How To Combat The Fitness Industry’s Weaknesses & Stay Ahead

The fitness industry is thriving despite a tough few years, but it has its weaknesses like any sector. Understanding the challenges and developing plans to avoid potential pitfalls can help businesses succeed longterm.

In this article, we outline key weaknesses of the fitness industry that businesses need to be aware of to stay competitive.

We’ve spent 15+ years working in the fitness industry, from leading gym chains to global equipment manufacturers, so know the market inside-out. We proactively study the ever-changing landscape, highlight new trends, and analyze the big players, so that you don’t have to. For the last 5 years, we’ve shared this expertise with the wider industry through our Research Reports which are available to purchase.

2024 Fitness Industry Report

The most comprehensive & up-to-date report on the fitness industry available. Includes revenue, growth, future outlook plus much more.

Analyzing the Fitness Industry’s Weaknesses

Understanding the fitness industry’s weaknesses is fundamental to creating a strong business strategy. Identifying what could negatively affect your operations and revenue can help you plan mitigations ahead of time. Analyzing weaknesses is the second step in conducting a SWOT analysis of the fitness industry (after first looking at its key strengths).

Weaknesses are the internal factors that put a business or industry at a disadvantage. They’re the areas where resources, capabilities, or performance are lacking, which can hinder progress or make it harder to compete.

Identifying weaknesses can help fitness businesses with…

• Strategic Planning: Acknowledging weaknesses is key to realistic strategic planning, ensuring that goals and initiatives are achievable and aligned with the business’s actual capabilities.
• Competitive Advantage: By addressing weaknesses, businesses can turn potential disadvantages into strengths, leveling the playing field with competitors.
• Risk Management: Understanding weaknesses helps businesses anticipate potential challenges and develop strategies to mitigate risks.

So, what are the key fitness industry weaknesses that businesses should be aware of?

Intense Competition

One of the most pressing weaknesses of the fitness industry is its high level of competition. The sheer number of gyms, fitness studios, and personal trainers vying for market share has led to pricing pressures and commoditization. With over 200,000 fitness facilities operating globally, there’s intense competition for customers.

Pricing Pressures

The high number of fitness providers has led to intense price competition. Many gyms and fitness studios are forced to offer discounts and promotions to attract and retain members, eroding profit margins.

The explosion of budget gyms offering $10 memberships has set a low price benchmark, making it difficult for mid-range and premium gyms to compete without significantly differentiating their offerings. Even budget operators themselves are struggling to operate at these prices, with Planet Fitness recently announcing a fee increase.

Commoditization

As fitness services become more commoditized, it’s becoming harder for individual gyms and trainers to stand out. This commoditization can lead to a race to the bottom in terms of pricing, with quality sometimes taking a backseat.

The challenge for fitness businesses is to find unique value propositions that set them apart from the competition. Some are doing this through specialized programs, whereas others are choosing to offer superior customer service or invest in state-of-the-art facilities. But it’s becoming clearer that doing nothing is no longer an option for staying competitive.

High Operating Costs

As every gym owner knows, operating costs in the fitness industry can be eye-watering. Maintaining and upgrading equipment, paying for utilities, and managing overheads all involve substantial outlays. And this can significantly impact profit margins for fitness businesses.

Facility Maintenance

Fitness facilities require constant upkeep to ensure they’re safe and appealing to members. High-quality fitness equipment can be expensive to purchase and maintain. A single commercial-grade treadmill can cost anywhere from $3,000 to $10,000.

Regular maintenance and repairs add to these costs, creating a significant financial burden for gym owners. And that’s before dealing with the showers getting blocked or flooring getting damaged.

In response, some fitness businesses are evolving their business models to encompass more digital offerings. Online workout programs have become particularly popular and enable gyms to generate additional income without the high overheads. Crunch+ is a perfect example of how established brick-and-mortar gyms are diversifying with online offerings.

Staff Salaries

Hiring qualified staff like knowledgeable personal trainers, engaging instructors, and efficient administrators, also adds to operating costs. As a result, the virtual fitness training market is booming with solutions enabling gyms to offer workout classes without instructors. But at what cost to retention?

Many members stay loyal to a gym because of the staff. They have favorite instructors or personal trainers who’ve supported their fitness journey. They enjoy working out with them every week and the social experience that brings. For businesses with these members, replacing staff with virtual alternatives can quickly lead to customer cancellations and decreased revenue.

But it’s a viable option for many other types of businesses…

Virtual workout classes will be ideal for gyms and health clubs with members who value convenience. Being able to access spin classes on demand will appeal to busy people who just want to get in and get out. Having a flexible class schedule that revolves around them could be a huge selling point.

Other Fitness Industry Weaknesses

Learn more about the other weaknesses that pose risks to the fitness industry’s success in our 2024 research report. Beyond the intense competition and high operating costs, the fitness industry has several other weaknesses that businesses need to be aware of.

Accessibility issues, staff and customer churn, and seasonal demand fluctuations present significant challenges. By understanding and proactively managing these weaknesses, fitness businesses can better position themselves to thrive in a competitive market. Learn more in our Fitness Industry Report.

2024 Fitness Industry Report

This is the most comprehensive and up-to-date fitness industry research report available. Unlike others, you get extended access to the 2024 edition, including any updates that are made as new market data becomes available. Ideal for business planning and strategic marketing, the 90-page report includes;

• Fitness industry revenue & growth by market segment
• Comprehensive fitness market SWOT analysis
• Gym market size, growth & membership statistics
• Online & virtual fitness market developments
• Financial information for the largest club operators globally
• Biggest & fastest growing fitness franchises
• Insights into the boutique fitness studio & personal training segments
• Latest industry trends & how to capitalize on them
• Growth markets, segments & audiences including Millennials
• Data on fitness tracker, app & equipment segments
• Outlook & evidence-based predictions for the future of the industry
• 14-day money-back guarantee, no questions or hassle.

2024 Fitness Industry Report

The most comprehensive & up-to-date report on the fitness industry available. Includes revenue, growth, future outlook plus much more.