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Author: Pernille

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To say the at-home indoor cycling market is booming would be an understatement. Ignited by US-based Peloton back in 2013, when it first launched its bike on Kickstarter, the market has gained strong momentum over the last few years in particular. We’re seeing major new players enter the fray and a surge in consumer demand: recent research by Les Mills found that 85 per cent of gym members now also work out at home – and cycling is without doubt one of the disciplines seeing the greatest innovation and interest.

Peloton: Flying high

Let’s start with Peloton which, following months of speculation, in June revealed plans to launch an initial public offering (IPO). The number of shares and the price range for the proposed offering had, at the time of going to print, not yet been determined, but the announcement marks the culmination of a strong 12 months for the brand, which is currently flying high with 1 million-plus users, a US$4bn valuation, sales of US$700m+ in its most recent fiscal year, a predicted 6.2 per cent share of the US gym equipment market by the end of its current fiscal year, and successful roll-outs into the UK and Canada.

Peloton is also now gearing up for entry into its fourth market – Germany – later this year. This will mark the brand’s first foray into regular non-English language instruction, with bespoke content set to be created: German-speaking indoor cycling instructors will be added to Peloton’s roster, at this stage based out of Peloton’s London studio. Hundreds of existing English-language classes will also be made available with German subtitles.

Other plans for Germany include a network of branded retail showrooms in the major cities, allowing consumers to ‘try before they buy’; the bike can also be purchased online, retailing at €2,290 plus a €39 monthly fee to access classes.

Peloton streams classes to more than 1 million members

While this price point may seem ambitious judged purely against the predominantly low-cost German gym market, in fact, the at-home market is a different story, says industry veteran Jon Johnston: “In my experience, the price point for home fitness products has held up better in Germany compared to other markets.“

Kevin Cornils, Peloton’s international managing director, is certainly confident, explaining: “Germany is Europe’s largest fitness market, where more than 10 million people belong to a gym, so it was a natural next step for Peloton.“ [Read our recent interview with Cornils here]

And as Leisure Database’s David Minton observes: “The reality is that Peloton will go everywhere, because it has so much money. In the last six years, it has spent US$1bn. If it spends the same again in the next six years, it could be in at least 100 countries.“

Back to Plan A

That said, things aren’t all rosy for Peloton, which has currently pulled out of the commercial space to focus exclusively on the at-home market – no doubt at least in part the result of its widely-reported lawsuit over music licensing. Observers do, however, predict a return to the commercial space – potentially with a new bike – once the licensing issue has been addressed.

And Peloton has unquestionably struck a chord with today’s convenience-driven, experience-led consumer. Global fitness industry observer Emma Barry comments: “Peloton was not the first to deliver at-home workouts by a long shot, riding the slipstream of greats before it, but this fit-tech unicorn has nevertheless delivered a software-hardware-subscription solution happily touting a 2-foot commute. It has raised the at-home stakes by elegantly connecting experience and community – linking riders to live-streamed NYC rockstars, and each other – and making it sticky enough to produce startling engagement: an average 13 rides per month.

Boutique ventures

Little wonder, then, that Peloton has spawned a whole raft of copycats over the last few years.

Live streaming will be a great way for us to extend our brand to new audiences outside of London – 1Rebel.

Around the same time as Peloton announced its upcoming German launch, US-based Flywheel – with its 42 studios across the US – teamed up with Amazon to take its Flywheel Home Bike to a broader audience. The bike retails on Amazon for US$2,248 (with tablet) or US$1,948 (bike only), with two months’ access to Flywheel’s programming included for free. Although the bike originally launched towards the end of 2017, this new deal with online juggernaut Amazon marks a significant ramping up of Flywheel’s at-home ambitions.

And it’s surely just a matter of time before SoulCycle follows suit. “SoulCycle owner Equinox is looking at every opportunity to expand its reach, says Minton. “The space it has created in New York – with its first hotel alongside an Equinox health club, Rumble, SoulCycle all in the same place – shows the scale of its ambition. It won’t be long before we see Equinox and SoulCycle beamed into the home.

soul cycle at home
It’s surely just a matter of time before SoulCycle launches its own at-home offering

Meanwhile, other innovations are harnessing the power of partnership to come to market, with each partner playing to their respective strengths: equipment manufacturers creating the hardware; operators coming on-board as content providers.

Late last year, Italian equipment manufacturer Technogym announced its entry into the dynamic at-home group exercise marketplace. Its Technogym Live digital platform – home to carefully curated class content – will be accessed through a range of Technogym Live equipment: a new bike, as well as other home equipment including a treadmill and a rowing machine, will all feature a special console. As with Peloton, users will be able to access live-streamed classes as well as a comprehensive on-demand library.

Classes on the Technogym Live platform will be created in collaboration with a specially selected line-up of operator partners – and this is where the boutiques come in again, with the line-up already including Virgin Active Revolution in Milan and London’s 1Rebel, which will be live streaming from its cycling amphitheatre in Victoria.

les mills virtual bike at-home cycling
The Les Mills Virtual Bike was designed for the gym floor, but it’s easy to see how similar bikes could move into the home exercise space.

“We’ve been recording a catalogue of on-demand classes since January, and will be live streaming a number of peak classes when the bike launches, which I expect to be September,“ confirms 1Rebel’s James Balfour. “It will be a great way for us to extend our brand to new audiences outside of London.“

The Les Mills Virtual Bike was designed for the gym floor, but it’s easy to see how similar bikes could move into the home exercise space.

On-demand survival

And it’s easy to see how this market – equipment manufacturers partnering with content providers to create at-home solutions – might continue to grow and evolve.

Already on the market are a couple of products which, at this stage, have been designed with a B2B audience in mind – a way for operators to keep their gym floors competitive in an era where consumer expectations are being shaped by the likes of Peloton. The Les Mills Virtual Bike, created in collaboration with Stages Indoor Cycling, launched late last year, while a prototype of the Wexer Body Bike was showcased at FIBO 2019. Both products allow users to access a range of high quality on-demand virtual classes: the former focusing exclusively on Les Mills RPM, SPRINT and TRIP; the latter offering access to Wexer’s top cycling classes from a range of content providers, as well as complementary floor-based workouts which can be done post-cycle thanks to the bike’s 180-degree swivel screen.

Although currently B2B products, it’s hardly a stretch of the imagination to envisage similar bikes being made available for at-home use in the longer term. Indeed, Wexer Body Bike is already exploring options to allow operators to sell its bike to their members – potentially even white labelled with their own branding – for at-home use. “In addition to creating a new revenue stream for operators, this would allow gyms to extend their ecosystem into members’ homes,” confirms Body Bike CEO Uffe A Olesen.

And this is key to gyms’ survival in the on-demand economy, says HDD Group CEO Kim Hessellund: “Even though we have had time to prepare in Europe, it seems we’re still surprised by our ‘new’ competitors: many gyms still don’t have a clear strategy to compete in this space.

“We need to learn from Peloton’s B2C success and disrupt the disruptors, introducing new digital solutions that allow gym members to exercise anywhere, any time. I’m confident this flexibility would allow operators to offer a total health community in a way the likes of Peloton never could.

“It’s not a binary conversation, confirms Barry. “While some consumers will prefer predominantly physical or digital experiences, most will converse with the greater ecosystem, consuming content when and where they choose – physically, digitally and everywhere in between.

An exercise ecosystem

And why stop at simply selling bikes to members when, just as boutiques such as 1Rebel have already done, other operators could also become content providers themselves?

Minton continues: “I think we’ll see the merging of hardware and software quite quickly over the next two to three years. We’ll see more operators selling ready-made products: buying a bike with a live streaming facility, for example, which they can sell on to members and live stream their own classes. I can see the likes of David Lloyd Clubs doing something like this.

It would certainly be a logical progression, as tech advisor and entrepreneur Bryan K O’Rourke explains: “We’re already seeing McFIT and other gym brands entering the content streaming business, and it’s just getting started. Brands will have to make decisions around how and where they wish to compete, given consumer expectations.

“Cloud computing, quality video production and enterprise platforms are already enabling businesses to deploy content solutions, at scale, more and more economically. You can launch streaming solutions relatively inexpensively. YouTube now has a subscriber model.

“The bottom line is that, if your content concept appeals to a certain segment, you – as a fitness professional or business – can already become a global provider to users directly. Indeed, there are fitness studios already making good money streaming their content to exercisers around the world.

And this will only go up a gear as hardware and software move closer together, confirms O’Rourke: “There will no doubt be increasing competition, as several well-financed entrants are now planning on entering home cycling with equipment and platforms.

