1．Planet Fitness CEO Chris Rondeau Replacedby Craig Benson
In a sudden shake-up, the Board ofDirectors at Planet Fitness has ousted CEO Chris Rondeau, replacing him withCraig Benson, a seasoned board member and business heavyweight. The decision iseffective immediately, leaving many in the industry speculating about thereasons behind this abrupt change in leadership.
Leadership Transition for Planet Fitness
Stephen Spinelli, the Chair of the Board,explained, "As we enter the next chapter of Planet Fitness's journey, theboard felt now was the right time to transition leadership." While Rondeauwill remain involved with the company in an advisory role to ensure a smoothtransition, an executive search firm has been enlisted to find a new permanentCEO.
Severance Package for Rondeau
As part of his severance package, Rondeauwill receive an approximately $800,000 bonus and continue to draw his $950,000basic salary for two years, subject to a non-compete agreement andconfidentiality clauses.
Market Reaction and Speculation
Rondeau's departure has sent shockwavesthrough the market, with Planet Fitness shares plunging by 16%. Investors hadconsidered Rondeau a strong operator. However, the board has issued a statementto reassure stakeholders, stating that the management change is not a result ofunexpected financial issues, and there are no immediate changes to the currentbusiness strategy.
Divergent Paths and Strategies
The decision to replace Rondeau withCraig Benson hints at potential disagreements within the company. Rondeau hademphasized a continued focus on the U.S. market, citing substantial growthpotential, while the board appears to favor international expansion.
Benson's Background and Experience
Craig Benson brings a wealth ofexperience to the role. Apart from serving on Planet Fitness's board since2017, he has been the CEO of Soft Draw Investments and a Dunkin' Donutsfranchisee with 147 stores. Notably, he previously served as the Governor ofNew Hampshire and co-founded Cabletron Systems, a networking solutions provider.
Forward-Looking Statement
The company's forward-looking statementaccompanying Rondeau's departure highlights the uncertainty and risksassociated with this change, focusing on the transition to a new interim CEOand the selection of a permanent CEO.
2．Etenon Fitness Demonstrates Strong SocialResponsibility with Donation to Jaén Red Cross
Etenon Fitness has underscored itscommitment to social responsibility by making a significant donation of women'ssportswear to the Jaén Red Cross. This philanthropic initiative aims to providesupport to young girls who ar e part of the program for the Reception andIntegration of Persons Seeking International Protection, designed to assistindividuals facing genuine vulnerability and adversity.
The g enerous donation from Etenon Fitnesswill benefit refugee girls from the war-torn region of Ukraine and immigrantchildren hailing from diverse African nations. Etenon Fitness has thoughtfullycurated a collection of high-quality sportswear from the renowned Bia Brazilbrand. This collection includes over 40 long and short leggings, long-sleevedT-shirts, tank tops, and pants. The carefully chosen garments not only addressthe practical clothing needs of these young refugees but also promote a healthylifestyle by encouraging participation in sports activities.
The official handover of this donationoccurred at Etenon Fitness headquarters, where Rafael Rodríguez, the company'sManager, met with representatives from the humanitarian organization. EvaOcaña, Director of Marketing and Alliances with companies, and Nieves García,Provincial Marketing Technician and Alliances with companies, were present toformalize the donation. This collaborative effort exemplifies Etenon Fitness'unwavering dedication to the well-being of local communities and its commitmentto making a positive impact on those in need.
Rafael Rodríguez, Manager of Etenon,expressed, "At Etenon Fitness, we believe that well-being is a fundamentalright for everyone, regardless of their background or circumstances. We arethrilled to partner with the Jaén Red Cross in this noble cause and contributepositively to the lives of these young individuals through this donation."
The Jaén Red Cross, a venerableorganization known for its humanitarian services, will be responsible fordistributing the sportswear to refugee girls who face unique challenges as theyadapt to new environments. This donation not only supplies essential clothingbut also encourages physical activity and emotional well-being among thebeneficiaries.
Etenon Fitness' dedication to socialresponsibility extends beyond this act of goodwill. The company is committed toexploring additional avenues for making positive contributions to diversecommunities and promoting an active and healthy lifestyle for all.
3．Fitness Facilities in Spain EmployStrategies to Adapt to Economic Challenges
In response to economic challengesstemming from the pandemic and rising inflation, gyms and sports facilities inSpain have been implementing a range of strategies to maintain financialstability. According to a study conducted by MAS consultancy and sponsored byEGYM, a significant portion of facilities has focused on both cost-cuttingmeasures and revenue-enhancing initiatives.
Cost-Cutting Measures
The study, which involved 571 sportsfacilities across Spain and received the endorsement of the University ofAlcalá de Henares, revealed that 40% of these establishments successfullyreduced costs, achieving a 7% reduction on average. Among those that managed tocut costs, 69.2% did so by reducing personnel expenses, while 19.9% targetedinvestments, 7.5% focused on supplies, and 3.4% trimmed marketing expenditures.
