23 October 2023, Max Barth

FIBO Report: The fitness world is changing

Episode 1 | Global and local developments and solutions – and a look across the pond.

When the American Crossfit Box operator Tobias Kerger and his wife Jessica open their studio at 4:30 a.m. on Monday morning, they have a long, hard but fulfilling week ahead of them. The world of fitness has changed in recent years, say representatives of regional and global fitness associations. This also applies to the largest fitness market in the world: the USA. The Kerger family, who immigrated from Germany a few years ago and took over the boutique studio shortly before Covid 19, knows this - and have found ways not only to cope with these changes, but to open up completely new perspectives.

Global associations and the world's leading trade fair FIBO are registering around the globe: Most international markets have already recovered 100%. Some digital developments have become established over the past few difficult years and are irreversible. Interesting: The now widespread fitness services from global tech giants such as Google, Apple or Amazon apparently do not affect the fitness studios' offerings. There are also exciting analogue, more strategic approaches that fitness service providers use to improve the performance of their studios - whether it's about social ideas, new target groups or a new, structural orientation of their own portfolio.

At Crossfit 033 in Connecticut, America, the first workouts - except on Thursdays - start at 5 a.m.: for working people who want to do something for their body and soul before going to work. “We help the people who come to us to improve not only their strength but also their fitness, their mobility and their physical health – and thus also their mental well-being,” explains the 31-year-old young entrepreneur Tobi, who was the head coach here a few years ago. When the then operator Glenn Perra wanted to withdraw from the fitness business in 2019, Tobi, who actually studied mechanical engineering, became a career changer and bought his CrossFit box from him. Together with his father Henning Kerger and his wife Jessica, a lawyer and nutritionist, he has been running the studio ever since and has already successfully developed it and steered it through the Corona crisis. “The pandemic has changed a lot in people’s minds and therefore also in the fitness market,” says father Henning Kerger. He is actually an IT consultant, but has been involved in studio management since the beginning as a managing director and partner. In 2001 he immigrated from Germany to the USA with his wife and children.

Henning Kerger and Tobi Kerger

© Henning Kerger

How is the fitness market currently changing – locally and globally?

“We are not yet quite at the level we were before Covid and of course we have some concerns if another wave comes and facilities are forced to close,” says Henning Kerger, describing the thoughts of his entrepreneurial family. They have had to learn a lot and quickly during the past difficult years: “It became clear during the last shutdown that remote workouts via Zoom are not very effective and are only good for short-term bridging.”

But in general the prospects are now quite good again. The positive development of the economic situation in his country and, above all, the employment rate has a positive effect, so that spending on fitness does not represent a major burden. However, they have already adapted their concepts: “We have placed a focus on Strength & Conditioning, are receiving a lot of support for this, and are managing to mobilize new target groups.” The connection with nutritional advice in particular will help them move forward. “This means we can also reach new customers who understand that a healthy lifestyle requires a combination of physical fitness and a healthy diet,” he reports enthusiastically.

Such changes in the market can also be identified with a global lens, although there are major regional differences. This is primarily determined by active fitness associations based on targeted market observations and studies. Dr. Samir Kapoor, Member of Council World Active & Chair Skills (Workforce Committee) and President of the Indian fitness association India-Active: “In the market of developed countries it can be observed that, in addition to boutique concepts (…), larger providers are also expanding rapidly. Leisure trusts are expanding in markets such as the UK as more people realize the importance of going to a gym and exercising. There is great enthusiasm in the leisure trust market following the publication of research showing exercise is the best antidepressant.”

In developing countries, where governments were unable to support fitness studios or their workers and many professionals were left to fend for themselves, Corona was a serious blow to the fitness industry, he explains. “Overall, the industry lost over 50% of the workforce globally to other industries such as retail and hospitality as people saw this as a more stable career. The really good trainers have moved online and no longer want to work for a gym. And those who were employed found other industries,” said Dr. Kapoor.

Do local solutions, developed by the studios themselves, work?

