I have the pleasure of working in the fitness industry in Japan and contributing to its development. The industry has changed a lot in other markets and Japan is also catching up. However, there are a few characteristics that are rather unique to Japan. In order to drive the necessary change in the industry, those characteristics have to be understood and addressed.

First of all, very conservative

The fitness industry in Japan is very conservative. Why is that? The parent companies of most of the big gym chains are coming from very conservative and domestic industries. Some clubs belong to manufacturing companies, others to train & railroad companies others to real estate. Those industries have little foreign competition in Japan and in terms of progress, most of them are not as innovative as you might hope for. Especially with regards to decision making, it is firstly very hierarchical and secondly, combined with a strong sense for risk aversion, extremely slow

The Market Place

We’ve seen it in other markets. Initially, we had big standard gyms catering to a broad audience. But then over the last few years we have seen boutiques such as Soul Cycle and Cross Fit positioning themselves in the premium end of the market. At the same time we saw budget gyms attacking the market from the lower end and offering 24/7 gyms at 15 USD/month. So now, you have big standard gyms being squeezed from both sides of the market which means they need to come up with a way to differentiate themselves. In Japan however, we are still in early stages. Boutiques are just getting started and budget gyms are not as widespread as in other markets. Some gyms know what’s coming and they start to prepare by creating sub brands or even reinventing themselves. Some others however are blissfully ignorant and ignore the trends assuming that because “Japan is different, it’s an island nation”, it will not affect them. Cross Fit is just getting started but we also see cycle studios like Feel Cycle or boxing classes such as B-Monster. And what they are really good at is attracting a younger audience, which leads us to…  

The Biggest Challenge For Traditional Gyms

Japan is an overaging society and it does show in the gym. The average age of a gym member in Tokyo is about 50. Compared to other markets, that’s quite high. Now, where do all the young people go? Firstly, the participation rate in the fitness industry is with 3.3% significantly below the 17.6% of the US or even the 14.3% of the UK (source). That means, less people are involved in fitness and a lot of the current members jumped on the bandwagon when the fitness industry launched in the 80s. Which means, if they joined in their 20s, they are now in their 50s.

Young people on the other hand, prefer fun and entertainment. And looking at traditional gyms in Japan, their design and approach to customers is not necessarily what attracts a young audience. Which brings us to the big dilemma clubs are facing. Should they invest in change in hope they will be able to target and retain younger members while at the same time risking upsetting and losing existing members? Or should they keep pleasing their existing members. Some clubs have noticed that they have some young members join but also noticed that their retention rate is really low. My humble opinion: that’s because clubs generally cater to an older audience and a 20 year old doesn’t want to workout next to their parents or “worse” their grandparents. The spaces gyms provide are also not motivational. It’s a typical “here are some machines, maybe some free weights, some treadmills and over there is a studio”. For some highly motivated individuals, that’s no problem but for the average person, it’s more about the actual experience and providing a motivational environment. This is where the boutiques excel and it shows! That’s where the customers are much younger despite the higher price. They are willing to pay for the premium experince!

Gyms also don’t have membership sales people you would find in other markets. If a potential customer walks into the gym, whoever is available will talk to the customer. That could be the receptionist who is usually not trained in selling memberships or trainers who are usually not trained in selling memberships. It usually ends up being a tour through the facility – again “here are our machines, our free weights & treadmills. Here are our membership options”. Even after a trial there is no one following up with the potential customer after the trial, not face to face, not via email, not with a call. Let that sink in for a moment. You have a potential customer who is considering joining your club and even made the effort to come to you, all you have to do is understand their needs, cater to them and help them buy. Or if the timing isn’t right, follow up in a few month when you have a new campaign.

Lastly, in order to attract a certain target group, you have to go where the target group is. That brings us to  

Social Media

The social media presence for most gyms is straight up non-existent. Taking photos inside the gym is not allowed, so is sharing it on social media. Communication is still managed via good old paper with only a few clubs starting to use email newsletters. Now luckily, this is changing but the change is happening very very slowly. 

The Solution

So, clubs in Japan currently only provide a facility but they are not motivating and are not providing an experience. What they need is a mind change. It’s about making every visit for the members count, engaging with them, motivating them. How do you do that? By actually talking to them. And it’s not the perfectly polite greeting at check in and check out. It’s the chit-chat with the receptionist or the trainer on the floor asking how you are progressing. Research has shown that members who are engaged with staff and trainers are less likely to cancel. Also, you provide something that motivates them. The reality is, everyone knows what to do to get fit and we all know that you don’t even need a gym for that. Do some bodyweight exercises at home and go for a run in the park. That’ll do for most people. But the truth is people lack motivation. They don’t like working out because it’s tough and they especially don’t like doing it alone. So by providing social exercises in the form of group exercises, clubs get to engage members, motivate them and make them come back for more. If they come back for more, they see results. If they see results, they’ll stay and keep coming back for more. Even better, they will start referring friends and family. Fewer members leave and more people join. Sounds like a great outcome to me.  

However, most clubs are still at a stage where they don’t know what they don’t know. They are oblivious to the changes happening in the world and thanks to their risk aversion at key decision maker level it will take some time until they change. The only thing that will cause change is pain. The pain from losing members to the competition, let it be the premium boutiques or the budget gyms. The market is diversifying and adding pressure to the standard gyms. The diversification means that there will be different offerings for different people, it forces clubs to either change or leave the marketplace and ultimately it will make fitness more attractive to a broader audience and thereby contribute to creating a fitter planet. That’s what I’m here for. What are your experiences in your country? Reach out, would be great to hear from you.