“There is certainly enough demand – people expect to have their fitness experience available to them whenever and whenever they choose – but more importantly the economics of delivery are going to become less expensive as well. When it comes to health and fitness as a frictionless service, what we’re already seeing is only the beginning.“

Good & bad news

All that said, Balfour is quick to sound a note of warning. “There’s good and bad news about the at-home market, he says. “There’s a proven model of demand and Peloton has low attrition rates, although that isn’t overly surprising: once you’ve bought a US$2,000+ bike, you’re unlikely to switch to another brand unless you have a terrible experience, and you also tend to keep paying the monthly fees.

“However, as far as I’m aware, Peloton hasn’t yet made a profit. It has dominated the market with a first-mover advantage and spent a lot of money to drive a big valuation – some sources are even touting £8bn as a pre-IPO price – but we shouldn’t be side-tracked by this. Although this trend is here to stay, ultimately nobody knows the value of this market; given we’re talking about US$2,000 pieces of home equipment, it has to be finite.

“It’s also important to recognise that, although I personally believe Peloton risks spending too much to grow, its price tag and consequent retention rates could mean its first mover advantage clinches a ‘winner takes all’ situation. Even if it doesn’t, the market is about to get very crowded.

“For me, the important thing is to be pragmatic. Certainly, in our venture with Technogym, I believe every bike should be profitable, otherwise, it will be a distraction for us. This is where Technogym’s economies of scale, as well as our ability to use our studios as retail outlets to sell the bikes, will come into play.

Welcome the big brands

The crowd to which Balfour alludes is in fact already forming, including more affordable options for those not able to stretch to a Peloton-esque price tag. BKool, for example – a Spanish turbo trainer manufacturer that supplies UCI World Tour cycling teams – already manufactures the BKool Smart Bike, which retails through the likes of Powerhouse Fitness and Sports Tiedje for £1,199, plus £7.99 a month for on-demand workout content.

The bike has no integrated screen – classes are accessed via an app and can be cast onto a TV screen – but once connected to the user’s personal device via Bluetooth, the app takes control of the gearing, automatically adjusting resistance in response to the class profile or route shown on-screen.

“The best way to think about the future of at-home cycling is to forget about cycling altogether.”

More product launches are sure to follow in what’s set to be an increasingly competitive sector – one that now has the attention of the big consumer brands. Says Minton: “The big players have realised it’s all about entertainment in the home, about creating a great at-home experience. You just need to look at the likes of TCV – a lead investor in Peloton’s recent US$550m financing round – which has also invested in brands like Spotify and Netflix. We really are just seeing the start of all of this.“

at-home cycling bike
Flywheel’s home bike is now available on Amazon

Barry agrees: “GAFA – Google, Amazon, Facebook, Apple – are rubbing their hands in glee as they prepare to stretch out their long arm of end-to-end product, service and delivery to our consumer. With the accelerating force of AI and ongoing development of VR and AR, fitness will soon be as engaging as PlayStation for a 12-year old boy.

“The best way to think about the future of at-home cycling is to forget about cycling altogether. Think of it as just another service you’re passionate about receiving. Think food. Think fashion. Think human behaviour. Amazon has primed us to expect immediate delivery by drone or robot; Netflix is feeding us intoxicating content based on our preferences; Fortnite has us adventuring off-world with friends. These examples tap the tenets of convenience, hyper-personalisation and community – which brings us back to Peloton.

She concludes: “Moving forward, the coaching capacity and ability to enhance the experience will be a dimensional shift in exercising. Tech will help take us to dizzying heights of new sensation. Our biometrics will directly inform our optimal programming and nutrition plan, while personalised nudges throughout the day will keep us on track. At-home workouts are all set to blow the ceilings off.“

The power of the Brand

A simple but crucial question: why is it important to have a brand?
The market is so full of choice nowadays that the consumer is in charge. Why should they choose you rather than your competitor? What makes you different? What makes you stand out?

In the end, product attributes can be copied – a club could open up down the road offering exactly the same as you, for a cheaper price, and you’ll lose customers. But a brand can’t be copied; if someone tries, people recognise it as a rip-off and the imposter not only fails to have the same impact as the original, but it actually loses credibility.

So, what makes a brand? Put simply, a brand is created when you go beyond a rational, product-based relationship to develop an emotional connection with the customer – and the impact is incredibly powerful. There is, quite simply, no limit to the involvement a consumer will have with a brand they feel attached to personally – even in the face of competition.

cycle brand business touchpoint
Every customer journey is different, but all journeys will comprise a multitude of touchpoints with your business

You then need to distil the essence of this brand – what you stand for – and take it across every touch point of your business. It isn’t just the obvious stuff either, such as your logo and your advertising. Your handshake, your coffee, the invoice you send out… this is all branding too.

As Amazon founder Jeff Bezos says: “Your brand is what people say about you when you’re not in the room.”

How does Fitbrand help businesses build brands?
A brand is a comprehensive experience that communicates to your audience who your company is – and we can help with all of it. However, we don’t execute all of it: our role has become increasingly strategic over the last few years, often creating entire brand identities from scratch.

We kick off with in-depth discussions with the client to understand their needs, their goals, their target audiences. Where budget allows, we will also do some consumer research to create target market personas, as this allows the brand to be crafted around its end users.

Crucially, though, we’re there to help clients understand that it takes more than an Instagram account to become a brand. We believe the measure of a brand is its long-term visibility, which takes strategy and an ability to set clear goals.

The big challenge in the fitness sector is that many businesses have failed to realise the role of the brand. They still believe their businesses will grow through a sales-focused approach. Our mission is to challenge this mindset.

What sort of businesses do you work with?
We work with all sizes of business, from larger corporates to personal trainers who are looking to set up their first studio. Indeed, what’s interesting nowadays is that, thanks to social media, personal brands can be as strong as business brands – individual fitness trainers, for example, can become brands with huge, loyal fan bases.

We believe the measure of a brand is its long-term visibility, which takes strategy and an ability to set clear goals.

Sometimes people come to us with a clear idea of what they want to do, in which case it’s our role to challenge their thinking. Other times, particularly for the independent start-ups, our role is more of a knowledge provider. But with all clients, I like there to be a discussion – I don’t just want them to sit back and agree with us. Challenging each other makes the process more interesting and leads to better outcomes. 

But I do have one non-negotiable, and I immediately establish whether potential clients meet this by asking two important questions: what’s your motivation, and what do you see as Fitbrand’s role in all of this? If we see that people are driven by passion, we’ll work with them. If, on the other hand, we feel they’re driven by unrealistic expectations, we won’t work with them as we know success will always prove elusive for them.

Is there one universal piece of advice for all businesses looking to build their brands?
To understand what you need to do to become a better brand, you first have to appreciate what’s going on in the world. Read – and by that I don’t just mean short snippets of information on social media. Really try to understand your target market and the world in which they live.

Then, once you’re assessing your business, don’t only try to improve an existing concept. Think out of the box, embrace the new… and remember, if you aren’t online, you’ll never be the brand you want to be.

But at the same time, don’t try and embrace things that aren’t true to you. Don’t copy anyone else. Do what you’re best at and create a niche for yourself. That’s when people will believe in you and follow you, because you’re doing something credible.

One great example is the personal trainer in the south of Holland who works with dog owners, training them with their dogs. He’s been very successful in creating a strong personal brand because he stands for something differentiated, he’s found a niche he’s passionate about, and he’s good at what he does.

crowded subway brand power

How do personal brands work?
Social media has given individuals a route to market, allowing them to become brands in their own right. It’s why Equinox in the US was recently able to launch an agency for social media influencers: brands now pay for these influencers to promote their products.

This trend impacts the club environment too. Let’s take a group cycling class for example: get the right instructor in there – a star trainer – and the class will be packed. It might be exactly the same programme as another instructor delivers, but the power of the star trainer’s personal brand draws the crowds.

This is therefore the main piece of advice I’d offer all club and studio operators: Hire the very best staff you can afford, because fitness is a people business. It’s just about the worst-paid industry in the world, and the hardest part of branding is getting the right people for the right price – but if you get it right, your brand will build on the strength of their connections.

A bit of advice, too, for any individuals looking to develop their own personal brands: don’t use digital comms to show yourself off. There’s so much narcissism on social media. Instead, use social media to connect with people: show how your clients succeed, share knowledge, give away information to show people you have their interests at heart. Educate your followers and give them a reason to believe in you.

digital self branding social media
Don’t use digital comms to show yourself off. Use social media to build a personal brand by connecting with and educating people.

In fact, the same goes for bigger brands too. If you’re a health club chain, appoint social media managers who understand that content should first and foremost be good for your members, not good (i.e. promotional) for you.

