From where I’m standing, the fitness industry is in an unprecedented time of both instability and opportunity. The pandemic, Russia’s act of war and increasing global digitisation have put the world into ‘VUCA’ mode – a term coined by the US military that stands for Volatile, Uncertain, Complex, and Ambiguous.
Here are some of the opportunities and threats that these destabilising forces are creating:
The pandemic
Opportunity: The pandemic has people evaluating what’s really important to them, and health and longevity are hitting the top of the list. Market penetration, which is sitting at around 15%, is due to grow to 20% by 2030. This means millions of potential new clients ready to be engaged over the coming months and years.
Threat: As the pandemic passes, so do a lot of the crutches that were propping up businesses through the disruptions. Furlough’s finished, VAT bills are coming home to roost, rent breaks are over…as reality hits home, only the strong will survive.
The cost of living crisis
Opportunity: With the cost of living increasing, people are examining their spending and getting rid of any expenditure that isn’t pulling its weight. This means that those of us that are offering truly great value for money are standing out from the crowd – it’s an opportunity for us to differentiate ourselves.
Threat: If we aren’t number one in our industry in our area, our heads are on the chopping block. We have to be the best, or we risk falling into the mediocre middle and losing out to stronger offerings.
The Digital Revolution
Opportunity: With online training now a commonplace offering, many customers are realising that the real reason they love being a member of the gym is the in-person community, over and above even the training itself. This gives us the chance to really excel at our core product – SGPT with community at its heart.
Threat: Now that people are comfortable accessing fitness support online, the field and scope of the competitive landscape has been blown wide open. Fitness, health and wellness are some of the most promising opportunities out there, and the digitisation of the sector is opening doors for some of the biggest global players to enter the battleground.
As MD of Foundry, it’s my job to navigate the next phase in the business’ growth, seizing opportunities and avoiding pitfalls. There’s no doubt that succeeding in a VUCA world is going to demand that leaders be more agile and innovative than ever before – responding quickly and decisively to changing customer demands, economic conditions and competitor behaviour.
I’ll be thinking through some of the qualities that these agile leaders will need in next week’s blog post: sign up to the newsletter to get regular insights directly to your inbox.