How to create a network of EMS training studios with a turnover of 241 million rubles per year

Is it possible to do a workout in 20 minutes in a special room that will be as effective as three hours in the gym? It’s possible if it’s a class with EMS equipment in the FIT-N-GO effective training studio, the founder of the network, Elizaveta Shepelskaya, is absolutely sure of this. In just three years, her company became the second largest in the world by number of studios. Today there are 80 of them, and the entrepreneur is not going to stop. What difficulties Elizaveta faced at the beginning of her journey, how she won clients and what she teaches trainers - read in “Thirst”.

Fitness innovation

The first business of Elizaveta Shepelskaya from Yekaterinburg was a cargo transportation service, which she opened immediately after university - at the age of 21. In 2009, the girl launched a real estate agency, the company developed successfully - in two years five branches appeared across Russia. But the real estate business did not bring pleasure to Elizabeth; she wanted something new and unique. The girl sold the business and went on a search to Europe - attending business forums and innovation exhibitions, studying the market.

Elizaveta Shepelskaya, founder of the FIT-N-GO network of effective training studios: “At one of the exhibitions, I learned about EMS equipment, a new product in the field of fitness: the manufacturers promised to fit a workout into 20 minutes, which would be comparable in effectiveness to 2-3 hours in a classic gym. Despite the implausibility of the statement, it sounded intriguing, and I still decided to try the training on myself. The experiment turned out to be successful - in three weeks I got rid of five kilograms that I had been trying to lose for almost a year. At the same time, I studied the Russian fitness market - it turned out that the EMS training niche does not exist here, as well as the culture of the “studio” fitness format itself. There is no doubt left: this is the very innovation that I want to bring to Russia and build a new business on it.”

In Europe, the EMS market is quite active and is growing by 45% per year, and the potential market volume in Russian-speaking countries, according to Elizabeth’s calculations, was about 3,000 studios. Now in Russia and the CIS, 90% of the EMS market is free, which allows us to predict rapid growth for the next 7-10 years. At first, the most difficult thing was the presentation of innovations: for many, EMS technology was something unknown and arousing suspicion. Overcoming the barrier of mistrust, showing and proving to people that this technique brings results was the main task that had to be solved.

Hall at home

About six months passed from the moment Elizaveta Shepelskaya decided to create a network of EMS training studios in Russia until the opening of the first studio in the Federation Tower in Moscow City. Previous business experience allowed us to quickly resolve the issue of registering a company, registering and certifying equipment. The girl invested her own funds in the opening - 4 million rubles, which went towards renting and renovating the premises, purchasing equipment, and internal contents.

Elizaveta Shepelskaya: “At first there were difficulties with the premises. Nowadays the expression “fitness studio” does not surprise anyone, but then the format was new and we formulated the requirements for the location and the space itself from scratch. The most correct decision was to create a “boutique” fitness concept - people received the “privacy” that they so lacked in large fitness clubs, and we received extremely high profits per square meter of space. A quick 20-minute workout format would allow potential clients to exercise in the morning before work, after work, or on their lunch break. This means that the studio should be located close to the place of residence or work of the target audience, and the place should be accessible. Based on the selected client segment, footage and location convenience, I chose a room with an area of ​​53 sq. m. m in "Moscow City". The only drawback, which we tried to ignore for a long time, was the lack of ability to install a shower. Now, when choosing a room, this item is included in the TOP 5 most important criteria.”

The founder of FIT-N-GO studios notes that she thinks through the furnishings of each studio down to the smallest detail - from a comfortable reception area to the presence of hair ties in each locker room. The showers have not only a towel and a hairdryer, but also shampoo, hair conditioner, shower gel, and body oil. The idea is to create conditions for a person to feel at home, come light and leave in a great mood. Premium service, one of the advantages of FIT-N-GO, helps the company stand out from its competitors, emphasizes Elizaveta.