And be patient: it takes time to build emotional connections. If you feel you don’t have enough Twitter followers, the problem isn’t them – it’s you. People won’t be interested in you until they know you and what you can do for them: you have to have something to say, and it has to be something they want to hear.

Once you’ve developed a brand, then what – is it up to the client from then on?
Fitbrand doesn’t do all the execution, but we do provide brand manuals for ongoing reference.

We’re also launching a new service next year – a brand coaching system – that will keep us strategically connected to our clients on an ongoing basis. Every month, we’ll meet for two hours to discuss their vision for the future, their goals, their challenges, anything they’re working on where we can help make them a better, more entrepreneurial brand.

This is really important, because branding isn’t something you can put in an algorithm and predict the outcome based on what you’ve done – there are always external factors at play, and you have to continually re-assess and respond to protect and progress your brand.

We’ve already been working in this way with some clients – BODY BIKE, for example – but this will be our recommended approach for all clients going forward. It will allow us to re-set clients’ mindsets on a regular basis, helping them stay on-brand even as they navigate new challenges, and encouraging them to stay thinking creatively.

 

we transformed BODY BIKE from being a factory into being a brand.

Tell us more about your work with BODY BIKE…
We’ve been working with them properly for about five years. When they approached us, they had a great reputation but were too focused on the process of building their bikes. They hadn’t really paused for breath to recognise the value of their company.

We identified some strong USPs – the fact the bikes are hand-made in Denmark, for example – and came up with slogans like “Your Bike, Your Ride”. We put together special events and support packages for the launch of their new bikes – marketing assets that were used by distributors and clubs. It was so successful that they had to bring in more people to meet the demand for the bikes.

In brief, we transformed BODY BIKE from being a factory into being a brand.

Are there any other fitness brands out there that you particularly admire?
SoulCycle is quoted so often, but it really has done a great job of telling a story and building a brand. People say indoor cycling is dead, but it isn’t at all – it’s just about branding it in the right way, making it fun and delivering a full experience around it. That’s what SoulCycle has done so well.

The other thing SoulCycle has done is recognise that the strength of its brand rests firmly on the shoulders of its instructors. They are the stars and the secret of SoulCycle’s success – and the business realises this and pays them very well.

campcycle branding

Other notable brands include Roo Cycle in the Netherlands. It’s focused on the environment – no plastic bottles sold in its studios, for example – which is something its audience cares about. It also shares lots of posts on social media around nutrition, rest, rehab and so on – they don’t talk about themselves, but instead share knowledge freely to improve the experience of those cycling with them.

Meanwhile, UK boutique operator 1Rebel did some great work in understanding its millennial target market. Its product and brand absolutely reflect this, from the lighting and music to the brand’s tone of voice and use of social media; many others are now trying to imitate it.

What would be your advice to a full-service club wanting to improve its cycling offering?
Develop club-in-club concepts. Take each individual space in your club – your cycling studio, but also your yoga studio, functional training space and so on – and make them so awesome and so distinctive that people will pay extra to use them.

But don’t just see this as a revenue driver. See it as a brand-building project too – an opportunity to broaden the appeal of your business by creating standalone brands that appeal to new target groups. Fitnesscamp Westerwald in Germany is a great example: by totally reinventing its cycling studio environment and hiring star instructors, it motivated whole new groups of people to become fans of its brand.

Ultimately, make your cycling offering a great, customer-centric experience from start to finish, so it’s something people talk about and share. This word of mouth will also play a huge part in further building your brand.

And what about the boutiques – any areas in which they could do better?
Boutiques have done a great job of finding their niche, and I believe more and more niches will open up as interest in health, fitness and lifestyle continues to grow – there will be plenty of opportunities here for studios and personal trainers alike.

However, most boutiques remain too salesfocused. They’re doing well at filling classes, but they still haven’t done enough to really embed their brands and protect themselves from becoming commodities.

My view is this: These boutiques need to do even more to build communities. This is where true brand strength and loyalty is built.

A connected fitness ecosystem

Your strapline is ‘ANT+ It just works’. But what just works – what is ANT+?
To explain what ANT+ is, I first need to backtrack and explain what ANT is.

ANT is a generic wireless protocol owned by Garmin, which was born from a desire to track how many steps a runner was taking without putting wires all over him.

Many people will be familiar with another wireless protocol, Bluetooth, so this is often the best place to start when it comes to explaining what ANT does. It’s similar to Bluetooth in many ways.

They really are complementary technologies. Bluetooth is built around fixed pairing relationships: you can typically only connect a sensor to one other device at any one time. Meanwhile, ANT is set up to allow a sensor device to connect to many other devices simultaneously, which adds flexibility: you can, for example, connect your heart rate strap with a phone, your watch and the computer on your indoor cycling bike – all at the same time.

ANT+ is an application that’s been built on top of ANT. It’s a collection of what we call Device Profiles, built for very specific use cases, each of which has a specification of how to transmit the information related to that use case over the air using ANT – whether it’s data from an ANT+ heart rate strap, an ANT+ bike power meter, an ANT+ bike speed and cadence sensor…

More specifically, ANT+ is the wireless standard that connects an entire product ecosystem: a universal standard that ensures wireless fitness sensor data, whatever manufacturer it comes from, is all of the same format.

That all sounds a bit complex I know, but in a nutshell, what ANT+ represents is a very successful, multi-brand wireless ecosystem.

What do you mean by a ‘wireless standard’?
Rewind to before the days of ANT+ when, as a prime example, there were lots of different companies building devices to measure bicycle power – but none of them were communicating in the same way.

What ANT did was encourage the different manufacturers to recognise that building one-off solutions for specific customers – thereby creating walled gardens whereby only devices within those restricted ecosystems could speak to each other – would only get the industry so far. Although they were competitors, these manufacturers came to understand that collaborating within the ANT+ ecosystem would grow the market as a whole and ensure a bigger slice of the pie for everyone.

Spinnclass ANT+
ANT+ works well even in crowded studios – it can cope with high levels of data traffic

From that, the standardised device profile for bicycle power was born – accompanying other use cases such as heart rate and speed – and ANT+ became the de-facto central organising body for a consortium of companies in the sport and fitness electronics market.

Nowadays there must be at least 15–20 bicycle power manufacturers in the ANT+ ecosystem, and lots of different ways to measure bike power – crank-based strain gauges, two-sided pedal power, rear wheel sensors… But although all the sensor tech is different, the wireless data they all send up is now of the same standard.

Why does that matter?

For the consumer, this standardisation means they get to choose the device that works for them and get their data regardless.

For manufacturers, it means great new ideas can come to market quickly, because they can tap in to an existing ecosystem. They can just focus on developing great sensor technology, knowing the wireless ecosystem is already there.

Ant+ couple bike phone
Aggregator apps need to make data consumable, so end users can make sense of it

Can you give some examples of how ANT+ is used in the fitness sector?
The first couple of examples are related to Fitness Equipment Control.

All newer Samsung devices natively include ANT support, which means app developers can tap in to ANT+ too. For example, Zwift and Trainer Road both use ANT+ to connect with smart trainers – the devices you attach to the rear wheel of a normal road bike to be able to train indoors – and remotely control the resistance.

Zwift uses this to create huge, multi-player online games where you race around virtual tracks from across the globe. As the game footage shows the terrain going uphill, Zwift sends an instruction to the trainer to make it harder for the cyclist by increasing the resistance: an incline of 10 per cent on-screen is made to feel like 10 per cent on the bike.

I’ve seen really lovely examples of this in action in bike shops in Canada, where during the winter they invite people into the shop, hook everyone up to Zwift and do group rides indoors when it isn’t possible to cycle outside. It creates a great sense of community.

Trainer Road takes the same remote control capability but, instead of showing VR footage, uses it to curate workouts and training programmes to run through the trainer.

Another great example relates to heart rate belts, and the ability to create entire gym scenarios where multiple devices are connected at once – because any device that supports ANT+ can connect with any other device that supports ANT+, simultaneously.

Orangetheory Fitness is a great example: everyone wears a heart rate strap which they can connect to their own smart watches – but all straps are connected to the gym too, with big screens showing everyone’s heart rate. If you get on a treadmill, you could also connect your heart rate belt to that if you wanted to.

With ANT+, this is all possible even in a busy environment with a large number of devices – it can cope with the traffic. That’s useful in boutique studios too. These are generally smaller, so the concentration of devices can be quite high, but it’s still possible to create things like leaderboards, which again helps build the sense of community.

Ant+ ecosystem exerciser
The ANT+ ecosystem means exercisers can choose the device that works for them and get their data regardless

Anything new from ANT+ that you’d like to tell us about?
We’ve just released a new version of our Fitness Equipment Control device profile. Historically it was always two-way: as with the Zwift example, ANT+ could be used to wirelessly transmit data to the sensor, as well as from it.

