Bryan O'Rourke presented this content to demonstrate how the global health club industry will expand by 300% by 2025 . The presentation was made at IHRSA 2017 in Los Angeles. Key trends, business models and other factors are outlined along with videos and data to establish the growth potential for health clubs and fitness in general around the globe.

1. Poised For Expansion
The Future Of The Fitness Industry
300% Growth In 10 Years ?
@BryanKORourke, CSO, CEO, Principal
Houston Golds Gym, FIT-C, Vedere Ventures
bryankorourke.com

2. bryankorourke.com @bryankorourke

3. GREATEST TIME IN HISTORY
TO BE IN OUR INDUSTRY

4. AND BUSINESS AS USUAL IS DEAD

5. HOW WILL YOU RESPOND ?

6. MY STORY STARTS IN 1983

7. 1993
I INNOVATED ACROSS INDUSTRIES

8. 1996
INTRODUCED AUTOMATED ESPRESSO

9. 1997 GOT INTO HEALTH CLUBS

10. 2005 GOT INTO GROUP FITNESS

11. STARTED INNOVATING AGAIN
2006 #TheCloud

12. AND AGAIN
2007 @bryankorourke @GaryVee

14. PAST 10 YEARS ENTERED AGE OF ACCELERATIONS

15. 2016

16. http://www.fittechcouncil.org/podcast/
WE KEEP INNOVATING

17. GROWTH REQUIRES INNOVATION

18. 1 BILLION MEMBERS
GROWTH REQUIRES
DISRUPTION

19. SAPERE VEDERE
DA VINCI “TO
KNOW IS TO SEE”

20. RISING TIDES LIFT
ALL BOATS

21. DISRUPTION IN THE ERA
OF MASS ACCELERATION

22. DISRUPTION EXAMPLES :
RESTAURANTS OFFER A
DINNING EXPERIENCE

23. THIS OFFERS A DINING
EXPERIENCE

24. BANKS OFFER
FINANCIAL SERVICES

25. THIS AI OFFERS
FINANCIAL SERVICES

26. CONCERTS OFFER
MUSICAL ENTERTAINMENT

27. THIS APP DOES THE SAME

28. THIS CLINIC OFFERS
MEDICAL CARE

29. THIS APP OFFERS
MEDICAL CARE

30. HEALTH CLUBS OFFER
HEALTH & FITNESS EXPERIENCES

31. DISRUPTION: THIS OFFERS
HEALTH & FITNESS EXPERIENCES

32. DISRUPTION: THIS OFFERS
HEALTH & FITNESS SERVICES

33. THIS OFFERS
HEALTH & FITNESS EXPERIENCES

34. DISRUPTION: THIS OFFERS
FITNESS EXPERIENCES

35. AND SO DOES THIS

36. INDUSTRY DEFINITIONS HAVE CHANGED
THE LINES ARE BLURRED

37. WHAT ARE FITNESS EXPERIENCES BECOMING ?

38. HOW WILL THE INDUSTRY EVOLVE ?

39. WHAT WILL MEMBERS REALLY WANT ?

40. HEALTH CLUBS HELP PEOPLE GET
HEALTHY & FIT.. AND

41. WE’VE ENTERED A NEW ERA

42. YOU MUST APPLY FRESH THINKING
TO REACH MARKET POTENTIAL

43. PEOPLE TECHNOLOGY
GLOBALISM ECONOMICS
DISRUPTION BY CONVERGENCE
OF TRENDS

44. PEOPLE’S BEHAVIORS
HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS

45. Old school definitions don’t apply - dizzying diversity

46. Bifurcation : mass affluence driving niche luxury models
and middle class driving utility businesses.

47. Urbanization : cities are driving global growth
and represent the majority of health club operations.

48. 48

49. Power has shifted to fitness consumers
Exane : 10% luxury is digital now 40% by 2020

50. 3 CONSUMER
TRENDS

51. GREATER UTILITY AND
CONVENIENCE & RELEVANCE FOR
USERS
PERSONALIZATION
ACKNOWLEDGEMENT AND
RECOGNITION EMBRACING
A MISSION
ENGAGEMENT
FLAUNT CULTURE
NOT JUST FITNESS
BENEFICIAL
INTELLIGENCE
NEW WAYS OF DELIVERY
THAT INCREASE USE
AND RELEVANCE
SERVICE REDEFINITION
OMNI-PRESENCE
TRENDS + VISION = REINVENTING MODELS
3 KEY CONSUMER TRENDS
PERSPECTIVE SHIFT
STATUS

