WHAT CAN THE HIP COFFEE SCENE TEACH THE FITNESS INDUSTRY?

The ‘anti-brand’ movement has become huge across many business sectors in recent years. Consumers are increasingly steering away from big brand names and into the doors of smaller businesses, which are seen to offer a more personal experience.

In this article we look into a great example of the anti-brand movement in action: the popularity of independent coffee shops. Then it’s all about the lessons boutique gyms can learn from this experience, to gain an advantage in a competitive fitness industry.

Brewing up ideas to beat the competition

A coffee shop culture has always been a way of life in many countries. This culture has spread worldwide, where consumers are choosing to spend their time in cafes, tea rooms and coffee shops.

A few years ago it looked as though the likes of Starbucks and Costa Coffee were giving people what they wanted. Starbucks has over 200 stores in London for example, and it’s a similar picture elsewhere.

But not everyone wants a big chain experience. For many people, the preferred choice is to grab an espresso or a skinny latte macchiato somewhere with a completely different feel. Thousands of independent businesses have set the tone for an anti-brand movement in the coffee world. In the UK for example, the Shoreditch Grind and Manchester’s Teacup Kitchen are right on trend for fashionable coffee lovers.

Take London’s trendy Grind for example – a renowned café-bar who know their customers inside-out. In the fashion conscious city of London, the atmosphere in the Grind is electric, with trendy décor, quirky slogans and a diverse menu.

Something we know customers to love about the Shoreditch Grind is their Spotify playlists. In fact the coffee shop has become so renowned for its popular playlists that they have attracted up and coming singers such as Liv Dawson to perform live intimate gigs; attracting large audiences. One satisfied customer describes the venue as having a ‘fab atmosphere with great music and cocktails’. With all of this said – does music affect consumer behaviour? And could boutique clubs benefit in adopting this tactic to give their members a more personal experience.

Reviews left on Tripadvisor support this with visitors commenting on Grinds’ ‘bubbly people’, ‘awesome energy’ and ‘relaxed vibe’. Another happy customer describes the Shoreditch born café as quirky and down to earth. For millennials in particular perhaps, having a unique and personal experience is a priority.

Competition down under

Another example of how big chain brands no longer dominate the market is Starbucks in Australia. Although a household name in many countries across the globe, it proved to be a washout down under.

Starbucks opened 84 outlets across Australia over eight years, only to later close down 60 due to lack of interest. A reason for this, according to some sources, is due to the absence of interaction between customer and barista. It’s clear to see that having a big brand name does not guarantee success.

The world-class famous coffee of Australia could be the reason for this failure to launch. Melbourne has been voted the bearers of the world’s best coffee houses for years, with their neighbourhood vibes, community spirit and friendly staff.

Exercise has become exclusive

Boutique gyms have also caught on to the anti-brand movement in a big way. Boutique studios are leading growth within the health club industry today. According to the 2016 Health Club Consumer Report published by the IHRSA, 35% of all health/fitness consumers in the USA engage with a studio, which makes this the biggest category in the sector. Around the world, millions of people are seeking something beyond the ‘big box gym’ fitness scene.

Part of the reason for their success is that people are hungry for a feeling of individuality and exclusivity when they work out. This is why boutique clubs often specialise in specific training styles. Where one may focus on boxing, another chooses HIIT or yoga. It’s the same trend that sparked the latest coffee boom: no two boutique coffee shops are the same, and the top studio gyms take the same approach.

The environment inside the club is also a big factor. The right atmosphere creates an emotional connection between club and member. The 2016 Fitness Studio Operating and Financial Benchmarking Report made the point that ‘the Millennial Generation are seeking specialised, novel, and aspirational experiences’ – and the environment of a club makes a huge contribution to this.

Pricing is also something that plays a part in the brand experience. Boutique clubs can charge higher prices because of the experience they give to customers. Members who have a strong sense of brand loyalty are prepared to pay more. In many cases, boutiques have much less equipment than their big box rivals, and yet this isn’t a barrier to higher prices, due to strong feelings of community and belonging they create.

How some boutique gyms expand without losing their independence

Opening one great boutique club is one thing – but what happens when the business wants to expand? How can that happen without losing the individuality that made the club stand out from the crowd?

The answer is to have a distinctive and clear differentiation between each club. This can be achieved through branding (with simple measures, such as different names, slogans, logos and so on) but most importantly, it’s about changing the core offering from club to club.

A great example is the way that the investors of two of London’s most premium boutique gyms position them worlds apart. Another Space and Third Space keep their identities separate as a way of maintaining their uniqueness and authenticity. Another Space focus on yoga, HIIT and cycling, whilst Third Space appeal to consumers who are interested in strength based training, combat or dance. (Read more about Escape’s work with Another Space here.)

Coffee and fitness aren’t so different after all

In a society that is hungry for interaction and individuality, unique experiences are highly sought after by consumers – and this is why the anti-brand movement is on the rise. The same movement that is drawing people into edgy and cool coffee shops is at play in the fitness world too. Love it or like it, any gym operator or investor needs to keep in touch with this powerful movement.

Are you on the voyage to offer your members a boutique experience?

The first step, for boutiques especially, in creating meaningful and lasting relationships with their customers is focus. In order to appeal to your target market you must know them inside out – what they like, what they love and what makes them tick. Boutiques are able to provide individual experiences because they target their brand to niche audiences, unlike big chain clubs who are universal.

To help business owners position their brand correctly Escape co-founder Matthew Januszek has written a 16 page report on how to develop functional training spaces. Based on Escape’s work with some of the world’s top boutique clubs, it boils the key success factors down to seven mistakes and solutions for avoiding them. You can download a copy of the booklet, or to talk to us about what you are looking to achieve and how Escape can help, please contact us:

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