THE TRENDS THAT WILL SHAPE HUMAN FITNESS AND ACTIVITY

THE FITNESS INDUSTRY IS AT RISKStagnation: segmentation rather than innovation while competitive industries are evolving

Budget Clubs

Micro-gyms

Segmentation vs Innovation

Many traditional clubs worldwide are being hurt by low-budget competitors. At the same time, there are successful new club models evolving eg:• Orange Theory - $23 per class• Kosama, Omni, Fitness Together, Title Boxing• Soul Cycle and Flywheel (US) - $32 per class• Pure Yoga (Asia and US) – $145-$165 per month• Exhale Spa (US) - $195 pm for classes-only membership

One Tribe – Changing the World Les Mills International © 2010

THREE AREAS OF OPPORTUNITY:EXERTAINMENT COMMUNITYHEALTH

Top Ten Clubs Based On Total Group Fitness Attendance

Top 20 Clubs Based On Total Group Fitness Attendance(1)(2)

Notes: 1. Out of 1,187 Les Mills clubs surveyed; (2) NA= data not available (3) Virgin Active has chosen to remain anonymous In the Club ranking so will not be published in Club reports, but are happy for Les Mills to view results

Ranking Club Name

Weekly Group Fitness

Attendances

GF Share of Total

Attendances Region Club Size

1

LES MILLS AUCKLAND CITY 9658 57% New Zealand Large

2

IKSU SPORT 8358 36% Sweden Large

3

THE EDGE 4134 30% USA Large

4

VIRGIN ACTIVE (3) 4048 48% Spain Medium

5

VITAL 3927 NA Belgium NA

6

SPORTIUM COYOACAN 3624 65% Mexico Large

7

THE PEAK 3376 33% UK Large

8

LES MILLS EXTREME 3316 34% New Zealand Large

9

LES MILLS NEW LYNN 3302 50% New Zealand Large

10

24h FITNESS_00955 3260 NA USA NA

Top Twenty Clubs Based On Total Group Fitness Attendance cont’d

Top 20 Clubs Based On Total Group Fitness Attendance(1)(2)

Notes: 1. Out of 1,187 Les Mills clubs surveyed; (2) NA= data not available (3) Virgin Active has chosen to remain anonymous In the Club ranking so will not be published in Club reports, but are happy for Les Mills to view results

Ranking Club Name

Weekly Group Fitness

Attendances

GF Share of Total

Attendances Region Club Size

10 24H FITNESS_00955 3260  NA USA NA 

11 24H FITNESS_00111 3222  NA USA  NA

12 CLUB FIT 3210  24.1% USA Large

13 WATERLOO WEBER STREET 3167  33.8% USA Large

14 24H FITNESS_00202 3139  NA USA  NA

15 24H FITNESS_00496 3128  NA USA  NA

16 BURLINGTON MALL 3032  32.8% USA Large

17 24H FITNESS_00506 3022  NA USA  NA

18SPORTSCLUB-OSSO-MINAMISUNA 2962  70.2% Japan Large

19SOUTH SHORE YMCA HANOVER BRANCH 2940  19.6% USA Small

20 24H FITNESS_00512 2931  NA USA  NA

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More Motivating Exercise Environments

“Exertainment”

David Barton Miami

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Inexpensive effects – photo blow-ups

CREATE MORE ENTERTAINING EXERCISE ENVIRONMENTS

GX STUDIOS:[Check out Les Mills World Class Studio Search at www.lesmills.com]

BEFORE

Fitness-Studio ONE, Germany

Fitness-Studio ONE, Germany

Les Mills Auckland City

Les Mills Britomart, Auckland

Les Mills Britomart, Auckland

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What could you do to create a WOW fitness space?

“Most of us aren’t really health clubs, we’re not even clubs. We’re just places where people come to lift weights and run on a treadmill” – Michael Scott Scudder

CREATE COMMUNITY

SELL THE ‘LONG TERM’ RELATIONSHIP

Group Fitness Team Training Personal Training Event Training

Freelance Programmes

MAKE EXERCISE SOCIAL

PERSONAL TRAINING HAS REVOLUTIONIZED OUR INDUSTRY Small Group

Training: The next revolution? Opportunity or threat? (Microgyms!)

