健身行业新闻周报Week 43
2023-10-23
1. Nike Strength Equipment Makes Its Mark in the Strength Training Industry
Nike, the global sports giant that took the fitness world by storm with its recent foray into strength training, has now officially launched its new line of strength equipment. After hinting at this endeavor with a soft launch at Dick's Sporting Goods in the US six weeks ago, Nike has unveiled its comprehensive range of strength training gear via a dedicated website at (www.nikestrength.com).
In response to the growing trend in strength training, Nike partnered with Dimension 6, a long-time collaborator, for the design and manufacturing of their strength equipment line, based in China. Additionally, Dimension 6 is overseeing the sales process for this exciting new venture. Both Nike and Dimension 6 are headquartered in Portland, Oregon.
The Nike Strength equipment lineup includes a diverse range of products, such as dumbbells ranging from 5 to 95 pounds, kettlebells from 9 to 88 pounds, as well as benches and racks. Notably, they've introduced barbells with bumper plates, which are constructed using Nike Grind, a granular mixture derived from the production of training shoes. As Nike's shoe colors change with each season, the bumper plates are expected to have varying colors annually, giving fitness enthusiasts a unique touch. All equipment is adorned with the iconic Nike Swoosh and motivating "Just Do It" slogans.
Furthermore, Nike Strength has introduced a dedicated line of apparel, which currently includes T-shirts, hoodies, and hats.
Nike has enlisted an impressive lineup of high-profile athletes as ambassadors for their new strength equipment. This star-studded roster includes professional golfer Kelly Korda, American football sensation Russell Wilson, NBA legend LeBron James, and track and field Paralympian Beatriz Hatz.
While Nike's strength equipment will be available for retail purchase through Dick's Sporting Goods and Scheel's in the US, the company has also initiated direct online sales for consumers. In a bold move, Nike is inviting health club operators to establish wholesale accounts, thereby eliminating the need for distributors. Nike's statement regarding the wholesale program emphasizes its commitment to providing commercial gyms, schools, corporate facilities, and other venues with premium strength training equipment at competitive prices. This initiative is not a mere reseller program; it's designed to help businesses outfit their facilities with Nike Strength equipment.
Initially, the Nike Strength line will only be available in the US and Canada. However, given Nike's extensive global distribution network, it's likely to expand rapidly if the launch proves successful.
The introduction of Nike Strength marks the company's latest stride into the health club and wellness market, following the launch of Nike group exercise studios, which allow existing health clubs to rebrand as Nike Studios. Additionally, Nike has launched the Nike Well Collective, a program aimed at hiring 1,000 trainers globally to further their wellness initiatives.
Not stopping there, Nike has ventured into the on-demand and live streaming market with the introduction of Nike Training Club on Netflix, which commenced in late December 2022 and ran for a remarkable 30 weeks.
2. Basic-Fit International Achieves Remarkable 36% Revenue Growth, Surpassing €765 Million Milestone in First Nine Months
In an impressive financial surge, Basic-Fit International has reported a remarkable 36% surge in revenues during the first nine months of 2023, reaching a substantial €765 million. This extraordinary growth has been complemented by a substantial expansion in the number of fitness clubs, with a 19% increase that has brought the total count to 1,376 gyms operational across the European continent. Anticipating robust year-end results, Basic-Fit International aims to exceed a staggering €1 billion in turnover for 2023.
The Dutch fitness chain, Basic-Fit International, has not only expanded its gym network but also welcomed a substantial influx of subscribers, increasing its membership base by 18% to a whopping 3.7 million - a surge of over half a million compared to the previous year. Moreover, the average monthly revenue generated per member has seen a significant uptick, rising from €22.5 in the previous year to €23.28.
Of note, Basic-Fit International is witnessing a noteworthy shift in its membership structure, with premium memberships now constituting a substantial 44% of the total, a substantial leap from the 30% recorded in 2022.
As Basic-Fit International charges forward into the remainder of 2023, they have set ambitious targets. In addition to their financial goals, they aim to open 200 more fitness centers, bolster their membership base by 100,000 individuals, and further enhance the average monthly revenue per member to €23.5.
While the success story of Basic-Fit International is evident, it is important to note that the chain acknowledges a slight adverse impact on club performance due to the surging membership growth, which, in turn, has led to higher Value Added Tax (VAT) obligations.
