The document discusses the emergence of the low-cost gym sector in the UK. Key drivers include changing consumer sentiment towards traditional gyms with members paying high fees but rarely using facilities. Digital infrastructure and an emphasis on affordability and simplicity have enabled low-cost gyms charging as little as £12-19 per month with no long-term contracts. Customer surveys found high satisfaction with the no-frills experience provided by low-cost gyms, though some requested more staff supervision and private changing areas.

1. The emergence of
the UK low-cost
gym sector
Southampton Solent University
Ray Algar, Oxygen Consulting
November 2011
Tuesday, 22 November 11

2. oxygen-consulting/think-tank
oxygen-consulting/blog
Tuesday, 22 November 11

3. Why is the low-cost
gym sector emerging?
Tuesday, 22 November 11

4. Digital
infrastructure
Low
attendance Simplicity
MARKET
DRIVERS
Changing Affordability
consumer Consumer
sentiment
towards
clubs
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6. “Spend
a
little,
live
a
lot
“
6
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7. Digital infrastructure
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15. Low club attendance
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16. Mid-market club with
4,000 members
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17. Why does low club
attendance matter?
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18. Consumer sentiment
towards clubs
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20. www.reviewcentre.co.uk
Tuesday, 22 November 11

21. “Why am I paying for
a club I rarely use?”
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22. “Why am I paying £55
just to use a
treadmill?”
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23. Affordability &
simplicity
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24. £46 for four weeks
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25. £19 per month - no contract to sign
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26. £12 per month - 18-month contract
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27. Same monthly
price as a TV
license
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28. Attractive offer for ‘machine members’
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29. What do UK
consumers think of
the low-cost
gym experience?
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30. Text
The Gym
Group
ex-members
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31. 17%
Males - 60%
83%
First gym
Previous gym experience
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32. How much do you agree with the
following statements?
0 = strongly 5 = strongly
disagree agree
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33. How much do you agree with the following statements?
3.4
3.5
3.7
3.7
4
4
4.1
Staff available to provide free advice All the facilities I needed
Friendly atmopshere Helped me become healthier person
Always felt safe Email with advice
Provided eveything promised on website
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34. How likely are you to
recommend this gym?
0 = Not all 10 = Definitely
all likely recommend
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35. How likely are you recommend The Gym?
7 8 9
7.4
7.5
Average Response 7.5
7.6
8.5
Members with previous club experience All members Males Females
The Gym was first gym member joined
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36. How likely to recommend to a friend - by club
Birmingham 7.9
8.5
Brighton 7.4
7.4
Liverpool 7.4
7.4
Males Females
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37. “No frills, low-cost
gym. Especially
important for
us students!”
Female member
The Gym, Birmingham
10
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38. “The friendly
atmosphere, knowing
you are safe and not
being judged by staff”
Female member
The Gym, Birmingham
10
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39. “Cleanliness and
amount of equipment
available”
Female member
The Gym, Birmingham
10
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40. “There was a lack of
staff. I searched for 15
minutes before finding
staff. I cancelled after
going just once”
Male member
The Gym, Liverpool
2
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41. “Provide more
supervision from
staff”
Female member
The Gym, Brighton
6
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42. “I would have liked a
private changing
cubicle”
Male member
The Gym, Birmingham
5
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43. How long a member?
Unsure
5%
More than one year
7% 0-3 months
27%
7-12 months
26%
4-6 months
35%
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44. Where are members now?
31%
Male 66%
69%
Joined a different gym Not joined another gym
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45. What is an authentic
low-cost gym?
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46. 50% lower
than
country average
price
Scope to Heavy
operate 24 technology
hours and web use
DEFINITION
LOW
COST GYM
Ability to operate Predominantly a
with a single gym-only
person proposition
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47. The brand launched in 2008
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48. D2 consent
with 24-hour
access
High visibility City centre
locations locations
PROPERTY
SPEC
100,000
12,000 -
population
20,000
10-minute
Square feet
drive
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49. Vauxhall gym London.
Case study
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50. Gym opened August 2009
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51. St George
Wharf
16,000 Ground
square Floor +
feet mezzanine
THE GYM
VAUXHALL
200
24-hour strength
opening and CV
machines
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52. 10 Personal
Trainers
(freelance)
PT’s ‘donate’
2 salaried
10 hours
managers
per week
VAUXHALL
STAFFING/
OPERATIONS
1,000 - 1,500 All other
member functions
visits per day outsourced
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55. 40% 60%
Membership mix
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64. Questions and
discussion at:
www.oxygen-
consulting.co.uk/blog
Tuesday, 22 November 11