les mills scoreboard round 4 lmwc
DESCRIPTION
Les Mills Global Scoreboard - Trends from over 4000 clubs with Les Mills Group FitnessTRANSCRIPT
GETTING THE GROUP EFFECT
BACKGROUND: THE SCOREBOARD SURVEY § Attendance is the key metric in our industry. It’s our most basic success measure and
the driver of sustainable profit. It’s also our biggest risk in light of a changing market landscape.
§ Accurate attendance data is vital for our industry to learn and grow. The Scoreboard Global Metrics survey was initiated by Les Mills just over a year ago to review the industry, with Agent support in all regions.
§ The survey is designed to record and track accurate club and group fitness attendance data, for both Les Mills and our competitors.
§ Just over 4,300 clubs have taken part in the four rounds of the survey. We must continue to encourage more facilities to participate so that we can continue to build robust data and provide regional insight into industry trends.
§ This data reminds us of the power and potential of group fitness. In particular how Les Mills group fitness programs fills classes, maximising club capacity and helps to build engaging and profitable clubs, thereby helping to grow the fitness industry.
§ The following report is a summary of key insights and considerations for Round 1-4. It
also highlights Agent-specific territory results. § For the most part, local sample sizes were still too small to make strong comparisons with
global averages. We have included this information so you can see the potential of this data in future.
KEY LES MILLS SCOREBOARD NUMBERS
Globally, across all Les Mills programs, there are around 3.4 million weekly attendances
3,396,057
Les Mills Weekly Attendances
Total Les Mills Attendances Per Week
i.e. the average was 3,396,057 (based on 14459 clubs * 234.875 attendances per week)
Notes: 1. Sample size: Round 3 n= 1017. Round 4 n=1008
That’s an average of over 176 million annual weekly group fitness attendances of Les Mills programs!
176,594,964
Les Mills Annual Attendances
Total Les Mills Attendances Per Year
i.e. the average was 176,594,964 (based on 14459 clubs * 234.875 attendances per week) *
52 weeks)
Notes: 1. Sample size: Round 3 n= 1017. Round 4 n=1008
Across all Les Mills programs, over 200,000 Les Mills classes take place each week on average
201K
Les Mills Classes per Week(1)
Total Les Mills Classes Per week
Notes: 1. Sample size: Round 3 n= 1017. Round 4 n=1008
Together BODYPUMPTM,,BODYCOMBATTM ,RPMTM and BODYBALANCETM account for 76% of total weekly attendance. Since launch CXWORXTM and
SH'BAMTM have already gained 4% and 2% share of Les Mills attendances.
Mar 12 Share of Les Mills Attendance
BODYPUMPTM 1,264,600 40 BODYSTEPTM 189,900 6 BODYATTACKTM 185,700 6
BODYCOMBATTM 449,500 14 BODYVIVETM 56,500 2 BODYBALANCETM 323,800 10 RPMTM 389,700 12 SH'BAMTM 77,600 2 BODYJAMTM 123,800 4
CXWORXTM 112,800 4 TOTAL 3,173,800 100%
Les Mills Weekly Attendances By Program
Notes: 1. Sample size: Round 3 n= 1017. Round 4 n=1008
HOW IS THE INDUSTRY HOLDING UP?
“The economic gauntlet has tested our mettle and made us work harder than we thought possible,…. but we are a better industry and better times lie
ahead” IHRSA 2012 Global Report
“In 2011, revenue increased 2.3% and is expected to increase 2.0% in 2012. The US industry will expand at an annual rate of 2.8% through 2017, to
$29 billion, and will serve 48.3 million members.” IBIS World Feb 2012
“The middle market in many industries is under attack from both low-cost and premium segments. Consumers have high expectations even when the price
they pay is low” Ray Algar, MD Oxygen Consulting, Author of 2011 Global Low Cost Gym Sector Report
WHAT IS DRIVING MARKETS AROUND THE WORLD?
“NEWISM: The new* has never been hotter. For consumers who have grown up in the ‘Expectation Economy’ demanding the best of the best, the very notion of the ‘new’ has become a positive one”
Trendwatching July 012
2 million patents were applied for in 2010, up from 1.4 million in 2000. World Intellectual Property Organization 2011
“The innovation-spurring eco-system is totally transparent, with everything now reviewed and rated
[online] the moment it’s created, meaning the risk for consumers of trying out something new is approaching zilch.” Trendwatching July 012
“Spending is shifting online, e-commerce is no longer about choice, price but about everything consumers look for in any purchase: status, the right product and a compelling experience”
Trendwatching May 2012
“US e-commerce sales will grow 62% by 2016, to USD 327 billion. European e-commerce sales will grow 78% by 2016, to USD 230 billion.
