Is COVID-19 driving a paradigm shift and a pivotal moment in the perceived value of the health and fitness sector?

One thing is certain in this uncertain world we now live in, health and fitness clubs have just stepped into the ring for the biggest fight of our industries lives - a whole 12 rounds of it!

For anyone who has been in this industry a substantial time, they will tell you we have seen our fair share of changing trends and consumer habits (remember Slide!) over the years but nothing has tested and will continue to test the health and fitness sector quite like the emergence of COVID-19. With being the first sector to fully close and current information suggesting we may be last to open there is no doubt that this is going to test everything we have. This virus has not just changed beyond recognition how we exercise and consume content in a matter of weeks, it has literally called into question almost everything we thought we knew, liked and cared for in our lives! The biggest challenge is that we don’t know where any of it is going to land. But do we sit back and wait for the Government, or wait to see what comes crashing down or do we get stuck in-roll up our sleeves - get to work planning, collaborating and aiming to influence the agenda? The latter seems like the only option I can think of right now which is actually going to do some good right here right now...

With the news that 4,000 plus clubs have gone under in China, Golds gym chain have filed for Chapter 11 Bankruptcy protection whilst it works out how to stay in business and many operators in the UK predicting that they can only last months if this lock down continues past June (even with big balance sheets) it makes for really grim reading.

Despite the immense challenges this brings, I firmly believe that with coordinated and collaborative thought, careful planning and with pro active dealing of this situation head on we have a huge opportunity:

To put the customer front and central

I am sure club owners out there would agree that since COVID, it has been pretty much like driving a car with the lights off. So rather than continue to drive on regardless I think this is the perfect opportunity to make the customer our guiding light. There has been no more of an opportunistic moment for our customers to set the agenda, at the end of the day we are in business to serve the member so it is ultimately them that will tell us what they want and desire. The problem is that businesses often don't want to hear it and march on with their plans regardless. This just won't cut it - we can no longer plan in isolation in the hope that customers come - we have no prior knowledge of designing products and services in a world ravaged by a pandemic which threatens the very values by which we live i.e. safety.

Professionally run clubs will ensure that the customer is front and central in deciding what the offering will look like post lock down. Safety will be the main driver - we can only expect customers to return if they feel safe and secure - it is a basic fundamental need. I hear you though - we can't possibly open just because it is rendered safe to do so. As Dave Wright (CEO of MyZone) so rightly highlighted last week what we were all thinking- despite how much we desire to open our beloved clubs, if we open too early with 100% of our costs, 50% of our revenue and only 40% of member confidence then where does this leave us? Financial considerations are at the front of all operators minds - we have to open with a business that can flourish and not fail at the first hurdle - it is a fine balance and one we must get it right. I fear there will be no second chances.

The incredible and inspirational clubs we have all worked so hard to build with a bonded community of like-minded fitness enthusiasts had to close with a mere 90 minutes’ notice. Who would ever have imagined this?- I have planned for many things in my business life but this certainly wasn’t one. In some ways however, I do think no warning was better. It was like ripping a plaster off – it's better to be done quickly than slowly – it ultimately hurts less as you have to act rather than dwell, there was no time for us feeling sorry for ourselves. I think if someone told me that a real life version of Contagion was coming in a matter of hours - I would have s*** my pants, ran round in circles multiple times and dived into a heap on the floor. We have had no choice but to embrace it, the here and now for all that it brings, adjust and innovate & ensure we can all still serve our loyal customers in whatever modified way that we can. Privately owned businesses do have an advantage here as they can generally pivot and realign their product offering at a speed some larger businesses can’t. One thing’s for sure; businesses are going to have to work much harder than ever before on their communication, and their members sense of connection to the club. This is not easy as we all know people favour different mediums - to do everything via zoom, teams or any other platform just wouldn't suit everyone. It means a variety of approaches from regular emails, letters, phone calls, thank you cards, videos and so on - essentially we need to stay connected with our customers like our lives depend on it (they actually do anyway!) if we are to protect our membership over these coming months.