During the Corona restrictions, Crossfit 033 offered its members special services for children because school sports had been stopped - and was hugely successful. They delivered the daily WOD (“Workout Of The Day”) to their members live online. At least they got through the pandemic with a black eye. Overall health plays an increasingly relevant role in the corporate concept of the specialized studio of the Kergers Crossfit box - unlike the classic providers of this brand, which originally stands for high-performance and functional training. However, the new owners began making their individual adjustments before Covid. On an area of around 650 square meters, her studio offers, in addition to classic functional training, health-oriented units, experienced nutritional advice and cooperation with a nearby medical service provider.

How did the world develop for studio operators after the pandemic?

Dr. Samir Kapoor is particularly positive about the digital developments in the fitness world: “During the pandemic, large fitness chains, individual studios and independent trainers went online. Some made money, some burnt money, but all of this increased the number of people who were physically active. And that was largely because people had time on their hands. That was the silver lining for the industry.”

Crossfit033 has now had to discontinue its offers for children - after the end of the Covid-related restrictions, demand fell again. They have also discontinued their online services. The reason: Crossfit033 leader Jessica Kerger noticed that the online boost, at least in her environment, was decreasing significantly again, and in some cases it even caused people to return to “real life” and reduce their prefer the local presence in the community Studios to training alone in the living room at home. “After Covid there is more interest in fitness and also in a healthy lifestyle – in exercise as well as in diet. Many people have found that it is easier and nicer to train and keep fit in a community,” says the studio manager.

Dr. Samir Kapoor explains: “People are social animals and not everyone likes to train alone.” However, the digitalization of the industry has still received a lasting boost from a global perspective due to the pandemic: “Tech-supported fitness brands like MyZone have really had a big influence and have become more relevant. Many people have even switched to hybrid mode for their workouts.” Home fitness has benefited sustainably from the pandemic. Online cycling in particular did not completely lose its rapid growth during Corona even after the restrictions fell: “Online indoor cycling grew by leaps and bounds because trainers were able to offer an almost similar experience at home, and this still attracts people, although not as much as expected,” says Kapoor.

Has the global fitness market recovered after the pandemic?

The statements made by the World Active board member correspond to the observations and information that Florian Brauer, Senior Global Brand Manager of the world's leading trade fair FIBO, was able to collect during his business meetings and trips around the fitness world: “The members are coming back to the Studios. According to studies by Deloitte and IHRSA, most international markets have already recovered 100%. However, individual, personalized training is increasingly supported by wearables and digital tracking.” This development is comprehensive and irreversible. “The big tech companies like Google, Apple and Amazon have long since arrived in the fitness industry.” The exciting thing about it, in his opinion, is that the activities of these global players do not affect the studios’ offerings! The best example of this is the innovation specialist EGYM, which has developed from a manufacturer of intelligent strength machines into an online-based fitness ecosystem. “Studios without a technology approach will not fully exploit the current, positive development,” says Florian Brauer. However, he has to admit that the willingness to invest in the studios is not yet as high as it was before Corona.

However, there are also exciting analogue, more strategic approaches that fitness service providers can use to improve the performance of their socially and health-relevant services, says Henning Kerger: “CrossFit does not necessarily require a high level of physical fitness or training with heavy weights, when a new member joins. We introduce our members to higher-performance training very slowly and through a natural progression.” With success. He explains: “Later, the trainees can also take part in a CrossFit competition. Every now and then we organize local competitions, usually linked to a social relevant topic such as fund raising for a good cause, solidarity with cancer patients, supporting activities for children or similar.” The acceptance of fitness combined with a healthy lifestyle is increasing in his environment – also in the local social structures that his son specifically addresses with the studio portfolio: “We grant special conditions to so-called 'first responders', e.g. firefighters, police staff, doctors and nurses, etc. These professional groups are usually very interested in CrossFit because this training covers all muscle groups and also endurance. They like to come to us before or after their shifts for a short but intense workout.”

Continuation of the “FIBO Report: The fitness world is changing” on (…2023):

Part 2 – Findings and developments in business, politics and industry representatives