Forrester Feb 2012,
* This is not just breathless, eco-unfriendly, product-replacing madness.
WHAT IS DRIVING MARKETS AROUND THE WORLD?
“Everything is getting faster. The online world with its relentless acceleration and amplification
– of information, of excitement, of attention – is of course a major contributor to the NEW” Trendwatching July 012
“The desire to tell status stories is further fuelling consumer’s never-ending lust for new
experiences, especially acute in a world where so much identity is expressed online. Consumers want to collect and mix-and match as many new and varied experiences as
possible” Trendwatching July 2012
“Consumers don’t expect brands to be flawless. In fact, consumers will embrace brands that are
still brilliant despite having flaws. Brands that show some empathy, generosity, humility, flexibility, maturity, humour and (dare we say it) some character and humanity”
Trendwatching April 2012
WHAT IS OUR OPPORTUNITY?
We are operating in a world of relentless acceleration.
The industry is economically viable and growing.
Consumers [members] have high expectations, want varied experiences and new choices.
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THE RELENTLESS CHALLENGE …
ATTRACTING MEMBER ATTENTION MAINTAINING THEIR INTEREST and KEEPING THEM ENGAGED
MORE PEOPLE THROUGH THE FITNESS STUDIO DOOR GROWS ATTENDANCE, WHICH IN THE LONG TERM
GROWS A SUSTAINABLE AND SUCCESSFUL BUSINESS
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GETTING THE GROUP EFFECT
“American adults stare at screens (TV, phone, computer) for 8.5 hours a day. Most people are not working out while they are staring…..”
Club Solutions April 2012
“Motivation is the trigger that ignites club membership. Implicit in the motivation that inspires a member to join a club is the expectation that the experience of being a club
member will sustain and support that motivation” IHRSA Guide to Retention 2007
“Approximately 40% of new health club members are first-time members, and can feel
helpless in a contemporary fitness center” IHRSA Guide to Retention 2007
“The sense of community you get from (group fitness) is incredibly valuable, as that camaraderie between members creates more accountability. Members encourage other members to come back, and may even suggest other classes that they have enjoyed”
Jodi Sussner, KOSAMA, Club Solutions April 2012
”Health club members equate value with usage. No matter whether a membership costs $25 per month or $125 per month, high usage equates to high value”
IHRSA Guide to Retention 2007
HELPING CLUBS GET THE GROUP EFFECT
GROUP EXERCISE ATTRACTS AND MOTIVATES MORE MEMBERS, WHO
ATTEND MORE OFTEN, WHO IN TURN, REFER MORE MEMBERS!
THE POWER OF THE GROUP
PROVIDES THE MOTIVATION TO KEEP MOVING
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SCOREBOARD PROVES THE POWER OF GROUP EXERCISE
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• Highlights the opportunity within the 5 genres that account for almost 75% of group exercise attendances
• Highlights the seasonality curve affecting club attendance through the year. • The year starts high, dips and builds to the next year.
• Shows us that group exercise attendance is more season proof than non-group exercise attendance with lower off-peak declines
• Off-peak/low season total attendance declines 14% • Non-group exercise attendance declines 17% • Group exercise attendance declines 9% • Les Mills group exercise declines only 8%
• Demonstrates the strength of group exercise when ONLY group exercise regains the attendance losses following off-peak fluctuations
• Post off-peak total attendance increases 13% (declines were -14%) • Non-group exercise attendance increases 15% (declines were -17%) • Group exercise attendance increases 10% (declines were -9%)
SCOREBOARD PROVES THE POWER OF GROUP EXERCISE (cont…)
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• Highlights the strength of Les Mills. Even during seasonal fluctuations, Les Mills consistently owns 33% of share of group exercise attendances (5)
• 33% of the 9.3M Group Exercise attendances during peak season • 33% of the 8.6M Group Exercise attendances during off-peak season, AND post off-
peak low Les Mills attendances increase at a faster rate to grow share to 35%
• Shows that the average Les Mills licensed clubs performs above the industry norm of Group Exercise % to total attendance
• The majority perform above the industry target of 10-20% • The top performers DOUBLE the target.
• Proves that Les Mills classes help drive attendance • Top performing clubs attract higher total class attendance in Les Mills classes than
other Group Exercise classes, on average • Top 20 clubs: 45 participants in Les Mills classes vs. 31 participants in other
classes(6)
(5) Scoreboard Round 1, 2,3 (6) Scoreboard Round 2
SCOREBOARD ROUND 4: HIGHLIGHTS GROUP FITNESS STABILITY & LES MILLS STRENGTH
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Group Exercise attendances in Les Mills licensed clubs are stable across the year.