52. Personalization: greater utility, convenience & relevance

53. BENEFICIAL
INTELLIGENCE
Enhancing User Experience Through
Built In Intelligence

54. OMNIPRESENCE
New Channels, Nuanced With Context
In The Right Place At The Right Time

55. Personalization is hard

56. Engagement: acknowledgement recognition mission

57. STATUS:
Experiences Via Design,
Gamifying, UX, Community

58. FLAUNT
CULTURE
Allow Users To Remove Barriers And
Celebrate And Flaunt An Authentic
Transparent Experience

59. Service redefinition : delivering new and different

60. PERSPECTIVE
SHIFT:
Reposition Renew, and Refresh
Service Offerings In New Ways

61. NOT JUST
FITNESS:
Lifestyle, Mindset, Nutrition,
Holistic, Longevity

62. GREATER UTILITY AND
CONVENIENCE & RELEVANCE FOR
USERS
PERSONALIZATION
ACKNOWLEDGEMENT AND
RECOGNITION EMBRACING
A MISSION
ENGAGEMENT
FLAUNT CULTURE
NOT JUST FITNESS
BENEFICIAL
INTELLIGENCE
NEW WAYS OF DELIVERY
THAT INCREASE USE
AND RELEVANCE
SERVICE REDEFINITION
OMNI-PRESENCE
TRENDS + VISION = REINVENTING MODELS
3 KEY CONSUMER TRENDS
PERSPECTIVE SHIFT
STATUS

63. CONSUMERS TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS

64. HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS
TECHNOLOGY

65. P H I L O S O P H Y O F E . O . W I L S O N
W E H AV E PA L E O L I T H I C E M O T I O N S ,
M E D I E VA L I N S T I T U T I O N S A N D
G O D - L I K E T E C H N O L O G Y
65

66. @Bryankorourke @Kevin2Kelly
FREE COPY OF THE BOOK

67. The greatest products of the next 20 years
have not been created yet.

68. Kevin Kelly’s View Of What Will Happen With Technology
12 Inevitable Forces
68
01 Becoming 02 Cognifying 03 Flowing
04 Screening 05 Accessing 06 Sharing
Move from fixed products to
constant upgraded services and
subscriptions.
Make everything smarter via
cheap AI from the cloud.
Unstoppable streaming. You are
certainly now in the data
business.
Turning all surfaces into screen
experiences.
Access to services at all times
move away from owning assets.
Mass-scale collaboration. Key
innovations built on sharing.
BE CO FL
SC AC SH

69. SCREEN

70. SCREEN

71. AC & CO

72. 12 Inevitable Forces
72
07 Filtering 08 Remixing 09 Interacting
10 Tracking 11 Questioning 12 Beginning
Harnessing intense
personalization to anticipate
desires.
Unbundling products and basic
parts and recombining them in all
possible ways.
Immersing ourselves inside
computers to maximize
engagement.
Total surveillance for consumer
and citizens benefit.
Promoting good questions is far
more valuable than good
answers.
A system connecting all humans
and machines in a global mix.
Kevin Kelly’s View Of What Will Happen With Technology
FI RE IN
TR QU BG

