The deck presents recent trends within the fitness industry. In particular, it analyzes fitness industry growth in conjunction with consumer demand and consumer segmentation. We compare revenue growth rates with the membership and facility growth rate. Further, it shows fitness industry consumer life cycle framework focusing on the reasons why consumers join and drop gym memberships. Finally, it offers some insights on consumer behavior and on how Americans perceive healthy living lifestyle. In particular, we analyze how consumers feel about healthy eating vs working out and what are the trends in these lifestyle statements. For more information on the fitness industry study, please visit www.fitnessdotcommed.com

1. Fitness DotCommedFitness Industry Study
Chapter 1: Fitness Industry Overview

2. Volatile demand and high operating costs slow the
growth of the fitness industry
Profit, 8.4
Other, 7.9
Rent & Utilities,
15.5
Marketing, 10
Purchases, 20
Wages, 30.7
Depreciation, 7.5
Industry
revenue
$25.9bn
Industry
profit
$2.2.bn
-3.00%
0.00%
3.00%
6.00%
9.00%
2006 2007 2008 2009 2010 2011 2012
Membership Growth Rate
Facilities Growth Rate
Average Revenue Growth Rate
Slow industry revenue growth (1.4%)
is forecasted to pick up to 2.9%
 Wages, purchases, and rent are
three largest costs of the industry
 Companies try to lower these
costs or recover them through
high membership prices
 Membership growth is rather
volatile
 This volatility makes it riskier
for companies to invest in
expanding their facilities
Data Source: IBISworld.com, IHRSA.org

3. Fitness facilities growth lags behind increase in the
demand for club memberships
43 42
46 45
50 51 50
Number of health clubs (thousand) Health club membership (million)
Health clubs have
a flatter average
growth (0.8%)
than the club
members average
growth (4%)
Data Source: IHRSA.org, Leisure Trends
Images are courtesy of kanate / FreeDigitalPhotos.net
+0.8%
+4.0%
1,469
1,414
1,535
1,523
1,679
1,716
1,646
As membership growth
outpaces facilities
growth, more members
leave fitness clubs due
to overcrowdings: 17%
in 2013 vs. 10% in 2012
2006 2007 2008 2009 2010 2011 2012
Average number of members per club

4. Only 12.6% of Americans visit fitness clubs regularly,
majority of them being urban population aged 34-55
7%
27%
41%
25%
Generation X is the largest consumer group
of fitness clubs
Men and women contribute almost equal
shares to club memberships
53% 47%
Data Source: IHRSA.org; SimplyMap SimmonsLOCAL
Images are courtesy of kanate / FreeDigitalPhotos.net
In absolute numbers California, Texas, and New
York have the most people who workout regularly
7.2%12.6%26.9%53.3%
I do not workout I workout
at home
At
club
Other
Although over 40% own gym memberships,
only 12.6% use them

5. Customers join gyms to improve health, learn about
fitness, and socialize, but are price-sensitive
Health
Social
Why join
a gym?
Which gym
to join?
Price
Location
Facility
Customer
experience and
engagement
Health
Social
Why leave
the gym?
Price
Location
Facility
Other place
Other activity
Nowhere
Where to
next?
 Overall health 57%
 Fun 36%
 Access to fitness
instructors 30%
 Social 21%
 Location 42%
 Variety of
equipment 39%
 Price 38%
 Found free place
25%
 Location 17%
 It was too crowded
18%
 Was not using
membership 23%
 No friends 11%
 Felt out of place 9%
 It felt intimidating 8%
 Nobody guided 7%
Data Source: IHRSA.org, Leisure Trends
Education
Education

6. In the mind of consumers, healthy living focus shifts
from food to exercise
∆2011-2008
I CONSIDER MY DIET TO BE
VERY HEALTHY 12.7%
I THINK OF THE CALORIES
IN WHAT I EAT 8%
I TRY TO EAT HEALTHIER
FOOD THESE DAYS 25.7%
∆2011-2008
I EXERCISE MORE OR LESS
REGULARLY 42.4%
I MAKE SURE I EXERCISE
REGULARLY 18.2%
-1.4%
-2.4%
-2.2%
+8.1%
+3.1%
 Consumers are more concerned with trying to eat
healthier food (25.7%) than exercising regularly
(18.2%)
 However, exercise becomes more important as
consumers choose somewhat less healthy food
29%
16%
12%
10%
9%
6%
Walking for
exercise
Swimming
Jogging
Weight lifting
Aerobics
Yoga
Top fitness activities by
participation rate
 In the next 5 years
group classes are
expected to increase in
popularity, especially
yoga and fusion classes
Data Source: IHRSA.org; SimplyMap SimmonsLOCAL, Leisure Trends, IBISworld.com
Images are courtesy of kanate / FreeDigitalPhotos.net