Products created as specific event training programsDesigned around an organised event (eg marathon, cycle challenge, triathlon)

Training organised in 8 or 12 week blocks with an emphasis on guidance, support and motivation. Clear sense of purpose culminating in the event itself and the personal satisfaction of completing it.

Participants pay the club direct, prices vary.Available to both members and non-members.

“CLUB WITHIN THE CLUB” LES MILLS RUN™ LES MILLS RIDE™ LES MILLS TRI™

“CLUB WITHIN THE CLUB”

Les Mills Auckland City 2008 Adidas Marathon Team

Talk to your members

Create a personal

relationship with your members

Choose the right medium

for THEM:One way

communication?

Two way? Social media?

SOCIAL MEDIAIs revolutionizing our ability to

communicate!

BUT…It’s not as easy as it

looks.Engagement, interest and authenticity are

key.Otherwise it’s meaningless

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ExampleEvolution of the Exercycle

1980 Old-fashioned stationary bike

1985 Computerized bike

1990 Cardio Theatre1995 Spinning ClassNow

Standardized, quality-assured classes

GF is the most effective way of creating motivation for the average fitness member

MOTIVATION: GROUP FITNESS

GROUP FITNESS

Many clubs worldwide are being hurt by low-budget competitors. At the same time, there are successful new club models evolving eg:• Orange Theory - $23 per class• Kosama, Omni, Fitness Together, Title Boxing• Soul Cycle and Flywheel (US) - $32 per class• Pure Yoga (Asia and US) – $145-$165 per month• Exhale Spa (US) - $195 pm for classes-only membership

One Tribe – Changing the World Les Mills International © 2010

WHAT DOES IT TAKE TO BECOME A CHAMPION GROUP EXERCISE CLUB?

IMAGINE YOU ARE A FOOTBALL COACH WHO HAS 3 YEARS TO WIN THE CHAMPIONSHIP

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Between 2006-2016 the cost of the American health system will almost double to $4.1 trillion per year*.It seems that our health is deteriorating at almost as quickly as these costs are increasing. The current system clearly isn’t working - there’s got to be a better way!*2006 US Treasury report

THE HEALTH OPPORTUNITY

The world is facing a great holistic health challenge and our industry is perfectly positioned to play a big part in the solution. We are the exact opposite of the cigarette and junk food companies and we have an intimate relationship with a large percentage of the world’s wealthiestpeople.

Let’s Create a Fitter Planet

• Mercola.com• Younger Next

Year – Crowley/Lodges

• The Omnivore’s Dilemma – Michael Pollan

• You: The Owner’s Manual – Roizen/Oz

Education: Become True “Health Clubs”Health clubs need to

become more than just places where people go to use exercise machines! We need to become true providers of holistic health. Education changes lives and your members will love you for it. A few places to start:

FITTER GOVERNMENTIndividuals and businesses cannot be allowed to destroy our greatest communal assets. Our leaders need to lead on these issues!

Fitness industry initiatives :•Physical education back in schools, junk food out•Better urban design•Tax incentives to be slim and fit•Encourage healthy eating (tax junk food!)

There are hundreds of great ideas, from low energy lighting and appliances, to low-flow shower heads and toilets, to signing with a renewable energy provideror even installing solar energy.

Have a professional green audit done on your business. There are incredible savings to be made in resource use and your own money.

Go to: www.greenhealthclubs.org

Fitter Facilities

FITTER FOOD

We can change our health and that of the planet by one simple means: what we put in our mouths!

CREATE ACAUSE NOT

ABUSINESS

Tom PetersPeople don’t come to work to increase shareholder value, they want to make a

difference!Leadership

STAND FOR SOMETHING

The most successful businesses in the world care about more than just making money!

STAND FOR SOMETHING

“We are warriors in the battle against inactivity and over consumption” - LMI Instructor Creed, 1998“You have to find a way to make people fall in love with fitness” – Les Mills, 1968

LET’S CREATE A FITTER PLANET

MOTIVATION - THE BIG OPPORTUNITY:EXERTAINMENT, COMMUNITY, EDUCATION Health club attendance has become

the biggest adult “sport” in the Western World. Bigger than

football, tennis and golf combined. But we have traditionally lacked the excitement and social engagement

of sports, and behaved more as gyms than as true health clubs. The

faster we can change that, the bigger our future!