A GROWING MARKET
According to the International Health, Racquet, and Sports Club Association (IHRSA), the health and wellness market has an annual growth rate of 3.6% with a yearly revenue growth rate of 6.1%. The boutique fitness market grew many times the overall industry rate, and with an industry revenue estimated at $30 billion, that growth rate spells big profits for fitness entrepreneurs who know how to capitalize on trends.
These growth rates show no signs of slowing down anytime soon. Over 55.3 million people in America belong to a gym or club. That translates to more than 5 billion total visits to health clubs, gyms, and fitness studios a year! When the average person visits a gym 90 times a year, business owners have a real chance to make a serious impact in their members’ lives.
We all know the reputation that traditional gyms have. The vast majority of members sign up at the beginning of the year, fully devoted to getting in shape. By February, their attendance has slowed substantially. By June, they’ve forgotten where the gym even is.
While that seems to be the headline, in fact, the overall retention rate for gyms is 72.4%. At RockBox, we provide the classes people want to take, engage our members with genuine appreciation (and we have unique ways to show it), and have a brand people want to be associated with and ‘wear the t-shirt.’ Mainly, we genuinely connect with our members and are diligent about showing them our appreciation through our member retention plan your staff will institute. It can be easy to quit a membership, but not a relationship where you feel valued.
What Does the Industry Have To Say About Franchising?
Entrepreneur magazine listed five fitness brands in their Top 100 Franchise List in 2019. Based on past sales, it’s the on-demand, HIIT fitness experiences that are showing the most growth. When it comes to fitness categories, it’s especially the boutique studios like RockBox that are exploding these days. A boutique business is defined by its size (between 800 and 3,500 sq. ft.) and class schedule. Instead of offering instruction in several categories, they hold community-oriented group classes focused on one or two niches (e.g., ballet, kickboxing, etc.). RockBox Fitness combines boxing, kickboxing, and functional strength training in every class to ensure members burn a ton of calories, build lean muscle, and gain confidence like never before. We are not only the new kickboxing franchise. We are THE kickboxing franchise…and so, so much more.
New Consumer Attitudes
In an age of digital everything, people still crave a sense of community where they live and work. Even though classes at a boutique fitness studio can cost up to $40 for a single hour-long session, it’s worth it for people who come together in a shared experience. We used to see people pay $50 a month for all the treadmills they could handle, but this big-box model is falling out of fashion because consumers grow bored of the stale fluorescent lighting and same old same old. They are willing to pay a premium for a better workout, and a better experience in a community environment.
Today’s consumer wants to learn new skills, connect with other members, and learn more from their instructors. Between 2012 and 2015, traditional gyms grew at an average rate of 5% while boutique studios grew by a whopping 70%!