To improve our flexibility and product quality

We are already seeing more and more varied and flexible fitness solutions being offered, giving the customer more of an anytime, anywhere option which really is one of the more positive side effects of COVID. The adoption of technology in our sector has risen at a rate never seen and it is important to embrace it. If I was being critical of our sector, there is an argument that many of us have ignored the fact that this trend was coming, hoping that the customer would not mind that they can't train when the club is closed, that there is no alternative when they miss out or can't make it. Well COVID put a stop to that - we can't ignore this need for flexibility any longer. Thankfully, my business was already working on a blended approach to our concept developing our very own wellness app over the last 2 years. We knew that in time, adoption of at home services would grow alongside the traditional gym offering. But with COVID, we had to hit the accelerator pedal flat out as customers have embraced the notion of live streamed and on demand fitness like they were on rocket fuel! Our ability to diversify our model over the last few weeks now means we have a full portal offering 26 online exercise classes per week, online resources on all aspects of wellbeing and currently FREE use of the app to the whole of Jersey during lock down. One thing is definite - once the customer has a taste for something try taking it away and see how you get on. I dare you... our research with members is showing that nothing can replace the physical face to face experience of being at the club granted, but now that members have experienced online many want the blended approach to remain. I genuinely think that clubs will need to provide options for when the customer can’t attend as standard- it won’t be acceptable anymore to not have an alternative whatever that may be.

To promote higher engagement levels

We have never had a better chance to dramatically increased the current figure of 17% of the population using gyms and tip it over 20%. I genuinely believe this is entirely possible - once we get the message out there that we can with proper distancing measures be as safe as any other business, people are going to go crazy for clubs. We are ultimately social beings and sorry but no matter how good an instructor you are, it just isn't the same on Zoom. With the UK Medical Officer Professor Chris Whitty mentioning the value of exercise at every COVID press conference thus far, the opportunity to gain more adoption off the back of this message cannot be underestimated - if people didn't know that exercise is good for them before COVID then they do now - the message is everywhere! It has being clearly stated that exercise offers protection from the virus as fitter people have stronger immune system. This is absolutely got to be a driver in our marketing to people currently not members of our gym community. We have to lobby our local authorities to protect our sector at all costs - the value we give to society in improved physical and mental health cannot be under played - we matter - we make a difference! More people have started a fitness regime since lockdown than at any other time during a major event. This is our chance to bring in a new segment of people to exercise - we just have to give them reassurance that we can help them in a safe and controlled way. We need to stop the elitist bull**** that our industry seems to like, where we send out the wrong message that we only want fit people in our studios and functional zones - we want everyone - access for all regardless of fitness level, age, taste - this is what makes our industry interesting and what will continue to make this industry prosper. We need cheap clubs, expensive clubs, boutique clubs, wellness centres and so on as we cannot be all things to all people. We want people with 6 packs, 3 packs, no packs, beer packs - diversity in our sector promotes inclusion at the end of the day.

To focus on personalised fitness

My Co -Director Kenny Manson believes that once the restrictions of the lock down begin to ease, people are going to want to continue to be more proactive in looking after not just their fitness but their overall well being. Kenny thinks that people are going to be far more discerning with their choices around health. He believes there will still be big demand for the low-cost, high-volume gyms. However the smaller, independent clubs are going to be well placed to meet the needs of those who would much rather prefer to have their value expectations met; values on cost, service and safety.

“One thing COVID-19 seems to have done is bring people’s ideas and beliefs of health into sharp focus. Only the clubs that develop their teams to deliver results for their members will flourish. Being able to just teach exercise won’t cut it anymore. Understanding nutrition, stress, motivation and mindset are going to be equally important. Personalised health solutions will be the trend that I expect to see emerge, as I believe we will all begin to take greater responsibility to protect our health and well being, no matter of our stage in life. Mental health and peoples motives for why they are training will need to be considered more than ever before.”

To gain the perceived value this industry deserves

I have listened to many respected industry leaders over the last few weeks and there is a common theme emerging. This is the time for our industry to gain the recognition and the perceived value it deserves. When people think nothing of spending ￡3 a day on a coffee but grumble at paying ￡35 a month for a health club membership, then we have work to do! COVID has shone the spotlight on the jobs we have given value to. We now know that this was a false belief system - it isn't footballers, financiers and C list celebrities who have served on the front line and saved our bacon during this crisis. I just hope we never forget this lesson. Alongside people such as nurses, paramedics, teachers, our refuge services I want to see our industry professionals getting more recognition for the great work they do. We change lives for the better- we give people the most valuable commodity - their health - end of!

My good friend and industry guru Duncan Green has seen this industry change and pivot over the 30 years he has been in it and his message is loud and clear “let’s get the right price for what we deliver”. This is the time to question why we have gone to cheap is best? This is the time to really scrutinize what your model can sustain ? It’s basic economics - you have to charge the right amount of money to cover what you pay out! If you take X from Y and you still have Z left over then it works - if it doesn't then we have to go back to the drawing board. Never has this been more important if we are facing opening clubs with our income reduced but with costs remaining. I have to agree with Duncan on this one. Price needs to match value yes, but if we up skill our staff to navigate this new world, provide quality in the products and services we offer, and have the customer's interests at the core of what we do then this is the time where we have to get paid accordingly!