Download pdf - Les Mills Scoreboard round 4 lmwc

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)


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


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


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.

11

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

12

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

14

SCOREBOARD PROVES THE POWER OF GROUP EXERCISE

15

•  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…)

16

•  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

17

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

18

•  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

21

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)

22

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


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




19 YO10 SPORT & SPA CLUB (GRANADA) 2,851 57% Spain Medium

20 LES MILLS HUTT CITY 2,785 48% New Zealand Medium

23

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

24


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

25



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

26


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