Recap from April 2020 State of the Industry
- 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
- The return to studios will be driven by two factors largely out of your control
- Health officials’ concerns about resurgences; and
- Whether consumers feel safe
- More and more consumers will continue to become aware of, and invested in, the importance of living healthy lifestyles
BFS' Recommendations from April 2020
- Plan for a long return to pre-COVID in-studio attendance levels
- Deeply embed virtual activities into your business model
- Adjust your business model and marketing strategies for digital first
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
- Only one in four Americans meet national physical activity guidelines and more than 30 million have heart disease.
- Approximately 20% of Americans had a membership to a gym or health club pre-COVID, a figure that has been static for more than 35 years.
Our Recommendations Today
- Digital first.
- Cash is king. Conserve your cash. Reduce costs.
- Adjust your mindset.
- Serve your clients’ total wellness needs.
- Be innovative!
How to do it?
Learn
Digital First – The Virtual Engagement Playbook | Livestream and On Demand Playbook | Video On Demand Is A Whole Different Biz with Jennifer Maanavi
Conserve Your Cash – How to Level with Your Landlord | Shrinking Your Biz To Survive The Storm
Adjust Your Mindset – Time to Reset with Scott Hopson | Adjusting Your Mindset with Emma Barry
Serve Your Clients’ Total Needs – Stretch Your Mind & Your Revenue Streams with Amanda Freeman | Top 5 Mistakes To Avoid When Building a Nutrition Business
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.
- Pro Tip - Join our community!
Move!
Take action on BFS’ recommendations with the State of the Industry Workbook