Now we’ve also created a one-way version which is great for studio bikes, as well as other types of fitness equipment: treadmills, rowers, ellipticals and so on. These aren’t, and don’t need to be, remote controlled, so this latest enhancement of the device profile allows us to better deliver on what studios need – which, as with the work we do for BODY BIKE, is ensurin g the data people actually want can be extracted from the equipment.

How do you see the fitness sector evolving, and how will ANT+ help shape this?
Sensors and devices are getting so much smarter, increasingly able to measure numerous different things. As this happens, so more data types will need to be broadcast wirelessly – and we’re uniquely positioned to deliver on this, because we’re a small and intimately run organisation that can quickly adapt to new use cases.

It will then be over to the aggregator apps – like Garmin Connect and Strava – to take all that data and make it consumable, so end users can make sense of it. In turn, this will drive an appetite among consumers to collect even more data and understand more about themselves. And so it will come full circle, back to the sensor manufacturers to make their devices even smarter still.

We’re in the centre of all this, supporting all of this development as it moves forward.

Why health is the future of fitness

“What the fitness industry needs to recognise is that training isn’t about being in a certain location,” says ACTIVIO CEO Moris Lahdo. “Health club membership might work for some people, at certain points in their life, but there are lots of other ways to exercise.

“Fitness and training is about where you are in your life right now, and as an industry we need to acknowledge and address this. We need to follow people throughout their life journey, assuming a broader responsibility: that of getting more people, more active in whatever way is best suited to them at that moment.”

He continues: “Technology isn’t the only answer to this challenge, but it certainly has a big role to play – and the likes of Apple and Google are well aware of this. While the fitness industry is busy looking inwards and focusing on membership sales, these tech giants have identified a bigger opportunity to focus on the preventative healthcare agenda. In the next few years, I expect them to create a platform that will connect everything with everyone – where all you need to manage your health is your smartphone – and this will mark the end for a lot of traditional fitness companies.

“Our industry will be fundamentally disrupted unless we start working smart and working with each other. We need to connect and create a seamless platform for end users – one that educates people about their training, their nutrition, their sleep. One that centres on improving health rather than selling memberships; the latter should come once people have got moving, but it can’t be the starting point.”

Activio App Technology

He adds: “The starting point to getting fit and healthy is a fitness tracker or app with training recommendations: something that gets you off the couch and out for a gentle five -minute walk. Perhaps it’s prescribed to you by your doctor. Perhaps your friends recommend it. Whatever the catalyst, one thing is certain: the gym won’t be the natural first port of call for people who are currently inactive.

“To appeal to these people – and let’s not forget, this is the vast majority of the population – the fitness industry needs to adapt. This is our challenge and this is what we should be talking about, not selling memberships to the 10–15 per cent of already active individuals. If we don’t solve this for ourselves, believe me, Apple and Google will come in and solve it.”

Towards a solution

Lahdo explains: “This is something we’ve prioritised at ACTIVIO. Of course, we have great solutions for health clubs, studios and fitness centres – our roots are in professional sports and it remains our mission to optimise the training experience. In a health club environment, we motivate people to push themselves and achieve great results.

“But that doesn’t mean we can’t make our products relevant to the rest of the population, helping less active people to also achieve great results by taking baby steps.”

He continues: “In Sweden, where ACTIVIO is headquartered, a lot of people are prescribed physical activity by their doctors. That’s great, but technology-wise it’s a very closed system. Now imagine instead a system whereby your activity data is sent up to a cloud, to be shared with whoever it is who’s helping you improve your health – your doctor, your fitness coach, your mentor. This is how ACTIVIO works.

AS AN OPERATOR, HOW DO YOU DESIGN YOUR PROGRAMMING SO PEOPLE FEEL THEY’RE MAKING PROGRESS?

“ACTIVIO also becomes a coach inside your smartphone, recommending exercises and activities to help you towards your goals. To start off, it might prescribe 3 x 5-minute walks each week, telling you to stay in the blue heart rate zone – so just a gentle stroll to get moving. It’s about helping people accept the need to train in the first place, as well as helping them easily understand how to do that – how to live a healthier life.

“We also do a lot of work with schools. Kids are incredibly motivated by our system – even kids who are usually totally sedentary. The moment they put on an ACTIVIO heart rate belt and see their colour-coded gauge on the screen at the front of the room, they start running around to see how high they can get their heart rate. It’s about creating movement and joy at this age. In the end, they may become gym members – but not if you don’t intervene when they’re still children, getting them away from their phones and their tablets and getting them moving.”

He adds: “ACTIVIO is already used by over a million people every month. If we can continue to expand into new markets, and continue to extend our capacity to prescribe, I believe we can help whole populations to become healthier.

“I also believe this is what the whole fitness industry should be doing – connecting different levels and groups in society to encourage movement and health.”

The consumer is king

Even within the health club environment, a key goal for ACTIVIO is helping exercisers realise how their training impacts their overall health, by giving them ownership and understanding of their training data.

Says Lahdo: “ACTIVIO’s mission has always been to optimise the training performance. To this end, one of our key USPs is the way we present training data.

“When you’re under stress – during exercise, for example – the brain finds it harder to process

TO IMPROVE HEALTH, WE HAVE TO ACCEPT THAT PEOPLE OWN THEIR OWN DATA

numbers and figures. Based on this scientific insight, we made a conscious decision to use a simple analogue display for the ACTIVIO system: a gauge that looks a bit like the speedometer in a car, but where colours replace the numbers around the edge. The coach tells you to hit a specific colour zone and you gear your effort level accordingly – and that’s it. You learn how each zone feels, and that’s what’s important.”

This approach is constant across ACTIVIO’s portfolio of products, from the premium, fixed installation to the portable, tablet-based solution to the power solution that wirelessly collects data from indoor bikes. It’s also the approach in the brand new ACTIVIO Next Level platform, which will be launched soon.

What’s equally important about ACTIVIO Next Level is the open nature of the platform. Lah-do explains: “We’re already seeing consumers bringing their own smartphones and wearables into health clubs, and this will only increase over the coming years. They want to be able to use their own device, to wear their choice of heart rate belt or monitor in class. Closed systems will become less and less relevant.

“ACTIVIO Next Level is therefore an open platform that will work with all the major brands of heart rate belt. We will also integrate our solution with Apple Health, GoogleFit, Strava, Runkeeper and so on. If the member wants to use an ACTIVIO belt, great – they will be able to benefit from all the measures we can track, from heart rate and power, to pace and distance through our memory recording and accelerometer technology.

“But belt sales aren’t our priority. We want to be a ‘hub in the club’ that allows for excellent coaching, motivation and education – and where the club is at the heart of that experience – but where the member uses their own tech. They get to choose where their data goes after the workout.

“If we want to help people improve their health, we have to accept that they own their health data.”

Enhancing the experience

He concludes: “Interestingly, adopting this data-based approach also enhances the training experience, which in turn improves member retention.

Activio colour zone
ACTIVIO’s colour-zoned, analogue gauge is simple to read and understand

“Training data can add huge value to the indoor cycling experience too. In cycling classes across the sector, there’s a lot of stuff going on these days to keep people engaged: virtual footage, immersive experiences, real-time inter-club competitions and races. This is all great and will continue to play a big role in the future of indoor cycling, but I believe education is also key. Why should people do CV training?

Why should they cycle? Entertainment is great, but members need to know why they’re doing what they’re doing.

“We also need to add recommendations into what we do. What should be someone’s next workout? How can they progress? And as a gym operator, how can you design progression into your programming each quarter so people feel something is actually happening as a result of their exercise – that they’re making progress?

“Monitoring lies at the heart of all of this – heart rate, power and so on. In itself, it adds to the experience. It makes exercise very engaging when you can see your data in front of you and understand how what you do in your workout can affect it.

“But it’s also about showing someone how they’ve progressed. It’s about showing them how they’ve improved their health.

“If the fitness industry wants to be attractive in the future, it needs to focus on health – on helping people live a healthy lifestyle, and live it for many years.”

INTRODUCING ACTIVIO NEXT LEVEL: THE HUB IN YOUR CLUB

A new ACTIVIO Points™ (APS) system awards points to exercisers according to the effort they put in during their workout. This evidence-based system is linked to the ACTIVIO Sport Solution for professional teams.

  • Track and analyse a variety of performance metrics including heart rate, power, cadence, distance, APS™, calories and more.

  • Run fitness tests in class, from FTP to VO2 max. After each test, display the results and upload them for future use – a great way to boost member motivation and track progress over time.

