitor and track. Data is certainly key to cementing our relationships with GPs and the wider health community.

KC: How close is wearable tech to really going mainstream, providing the sort of data that makes it an invaluable part of daily life?
DW: The ability to measure and record complete types of health data – glucose levels, cholesterol, blood pressure and so on – is there in various formats, but it will be at least five to seven years before that data is captured in a device that’s a totally frictionless, palatable and commercial proposition for the consumer.

KC: Is wearable tech something every health club must embrace?
JG: We’re not yet rushing into the digital space just yet. When we do, we will be platform agnostic and let members choose their own wearable devices and apps. The real question for me is that, although people love measuring stuff and sharing it on social media, how can we help them use their data to improve their fitness? I’m not sure we’ll ever get to take the expertise of the personal trainer out of the loop.

That said, while we have 100 per cent accurate data on usage of our gyms, we have a big gap in terms of knowing what individual members do when they’re working out. That blind spot reduces our ability to craft the most engaging proposition. In the future, the network-enabled gym will help us close that gap, and that’s a critical element of the tech roadmap for any fitness businesses. But the technology isn’t quite where we need it to be yet.

Sign up here to get Fit Tech's weekly ezine and every issue of Fit Tech magazine free on digital.
Gallery
More features
Editor's letter

Into the fitaverse

Fitness is already among the top three markets in the metaverse, with new technology and partnerships driving real growth and consumer engagement that looks likely to spill over into health clubs, gyms and studios
Fit Tech people

Ali Jawad

Paralympic powerlifter and founder, Accessercise
Users can easily identify which facilities in the UK are accessible to the disabled community
Fit Tech people

Hannes Sjöblad

MD, DSruptive
We want to give our users an implantable tool that allows them to collect their health data at any time and in any setting
Fit Tech people

Jamie Buck

Co-founder, Active in Time
We created a solution called AiT Voice, which turns digital data into a spoken audio timetable that connects to phone systems
Profile

Fahad Alhagbani: reinventing fitness

Let’s live in the future to improve today
Opinion

Building on the blockchain

For small sports teams looking to compete with giants, blockchain can be a secret weapon explains Lars Rensing, CEO of Protokol
Innovation

Bold move

We ended up raising US$7m in venture capital from incredible investors, including Andreessen Horowitz, Khosla Ventures, Primetime Partners, and GingerBread Capital
App analysis

Check your form

Sency’s motion analysis technology is allowing users to check their technique as they exercise. Co-founder and CEO Gal Rotman explains how
Profile

New reality

Sam Cole, CEO of FitXR, talks to Fit Tech about taking digital workouts to the next level, with an immersive, virtual reality fitness club
Profile

Sohail Rashid

35 million people a week participate in strength training. We want Brawn to help this audience achieve their goals
Ageing

Reverse Ageing

Many apps help people track their health, but Humanity founders Peter Ward and Michael Geer have put the focus on ageing, to help users to see the direct repercussions of their habits. They talk to Steph Eaves
App analysis

Going hybrid

Workout Anytime created its app in partnership with Virtuagym. Workout Anytime’s Greg Maurer and Virtuagym’s Hugo Braam explain the process behind its creation
Research

Physical activity monitors boost activity levels

Researchers at the University of Copenhagen have conducted a meta analysis of all relevant research and found that the body of evidence shows an impact
Editor's letter

Two-way coaching

Content providers have been hugely active in the fit tech market since the start of the pandemic. We expect the industry to move on from delivering these services on a ‘broadcast-only’ basis as two-way coaching becomes the new USP
Fit Tech People

Laurent Petit

Co-founder, Active Giving
The future of sports and fitness are dependent on the climate. Our goal is to positively influence the future of our planet by instilling a global vision of wellbeing and a sense of collective action
Fit Tech People

Adam Zeitsiff

CEO, Intelivideo
We don’t just create the technology and bail – we support our clients’ ongoing hybridisation efforts
Fit Tech People

Anantharaman Pattabiraman

CEO and co-founder, Auro
When you’re undertaking fitness activities, unless you’re on a stationary bike, in most cases it’s not safe or necessary to be tied to a screen, especially a small screen
Fit Tech People

Mike Hansen

Managing partner, Endorphinz
We noticed a big gap in the market – customers needed better insights but also recommendations on what to do, whether that be customer acquisition, content creation, marketing and more
More features