Successful Boutique Gyms: Trends and Approaches

by Parbhat Jain Founder of Easy Gym Software

The unstoppable growth of boutique gyms is the most current trend in the fitness sector. In the United States alone, 4 out of 10 members who join a fitness center are members of a boutique gym. Also known as fitness studios, these types of clubs aim to offer specialized experiences of high value to their clients. Their success lies in focusing their efforts on highlighting excellence in a few services instead of offering many at the same time.

Many people believe that boutique gyms have to do with small spaces, but the truth is that only 10% of the growth factors of this type of clubs have to do with size. In fact, any gym, regardless of its size, can learn and take advantage of this trend by simply offering specialized activities and a positive and different experience to its members.

The great success experienced by boutique gyms in recent years only demonstrates the value that users place on the fitness sector. These types of centers show that, when an unanticipated experience is offered, users are willing to pay even more for it. In a world dominated by competitive homogeneity, where businesses copy each other, boutique gyms have been a reminder of the need to be different and maintain specialization.

Therefore, it is not surprising that boutique gyms generate 61% more subscription revenue than conventional clubs. The data is collected in a report carried out by IHRSA, called Health Club Consumer Report.

But in addition, there are other factors that have favored the consolidation of the sector, such as the growing interest in health and personal well-being, the increase in active elderly people, the increase in women's purchasing power and the evolving vision of fitness for Millennials.

Current situation of the fitness world

Currently, fitness is a fully mature sector in the most developed markets. And in this context, boutique gyms perfectly fit the budget and the needs of consumers. The problem is that the number of members of gyms worldwide has not achieved a significant increase, so there are now more clubs competing for the same number of customers.

The biggest loss has been faced by independent mid-level clubs, who suffered a serious blow with the appearance of low-cost fitness clubs and studios, experiencing a great number of members who have left the club to choose an option that is more in line with their needs and preferences. Instead of joining a gym and paying for a full package with a wide variety of services for 40 euros per month, many have opted for low-cost gyms with fees between 10 and 20 euros, or boutique gyms.

There is no doubt that low-cost gyms will continue to grow. Members are willing to create their own basic training package combined with subscriptions to specialized centers such as boutiques. On the other hand, middle-level gyms will also continue to grow, but it is important that they know how to adapt their model to be able to compete with low-cost gyms, as well as offer those different experiences that users look for in boutiques.

Users are increasingly interested in enjoying personalized and different experiences deeply relevant to them, being willing to pay even more for it. Something that happens in all clubs regardless of size.

Most of today's consumers have an overstimulated life and need to escape from a permanently connected world. Therefore, it is not surprising that they choose exclusive boutique gyms with the aim of achieving that disconnection.

But in addition, in recent years the purchasing power of women has been increasing and they have opted for renowned brands that provide them with community experiences. In a boutique gym, the brand can include the personal trainer service.

Finally, it should be noted that users are increasingly looking for improved fitness experiences on a digital level, such as basic activity monitoring, close interaction with social networks and distance advice. Digital companies continue to invest massively in fitness technology, focusing especially on expanding business models that already exist.

The role of Millennials in the growth of boutique gyms

The Millennials seek variety, uniqueness, and adventure than any other previous generation. For them, the boutique gyms provide them with highly specialized disciplines, where, in addition to having new experiences, they have fun. It must be borne in mind that new trends enter first among young generations and then are adopted by older users as a waterfall effect.

Millennium youth have played a very prominent role in the growth of boutique gyms, representing between 32% and 48% of the members of this type of centers in the United States. A percentage that varies depending on the type of boutique. On the other hand, those over 55 years of age only represent 13% of the members of this type of centers at best. But why do the boutique gyms fit so well with Millennials? What is this generation looking for?

Singularity and emotion: Millennials believe that sport should be something fun and different. And, although they still use ellipticals and treadmills for their basic workouts, they look for unique and exciting experiences that motivate them.

Inspiration: Boutique gyms offer users a key motivational experience to feel good both physically and in other areas of life.

Family atmosphere: Millennials are not satisfied with the receptionist being polite, but they want me to really know them and care about them. Something that is key in the world of fitness globally, but that boutiques have managed to exploit like nobody else.

Belonging to a community: In an increasingly less social world where, ironically, social networks have so much weight, Millennials have a deep sense of connection and a powerful sense of belonging. Something that the boutique gyms have taken advantage of very well is bringing together many people with similar ideas in the same place.

Naturalness and transparency: Boutiques do not need affiliation, only information about the center and an initial price table. Most of this commitment comes from a mobile app, which Millennials find very attractive.

Individualism: The boutique centers fit very well with the way of thinking and the identity of the Millennials because the sector offers a multitude of brands and activities to choose from depending on their way of being and their preferences. This being the main driving force behind the fragmentation of the offers of these gyms.

What are the success factors of a boutique gym?

As we said at the beginning, size is not a determining factor in the success of boutique gyms. This means that any traditional gym can adapt to this new trend and make the experience profitable by becoming a specialized center in some specific activity. Following are the necessary ingredients to achieve success according to the Easy Gym Software experts.

Specialization

Boutique gyms stand out for having a reduced set of services. Something they do intentionally and that is often based on a type of training for a specific member profile. The goal is to try to become the best in its category, which allows them to target an audience with a broader geographical base that goes beyond the neighborhood itself.

Community ideology

Boutique gyms focus their efforts on a group of people with similar ideas, providing them with a purpose and giving superior meaning to training, which creates a close connection between their clients. To do this, they organize events and resort to traditions and rituals that generate greater motivation to prepare their members, launch them and celebrate them together.

High efficiency

Members see teachers as part of their daily training routine, greatly appreciating their vigilant supervision, as this helps them achieve their goals. Compared to lifelong gyms, boutique centers keep this promise consistently and uniformly. But in addition, thanks to a visible coach and authentic internal production content, customers perceive their training as a truly handmade experience. For this reason, the high degree of boutique advice is key in this model. In addition, members also perceive the coach's passion, which is usually quite contagious.

Having instructors who have a sense of autonomy and belonging is essential for this model. Therefore, it is common for boutique gyms to invest more in staff than in technology. Because they know this better operational efficiency.

Comfort

Boutique gyms are usually located near workplaces and customers' homes. Many gyms have a limited set of programs that are offered repeatedly throughout the day, which provides greater comfort because it allows users to enjoy the activity at the time that suits them.

Fun and intuitive experiences

Boutique gyms create participatory experiences where all members have to introduce themselves and follow the monitor, sometimes with several phases, competitions, and objectives. A method that is very fun and intuitive for users. But these centers also tend to respond to industry trends much faster than traditional gyms, so their level of risk is much lower. When something does not work, they act quickly, so the impact on the business is minimal.

Competitive prices

Unlike conventional gyms, most boutique gyms publish prices on their websites, with rates for people who are not members and do not have hidden fees. Focusing solely on earning money for each class or training experience they provide.