Fitness in Australia: Focus on the major players in the industry Essay Example

  • Category:
    Marketing
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    2
  • Words:
    780

Fitness industry in Australia

The fitness industry in Australia is on an upward growth trend and it is not hard to see why. Sallmann (2012) has attributed this growth to increased awareness on the need for fitness, as well as increase in the amount of time available for leisure and recreation. The current outsourcing trend drives households into reaching out for help in maintaining their fitness. According to fitness Australia (2012), 1 in every 900 Australians work in the fitness industry which boasts of as many as 25000 registered fitness professionals.

According to the Australian bureau of statistics (2009) gyms and fitness centers are the leading product on offer in this industry. Spearheaded by Fitness First, services offered under this docket include resistance, cardiovascular training, group fitness and swimming pools. Footwear sale is also a major source of revenue. This particular service sector is spearheaded by Rebel Group Limited. Personal trainers, training and fitness equipment and clothing, for profit sporting clubs, body supplements and independent group training contributes to the rest of the revenue.

Fitness first ventured into the Australian fitness industry at an opportune time in 2000. Since then, it has experienced rapid growth as it has matured with the industry over the years. It started out by acquisition and new openings of fitness clubs and has grown to be Australia’s largest provider of fitness centers. Fitness First has set out a marketing strategy that involves aggressive face-to-face marketing and free one-day access to the gym for members who sign up, a strategy which has helped them climb to the top in the provision of gym related services. They have set themselves apart from the rest of the competition by defining the type of service they provide; specifically large scale gym centers that provide particular services such as weights, cardiovascular exercises and extensive exercise classes (Sallmann, 2012)

Rebel Group Limited is a holding company for Rebel Sport and Amart All Sports, which focuses on retailing of sport and leisure equipment, apparel and footwear through a large network of retail outlets. The company started through the acquisition of Amart and has focused on acquisition of other regional retailing outlets throughout Australia as well as the establishment of new outlets. The company has reaped benefits from major world sporting activities such as the commonwealth games and the FIFA world cup. The company is however expecting strong financial results in the future attributable to the sale of more cycling goods due to the recent victory of Australian Cadel Evans in the Tour de France and also due to the expected increase in sporting related spending.

RCG Corporation limited, a holding company for Athlete’s Foot and Shoe Superstore Group, owns both wholesale and retail distribution chains as a market strategy to maximize on distribution. RCG also holds the rights to distribute Merrell footwear and clothing as a supplementary source of revenue. In keeping in line with using new technology to provide customers with retail experience worth the value of the money they pay, Athlete’s Foot uses a system that aims at finding the appropriate footwear that fits the customer’s needs. The company is also rolling out a plan that aims at building larger stores and expanding the size of the existing ones. This decision is already showing signs of success with a case study conducted in Sydney showing a significant increase in sales volume in the larger stores (Sallmann, 2012).

Other strategies that are still proving successful for RCG include venturing into e-commerce through the launch of a new website. According to an RCG report (December, 2011), Athlete’s Foot is making substantial investment in technology to boost e- commerce. This is a brilliant strategy that takes advantage of the brand that is RCG in edging out competitors with no brand on the e-commerce platform. Such strategies have seen an increase in the sales volume despite the hard economic times.

The future is bright for the major players as this industry is fast approaching maturity and the revenue generated from this industry expected to increase from $ 2.9 to $ 3.6 billion within the next five years. Increased awareness on the need to keep fit as well as the increase in the number of ageing population will lead this industry to new heights.

References

Sallmann, N. (2012). Fitness in Australia: IBIS World Industry Report X0025. Retrieved 24thapril, 2012, from www.ibisworld.com.au/industry/default.aspx?indid=1970.

Fitness Australia (February, 2012). Health & fitness industry news. Retrieved 24th April, 2012, from http://fitnessaustralia.e-newsletter.com.au/pub/pubType/EN/pubID/zzzz4f14ae7716b92420/nc/zzzz4f309569e67ac892/interface.html

Australian bureau of statistics (2009). Perspectives on sport: Health and fitness centers and gymnasia. Retrieved April 24th, 2012, from http://www.abs.gov.au/AUSSTATS/[email protected]/Previousproducts/4156.0.55.001Feature%20Article2May%202009?opendocument&tabname=Summary&prodno=4156.0.55.001&issue=May%202009&num=&view=

RCG Corporation (December 2011). Results presentation: for the half-year ended 25 December 2011. Retrieved April 25th, 2012, from http://www.rcgcorp.com.au/PDF/ASX/FEB12/ASXRCG2012022102.pdf