How Are Changing Consumers Impacting The Health Club Business ?
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US Consumers have been going through a lot during the past few decades and namely this: the middle class is getting squeezed and the implications are significant. As a recent Deloitte Consulting Review, "Mind The Gap" noted, "Given the expectation of essentially two different types of consumers (affluent consumers with rising income versus low and middle income consumers with stagnant incomes), companies could target them separately." Indeed they could and that explains what's up in the health club biz.
A Wells Fargo Quick Market Update "Bifurcation Of The Consumer" by Matt Wittmer also recently reported: " ...while consumers in all income brackets remain cautious in their discretionary spending, the severity and persistence of spending habits between the two groups (low income and wealthy) continue to diverge. Furthermore, we are also observing a change among middle-income earners, who are becoming more value driven in their consumption patterns."
The bifurcation trend is here and its impacting every consumer sector. Therefore, it should be no surprise that Gold's Gym's Jim Snow is moving forward aggressively with the new Gold's Gym Express format , Equinox with Blink while Planet Fitness continues its aggressive growth plans. As Michael Scudder recently pointed out during our recent interview, there is a lot of change coming to the health club industry and I think the bifurcation trend is a KEY driver behind that change.
Do you understand what the bifurcation trend is ? Watch the interview below with Scott Galloway, a thought leader in consumer trends and digital innovation (he's with L2 Think Tank), as he explains the implications of bifurcation and please tell me, Bryan O'Rourke, what do you think of the bifurcation trend in the health club industry ? How do you think it is and will affect the health club industry ?
About the author:
Bryan O’Rourke is a health club industry expert, technologist, financier, and shareholder and executive in several fitness companies. He consults with global brands, serves as a member of the GGFA Think Tank is Chair of the Medical Fitness Association’s Education Committee, is President of the Fitness Industry Technology Council and a partner in Fitmarc, Integerus, Fitsomo and the Flywheel Group. To learn more contact Bryan here today .