  • Offer team competition mode, leaderboards and gamification to motivate members during exercise – and afterwards, with social media integration allowing members to share their training experiences.

  • Use structured workouts in your classes or let your instructors create their own workouts, which they can share with other instructors in your club. Using Virtual Trainer, club instructors can design their own class profiles – based on heart rate or power – and run those classes on the group exercise screen.

  • OPEN ACTIVIO™ doesn’t tie customers to specific technology: they will be able to use heart rate monitors from all the most popular brands and wearables.

  • A new cloud service will connect to the likes of Strava, Runkeeper, Google Fit and Apple Health.

  • An updated training app will offer memory recording and acceleration features.

  • Developed for future system integrations with modern API.

  • A new instructor education platform offers five different lecture programmes to share the latest science around heart rate training and power (watts) training.

Peloton: ‘A category of one’

What’s Peloton’s vision?
The inspiration behind Peloton is simple: people want to work out, but there are a lot of obstacles that stand in the way.

Peloton CEO John Foley experienced this first-hand when, with two kids at home, he and his wife Jill could no longer fit studio classes into their busy schedules. The idea for Peloton was born: studio-style, group fitness classes at home, letting people access the motivation, power and intensity of these classes any time, anywhere.

Peloton started with a bike, but it never set out to be just a bike company. It was always about bringing instructor-led group fitness classes to the convenience of your own home. Over the years, we’ve expanded and we continue to evolve our offering, but those founding principles remain the same.

Peloton has set the home fitness market alight. Why do you think this is?
The secret of Peloton’s success is that it’s more than just a class, a cycling studio or a bike: it sits at the intersection of fitness, technology and media and has reinvented the way people work out.

We talk about Peloton as a category of one; while there are similarities with brands that offer indoor cycling, we are more than any single bike, cycling class or studio.

The live component and community are what truly set us apart. We have over one million members in the Peloton community so, alongside the motivation from our instructors, our members can also give each other a boost.

The Peloton Bike features a real-time leaderboard, allowing you to track your progress versus other riders as well as your own Personal Record. In addition, we have a feature called ‘Here Now’, where the leaderboard shows other members who are riding in the same on-demand class at the same time as you; you can then give each other virtual high fives and support.

THE LIVE COMPONENT AND COMMUNITY ARE WHAT SET US APART – WE HAVE OVER ONE MILLION PELOTON MEMBERS

Other social features include ‘Ride with Friends’. When you hop on your Bike, you’ll receive a notification on-screen if a member you follow is currently taking a class. That way, you can join in and ride together on the leaderboard.

In short, members develop incredible relationships and connections with the community, who all share a passion for our brand. The way they motivate and interact with each other on the lea-derboard and on social media is truly amazing – and it converts riders into workout addicts

Peloton cycle classes
Instructors can see who’s taking part in live classes and give shout-outs to home riders

The Peloton Bike has a fairly high price point. Who is your target market?
Peloton has a very diverse member community, both geographically and socio-economically. What unites them is their desire for a high-quality workout with a great instructor and motivation.

They are often time-poor, so appreciate the convenience of Peloton. In addition, the monthly subscription fee is charged per household, so if you have more than one person working out, that’s a shared cost: you can have multiple profiles and riders for a single Bike.

In the UK, our monthly subscription is £39. With an average of 13 rides a month per subscription, that works out to be only £3 per ride.

How many Peloton classes are live streamed each day?
For cycling specifically, up to 14 classes are live streamed each day and we’ll have hundreds or even thousands of members taking part. In fact, some of Peloton’s recent themed rides have at-tracted nearly 20,000 live riders at one time.

During the live classes, instructors can see who’s taking part in their class, as well as those who are celebrating a milestone such as a 100th ride or a birthday, which enables them to give shout-outs to home riders.

However, it’s not just about interaction between instructors and members, but between members too. Members who have connected via Peloton will often plan to ride together and will motivate one another during the class.

Every single class that’s live streamed is then automatically added to our on-demand library, so members have access to the content any time, anywhere, regardless of where they’re based in the world.

You also have class participants in the New York studio. Can anyone go to these classes?
Anyone can visit our cycling studio in New York City to try a class. Often, we find that existing Peloton members will visit the studio to celebrate a milestone ride or to meet up with other members they’ve met through the class leader-board or social media.

We always recommend that members and new visitors to the studio book their preferred class as far in advance as possible (schedules are released a week ahead) but, with up to 14 classes live streamed each day, there are plenty of options. In addition, rides outside of the peak morning and evening times operate on a free, walk-in basis.

You now have a treadmill product too. What are your plans for this?
We announced our second hardware product, the Peloton Tread, at CES in January 2018 and started delivering units in the US this past fall.

WE ANNOUNCED OUR SECOND HARDWARE PRODUCT, THE PELOTON TREAD, IN 2018; THE REACTION HAS BEEN INCREDIBLE

Similar to the Bike, the Peloton Tread allows people to take live and on-demand group fitness classes, led by world-class instructors, from the comfort and convenience of their own homes. Peloton currently has a team of 11 Tread instructors who teach total body circuit training, walking, running, strength, stretching and audio-only outdoor running.

The reaction to the Tread has been incredible so far. Though it’s technically a treadmill, it’s really designed to deliver a total body workout, with live and on-demand classes across running, walking, bootcamp, strength and stretching.

Any plans to launch more products?
Peloton is always expanding its fitness content offerings to provide members with an ever-more diverse array of options to stay fit, happy and healthy. In December, we introduced live yoga and meditation classes, which offer a great complement to cycling.

We now have three studios in New York City – Cycling, Tread and Yoga – which are set up for live streaming of content.

cycling studio peloton
Pelotin digital is free to all bike and tread owners and offers access to over 10,000 classes

You also offer a digital membership. How does this complement the Bike and Tread?
Peloton Digital is free to all Bike and Tread owners and offers access to over 10,000 classes across categories such as cycling, running, walking, bootcamp, strength, stretching, cardio, yoga and meditation.

For non-Bike or Tread owners, you can access the full content library for £19.49 a month – less than the cost of one boutique fitness studio class. We believe the quality and breadth of content, as well as the community surrounding Peloton, sets us apart.

You recently launched in the UK. What has been the response to date?
The response has been incredible, with a community of UK-based members that’s growing daily – even faster than in the US when the business launched there.

Since the UK launch in September 2018, we’ve run our first TV advertising campaign, hosted thousands of rides at Peloton House in London, announced two UK instructors and opened multiple retail locations. Our pop-up in Covent Garden (Peloton House) has now closed, but you can take a test ride at any time at one of our retail showrooms.

We’re currently in our planning phase for a fulltime UK studio and will be opening it in 2020. In the meantime, cycling classes taught by our UK instructors are currently recorded from a location in London. They aren’t live streamed, but quickly become available on-demand for all members to access any time, anywhere around the world.

There’s enormous potential to disrupt the fitness market in the UK, and we’re only just getting started.

Will there be any differences between the way you operate in the UK versus the US?
In many ways, we’ve mirrored the US strategy in the UK. We sell direct-to-consumer through our website as well as through retail showrooms, and have built up our own delivery infrastructure to ensure we provide the highest-quality customer experience at each touchpoint.

Are you looking at any other international markets for expansion?
Right now, our international expansion efforts are focused on the UK and Canada; we launched into the Canadian market in October 2018.

The focus for the UK over the next 12 months is on growing our member base and introducing more people to Peloton. We have no immediate plans to launch the Tread in the UK, though, as we’re 100 per cent focused on penetrating the market with our core product: the Peloton Bike.

I read that you might go public in 2019. Is that still on the cards?
We’re not discussing specific timing for an IPO and, right now, are focused on using the capital we have to expand the business across product, retail and global expansion.

[Editor’s note: Recent news coverage suggests some progress has been made since this interview, with reports naming Goldman Sachs and JPMorgan Chase as the banks chosen to lead the IPO. However, Peloton reiterates that no specific timing is being discussed for an IPO at this stage.]

HAVING LOCALLY-BASED INSTRUCTORS IS REALLY IMPORTANT: THEY UNDERSTAND THE MARKET

Is it your ultimate vision to have numerous studios around the world, all live streaming?
Our studios are different from other cycling studios – they’re really state-of-the-art broadcast production facilities – so our business model will never be to open many studio locations around the world.

At the moment, we’re focused on continuing to offer 14 hours of live cycling content from our current NYC studio, as well as on building the studio in London and a new multistudio facility in New York City, which will open next year.

Having locally-based instructors is really important though: they understand the market, the music and what motivates people. That’s why we announced two UK instructors in November 2018.

cycling home

Do you think Peloton has changed the way people want to consume cycling?
Yes. I truly believe that Peloton has reinvented the category and that we’re creating demand.