All in one trainer

The unique selling proposition of the FIT-N-GO studio was the motto “20 minutes instead of 3 hours in the gym,” which at that time had not yet been heard anywhere. According to Elizabeth, her team came up with this slogan, and the rest began to copy it. There are also fly-by-night companies that boldly clone the design and advertising texts of a successful network.

Elizaveta Shepelskaya: “It’s not difficult to come up with a motto, the main task is to explain to people how an entire gym can consist of one exercise machine. The first month we conducted free training to show people how it works and how effective EMS training is. The first two months I worked as an administrator in the studio: I stood at the reception, gave a tour, talked about the technology, concept, advantages, observed people’s reactions and drew conclusions. This was a deliberate and temporary step; I needed to gain my own experience in order to train the staff. It’s not worth working constantly as an administrator or coach in your own club, it will do more harm than good.”

The studio's target audience is clients in the premium and business class segments, people who, more than anyone else, know the value of time and want to save it. They are willing to pay for professionalism, an individual approach and a high level of service. One workout costs on average 2-2.5 thousand rubles, it’s like personal training in a regular fitness club, but there you additionally need to “pay for entry” - purchase a club card and spend more time on the lesson itself.

Educational advertising

For promotion, Elizabeth’s team tried different methods and channels: direct calling people and corporate invitations turned out to be energy-consuming and ineffective because the technology was unknown. There were a lot of questions like: “What kind of fitness club is only 50 sq. meters, why is there no swimming pool, solarium and sauna?” Outdoor advertising - billboards, banners, flyers, promoters - worked every once in a while. Social networks, a warming up website, and contextual advertising gave a good response.

Elizaveta Shepelskaya: “We launched education marketing: we began to tell people about the technology, why it is needed and what can be achieved, and showed the “behind the scenes of the studio.” They began to use opinion makers in their work - opinion leaders, for example, bloggers, which was a new thing during the launch period and had not yet been used so often. After that, people came to us with an already formed need and with a desire to try the effect of training for themselves, enthusiastic clients told their friends about us - this is how “word of mouth marketing” began, the least expensive in terms of money, but super effective.”

Having tried a large number of promotion methods, the company settled on digital marketing. To fill all the network’s studios with clients, it was necessary to create an internal advertising agency. In the fall of 2016, FIT-N-GO launched the “Client on a Platter” service for its partners: franchisees pay only for a real, live client signed up for a trial training session.

High requirements

The network of studios places high demands on staff: trainers must have a higher sports or medical education, at least 3 years of experience as a personal trainer, good reviews and recommendations, and understand the laws of biomechanics, since the training combines EMS technology and classical exercises. Important qualities: communication skills, positivity and belief in the effectiveness of EMS training. The entrepreneur does not advise hiring relatives and friends, who often do not accept criticism and get offended; as a result, you have to make concessions or part with the scandal. Here, as everywhere else, the formula “to lose a friend, give him a loan or take him to work” works.

Elizaveta Shepelskaya: “We train each trainer in two areas: the basics of EMS technology - the principle of operation, simulator modes, safety precautions and the unique FIT-N-GO training methodology - “tricks” developed by our network over 4 years. This stage takes three days. Further training is ongoing all the time: advanced training, certifications, master classes, exchange of experience. Of course, constantly increasing the professionalism of the trainer and increasing the percentage of his clients who received results is our main task. We also pay special attention to the development of the trainer’s communication skills, teach the principles of communication with the client: what can and cannot be done or said, how to meet the client and conduct training in a fun way, how to serve water, a napkin, a towel - we try to take into account the smallest details that make up the impression client about the trainer, studio and network.”

People come to the FIT-N-GO studio with different goals, the trainer’s task is to take into account their characteristics, find an approach and build an ideal training process. The trainer must be able to conduct in-depth research and analysis of the client’s capabilities and physical fitness. The training process is structured so that for each client the trainer becomes a mentor on his difficult path to a healthy lifestyle.

