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MP92058

MAPS HOME GYM EQUIPMENT JULY 1998

Overview

Table of Contents

Executive Summary

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EXECUTIVE SUMMARY

The total fitness equipment sector has grown strongly over the last decade and by 1997 had reached an estimated market value of £122m at manufacturers prices. This figure includes both the commercialprofessional sector and sales to private consumers. The commercial market is the dominant sector accounting for 55-60 percent of sales, with the consumer market accounting for 40-45 percent.

Both sectors have enjoyed strong growth, with 1996-97 a particularly buoyant period for the home gym equipment sector, with sales currently estimated at around £110m at retail prices.

Awareness and interest in improving and maintaining a reasonable level of fitness has grown substantially over the last 10 year. The level of media coverage promoting a healthier lifestyle to include diet and fitness regimes has increased substantially, targeting a much wider audience than before. Television programmes particularly aimed at females and older viewers have been very successful at promoting fitness activities and creating awareness of a wide range of equipment which offer different benefits to users.

The economic climate has also helped stimulate market growth over the last 2-3 years. A recovery in consumer confidence has been followed by strong growth in spending levels, with household and consumer durables benefiting in particular. The windfall gains of around £35bn from Building Society and Insurance Company conversions were also major factors in stimulating consumer spending in 1997. However, higher interest rates to contain the threat of rising inflation have been implemented in late 1997, which should result in a slowdown of the economy in 1998-99.

In terms of home fitness product sales, cardiovascular equipment represents the dominant sector, accounting for around 75 percent of sales. Major products in this sector include exercise bikes, treadmills, rowing machines, riders, step machines etc. Popularity is based on the benefits of all-round toning and stamina-building.

Products in this sector have become much more sophisticated in recent years with the introduction of better controls, more flexible adjustments, transportation rollers, monitoring features etc, which have added value to the sector. Abdominal exercisers have also become more popular appealing to a wider age group and offering an improved waistline.

Resistance equipment accounts for the remaining 25 percent of the market and includes multi-gyms, weights, dumb-bells etc. Many products in this sector are targeted at the more serious enthusiast or body builders with some high-value equipment. Problems of storage and transportation can be a problem for many types of equipment but many leading suppliers have introduced equipment that can be folded or easily transported by use of rollers.

Part of the research process included Market Assessment commissioning NOP to undertake an assessment of a representative sample of householders purchasing intentions over a range of home gym equipment. Interest in these products was surprisingly high, with 67 percent of all respondents indicating their intention to purchase at least one item of home gym equipment over the next 12 months.

Interest was highest for exercise bicycles at 37 percent of respondents, with rowing machines, treadmills, step-machines, weights and multi-gyms all attracting interest levels ranging from 25-30 percent of respondents. These figures may appear high but give a strong indication of the level of interest and awareness of these products. Interest among younger age groups is highest, but purchasing intentions for respondents in the 25-54 age groups are also relatively high for some products.

In terms of the supply structure, imports account for a very high share of the UK market, with USA and Far East sources predominant. The US market is by far the most advanced market for gym equipment, which is reflected in both the commercial and domestic equipment sectors. Major suppliers into the domestic market are Icon Fitness Lifestyle with an estimated share of around 20 percent, operating under the Weider, Healthrider, Weslo brands, with products imported from the USA.

Other major suppliers include Bolton Stirland, Nordic Track, CSA Fitness, York Barbell, Kettler etc.

Distribution of home fitness equipment is heavily orientated towards Catalogue Stores and Mail Order. Argos are regarded as the largest retailer of equipment with an individual share around 25 percent. The major Mail Order companies such as GUS, Grattans, Littlewoods etc also offer comprehensive ranges. The recent acquisition of Argos by Great Universal Stores will give the combined operation a strong market position in this sector.

Sports retail outlets are a growing sector, primarily due to the growth of out-of-town stores. These stores have more display space and are therefore able to demonstrate a wide range of products and provide more professional advice to potential buyers. This is particularly important for the more ‘amateur’ fitness enthusiast where knowledge of individual product benefits is generally much lower. Department Stores, Direct Mail and off-the-page advertising are the other major channels of distribution.

Prospects for the home gym equipment market look relatively optimistic, at least in the short-medium term. With growing expectations of a longer lifespan, younger and middle aged people are more aware of the need to maintain a healthy lifestyle and reasonable standard of fitness if they are to enjoy a longer period of retirement. The availability of a wider range of home gym equipment that can offer a range of fitness benefits is likely to appeal to a growing number of the population who are unable or unwilling to visit commercial gyms or simply seek greater flexibility or privacy through home use.

Emphasis in product design terms on ease of operation, storage and transportation etc are likely to broaden the appeal of home fitness products. Cost is unlikely to be a major barrier to sales growth in the longer term, with consumers willing to pay for equipment that meets their individual requirements. In the medium term, growth is forecast to average around 4-5 percent per annum, though 1998 should prove a more buoyant year for sales growth at around 7-8 percent. Home ownership levels are still relatively low and interest is high – generally a combination of factors which should result in sustained underlying market growth, at least in the medium term.

Text © 1998 MAPS

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