Global Fitness

The American fitness industry is the greatest market of its kind in the world, with more than 40 percent of the fitness centers, 31 percent of the total members and 30 percent of the total revenues World Wide. The American industry is looked at by many as the model for how to run a profitable Gym business.

With America as the global market leader, the international market has quickly caught up and, in some respects, surpassed the American business market. American operators can uncover new strategies for improving and growing their business. The international arena places a greater emphasis on service and Standards of quality.

Many international Gyms undergo outside audits and inspections based on industry-accepted standards. The White Flag Program in Ireland, Quest in the U.K. and Qualitop in Switzerland are examples of quality assurance and audit systems.

These programs are intended to raise public awareness and trust regarding the quality of the Gym experience. The Quest and White Flag programs are seen as the pinnacle of recognition for operating a quality club Worldwide. The Qualitop program is used to determine a club's eligibility for insurance reimbursement.

At the Coliseum in Istanbul, Turkey, custmers have an eye scan performed as they enter the facility, which is viewed as both a measure of security and exclusivity. At the Pele Club in Sao Paulo, Brazil, members check in with a fingerprint scan. Once their finger is scanned, a message is immediately forwarded to the personal trainers on the floor, each of whom has a PDA. The PDA provides the trainers with data about the member's exercise program. Similar technology is also used in Hong Kong, Singapore and Moscow.

The Worldwide market places a bigger priority on service. Professional fitness instructors work the floor to make sure members are well-served. And, these Gyms still have successful personal training programs. By providing assistance on the floor, trainers are able to connect with more members and to lower attrition. Front desk staff's main priority is on greeting members - scanning cards, taking fingerprints, etc., is secondary. Finally, in almost all of these international facilities, members receive an extensive orientation at no additional cost.

As for cleanliness, in Turkey, prospective members touring a facility must wear special boots over their shoes. In Brazil, three or four staff members are dedicated to cleaning at all times. In general, most international facilities place a high degree of importance on cleanliness.

In Ireland and England, most Gyms offer advanced programs for special populations, such as diabetic or obese members. In Brazil and Russia, group fitness is popular, with some Gyms offering more than 200 classes a week. Most clubs have three to five studios, each with a different focus. In Brazil, England and Turkey, a majority of the clubs provide programming outside of their facilities (e.g., adventure- and entertainment-themed events). Several Sao Paulo fitness centers even feature a disc jockey during evening hours.

In Brazil and Turkey, personal trainers and instructors must have a four-year degree in the fitness field. In China, most instructors have either an undergraduate or graduate degree. In Russia, instructors complete an intensive curriculum of training at the secondary level.

The international market differentiates itself better than the U.S. market. The U.S. market has a proliferation of low-price operators, and only a handful offering a high-price, high-value experience. In Sao Paulo, monthly dues in many of the top clubs range from $125 to $200 per month, and the experience members receive is on par with that level of pricing. Similar rates are charged for the top fitness centers in Moscow and Istanbul. That is not to say that there are no low-priced leaders in the international market. Companies such as McFit in Germany, Fitness First and L.A. Fitness in the U.K., have all developed successful low-price point offerings. But, in the international market, the focus is on creating distinct market differentiation based on both the experience and the price.

Design and construction are a part of this differentiation strategy. In Sao Paulo, the ECOFIT Club uses green architecture to distinguish itself. The water in the pools and showers is reclaimed rainwater, the facility's heat and power come from solar energy and the finishes are all made from recycled materials. In Brazil, Spain and numerous other international markets, operators use themes in the design of specific rooms and areas of the facility.