How to Create a Market Analysis For Your Gym

Learning how to create a market analysis for your gym is no easy feat, but it is absolutely vital to the success of your business. The global fitness industry is in the best place it’s ever been, with more money to be made and more members looking to get fitter, healthier, and to find their own fitness community.

If you’re reading this as a gym owner, there’s plenty to be excited about; but of course, there are plenty of challenges to navigate. One of the best ways to plan for the future is to understand the present state of the fitness industry, and more importantly, to understand your business’ potential. The best possible way of doing this is by creating a market analysis for your gym. 

But before we show you that, let’s take a high-level look at the fitness industry as a whole.

In a hurry? Here’s the TL;DR of how to create a market analysis for your gym

• Stay up to date with current trends and opportunities
• Survey your members and visit local businesses to understand what you’re not doing
• Make an honest list of your opportunities and challenges
• Understand your unique selling point and double down on it
• Use a fitness business platform to give you unique insights into your member behavior and revenue.

The Current Market Landscape of the Fitness Industry

Industry Boom: Gyms have seen a 60% boost in check-ins over the past year.  People are looking to become healthier and more productive in their lives, and gyms are the most popular place to achieve that. Other trends such as wearables, boutique studios, and wellness practices have also seen a major boost, placing fitness front and center in many people’s lives.

Purpose is Everything: Gyms are becoming the “third space” for many consumers in the modern industry. What is a third space? It’s the place people go to other than home or work to find their community, purpose, or to relax. If you’re looking to grow your fitness business, then focus on building out a community that promotes encouragement, belonging, and wellness. 

The Next Generation is Coming: Gen Z have joined the workforce, and they are spending more money than anyone on health and wellness. They largely favor more personalized or community-focused fitness practices, so if you can provide a more boutique experience for Gen Z it would be a major bonus.

Want the complete report on modern fitness industry trends?

The Competitive Landscape of the Modern Fitness Industry

It’s Getting Crowded: 

It may be a booming industry, but there are thousands of fitness businesses out there that you’re competing with. Everything from big box gyms to small boutique studios will all be focusing on the same audience and the same revenue streams. In a crowded market, it pays to understand your unique selling points and how it can attract new customers. 

Tech is Your Friend (and Adversary):

Companies are saving tens of thousands of dollars by using new technology to simplify processes and offer better services to their customers. Intuitive AI and modern fitness management platforms are game changers when it comes to time and money saved. 

Unsure of how a fitness management platform can help your business?

How to Create Your Own Market Analysis for Your Gym

Step 1: Understanding Your Target Audience: 

Understanding your target audience is one of the most important things you can do as a fitness business owner. If you don’t know who you’re appealing to or who your ideal customer is, then you’ll be wasting thousands of dollars appealing to the wrong audience. 

How do you find your target audience? 

• Ask your members: Spend some time chatting with your members and understanding their stories. Then, it will be easier to attract more customers just like them. 
• Build out surveys: Send out surveys to your members to understand their needs and what you provide to your customers. 
• Visit competitors: Spend some time at your competitor’s locations, understanding who’s there and how they appeal to them. 

Step 2: Understanding Your Location

Every location provides a different benefit to members. Before you sign a lease on a premises, take a look around to see if there’s plenty of foot traffic, potential members, and competitors. There are new neighborhoods being developed all the time, and finding that gap in the market could be a gamechanger when it comes to the success of your business. 

Step 3: Identify Your Opportunities and Challenges

Be realistic in understanding what it is that should attract customers to your business. It’s also just as important to identify exactly what it is that makes your competitors better than you too; it pays to be humble when planning your future success. 

Opportunities (Or Challenges) Might Include: 

• Your experience or the qualifications of your staff
• Better facilities
• Better prices and membership options 
• More tech-forward business
• More engaged fitness community
• Easier to park at, drive, or walk to
• Better timetable for classes

These are the fundamental pros and cons of your business versus the competition, but you have to remember that you’re also facing another challenge; that of your own business model. If you build one successful location but don’t build in the ability to expand or create more opportunities, you’re hindering your growth and success before you’ve even begun. 

The Biggest Market Challenges You’ll Face

• Market Saturation: Before taking the dive into setting up your fitness business, make sure you’re not the 50th business to set up in the same area offering the same services. Identify your unique selling point and promote it to the right crowd. 
• Operational Costs: The cost of living crisis has led to business owners having to be much more careful with their operational costs. Rent, equipment, and staffing can be significant hurdles for new businesses. Here’s a complete guide on how to create a financial forecast for your business. 
• Adapting to Change: If COVID taught us anything, it’s that the versatile businesses survive. Always keep your eye on new and emerging trends, along with keeping a reserve of money for you to be able to fall back on if something happens. 

How ABC Glofox Makes Market Analysis Easier Than Ever

The gym business may be booming, but the challenges and opportunities involved with setting up a fitness location have never been more complex. Marketing, rising costs, more choosy members, and diverse revenue streams have created a maze of difficulties to navigate. 

With ABC Glofox, you gain a platform that can help you navigate all the challenges of running a modern fitness business. Everything from understanding your revenue streams to sending a quick message to your members can be done through the intuitive, advanced interface of the ABC Glofox platform. 

How JourneyFit Succeeded With ABC Glofox

Victoria Thomas, founder of JourneyFit, used ABC Glofox to gain a 360-degree insight into her fitness business. The platform helped her to build an engaged, informed community that was more than satisfied with the service from her and her trainers. 

“ ABC Glofox are more than a software platform. They’re a partner for my future.” 

Victoria Thomas, JourneyFit Founder

Looking to take your fitness business to the next level?