So it came as a bit of a shock when he told me that the sixteen clubs were all in the same chain as the one I was standing in – sixteen branded clubs in one catchment !
So it came as a bit of a shock when he told me that the sixteen clubs were all in the same chain as the one I was standing in – sixteen branded clubs in one catchment !
small box franchised clubs this must be a question a franchisor would hear on a regular basis , but there ’ s a good argument that a saturation point isn ’ t reached as quickly as you might think .
In some suburbs there are two or even three clubs in the same block , all happily co-existing and each with their own unique selling proposition .
The combination of a multitude of fitness modalities and a tendency to individually branded workouts has resulted in clubs that almost sit side by side .
Yet we all continue to exist , each club differentiating itself by way of genre , personality and value proposition .
With our comparatively small Australian market we tend to have a fear of competition that at many levels is unwarranted and can be unhealthy .
Competition drives innovation , but innovation should be derived from many different sources .
When it comes from just one source – price – markets and businesses are damaged , as are consumers as the quality of offerings chase the downward price spiral .
The current density of health clubs is testament to the many unique features that the modern fitness landscape offers .
Innovation and creativity has not just underpinned the fitness market , it has actually grown it , and will continue to do so . Focusing on the 85 % of Australians that don ’ t use health clubs , rather than the 15 % that do , provides significant opportunity . Far from being on the cusp of over-servicing , as long as we continue to create , develop , invest and innovate , the saturation point is still a long way off .
WHAT ’ S NEW IN FITNESS - AUTUMN 2017 9