Revenue-Boosting Initiatives
On the revenue front, a striking 86% ofthe surveyed facilities reported implementing measures to increase theirincome. The primary focus was on raising membership fees, with 23.4% offacilities opting for this strategy. Other revenue-boosting measures includedexpanding services (18.5%), modifying the customer mix (17.4%), tapping intoatypical income sources (9.5%), promoting personal training (8.3%), and, to alesser extent, increasing marketing efforts (3.8%).
Positive Impact on Average Ticket
These combined efforts resulted in 96% ofthe facilities reporting an increase in their average ticket price, with anoverall rise of 9.9%.
Cost Breakdown
The study also provided insights into thecost structure of sports facilities. Personnel costs accounted for the largestportion, representing 41% of total costs, followed by supply costs (14%), andmarketing expenses (3%). Administrative concessions recorded the highestincidence of personnel costs at 50.8%, while boutique centers had the lowest at30.6%.
Outsourced Services and Central Costs
Notably, 95% of facilities outsourcedcertain services, such as cleaning and maintenance, which made up an average of7.5% of their total costs. Additionally, 85% of operators passed on theproportional cost of central services to their facilities, amounting to 6.2% oftotal costs.
Property Costs and Energy Optimization
Property costs, including rent orpurchase expenses, constituted an average of 14.3% of annual costs. Themajority of facilities (68.7%) operated with rental properties, while 17.7%owned their properties, and 13.6% paid a lease.
Furthermore, 75% of the surveyedfacilities reported making energy-efficient improvements in the past two years.Most of these improvements focused on insulation, water systems, and filtrationsystems (78%), with 19.5% implementing photovoltaic panels to optimize energyconsumption.
This study sheds light on the resilienceof the fitness sector in Spain and showcases the adaptability of sportsfacilities in the face of economic challenges. It highlights the industry'sefforts to balance costs and revenues, ensuring its continued viability.
4．RSG Group Unveils Impressive John ReedHealth Club in Berlin
RSG Group, a renowned leader in thefitness and wellness industry, has proudly opened the doors to its latestflagship health club, John Reed Berlin Bötzow, in the vibrant heart of Berlin.This high-end establishment, situated in the historic Bötzow Brewery buildingin the Prenzlauer Berg district, promises a fitness experience like no other.
Spanning an impressive 3,136 squaremeters, John Reed Berlin Bötzow offers a comprehensive fitness haven formembers. The club boasts dedicated cardio zones, a well-equipped free weightarea, an innovative "equipment park," and a diverse range of fitnessprograms. Fitness enthusiasts can choose from reformer Pilates, exhilaratingtreadmill classes, and engaging functional and group workouts. For thoseseeking personalized guidance, the club offers body check-ups, nutritioncoaching, and access to experienced personal trainers.
The wellness facilities at John ReedBerlin Bötzow are equally impressive, with separate saunas for men and women, alavish 20-meter pool, and inviting spa pools. Some of these amenities arenestled within the brewery's meticulously repurposed cooling pools, adding aunique touch to the experience. The club's historic charm is accentuated by its7-meter-high domed ceilings, preserving the architectural heritage of theBötzow Brewery.
A key highlight of the club's design isthe meticulous attention to preserving and showcasing the site's historicalfeatures. Bespoke lighting solutions have been thoughtfully integrated toilluminate the brewery's vaults, enhancing the ambiance while honoring itslegacy.
In line with the John Reed philosophy,which seamlessly blends fitness and culture, the Berlin club will hostregularly changing art exhibitions, providing members with a dynamic andinspiring environment.
John Reed Berlin Bötzow is part of alarger redevelopment project at the former Bötzow brewery site, spanning 24,000square meters. The transformation into a vibrant meeting place for Berlin isbeing masterminded by David Chipperfield Architects Berlin and will becompleted in phases, with the final areas expected to open by the end of 2024or the beginning of 2025.
This new flagship John Reed health clubfollows the successful launch of RDG's expansive Gold's Gym flagship in thecity in 2021. John Reed is just one of the 15 fitness, wellness, art, andlifestyle brands operated by the esteemed RSG Group, founded in 1997 by thelate Rainer Schaller. Today, RSG Group employs over 10,000 professionals acrossmore than 30 countries, continually redefining the fitness and wellnesslandscape.
5．New Fitness Brand Lumin Fitness DebutsInnovative Studio in Texas
After an extensive four-year period ofresearch and development, Lumin Fitness, a groundbreaking exercise concept, hasofficially unveiled its inaugural studio. Situated in Las Colinas, Texas, asuburb of Dallas, this studio is a testament to the vision of founder BrandonBean, who embarked on this venture in 2019.