We often describe Peloton as boutique fitness with a 2ft commute – you no longer have to live in a major city to get the benefit of boutique fitness classes – and the immersive experience of riding with Peloton means you’re motivated to train like never before.

Do you feel athome exercise can genuinely rival the experience of being in a club?
While gyms can still serve their purpose, we believe that fitness is moving into the home, much like movies and video games have over the past decade or so. If you can get a better fitness experience in a better, more convenient location, it could theoretically replace the need to belong to a gym.

What do you see as the future of the indoor cycling market, and what role will Peloton play in this?
I think technology will continue to play a huge role. For Peloton, technology underlies everything we do and is a big differentiator for us. We would consider ourselves to be a technology company first, content second, hardware third.

Ultimately the goal for Peloton is to be the global fitness platform for the home.


KEVIN CORNILS: PELOTON’S PERFECT MATCH

“I’ve co-founded, scaled and sold market-leading businesses across Europe in retail, media and digital services,“ says Kevin Cornils.“ I was a founding member of the team that brought the Match.com online dating business to Europe from the US, and was previously CEO of Glasses Direct, Europe’s largest online optical business.

“My passion has always been building businesses that are either creating new markets or disrupting old ones. Peloton is a great example: an exciting business that’s creating a whole new connected fitness market.

“I joined Peloton in January 2018, to oversee global business and expansion beyond the US, but have been following the brand since launch. I went to Harvard Business School with Peloton CEO John Foley, and was the first person in the UK to order a Bike when he launched Peloton on Kickstarter in 2013.

“I believed from the beginning that Peloton was a game-changing concept – one that would resonate with people who care about health and fitness, and who want a convenient and high-quality solution.“


PELOTON IN NUMBERS

  •  Over 1 million Peloton members, and counting; reports suggest Peloton now has 4% more US customers than SoulCycle
  •  The company was recently valued at US$4bn, with US$1bn total fundraising to date
  •  The one-year customer retention rate is 95 per cent; it’s still 87 per cent after two years
  •  The Bike retails at US$2,000 (£1,990) + US$39 (£39) a month subscription
  •  Over 300,000 Bikes sold within three years of the 2014 launch
  •  To date, each Bike sold is used for an average of 13 rides per month
  •  Peloton members typically do 50–60% of their exercise on the Bike; the rest is done outdoors or at the gym
  •  The new Tread retails at US$4,000

Phillip Mills

What has the emergence of boutique studios meant for the fitness sector as a whole?
As we all know, the fitness market has been disrupted over the last 15 years, in particular by the low-cost operators – these clubs are just getting better and better – and by the boutiques.

Boutiques in particular have really captured the millennial taste and this is key to their success, not least because millennials now account for a huge proportion of the fitness market: Les Mills recently commissioned a new study from Qualtrix – surveying 18,000 people across 22 countries – which found that 79 per cent of people doing gym-type activities are either millennials (those aged up to 37 years) or post-millennials (those aged up to 23 years).

Clubs absolutely have to embrace this market if they want to survive, and that means adapt-ing their offering. Millennials are very different from Baby Boomers and Gen X. In fact, they very consciously don’t want to do what their parents did. Many millennials are therefore bypassing traditional clubs in favour of the boutiques, and it’s vitally important that health club operators realise and respond to this.

Why? Because not only do millennials represent a huge segment of the market, but this is also the age at which habits are formed. The average age of a health club member might be around 40 years old, but our research has found the vast majority of people first join clubs in their 20s; 24 years old is the biggest joining point. Very few people join for the first time after 35 years old, and after the age of 40 the numbers are statistically almost non-existent.

So, you have to get people when they’re in their 20s, or at a push their early 30s – and this is the age group that’s currently being drawn to the boutiques. Our research shows a 5 per cent growth in the number of people doing gym-type activities between 2013 and 2018 – from 28 per cent of the population to 33 per cent – and it’s the boutiques and low-cost club that are benefiting the most.

Only 49 per cent of the market now uses traditional health clubs; the remaining 51 per cent are split across low-cost clubs, boutiques, small local clubs – the Anytime Fitnesses, Jetts and Snaps of this world – and other niches like university and corporate clubs.

And while not all the boutiques are successful – anecdotal evidence suggests around a third are struggling financially – this is still a sector that’s booming. There are now hundreds of thousands of boutique studios around the world and they’re enjoying share of wallet as well as share of market: the average monthly expenditure per member at a traditional club is US$52; at a boutique studio, that figure rises to US$111.

Understandably, then, there’s been growing concern among operators that traditional clubs could become an anachronism. I don’t accept this. For me, all it means is that traditional clubs have to evolve.

Les Mills the trip
Immersive class THE TRIP will be “the next big thing“, says Mills

And have traditional clubs evolved?
They have started to, yes, with a number of operators creating boutique-style spaces in their clubs. In the UK, for example, David Lloyd Leisure has launched Blaze, while the Brazilian mar-ket leader – the BioRitmo/Smartfit group – has created a few different styles of in-club boutique. Meanwhile, in New Zealand – following the pre-vious launch of our millennial-targeted, in-club cycling studio Chain – our Les Mills clubs have a couple of millennial-style innovations set to come out this year: a boxing/running class and a functional circuit similar to the F45 model.

OUR RESEARCH SHOWS 83 PER CENT OF THOSE WHO HAVE GYM MEMBERSHIPS ALSO EXERCISE AT HOME

It’s these styles of class – in-club boutique offer-ings – that will help traditional clubs to compete with the boutiques. But they have to be done well. It needs to be an authentic environment: a small area with a community feel. Crucially, the programming and the teachers have to be real-ly great. If you look at the successful boutiques – Barry’s Bootcamp, SoulCycle and Flywheel, for example – they’ve created some really cool class-es which are also incredible workouts, and they’re led by amazing instructors.

This is a key point, because it’s in this area – instructors – that traditional clubs have done badly over recent times. Clubs have been allowed to age in this respect: US$22 is still the average instructor fee paid per class in a traditional club, which is pretty much the same as it was in the 1980s. Why would any good instructor settle for that when the average fee for teaching a boutique class is US$50–$100?

Of course, there are some really good hobbyist in-structors out there – people who are doing it for love and who are great at what they do. But this isn’t a model that will bring a new generation of rockstar instructors into traditional clubs. These operators have to start paying instructors more. They need great instructors to deliver great classes if they’re to stand any chance of compet-ing with the boutiques – and the low-cost clubs for that matter.

And there’s no point saying you’ll rely on virtual group exercise. It’s true that the leading virtual classes are taught by great instructors, and it can be a very powerful tool for traditional clubs in off-peak times. But it’s live classes that build a sense of community. It’s instructors who build relationships and drive retention. Plus, most of the low-cost clubs offer virtual classes now. Traditional clubs need to up their game when it comes to live group exercise.

What’s the best place for clubs to start?
Clubs need to look at how and where to create cool boutique areas within their facilities, and the cycling studio is the easiest place to start. Cycle classes deliver the highest profit per square foot

– the number of people you can fit into an area is higher than for any other activity – and most clubs have a cycling studio already. However, in many cases they’ve been allowed to die, running just two or three classes a day.

Meanwhile, cycling is a huge – and growing – category in boutiques; even in traditional clubs, where cycling is done well, anything up to 30 per cent of members will include it in their routines.

ride high rebel Victoria
1Rebel Victoria has done something incredible. It’s the single best group exercise studio in the world

And that’s because anyone can do it, it’s a high motivation activity, and it offers great results. There’s also a growing body of research coming out of the big global research institutes show-ing how interval training on a bike can boost metabolism and weight loss, change our DNA to make muscles fitter and healthier, and even im-prove the cellular health and functionality of our muscles as we age.

So, while running, boxing, HIIT, yoga and so on are all opportunities for traditional clubs when it comes to in-house boutique spaces, definitely the most logical place to start would be upgrading existing cycling studios: upgrading the décor, the AV, the programming, the instructor quality by paying for rockstars… If you have great content, great teachers and a great space, you become competitive again.

Can you offer a few examples of great cycling studios that might act as inspiration?
There are lots of great examples out there. Décor-wise SoulCycle is great, and it has some very good instructors. The workout isn’t for me though, with too much high-speed stuff out of the saddle. In terms of the workout, I love Flywheel – it’s more athletic, more about interval training. Space Cycle in Shanghai is very cool too, as are some of the immersive studios we’ve worked with around the world: TMPL in New York City and Pure Fitness in Hong Kong, for example.

