🔎 Navigating a new fitness landscape: Part II
It’s been a year and a half since we took a deep dive into the fitness industry We analyzed how COVID-19 was shaping the landscape and what brands could learn from new consumer behaviors, and we identified industry trends emerging out of the pandemic. With New Year’s resolutions upon us and ambitious goals ahead of us, what better time than now to immerse ourselves in all things fitness and revisit what has changed?
With the world buzzing again and gyms coming back to life, we can’t help but wonder what the future holds for virtual workouts. Yet, all signs seem to point to the fitness landscape continuing to maintain its hybrid model, combining both at-home and in-person workouts.
Sales of at-home fitness equipment have remained strong even amid inflation, and high engagement among virtual class sign-ups has continued. While we witnessed Peloton’s brutal fall from grace, with its stock plummeting 74% in the last year, Planet Fitness stock rose nearly 13% in the last six months. Google searches for “gym membership” in the US are up 176% in January 2023, as more and more people (approximately 95% of people per McKinsey) found they were missing some aspect of in-person workouts while also partaking in at-home fitness programs.
Join us as we reflect on the trends that were shaping the industry back in 2021 and see what, if anything, has changed since then.
“Virtual fitness has accelerated the importance of accessibility and versatility”
The global cost-of-living crisis has become an influencing factor in extending at-home workout behaviors delivered digitally and virtually. Costly gym memberships are frequently one of the first expenses that people tend to cut to reduce spending. Yet, people are finding innovative ways to keep fitness accessible, including leveraging artificial intelligence (AI).
You’ve likely caught wind of the hype attached to ChatGPT, but you may not have realized this new AI-powered chatbot can write you a training plan for a marathon, or suggest a workout for your next gym visit. I recently used it to design a weeklong meal plan and associated grocery shopping list! AI is also infiltrating the wearables market, fueling the continued development of more powerful and sophisticated features. Take Artifit, an AI-powered personal trainer app that uses computer vision via your smartphone camera to give real-time feedback on form and posture. We’re also seeing health and wellness brands embrace this technology to improve their product and service offerings. Like WW (formerly Weight Watchers), for example, which has created its own app-based ecosystem that uses AI to monitor diet and activity metrics, including movement and sleep patterns.
We expect an increase in virtual reality (VR) workout programs to also continue, as headsets and devices grow more widespread. The augmented reality (AR) and VR product and services industry is expected to grow to $80.6 billion by 2029, and Apple’s VR headset release is rumored to be just around the corner. From cardio fitness and strength training to golfing, boxing, and fencing, VR workout experiences are becoming more immersive and gamified to keep users active and engaged (P.S. We published a piece on our favorite VR workouts not too long ago here).
“Consumers are prioritizing their health more than ever and thinking about it more holistically, investing in both physical and mental well-being”
The lines between physical health and mental health continue to blur, as exercise is used as a mental health tool, and people turn to movement to protect and enhance their mental health.
Big box gyms like Equinox, Exhale, and Life Time have long intermingled the spa and fitness space, expanding services and programming to cater to those who are not just looking for a workout, but also seeking restorative pre- and post-workout care. Late last year, Mind Body Project launched a concept that combines high-intensity interval training (HIIT) and meditation — an unexpectedly symbiotic relationship, and one that’s incredibly advantageous to prime the body and mind for exercise.
During the height of the COVID-19 pandemic, we also saw brands like Liberate and Coa emerge, introducing the concept of “mental health gyms:” online, therapist-led learning experiences to help users along their emotional fitness journey. Perhaps the most (personally) gratifying of all was the launch of Finch, a modern-day Tamagotchi for adults with a mental health twist. It’s an app that promotes self-care using virtual pets as vehicles, with their growth and development relying upon your ability to check off your own self-care goals.
“Convenience continues to be essential”
While 70% of fitness companies plan to continue offering online workout options for the foreseeable future, they have become more of a “perk” to be offered to clients who also seek in-person workouts and classes.
Lululemon, which purchased the interactive start-up Mirror for $500 million in June 2020, has pivoted its business plan to provide convenience to its users via a solution that expands beyond home workouts. Lululemon Studio was introduced in September of 2022 as a paid membership program providing access to thousands of streaming and in-person workout options, perks and discounts on lululemon apparel, free attendance at in-store classes, and early access to in-person lululemon events. Members also have access to eight studio partners, including Pure Barre, Rumble, and Dogpound.
For those still hell-bent on working out from their basements, Nike has partnered with Netflix on an initiative called Nike Training Club, which consists of more than 40 exercise videos now available on the streaming platform. The entire series will feature 30 hours of fitness programming and is available in multiple languages.
Speaking of home gyms, gone are the days of stocking simple cast iron dumbbells; we’ve evolved to designing full-blown smart gyms instead. The pandemic paved the way to home gym equipment becoming part of the internet-of-things (IoT), packing home gyms with smart, connected versions of exercise bikes, treadmills, and other fitness equipment. JAXJOX creates smart kettlebells and dumbbells that allow you to alter their weight with the touch of a button, while Trainer+ from Vitruvian offers a “gym on a platform” that includes a whole set of weight-training and resistance exercises using one connected platform.
“Performance and health data tracking is not just desired, it’s expected”
Wearables have continued to become more sophisticated and powerful. The digital health wearables market is estimated to hit 30 billion USD by 2026, and today in the US, 30% of the entire population owns some kind of health tracker. Tech enthusiasts project these wearables will soon be capable of monitoring and giving AI-enhanced feedback on our daily routines.
The NOWATCH, “a health-focused smartwatch without the watch part” is a first-of-its-kind “awareable.” Its intent is to pus back against overstimulation, anxiety, and stress by providing a device packed with advanced health-tracking technology disguised by a gemstone face. The wearable encourages living in the moment by sending subtle vibrations when stress is sensed to allow awareness of stressors and emotional outputs, with readings provided through its accompanying smartphone app.
We’re also seeing innovation and mass adoption of health wearables ranging from biosensors to smart patches and smart clothing. OMRON’s Blood Pressure monitor, the HeartGuide, connects to a mobile app that was just recognized as an outstanding digital health service at the 2023 Consumer Electronics Show (CES). Companies like Palarum are designing medical wearable clothing like smart socks for fall detection and post-surgery movement monitoring through motion sensors. And Owlet specializes in pediatric monitoring for medical conditions and well-being alike.
With predictions that one day, your watch, clothing, shoes, and eyewear will all be connected and will monitor your health and other fitness activities, we’re excited to see what innovation lies next in this category.
Interested in chatting more about the evolving fitness landscape and how this may affect your brand? Reach out at hey-mango@havas.com and let’s continue the conversation.
