Industry Analysis & Industry Trends
The Gyms and Fitness Centres industry ran into trouble at the start of the five years through 2015-16. Challenging economic conditions caused some gym goers to cancel their gym membership or opt to exercise independently at no cost. Other gym goers have traded down to a new breed of budget gyms, which do not require long-term contracts and charge less because they only offer basic services. As a result, a number of established industry players suffered from falling membership numbers and have been forced to sell or close gyms. Meanwhile, newer budget operators have done well, attracting the investment to finance further expansion in the next five years. IBISWorld expects industry revenue to increase at a compound annual rate of 1.3% over the five years through 2015-16... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering the Gyms and Fitness Centres industry are moderate. The industry has a medium degree of concentration and a high level of competition, which combined will deter some entrants. The brand names and networks built up by the larger players are a point of competitive advantage, with large firms benefiting from scale economies. New entrants generally need to invest money and time to persuade potential clients to shift away from these existing trade names.
In urban markets, barriers to entry include planning laws and a shortage of appropriate real estate. Gyms must have convenient access in order to attract members, and so securing leases on high profile locations is important to their success... purchase to read more