State of the Industry Part II Recap

Aitana G

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Reading Time: 2 minutes

Recap from April 2020 State of the Industry

  1. The next 12-18 months are going to be difficult. Many friends may not be able to survive but new models will emerge to serve the demand
  2. The return to studios will be driven by two factors largely out of your control
    1. Health officials’ concerns about resurgences; and
    2. Whether consumers feel safe 
  3. More and more consumers will continue to become aware of, and invested in, the importance of living healthy lifestyles

BFS' Recommendations from April 2020

The Hard Truth

The Last 100 Days in Fitness

We Now Live In a Digital – First World
“We have vaulted five years forward in consumer and business digital adoption in a matter of around eight weeks.” – McKinsey

 

Industry Developments – Investments in Virtual Fitness Skyrocketed
Growth can be seen through both Virtual Fitness Providers (large and small) and Virtual Fitness Suppliers.

  • Lululemon buys Mirror for $500 Million
  • Peloton Stock Soars 3x + since Mar 13
  • The Top 10 Mental Wellness Apps Had 10M Downloads in April, up 22% vs. January

 

Models Supporting In-Person Fitness Got Pummeled

  • 24 Hour Fitness filed for bankruptcy
  • Gold’s Gym filed for bankruptcy
  • Town Sports International considering bankruptcy
  • MINDBODY lays off or furloughs 35% of staff
  • ClassPass revenue dropped 96%; lays off or furloughs 53% of staff

The Last 100 Days in America

  • The U.S. Economy suffered biggest decline ever
  • Remote learning will be the norm for foreseeable future
  • Corporate employees will work from home until 2021
  • Parents are concerned about COVID’s impact on their children 
  • Congress remains deadlocked

The Opportunities

The need is still there: Expand the focus

“We have only been motivating the motivated; we have not reached the people who need us.”
Emma Barry
Global Fitness Authority
“Blacks and Hispanics have been disproportionately affected by COVID-19 whose negative health outcomes come from diseases that are positively impacted by physical activity.”
NiCole Keith
ACSM's President

Our Recommendations Today

How to do it?

Learn

Innovate

Be Inspired – Read success stories, stay curious about what others are doing.

Talk it Out – Build a safe network and community with other entrepreneurs.

Move!

Take action on BFS’ recommendations with the State of the Industry Workbook

View the full recording of State of the Industry Part II for studio case studies and a special guest appearance!

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