The health and wellness industry was experiencing a sustained global boom prior to the pandemic. Covid-19 has presented the industry with both huge opportunities and the biggest set back that the younger businesses, mostly with Gen X and Millennials at their helm, will have experienced. Surviving lockdown has been and continues to be tough on studios, which have had to pivot to online engagement. As lockdown eases (particularly following the latest announcements on 9 July!), a continued focus on the consumer and individual experience should see the strongest studio brands thrive.
Q2 2020 has been a nightmare for fitness studios. Their business is focussed on harnessing the energy of a room full of people to promote endorphins, with the bi products of heavy breathing and sweat flying. The most successful studios in London, New York, Hong Kong have hectic changing rooms with shared beauty products and hairdryers constantly blasting. Premium shower products are a must. Almost every element of a successful studio (pre lockdown) is a problem for social distancing. In the midst of a pandemic, health and wellness is also paramount.
With all of this in mind, fitness studios turned to online engagement within days and weeks of our cities being locked down. Instagram live has become the “new normal” tool for exercise. Studios have built online platforms that didn’t exist to facilitate private classes in the locked down bubble of your own home. Monetising the switch to online has been problematic. Studios have taken wildly different approaches to pricing, timetabling and accessibility. Some focussed on global access and building their virtual communities, whilst others chose to maintain premium level costs.
As lockdown eases, fitness studios will have to carefully balance:
- Maintaining their brands and ensuring a commitment to their ethos and corner of the market pre-lockdown;
- Providing the gym studio experience;
- Consumer demands for increased sustainability;
- All whilst maintaining a level of social distancing.
Points 2 and 3 don’t naturally lend themselves to work with social distancing, so 2020 will continue to challenge fitness studios. Some have the benefit of size, but the most agile and committed studios will likely prove the most successful. Many consumers will be desperate to experience a studio again but the global reach of online classes, and trends towards continued remote working, suggest that fitness platforms are here to stay. Disruptors such as NEOU in the US (the “Netflix of fitness”) are gaining traction already.
How else might studios boost revenues in 2020 and beyond?
Many have the opportunity to become influencers on social media. Marketing tie ins with other wellness brands sit well with the virtual followings being amassed. Speaker opportunities for the entrepreneurial founders are also increasing. Some Instagram live classes have been viewed by more than 25,000 people globally, showing there is plenty of opportunity to diversify revenue streams. Increasing the size of their online and physical stores is also likely to prove successful. Online audiences and loyal customers in studio provide a fantastic opportunity to promote and sell premium sport and leisure wear. Sales of home gym equipment are also likely to continue and branded equipment (that can be used in conjunction with home workouts) is already proving successful.
The last few months haven’t only been marked by Covid-19. They have shown that increased brand awareness and a focus on your consumer is paramount to success. Brands now have many channels for direct customer access and if you don’t listen, they won’t stick around. Gen Zers are leading this trend. As consumers become more demanding, expecting more of brands in exchange for their loyalty, studios will need to focus on clear messaging and the consumer experience. Maintaining diverse social media feeds and continuing to do as much as possible to promote sustainable living will be front of mind for studios, whose loyal customers are key to their survival.
Our advice for taking your next sweaty steps in 2020:
- Speak to your customers – ask them when they want to return to the studio and what facilities they will feel comfortable using. Check your location demographics. Does it make sense to open only some studios initially?
- Ask what you as a business feel comfortable with – there will be tough decisions but you must stick to the ethos you have maintained to date, and ensure that as a business you believe in the steps you take.
- Continue to diversify and don’t simply revert to pre-Covid revenue streams – there will be no “going back to normal” and businesses that don’t shift with the times won’t survive.
- Your brand is everything – fickle business practices will be called out and your customers are loyal for a reason. Only diversify and grow in ways that make sense for the brand that you have already built.
Many of the trends that Philippa Wagner identified in her article on hospitality futures will be important to the fitness industry. Read her insights here.
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