The studio offers a distinctive fitnessexperience, adorned with wall-to-wall LED screens, and presents 40-minuteclasses that seamlessly integrate cutting-edge technology. Lumin Fitnessharnesses the power of artificial intelligence, digital workout displays, andmotion tracking to provide members with an immersive and dynamic trainingsession.
Chief Development Officer Craig Sherwoodemphasized the role of AI in the Lumin Fitness approach, stating, "Ourmembers have an AI-powered coach who's monitoring your progress, techniquechanges, and making sure you're doing exercises right."
Brandon Bean, the founder of LuminFitness and former chairman of Gold Gym, recognized the potential of combiningtechnology with brick-and-mortar fitness, particularly within the boutiquefitness model. This innovative approach aims to elevate the boutique fitness experienceby fusing it with the latest advancements in technology.
Lumin Fitness has ambitious plans forexpansion and is actively seeking franchise partners. Sherwood expressed theirgoal, stating, "We're looking to franchise across the country... We're opento growing across the U.S. and around the world." The company is activelyseeking franchisees who share their vision and passion for fitness and arewilling to actively participate in the growth and development of the brand.
Each Lumin Fitness studio will offerscheduled classes and introduce a unique feature called "Lumin Solo,"which allows members to exercise independently, choosing workouts that suittheir preferences. This interactive and immersive approach incorporatesgamification elements, keeping participants engaged and motivated.
Lumin Fitness studios will vary in size,ranging from 1,700 to 3,000 square feet, depending on the number of workoutstations incorporated. The initial investment required to open a Lumin Fitnessfranchise ranges from $505,000 to $997,000.
This launch marks the beginning of anexciting journey for Lumin Fitness as it strives to reshape the fitnessindustry through innovation and technology.
6．Aqua Gym Equipment Market Set to ReachUSD 781 Million with a Healthy 4% CAGR by 2031
The global aqua gym equipment market ison a trajectory to thrive, with a projected Compound Annual Growth Rate (CAGR)of 4% from 2021 to 2031, according to a report by Transparency Market Research(TMR). By the year 2031, the market is poised to attain a valuation of USD781.2 million, with an estimated value of USD 578 million by the end of 2023.
Several factors are driving the growth ofthe aqua gym equipment market. Escalating global obesity rates and theprevalence of medical conditions such as arthritis and joint ailments amongaging populations are among the primary drivers. The increasing consciousnessregarding physical fitness and overall well-being has spurred demand forfitness activities, including aquatic exercises.
Aqua gym equipment presents a uniqueproposition, offering a low-impact, joint-friendly workout option. Thischaracteristic makes it particularly attractive to individuals of all fitnesslevels, including those seeking rehabilitation or stress relief.
The heightened awareness of thesignificance of physical fitness is a significant catalyst for market growth.Additionally, the growing recognition of the benefits associated with watersports and aerobics further fuels the expansion of the global aqua gymequipment market.
Furthermore, aqua gym equipment plays avital role in rehabilitation and physical therapy programs. Its buoyantproperties reduce the impact on injured or recovering body parts, rendering itan ideal choice for individuals recuperating from surgeries or injuries.
The buoyancy of water provides alow-impact workout, making aqua gym equipment suitable for individuals withjoint issues, arthritis, or other conditions that limit their ability to engagein high-impact exercises. Notably, the increasing adoption of aquatic treadmillexercises by osteoarthritis patients is a significant factor driving market demand.
Key Highlights:
- In 2022, the aqua gym equipment marketboasted a valuation of USD 555.9 million.
- Machines and equipment are expected towitness robust demand and accumulate a substantial revenue share during theforecast period.
- The men's segment is projected todominate the market, based on consumer group.
- The commercial segment is anticipatedto yield substantial revenue during the forecast period due to heighteneddemand in public pools, fitness centers, and aquatic therapy centers.
Key Players in the Aqua Gym EquipmentMarket:
- Acquapole SAS
- Aqua Creek
- Aqua Gear Inc.
- Be Aqua Pte Ltd
- BECO Beermann GmbH & Co. KG
- Hydro-FIT
- HydroWorx International, Inc.
- PlayCore, Inc.
- Speedo International
- Texas Recreation Corporation
The aqua gym equipment market is set tomake a splash in the fitness and wellness industry, offering a diverse range ofoptions for individuals seeking effective and joint-friendly workouts. Thecontinued growth of this market underscores the importance of aquatic exercisein promoting physical well-being.
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Author:
Roger Yao （cs01@fitqs.com)
https://www.fitqs.com/post/fintess-equipment-industry-news-week-39
Roger Yao
The founder of FITQS/FQC
The columnist of magzine <China Fitness Equipment>
20 years in fitness/sporting equipment OEM/ODM technical, quality control and sourcing management.