Getting to work with smart people is something we all love - at least I do. Ray Algar is the kind of collaborative thinker that makes me get up in the morning knowing there is a greater purpose for working in the fitness industry (not the one of today necessarily but the one emerging for the future).
His recent report, the 2011 European Health Club Industry Web And Social Media Report , is another example of the great collaborations he engages in. The report is an excellent read for anyone in the fitness industry. I'll touch on some of the report's findings and more during my presentation at IHRSA on Wednesday morning this year (2011). Two sections from the report are included below and you can obtain the report in its entirety here . (Thanks Ray for allowing me to contribute). Please do read it.
So what do you think ? How do you think the new dynamics of collaboration and communication via technology platforms is going to impact the fitness and wellness business ? Please contact me Bryan O'Rourke and share your views. What do you make of Ray's research and my thoughts and comments below ?
1. Direct the Rider (the conscious mind), eliminating what looks like resistance but is more often a lack of clarity by providing crystal-clear direction;
2. Motivate the Elephant (the subconscious), eliminating what looks like laziness but is more often exhaustion by engaging emotions to get people on the same path as you; and
3. Shape the Path (the situation), eliminating what looks like a people problem but is more often a situation problem, by making the environment more conducive to the change you seek.
So in watching the 60 minutes story last night about the Tunisian fruit vendor 26-yr.-old Mohammed Bouazizi, and how he set himself on fire out of frustration which resulted in a Facebook fueled revolution in the otherwise peaceful nation, I wondered about change. Obviously Bouazizi indirectly embraced all 3 of the frameworks, ending his life as a result. How tragic. Watch the story below and tell me, Bryan O'Rourke, what do you think about change ? Does it happen peacefully and slowly or more often is it started by a spark that fuels a sudden revolution ? What do you think needs to happen for fitness and wellness to become more of a part of our culture and ethos ? Who will be the catalysts ?
My friend Michael Scudder Skyped me this am and asked if I had seen the news on Borders, who just filed for Chapter 11. His skype text said,
Good morning, Bryan! I assume you saw that Borders declared bankruptcy this morning. You called that shot a couple of years ago. Indications for the bricks-and-mortar fitness industry??
I wish I were that smart Michael. However, it is true that the head winds contributing to the book industry's reinvention, ala Borders, are also being faced by the Bricks and Mortar fitness industry.
THE key component of business model viability is this: can an organization consistently create and deliver something at a certain cost and sell it at a higher price ? This is a challenge for many industries and it is instructive to watch what is happening in the book store business today as the "middle men", the publishing and retail book store industries are getting squeezed. The entire book industry is starting to experience what every business is going to experience: tremendous upheaval as creators have more options to create and distribute goods and services. Thus alternative solutions to customer needs are reinventing markets and business models.
Geoffrey Fowler and Jeffrey Trachtenberg wrote a great WSJ article titled, "Vanity Press Goes Digital" , which dissect the shift occurring in book creation. Here is a excerpt:
But some publishers say that online self-publishing and the entry of newcomers such as Amazon into the market could mark a sea change in publishing.
"It's a threat to publishers' control over authors," said Richard Nash, former publisher of Soft Skull Press who recently launched Cursor Inc., a new publishing company. "It shows best-selling authors that there are alternatives—they can hire their own publicist, their own online marketing specialist, a freelance editor, and a distribution service."
In the fitness industry, as with many other industries, there are similarities to the book business. If you are skeptical of what I am saying realize history includes many examples. Long before there were iPads and Kindles were other disruptive technologies like the printing press and Guttenberg Bible. turned the world on its head. We are here again. I think the bricks and mortar fitness business will survive, but there will be increasing competition from alternative digital services and competitors who blend a combination of digital and personal delivery that create unique customer member experience.
So tell me, Bryan O'Rourke, what do you think ? Does the Border's Bankrtupcy relate to the health club industry ? Are changes in the business models for health clubs going to create opportunities and disruptions in the industry ?
Watch the interesting video below and thanks for your thoughts.
Smart Phones are exploding and, while unclear, the implications for health clubs are very real. From how we market to how we engage existing members, there are and will be opportunities and risks. Check out my recent Club Industry Article "How Mobile Devices Will Affect The Health Club Industry", to learn more.
How significant will "Smart Phones" be ? Nielsen has forecasted that by the third quarter of 2011, smartphone users will surpass feature phone users. This represents a continued and monumental shift in the way people connect with media, the Internet, mobile apps and each other.
91% of Americans are mobile subscribers. Based on Nielsen's estimate, 50% of mobile subscribers will be smartphone users. The result will be nearly 143 Million smart phone users by the third quarter of 2011.
I've touched on bifurcation in the fitness facility business as a key trend. Budget models and niche experiential models are going to comprise most growth in the coming decade while anything in the middle will have a tough go. Further evidence of this bifurcation trend, in my opinion, is the concept Waybeyond. The first concept is opened in San Diego and its designed for children. Talk about a niche. but its pretty interesting. Check out the online tour . Brian Blacher is co-founder.
Tell me what do you think about Waybeyond ? Can a fitness concept that focuses on the kids niche thrive ?
