What You Didn’t See at IHRSA

While IHRSA isn’t the largest fitness show in the world, we believe that in many aspects, it is the leading one for the global fitness industry. For one, it focuses exclusively on the commercial fitness segment.? Secondly, it is scheduled before FIBO and since it is based in the largest commercial fitness market in the world, it has become the launch stage for new products and overall, it sets the tone for the industry in the year to come. So it’s no surprise that your social media channels are full of photos of booths, selfies with industry celebrities, company executives and the glitz and glamor of the show.

But for us, the most interesting part of IHRSA this year is what you didn’t see, who was missing, and the opportunities this gap means for you.?

Background

Back in 2020, IHRSA was canceled just a week before opening day, while FIBO had canceled two months earlier speaking about the low appetite Europeans have for risk -- especially after Spain and Italy had seen COVID ravage their large senior population. In 2022, IHRSA Miami aimed to accommodate in-person meetings after years of lockdowns and slowdowns. Three years later in 2023, a lot changed, while a lot still stayed the same.

Coming from the East

For most Asian distribution partners, IHRSA ‘23 was a 50/50 gamble, but an essential one.? At the “launch” of COVID in 2019, Asia was the first region to lockdown and consequently start the home fitness boom right as the US and Europe were starting their lockdown efforts. Adding to that were the supply chain challenges. China manufacturers had been slowing down or completely locked down since December 2019, followed by the Chinese New Year pause. By March, Europe was hit by COVID in full force and the US joined shortly after. The consequence was a surge in demand the supply chain was not ready for. Imagine your local gym has 100 dumbbells for 10,000 members that attend at different hours and days of the week.? Then it locks down and 1,000 members want five dumbbells each, all of this in a matter of months. As a result, brands and distributors that could pivot from commercial fitness to home fitness had their best year ever.? However, for much of the past three years, lockdowns have happened sporadically at regional levels, causing gyms that thought they were going to pick up momentum to close down again.

Lockdowns in China and parts of Asia were only recently “unlocked” and continuous education courses are still done virtually.? Many of the Asian distributors who did return to IHRSA this year came to see how the West was moving forward and what the commercial fitness market looked like after COVID, or at least how the West is projecting it to recover.

IHRSA attendance was sporadic.? Historically, Japan, the 6th largest commercial fitness market, has sent large delegations to the US.? This year the number of attendees was less than 50%.

Coming from the West

Also very much absent from IHRSA were European partners.? In past years, European distribution partners/gyms would travel to IHRSA, leave the Winter behind for a few days and soak up the California sun while doing business with their US partners in person.? While gas prices have stabilized in Europe and government subsidies and programs have been trying to blunt the impact, risk-averse European businesses remain very, very hesitant to make large investments.? Instead, many are using what Facebook’s CEO, Mark Zuckerberg, calls a “Year of Efficiency” to optimize their operations with a focus on profit and savings rather than growth and investment.

In the US

While gym goers built their home gyms, fitness clubs and studios were balancing between lockdowns and legal attendance limits. Three years later, home gyms are no longer for the fit buffs or those with an extra room or unused garage. As Peloton, Halo, BeachBody and many other digital fitness services continue their push, clubs have slowly stopped competing in the digital space. In-club AND at-home fitness are learning to coexist as much as remote and in-office work is here to stay and trying to find a balance.?

Globally

At the same time, the drivers that are shaping health choices are speeding up.? Wellness is no longer a new age word reserved for middle-aged audiences as Gen Z and Millennials are spending more in the segment than any other demographic. Pollution, obesity and the aging population are increasing risks at a global level and are the cause of lower quality of life and death. And population decline is a terminal pill for any nation to swallow.? Fitness and health are not leisure activities anymore, but a necessity for both social and national longevity.?

What it means for the rest of us

• While big companies are limiting their theatrical launches and two-level booths at IHRSA (and likely at FIBO next week), small companies that show up have an opportunity to stand out with their innovation, clear message and good service.? Companies that focus on recovery are a great example.
• Consumers are not looking to recreate the gym experience at home, but instead, they want to design the experience customized to their needs. Companies that respond to these needs efficiently will have a huge advantage.
• The COVID journey proved to be a game changer and the world reacts very differently to change depending on the region. While tech and fitness companies could expand and contract easily in the US, European employee contracts don’t allow for the same level of flexibility. But companies can be nimble and fast to react in many other ways. A healthy level of risk and out-of-the-box thinking can make or break a business. Don’t think “this can’t be done” think “How can this be done?”.
• The obese and elderly populations were hit the hardest during COVID, and the fitness industry is pushing for fitness to be seen not as leisure or luxury, but as preventive healthcare. Political leaders and both public and private organizations are responding to consumer and corporate pressure with subsidies, policies and coverage changes. Companies are making themselves responsible for effecting and demanding change as much as consumers. Brands must take a stance and at the same time, communicate their mission backed up with benefits in a clear and relevant way. Now, more than ever, consumers are listening and will support brands that echo their beliefs.