But in terms of overall experience, my two current favourites are London’s 1Rebel Victoria and the new TRIP studio in our Les Mills Auckland club. 1Rebel Victoria has done something incredible. It’s the single best group exercise studio in the world – a truly amazing experience – and it’s setting the standard for clubs around the globe. [Read more about 1Rebel Victoria in our interview with 1Rebel co-founder James Balfour.]

Meanwhile, in Auckland, we have 100 bikes in a theatre-style studio that’s been designed by some hot young architects. The studio is dark, illuminated from the front by a concave screen – 20m wide by 3m high – on which we run our immersive cycling classes, THE TRIP. We’re now on the 16th release of THE TRIP, with US$500,000 investment going into the production of each class, and it’s a truly addictive experience. I do it three times a week!

Tell us a bit more about THE TRIP…
When we first launched THE TRIP, we were adamant that the screens had to be huge, but re-cently we’ve realised it can still work on smaller screens. If you have a 4×3 mosaic screen – that is, 12 smaller screens joined together – the experience can still be immersive for up to 35 people. Even on regular 3m-wide virtual screens, it’s great.

Les mills cycling
Cycling isn’t only booming in boutiques. Even in traditional clubs, up to 30 per cent of members take part

This has helped THE TRIP to explode: since we launched these new formats and virtual TRIP three months ago, we’ve gone from just a handful of studios around the world to over 100 installations sold. I have absolute confi-dence that it’s going to be the next big thing, available in thousands of clubs over the next few years. It leapfrogs any club’s studio ahead of even the best boutiques.

Finally, let’s chat about Peloton and the impact this has had on the market…
The at-home fitness market is a huge category and always has been, right back to the days of Jane Fonda workout videos. Our research shows that 83 per cent of those who have gym mem-berships also exercise at home.

What’s happening now is simply that the technology is evolving, facilitating products like Peloton and Zwift. There’s a lot of content streamed online too, although here it’s often a case of quantity over quality – there’s a lot of rubbish out there. But overall, the range of at-home exercise options is growing fast.

In terms of Peloton specifically, it’s doing very well as a business and I love what it’s doing for cycling as a whole. But it is quite a simple prod-uct in terms of its content, simply streaming live classes out of a studio. Some of its teachers are quite good, but generally, I’d have to be honest and say the classes aren’t fabulous compared to other virtual classes that have been well choreo-graphed, filmed in great locations using multiple camera angles and top cameramen. You can get bored after a while

PELOTON IS DOING VERY WELL AS A BUSINESS AND I LOVE WHAT IT’S DOING FOR CYCLING AS A WHOLE – PHILLIP MILLS

So, what’s driving Peloton’s success? The tech is good, but it isn’t the live streaming that’s ultimately driving its appeal: only a small proportion of Peloton users take part in these classes, with most going back into the pre-recorded library to pick their favourites. Lots of people just use the Peloton app on their own bikes.

What Peloton has done absolutely brilliantly – and the same goes for SoulCycle – is an amazing marketing job. Both these brands have succeed-ed in bringing bikes back to the fore, so I really want to see them do well. They’ve done great things for the category. Really, the whole indus-try can now benefit from what they’ve done.

Fitness World – indoor cycling version 2.0

To meet the members’ request for superior cycling experiences, Fitness World Denmark is in the process of implementing a new indoor cycling concept. Upgrading all indoor cycles to BODY BIKE SMART+ and implementing INTELLIGENT CYCLING and the use of BODY BIKE indoor cycling app, the indoor cycling experience at Fitness World is getting a long-awaited boost.

Indoor cycles and facilities are generally cost-intensive, and to run a healthy business high attendance and happy members are crucial. By engaging the users, boosting the overall cycling experience and allowing everyone to participate in the same cycling session regardless of their level, the new indoor cycles and digital solutions are expected to ensure high attendance and membership growth.

Even though we offer a wide range of team workouts, indoor cycling has always been very popular and one of our top priorities

”Fitness World is a full-service fitness centre with a wide range of workouts and classes to meet almost anybody’s fitness needs. How important is indoor cycling to your business?
Even though we offer a wide range of team workouts, indoor cycling has always been very popular and one of our top priorities. Even during periods with fluctuating attendance levels, indoor cycling has always ranked high. With the introduction of new indoor cycles and a new and updated indoor cycling concept, Fitness World is revitalising their indoor cycling classes and taking them into the future.

How did you choose your new indoor cycling concept?
Fitness World is a nationwide chain with 106 centers. Upgrading the indoor cycling equipment and facility at all centers is, of course, a resource-intensive task, and it is important that we make lasting and future-proof choices that meet our members’ needs and expectations.

In the decision-making process, we were fortunate to have a large member base that we could count on to test various concepts and equipment and to provide us with valuable feedback. In addition to the continuous feedback we get from our members and instructors, we also did a widescale market research in 2017 to identify our members’ wishes and needs.

After the first implementation of our new indoor cycling concept in September 2017, we have continuously evaluated and adjusted the concept. The ongoing adjustments have resulted in a significant upgrade of the overall cycling experience, created the perfect working conditions for our skilled instructors, and the ultimate foundation for professional and motivational indoor cycling workouts.

”What are the most significant improvements and changes?”
Previously, the BODY BIKE® SUPREME was our standard indoor cycle – and it worked very well for us. Fitness World, our instructors and members were all happy with this model for a long time. However, our members’ needs and expectations slowly changed and to keep their motivation high, maintain high attendance levels and attract new members we had to do something differently.

One of the things that has changed on the fitness scene today is that people want to track, measure and document their efforts. That was not an option with the SUPREME, but with our new BODY BIKE® SMART+, they can do just that. The bikes have built-in software that provides users with all the data required and is compatible with various devices and platforms.

To ensure consistent, high-quality workouts we have decided to implement INTELLIGENT CYCLING as our shared training platform. It is an online tool that allows our instructors to effectively design workouts within the predefined Fitness World bike classes, such as Bike Standard, Bike Edge and Bike Rush etc. INTELLIGENT CYCLING uses five colour zones that indicate the level of resistance. and allows the riders to follow the progress of the workout on screens in the studio.

The new BODY BIKE® SMART+ cycles work with the BODY BIKE indoor cycling app. The app allows the riders to connect their phone with the bike and receive performance data throughout their workout including watt. The BODY BIKE indoor cycling app uses the same colour zones as INTELLIGENT CYCLING and makes it easy for the riders to follow the workout. By entering personal FTP value, the colour zones will automatically adjust the level of resistance within the zones to match each individual rider. Meaning that riders on various levels can attend the same workout and still get a personalised cycling experience. After each workout, riders are able to save their performance data on their mobile phones and subsequently upload the data to STRAVA.

Last but not least, we have worked intensely with our instructors. Even though technology has made its entry into the cycling studios, the instructor still plays an important role, when it comes to ensuring high attendance and attracting members. We have tried out video classes without an instructor present several times, and it has not been a success. Our members want a motivational instructor to inspire them to do their utmost, and they often choose their favourite instructor rather than their favourite class.

People want to track, measure and document their efforts

How has the new cycling concept gone down with the instructors?
The new cycling concept is, of course, different from what the instructors have been used to so far, and their reactions have spanned everything from concern and frustration to joy and excitement. But regardless of the new setup and the new technology, our instructors are still the most important factor in the studio. They are the ones creating the positive vibes, the energy and the strong personal relations.

Consequently, training our instructors has been a top priority. We have made a huge effort to inform our instructors about – and train them in the use of – INTELLIGENT CYCLING, the BODY BIKE® SMART+ cycles, and the BODY BIKE indoor cycling app. We have continuously focused on the positive and the many new possibilities instead of on the limitations. If it is used correctly, we are convinced that the INTELLIGENT CYCLING platform will allow our instructors to focus on motivating our members instead of on communicating information about the workout program and content. Brian Overkær from INTELLIGENT CYCLING has been in charge of training the instructors, and after a test period, evaluations clearly show that our instructors and especially our members are very excited about the new concept and the many new possibilities.

Even though technology is used in Fitness World’s cycling studios, the instructor still plays an important role

”You point out that skilled instructors improve attendance and attract members. How do you find instructors with the right qualifications and personalities?
We make sure that our instructors have the right level of training and the right qualifications at our own training academy, Group Fitness Academy. It is an ongoing process, and we continuously invite our instructors to improve their skills and participate in workshops and further training. One of our key focus areas is developing social skills making sure that our instructors are able to deliver motivating and entertaining workouts.

Being a Fitness World indoor cycling instructor takes dedication and a strong personality

Being a Fitness World indoor cycling instructor takes dedication and a strong personality. It is important that you are outgoing, energetic, have strong social skills and are able to motivate others. You are not necessarily a Pro Tour rider with a body fat percentage below 10 climbing the Alpe d’Huez in less than 50 minutes. Our members form a representative cross section of the population and so do our instructors. Some of them have a background in the fitness industry, others do not. Regardless of their background, they all have to go through our internal Fitness World training programme including workshops and online training.