Round 4 of Scoreboard shows: • Total club attendance declines (11% down), but this is driven by a decline in
non-group exercise attendances (17% declines).
• Total group exercise attendance show small gains, • driven by class attendance, not number of classes
• Les Mills’ share of classes (timetable) has increased from 34% to 37%, and the annual trend is upwards. • Increase owing to a decline in number of competitor classes (3% decline)
• Les Mills share of attendances is stable at 34%, annual trend is steady.
SCOREBOARD ROUND 4: HIGHLIGHTS GROUP FITNESS STABILITY, LES MILLS STRENGTH
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• Highlights the upward trend of the Dance genre • Increase in genre share (up from 11% to 15%) and number of clubs offering at
least 1 program (up from 79% to 90%) • SH’BAM attendances increasing 5.1 x over the year, Zumba increasing 2%
share of Dance attendances in Round 4.
• Shows the strength of the Mind & Body genre • Strength of genre share (ave14% over the year) and increase in number of clubs
offering at least 1 program (up from 92% to 97%)
• Shows the solidity of the Strength& Weights genre • Strength of genre share (ave 18% over the year) and steady in the number of
clubs offering at least 1 program (ave 93% over the year)
• Demonstrates the importance of the above three genre’s – accounting for 47% share of Group Fitness attendances
• Highlights the increase in clubs that have “Other –unspecified classes” – new and different classes/formats additional to the genre’s over the year (39% to 46%). • “Other- unspecified classes” account for 8% share of group fitness attendances.
THE BOTTOM LINE IS
WE NEED TO GET MORE PEOPLE MOVING, MORE OFTEN, WITH GROUP FITNESS.
GROUP FITNESS SHOULD BE THEIR DEFAULT CHOICE.
LES MILLS OFFERS INNOVATIVE COMPELLING EXERCISE EXPERIENCES THAT CAPTURE AND ENGAGE MEMBERS
TOP TWENTY CLUBS SURVEYED
Top Twenty Clubs Based On Total Group Fitness Attendance
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Top Twenty Clubs Based On Total Group Fitness Attendance(1)(2)
Notes: 1. Out of 1,064 Les Mills clubs surveyed; (2) NA= data not available
Ranking Club Name
Weekly Group Fitness
Attendances
GF Share of Total
Attendances Country Club Size
1 LES MILLS AUCKLAND CITY 9,209 55% New Zealand Large
2 IKSU SPORT 8,676 41% Sweden Large
3 LAS VEGAS ATHLETIC CLUBS-WEST FLAMINGO 5,519 14% USA Large
4 LAS VEGAS ATHLETIC CLUB--GREEN VALLEY 5,161 18% USA Large
5 LAS VEGAS ATHLETIC CLUBS--RAINBOW 5,141 17% USA Large
6 LES MILLS EXTREME 5,056 52% New Zealand Large
7 ANON_01073 4,022 NA France NA
8 BURLINGTON MALL 3,156 44% Canada Large
9 LIIKUNTAKESKUS HUKKA 3,151 49% Finland Large
10 24H FITNESS_00111 3,142 NA USA NA
Top Twenty Clubs Based On Total Group Fitness Attendance (cont’d)
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Top Twenty Clubs Based On Total Group Fitness Attendance(1)(2)
Notes: 1. Out of 1,064 Les Mills clubs surveyed; (2) NA= data not available
Ranking Club Name
Weekly Group Fitness
Attendances
GF Share of Total
Attendances Country Club Size
11 24H FITNESS_00202 3,108 NA USA NA
12 THE PEAK 3,068 25% UK Large
13 ANON_02044 3,025 NA USA NA
14 JERRY LONG FAMILY YMCA 3,022 29% USA Large
15 スポーツクラブOSSO南砂 3,021 69% Japan Large
16 24H FITNESS_00496 2,891 NA USA NA
17 24H FITNESS_00216 2,855 NA USA NA
18 24H FITNESS_00512 2,852 NA USA NA