73. CYBER PHYSICAL SYSTEM : THE HOLOS

74. CONSUMERS TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH CLUB INDUSTRY
CONVERGENCE DRIVERS

75. CONVERGENCE DRIVERS
ECONOMICS

76. CONVERGENCE RESULTS
IN DIVERGENT MODELS

77. New Delivery Systems

78. Profit Margin
Dupont Formula : Return On Equity
78
EBITDA
SALES ASSETS EQUITY
SALES ASSETS
Asset Turnover Equity Multiplier
X X

79. Profit Margin
Dupont: Return On Assets Where
the Growth Is
79
EBITDA
SALES $3M AVG
SALES
$3M AVG
Asset Turnover
X =53% 100% 53%

80. Profit Margin
80
EBITDA
SALES
ASSETS
$1.6M AVG
SALES
$1.6M AVG
Asset Turnover
X =34% 100% 34%
Dupont: Return On Assets Where
the Growth Is

82. 8 Distinct Fitness Delivery Channels
Health Club Models
82
High End
Full Service
Middle
Market
Low Price
HV
Boutique
Full Service, Full
Amenities, Higher
Prices, Digital
Integration
Financially Challenged,
Low Pricing Power,
Legacy Burden
Hi-Growth Space,
Low-Cost, Low-
Service, Upcoming
Digital, Lower Markets
Program Focused,
Cross Over Lifestyle,
Multiple Monetization,
Omni-Channel

83. Health Club Models
83
Lifestyle
Community
Pure
Digital
Medically
Integrated
Alternative
Models
Outdoors, Indoors,
Lifestyle. Connection,
Data Driven, Streaming
Content, Anywhere
Anytime,Home Market
and More
Outcomes Based,
Integrated, Population
Health
Corporate, Multi-
Family, Alternative
Models
8 Distinct Fitness Delivery Channels

84. Business Models Will Merge Different Aspects Of Each Of
These With ALL INCLUDING DIGITAL COMPONENTS
Merging Of Offerings - Key Digital
84
High End
Full Service
Community Digital
Medically
Integrated
Middle Market
Low Price
High Value
Boutique
Alternative

85. OLD MODEL OF VALUE
CUSTOMERS
TRANSACTIONS / $
IE: Valuable Companies

86. NEW MODEL OF VALUE
RECEPTORS
COGNITION
IE: New Valuable Companies

87. CHALLENGE IS NOT THE TECH
ITS PEOPLE’S MINDSET

88. Good News : A Growing Market: sick care is not sustainable and public primary
prevention is the answer. Technology will help. #PassPhit

89. Personalized Primary Prevention
Is Here - Your DNA

90. S CURVE REINVENTION
THE PATH FORWARD

91. HERE WE ARE : CONSOLIDATION
AND REENGINEERING - S CURVE
91
Bricks & Mortar Biz ModelsKey Driver Is Profitability
DIGITAL
OMNICHANNEL
MEDICAL
BOUTIQUE
LIFESTYLE
COMMUNITY

92. HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
GLOBALISM

93. 100,000 Yrs. Ago, 6 Different Human
Species Inhabited Earth - Cooperation Key

94. How we operate and invest must be
mindful of sustainability

95. We must cooperate globally to impact policies that
address the huge risk and opportunity of global health

96. We must globally share our insights and
cultural diversity to drive innovation and success

97. HOW WILL YOU RESPOND ?

98. OBJECTIVE QUESTIONS

99. DESIGN ENHANCED PROFIT
UX OMNIPRESENCE SERVICE SCOPE
CLUB OPERATORS FOCUS

100. TOOLS & RESOURCES
@IHRSA
@FITTECHCOUNCIL
@BRYANKOROURKE

101. S CURVE REINVENTION

102. FORWARD LOOKING PLAN

104. Poised for growth
Disruption Will Make Our Industry Better

105. SAPERE VEDERE
DA VINCI

106. PEOPLE TECHNOLOGY
GLOBALISM ECONOMICS
4 HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS

107. The greatest products of the next 20 years
have not been created yet. Kevin Kelly

108. HEALTH & FITNESS INDUSTRY
CONVERGENCE DRIVERS
GLOBALISM

110. bryankorourke.com @bryankorourke