”How do you make sure that there is a class to meet every fitness need?”
It is our goal at Fitness World to meet the general public’s diverse needs for exercise and fitness. Indoor cycling has a very wide appeal, and we strive to put together a mix of classes that accommodate various needs. With the implementation of new technology our members are able to join any cycling class they prefer regardless of their fitness level. With the BODY BIKE® SMART+ cycles, INTELLIGENT CYCLING and the BODY BIKE indoor cycling app everybody can join the fun and participate at their own pace and level.

Do you continuously develop new classes?
Our members are happy with the cycling classes, we offer today, but we still want to come up with new and inspiring workouts to keep them motivated and coming back for more. One of the new things we have in the pipeline is boot camps that focus on developing the individual rider. Maybe the boot camps can combine some of our existing concepts as for example personal training and BIKE?

Furthermore, we are in the process of exploring how our many digital platforms might work together, and how we – together with BODY BIKE – can create even cooler digital cycling experiences.

”What is the future of indoor cycling at Fitness World?
We launched INTELLIGENT CYCLING and BODY BIKE® SMART+ cycles in eight of our fitness centres in September 2017. In the first year, attendance increased by 5% with an average of 11% more riders joining the classes. We continuously receive positive feedback from our members, and with intensive training our instructors have embraced the new solutions focusing on what they do best – training, guiding, entertaining, motivating and creating great energy.

Today, the new cycling concept has been introduced in 38 out of 106 centres and the rest will follow in 2019-2020.


Fitness World fact Box

  • Toal of 171 Fitness World centers
  • 106 Centers with indoor cycling facilities
  • 4,660 indoor bikes
  • 500,000 members
  • 2,300 instructors

Showtime

10-12 hour Indoor bike events with 300 bikes and a new presenter each hour is discipline of its own within indoor cycling. Not to be compared with a normal 1-hour workout class in the local gym at all.

With up to 300 bikes on the floor and 1200 riders, most teams being 4 persons to keep the bike in motion, but still some are doing all hours on their own. It takes endurance and stamina to ride such hours and you don’t want to burn it all out within the first few hours.

On stage the instructors on the other hand, only ride 1 hour. Giving it their best performance without leaving the crowd exhausted and bored – energized and still wanting more. Keeping the crowd motivated and all bikes in motion till the very end, takes a different approach than a single 1-hour workout class. Presenters often take alternative methods in use. DJ on stage, Live dancers, live singers, live music performance, special themes, music, video, Pyrotechnics, fireworks – you name it!
IT´S SHOWTIME!

indoor event

 

 

See the light

“I first came up with the idea for FirstLight Cycle in the lobby of a New York hotel,” says Mark Anthony, the former celebrity PT turned indoor cycling enthusiast, sitting in the bright reception area of his newly-opened boutique cycling studio.

“I’d gone out to New York to look at the cycling scene there and was immediately hooked. I loved what the studios gave me: the energy of working out as a group rather than one-to-one.

“I had previously worked as a personal trainer, operating at the top of my profession for two decades, but the time had come where I no longer felt I had the energy to get up at 4.00am and go to bed at 1.00am every day. I felt opening a cycling studio might be a good next step for me.

“I had already started mulling over how I might do this when I found myself watching an incredible sunrise over New York through a huge window in my hotel lobby. I thought to myself: ‘How incredible would it be to run a group cycling class right here, with this view?’ That was the beginning of FirstLight.

“This was back in 2014, so it’s taken time to come to fruition – I’ve had to find the right technology to recreate that solar experience, as well as finding the right location. Really, the property market in London is a bidding war nowadays, and it’s taken us a long time to find the right space.

“But we’re here now, we have a strong vision, we’re clear what we stand for, and I believe we can become a key player in the boutique market over the coming years.”

Firstlight Westfield Cycling

Journey of the sun

He continues: “The concept of FirstLight is centred on harnessing the combined power of light and exercise, both of which have huge benefits for our body and our soul.

“Studio 1 houses our signature cycling concept, which revolves around the journey of the sun: from first light through high noon to sunset. There’s a 30ft screen filling the front wall of the studio, so you find yourself immersed in a landscape over which the sun rises, moves across the sky and then sets. This simulated sunshine is designed to boost participants’ energy levels and mood – sunshine makes us happy.

“The screen is also a mirror, so our instructors – we call them our maestros – can switch between the two to suit their class structure. We create threads they have to follow in their programming – we dictate the high points based on the phases of the sun, which is reflected in the prescribed BPM of the music – but they choose their own tracks and do their own choreography around these threads. In this way, they can create their own signature workouts, each of which we review and approve before they’re allowed to use them in the studio.

“We also put our maestros, all of whom are employed by us rather than freelance, through eight weeks of training at our academy, so they absolutely understand our concept and our expectation of robust, credible workouts.”

Box and ride

“But we have 9,000sq ft of space here, which is large for a boutique. It means that, in addition to our 58-bike studio 1, we’ve been able to create two further studios.

“Studios 2 and 3 will open in January: a 40-capacity boxing studio, where the sun will gradually work its way from east to west above your head, rather than across a screen at the front of the cycling studio; and a 21-bike HIIT cycling studio, which will be dark and intense and raw, with tough workouts that last half an hour as opposed to the 45- or 60-minute classes in studio 1.”

He adds: “My uncle used to be heavyweight boxing champion of Asia, so I’ve grown up with boxing. Meanwhile, my personal expertise is strength training. We’ve combined both of these elements to create a unique twist on a boxing class, combining free weights with punchbags where you ‘punch by number’ – the bags are marked up to show exactly where to hit them.

WE DICTATE THE HIGH POINTS BASED ON THE PHASES OF THE SUN, WHICH IS REFLECTED IN THE BPM OF THE MUSIC – Mark Anthony

“We’ll also be introducing some more challenging cycling workouts into the timetable over the coming weeks, even in studio 1. At the moment, it’s a fairly comfortable ride. We’ll still offer that – our audience is mostly 35- to 60-year-olds and we don’t want to alienate anyone – but younger riders tend to want something a bit tougher, so we’ll be addressing that.”

The future is live

Anthony continues: “The other thing we’re launching in January is home streaming, and this will be central to our whole business model moving forward. I firmly believe people are
increasingly leaning towards home fitness, so all three of our studios have been built with this technology embedded.

“Our boxing studio has two cameras, so the maestro can switch between them and talk directly to people taking part from home; they’ll be shadow boxing rather than using a bag, so all they need is a bench and some dumbbells, which we can sell to them. We’re still working out how to fully convey the journey of the sun when we live stream our boxing classes, because people will be streaming it to their TVs.

“However, for the cycling classes we have a really exciting innovation: we’ll be unveiling our own Peloton-style home fitness bike in January.
FirstLight classes will be live streamed to its 22-inch screen – the maestro will be able to see exactly who’s tuning in, so they can give them a shout out – but there will also be a frame around the screen. This will emit light throughout the class, in line with the phases of the sun, so at-home exercisers experience all the feelgood benefits of our studio-based workouts.”

Firstlight interieur awakened

A unisex model

“We had originally planned to launch a second studio in London, but we aren’t doing that any more. We may eventually open other studios if we move into Europe and the US, but there will be no more in the UK,” adds Anthony.

“That’s because I believe the future of indoor cycling – in fact, the future of all genres of exercise – is streaming. We’re gearing our whole set-up around this, which is why I’ve invested in bringing the very best technology to this 9,000sq ft studio. This will be our hub.

“In fact, I also believe streaming is the way to get men involved in group exercise. They don’t want to come into a studio environment – 85 per cent of our customers at FirstLight are women – but being able to train from home makes all the difference. In addition, whereas our studio classes are all about the experience, the FirstLight at-home bike will also offer stats and performance data – something we believe will further extend our appeal among men.”

He concludes: “I do think you need a strong
story to make live streaming work, but I believe our light-centred classes have what it takes. As we build our brand and extend our reach, I
believe FirstLight will become a brand that people love to follow.”


FirstLight Cycle – vital statistics

  • Location: Westfield London shopping centre
  • Opened: Late September 2018
  • Investment: £1.5m
  • Size: 9,000sq ft
  • Studios: 3
  • Total capacity: 120
  • Break-even: 35% capacity
  • Studio class prices: £20 per class, up to £125 monthly unlimited; packages also available
  • Home fitness prices: £19 a month per discipline, or £35 for both cycling and boxing
  • Supplier: Schwinn

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