3. Regiment Group Shakes Up Operations in Spain and Puts the Brakes on F45 Expansion
Regiment Group, the US investment fund with a multi-franchise presence of the Australian fitness chain F45 in Spain, is making significant changes to its operations in the country. In a move prompted by its merger with a Dubai-based group, Regiment Group has opted to dismantle its existing structure in Barcelona and slow down its expansion efforts in Spain.
This strategic shift has effectively dissolved the team responsible for managing F45's business in Spain, leading to the departure of José Alejandria, who had served as the Director of Operations since March 2022. Previously headquartered in Barcelona, the group has decided to realign its focus on a global scale in the pursuit of F45's expansion beyond Europe, with a particular emphasis on the Middle East.
Furthermore, at the beginning of the year, Regiment Group underwent a major shift in management as Marc Owen, the owner of several studios in Singapore, became the majority shareholder. This shift in leadership signaled a change in the fund's objectives.
Regiment Group had initially set ambitious goals, aiming to open 25 studios and had acquired 81 licenses for the F45 brand across Europe. Importantly, the dismantling of their structure does not preclude the opening of new centers in Spain, as the group did not hold exclusive rights in the market. Additionally, Regiment Group had plans to introduce the FS8 brand to Spain.
As of the present, F45 operates nine studios in Spain, with three still under the control of Regiment Group. Independent investors oversee the remaining studios, each requiring an investment of approximately €400,000 to establish. On average, these studios boast memberships ranging from 200 to 300 individuals, with estimated annual turnovers per center reaching €600,000. Monthly subscriptions, featuring no long-term commitments and unlimited access to training, are priced at €185, with varying bonuses based on subscription duration.
F45, originating in Australia in 2012, currently boasts 2,042 operational studios across 74 countries, with a total of 3,682 franchises sold. The brand's cornerstone is 45-minute High-Intensity Interval Training (HIIT) workouts.
It is worth noting that in August of this year, F45 expressed its intention to delist from the New York Stock Exchange, primarily due to issues with meeting listing standards, delays in financial filings, accumulated losses, and persistently low average share prices. In the past, F45 reported impressive financial figures, with nearly $110 million in revenue over nine months, albeit coupled with losses of $92 million.
4. European Fitness Industry Leaders Convene in Lisbon for Second CEO Summit
In a significant gathering, the prominent figures of the European fitness industry convened in Lisbon this week for the second meeting of European Fitness Industry CEOs. The event brought together 15 key operators, collectively representing more than 730 sports facilities scattered across Europe. The International Health, Racquet & Sports Club Association (IHRSA), the Global Health & Fitness Alliance (GHFA), and the advisory firm Management around Sports (MAS) orchestrated this gathering.
This prestigious assembly featured international presentations from distinguished experts, including Vaishali Patel, a marketing authority, author, and TED Speaker, who shared insights on the pivotal role of marketing strategies. Marion Tamme, the Director of International Research at Punto de Fuga, delved into the discussion of emerging trends among new consumers. Furthermore, Ignacio Martínez, Partner in Deal Advisory at KPMG Corporate Finance, presented "VAT and Its Impact on the Fitness Industry," igniting a lively debate among attendees on its significance in attracting new participants to physical activities.
Elga Castro, the Director of Revenue Management in Southern Europe and the United States at NH Hotel Group, addressed the audience on the art of crafting unforgettable experiences through customer engagement. Annie Fältman, CEO & Owner of the Swedish chain 360T, praised Elga's presentation, emphasizing the increasing importance of personalized customer experiences to create novel sensations.
According to M. Ángeles de Santiago, CEO of MAS, the second Meeting's overarching objective was to gain a deeper understanding of the evolving consumer landscape, engage in discussions surrounding industry data, and draw insights from other sectors that have navigated the complexities of price adjustments. The event provided a valuable moment for introspection and reflection.
This European Executive Meeting Point received sponsorship from BH Fitness and collaboration from Aerobic & Fitness and Xplor Gym.
5. The Gym Group Achieves UKAS Certifications in Health and Safety
The Gym Group proudly announces the attainment of UKAS-accredited certifications, marking a significant commitment to health and safety standards. Effective from September 2,2023, The Gym Group has secured the international standard for health and safety management systems, ISO 45001:2018, following an exhaustive audit of its health and safety management systems across over 230 gyms throughout the United Kingdom. This certification is achieved in collaboration with Alcumus ISOQAR, a highly regarded UKAS accredited certification body.