19 YO10 SPORT & SPA CLUB (GRANADA) 2,851 57% Spain Medium
20 LES MILLS HUTT CITY 2,785 48% New Zealand Medium
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Top 100 Clubs Performance Scoreboard Round 1
Top Hundred Club Performance Based On Total Group Fitness Attendance(1)
Notes: 1. Out of 1,187 Les Mills clubs surveyed;
TOP 100
AVERAGE
TOTAL MEMBERS 5,950
TOTAL WEEKLY ATTENDANCES 8,456
GROUP EXERCISE WEEKLY ATTENDANCE 2,525
GROUP EXERCISE LES MILLS WEEKLY ATTENDANCE 687
GROUP EXERCISE WEEKLY CLASSES 88
GROUP EXERCISE LES MILLS WEEKLY CLASSES 22
GROUP EXERCISE AVERAGE WEEKLY CLASS ATTENDANCE 28.6
GROUP EXERCISE AVERAGE LES MILLS WEEKLY CLASS ATTENDANCE 31.9
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Top 100 Clubs Performance Scoreboard Round 2
TOP 20 AVERAGE
TOP 50 AVERAGE
TOP 100
AVERAGE
TOTAL MEMBERS 5,619 5,474 5,011
TOTAL WEEKLY ATTENDANCES 9,312 8,095 7,149
GROUP EXERCISE WEEKLY ATTENDANCE 3,631 2,792 2,314
LES MILLS WEEKLY ATTENDANCE 1,628 996 745
GROUP EXERCISE WEEKLY CLASSES 114 88 79
LES MILLS WEEKLY CLASSES 37 25 23
AVERAGE WEEKLY CLASS ATTENDANCE 31.8 31.9 29.2
AVERAGE LES MILLS WEEKLY CLASS ATTENDANCE 44.6 39.5 32.9
WEEKLY ATTENDANCE PER MEMBER 1.7 1.5 1.4
Key Metrics For Top Clubs Based On Total Group Fitness Attendance(1)(2)
Notes: 1. Out of 993 Les Mills licensed clubs surveyed; 2. Based on unweighted survey responses
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Top 100 Clubs Performance Scoreboard Round 3
Key Metrics For Top Clubs Based On Total Group Fitness Attendance(1)(2)
Notes: 1. Out of 1,069 Les Mills licensed clubs surveyed; 2. Based on unweighted survey responses
TOP 20 AVERAGE
TOP 50 AVERAGE
TOP 100
AVERAGE
TOTAL MEMBERS 14,717 10,046 8,007
TOTAL WEEKLY ATTENDANCES 13,122 10,616 8,755
GROUP EXERCISE WEEKLY ATTENDANCE 3,859 2,950 2,415
LES MILLS WEEKLY ATTENDANCE 1,695 1,168 876
GROUP EXERCISE WEEKLY CLASSES 140 106 88
LES MILLS WEEKLY CLASSES 47 36 29
AVERAGE WEEKLY CLASS ATTENDANCE 27.6 27.8 27.5
AVERAGE LES MILLS WEEKLY CLASS ATTENDANCE 35.7 32.7 30.4
WEEKLY ATTENDANCE PER MEMBER 0.9 1.1 1.1
In the top performing clubs, Les Mills achieves significantly
higher per class attendance than competitor programs
Globally – 16.5
Top 100 Clubs Performance Scoreboard Round 4 Top performing Les Mills licensed clubs offer considerably higher number of Les Mills classes per week, which attract twice as many participants per class than at the global level
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Key Metrics For Top Clubs Based On Total Group Fitness Attendance(1)(2)
Notes: 1. Out of 1,064 Les Mills licensed clubs surveyed; 2. Global Average is based on weighted survey responses, data for top clubs is based on unweighted survey responses
GLOBAL AVERAGE
TOP 20 AVERAGE
TOP 50 AVERAGE
TOP 100
AVERAGE TOP 250
AVERAGE TOP 500
AVERAGE
TOTAL MEMBERS 1,377 15,337 9,998 8,473 6,362 5,031
TOTAL WEEKLY ATTENDANCES 1,775 15,090 10,451 9,079 6,914 5,404
GROUP EXERCISE WEEKLY ATTENDANCE 657 4,086 3,114 2,540 1,945 1,524
LES MILLS WEEKLY ATTENDANCE 223 1,792 1,275 908 659 538
GROUP EXERCISE WEEKLY CLASSES 38 136 111 90 73 60
LES MILLS WEEKLY CLASSES 14 50 40 30 25 22
AVERAGE WEEKLY CLASS ATTENDANCE 17.2 30.1 28.2 28.4 26.7 25.5
AVERAGE LES MILLS WEEKLY CLASS ATTENDANCE 16.0 35.8 32.2 30.3 26.9 24.5
WEEKLY ATTENDANCE PER MEMBER 1.2 1.0 1.0 1.1 1.1 1.1