III. Industry Analysis
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The following industry trends and statistics will bode well for [Company Name]:
Gym, health and fitness clubs have grown over the past five years, bolstered by public health initiatives that have shed light on fitness’ role in fighting diabetes, obesity and other health ailments. This trend is evidenced by the number of health club memberships growing over the period, as more individuals have valued fitness as an integral component in their health regimen. Furthermore, population growth, particularly among individuals aged 20 to 64, which comprises the largest gym-going demographic, has spurred demand for health club memberships. Over the past five years, annual revenue has risen from $2.4 billion to $2.6 billion on a national scale.
Demand for health club memberships typically exhibits the strongest growth in the first three months of the year. For example, an estimated 30.0% of all new members have signed up for their gym and fitness club during the first few months of the year, driven by New Year resolutions, which may incite consumers to implement healthier lifestyles. To boost the number of new memberships during other months, many gyms have offered discounts and monthly memberships; however, January still comprises the largest portion of membership sales. Knowing this, the Company will aim for a grand opening of operations to begin in Q1.
A growing preference for easily accessible, smaller gyms with fewer amenities has benefited boutique gyms that have catered to a market niche of local consumers. The market share of smaller-budget gyms is subsequently growing, as consumers have substituted gyms with fewer amenities for expensive, all-inclusive clubs (which include related facilities, such as tennis centers, racquetball courts, ice rinks and swimming pools). Newco Fitness will fit the mold within the rising trend of boutique gyms that have seen a rise in consumer interest. By providing an array of classes based on well-rounded fitness, the Company will thrive on the continuous fitness trends in America within a target niche market.