In a pioneering move, The Gym Group has also become the first UK gym chain operating 24/7 to attain the prestigious FITcert® Level 3 certification and BS EN 17229 for fitness center management. The FITcert® program, administered by EuropeActive and the Royal Netherlands Institute for Standardisation (NEN), holds a unique standing as the inaugural sectoral certification program for the European fitness industry. Kiwa, a prominent certifying body, partnered with The Gym Group during the FITcert® certification journey.
Joey Franco, Head of Health & Safety at The Gym Group, emphasizes the company's unwavering commitment to ensuring safe spaces for its members. He highlights the significance of externally audited certifications, illustrating The Gym Group's dedication to the health and safety of its gym facilities.
The ISO 45001:2018 certification attests to The Gym Group's profound understanding, knowledge, and diligence in supporting the secure operation of its gyms. The auditors found no non-conformities, underscoring the organization's meticulous attention to detail, which has culminated in this groundbreaking achievement.
David Stalker, President of EuropeActive, commends The Gym Group as a market leader in 24/7 clubs in the UK for successfully achieving FITcert® Level 3 certification across all its gyms. This independent club certification serves as a testament to The Gym Group's safe, well-managed gyms, delivering exceptional products and services.
Jonathan Yates, Enterprise Account Manager at Alcumus, highlights the collaborative journey between ISOQAR and The Gym Group, underscoring the power of partnership in striving for excellence in health and safety standards. The certification of ISO 45001 is a testament to The Gym Group's unwavering commitment to the well-being of its staff and members, setting a valuable example for other organizations.
Mark Snijder, Auditor at Kiwa, lauds The Gym Group's high-quality standards, noting that the efficient assessment of all criteria underscores the gyms' compliance with the standard, reinforcing their commitment to outstanding quality.
6. Retro Fitness Appoints Larry Strain as Chief Development Officer
Retro Fitness has proudly introduced Larry Strain as its new Chief Development Officer. Strain brings with him an impressive track record of over 25 years, characterized by driving the expansion of multi-unit franchises for renowned brands like Starbucks, McDonald's, and Dunkin' Donuts. Notably, he played a pivotal role in overseeing the transformation of Potbelly Sandwich Works into a franchise-oriented growth model.
In his capacity as Chief Development Officer, Strain assumes a multifaceted role, spearheading the formulation and execution of Retro Fitness' strategic growth plan encompassing both domestic and international markets. His responsibilities encompass the oversight of multi-unit territory development, investor relations, franchise sales and recruitment initiatives, as well as taking the lead in all phases of real estate development.
Andrew Alfano, CEO of Retro Fitness, expressed the strategic importance of Larry Strain's appointment, characterizing it as a significant reinforcement to an already robust management team. Strain's proven expertise in franchise development, investor relations, and real estate underscores Retro Fitness' commitment to its ongoing journey, enhancing the organization's capabilities substantially.
About Retro Fitness
For nearly two decades, *Retro Fitness* has been offering its members a timeless approach to exercise, health, and fitness. As it boasts a network of 200 health clubs currently operational or in development, it stands as one of the fastest-growing, high-value, low-price franchises in the United States.
7. 2023 Global Wellness Summit Shifts Venue to Miami due to Middle East Conflict
The Global Wellness Summit (GWS) has taken a decisive step, moving its venue from Qatar to Miami due to the ongoing geopolitical turmoil in the Middle East.
The 2023 GWS will now take place at the Hyatt Regency Miami from November 6-9.
In explaining the change of location, the organization stated:
"In response to recent developments and heightened concerns about the instability in the Middle East, the GWS has made the challenging yet essential decision to relocate this year's event.
"The safety and well-being of our delegates, speakers, team, and partners are our top priorities, and this shift in venue ensures a secure and protected experience for all participants.
"Our thoughts and support go out to our friends and colleagues who are directly or indirectly affected by the escalating conflict."
Additionally, the GWS confirmed that almost all of the previously announced keynote speakers, including luminaries such as Simone Biles and Timbaland, will still be gracing the event with their presence.
We provide weekly news for fitness equipment and sporting goods industry!
Author:
The founder of FITQS/FQC
The columnist of magzine <China Fitness Equipment>
20 years in fitness/sporting equipment OEM/ODM technical, quality control and sourcing management.
Comments