Taking care of the franchisee

From the very beginning, the FIT-N-GO company focused on franchising: it was planned to open 10 studios in Moscow within a year. Seven months after the opening of Elizaveta Shepelskaya’s second studio, she prescribed all business processes and standards, requirements for personnel and management, and has already sold the first franchise. In 2014, 15 partner points appeared, now there are 80 throughout Russia. The advantages of a franchise are low requirements for premises: 55 sq. meters you can earn as much as in a hall of 1000 sq. meters. On average, investments for Moscow residents are 3-3.5 million rubles, and the payback period is 10-14 months. In the regions of Russia, the figures vary depending on the population and the chosen pricing policy.

Elizaveta Shepelskaya: “A franchise is a certain level of responsibility that a person must understand and accept, so at the application stage we always find out what the person has done and what experience he has. If we are satisfied with everything, we begin to work with a partner, help them find premises, arrange a lease, and create a design project taking into account the wishes of the franchisee and applying our standards. Our partner is undergoing training, he must understand the work of all employees - the administrator, the trainer, and the manager, in order to then independently train them and competently supervise them.”

While the franchisee's studio is preparing to open, the company helps the partner deeply study the city market, helps with personnel selection and gathers people for the first trial training. Much attention is paid to advertising - a marketing plan is drawn up and active promotion efforts begin 2 months before the opening, taking into account the extensive experience of the network and the characteristics of the partner’s region. A workflow automation system operates for the entire network, thanks to which the studio owner can track performance indicators in real time on a smartphone.

Elizaveta Shepelskaya’s goal is to bring her company to first place in the number of studios in the world: now it is only ahead of the German network of EMS studios, which has been operating for 14 years. As the entrepreneur adds, FIT-N-GO is already the first in the world in terms of the quality of customer service and support system for franchisees, the task is to maintain this level.

1. Don’t fall into the “no one can do it better than me” trap: As a business owner, you have enough work to do. If you take on the responsibilities of the staff, the business as a whole will be left unattended.

2. Think about intellectual property protection: We missed this in the beginning, which led to imitators. There were cases when people who initially worked with us learned all the processes from the inside, and then worked under their own brand, copying our model.

3. Carefully choose the location: sometimes even 500 meters of distance can play a key role. Spend time studying the traffic patterns and traffic patterns of client flow, this can save you money, time, and nerves in the future.

4. If you are interested in options for opening a franchise business, bet on a company operating in a new, developing niche. This way you will take your place in the sun before it becomes mainstream.

5. Invest in your staff: a trained employee works more successfully and brings you more profit. Our employees who have undergone comprehensive training show conversion to sales and subscription renewals on average 25% higher than a good, but not fully trained employee.

6. When you dream of opening your own business and choose franchising for speed, look for something that will bring you pleasure. Don’t take on something that is more profitable but not interesting to you, otherwise the business will be a burden to you and ultimately will not bring profit. Let your business inspire you!

FIT-N-GO in facts and figures

Year of creation

Number of franchise points

Starting investments

From 1.5 million rubles.

Room area

from 50 sq. meters.

Minimum staff

Two administrators and two coaches.

Monthly turnover

800 thousand rubles (using the example of Moscow).

Break-even threshold

About 500 thousand rubles.

Turnover of the entire network (2016)

241 million rubles.

Average annual network growth rate

Payback period

From 6 months.

Average number of clients

25 people per month.

Average check

34 thousand rubles.

Seasonality,

Peak - autumn, spring.

Awards

Award “Best Innovative Project in the Sports Industry” (2017), Award “Best Innovative Project in the Fitness Industry” (2016), Award “Consumer Rights and Quality of Service” in the nomination “Retail Services” in the category “New Generation Fitness” (2016 ), “Time of Innovation” award, 2017.

Then part of the text was adapted to their channel about EMS equipment on You Tube and here you will read the most important information.

Why did you give up the EMS studio franchise?

1. Expensive. Pay a lump sum fee of 500-700 thousand rubles for the ems studio brand, which no one knows in my city. And then every year from 180 thousand rubles in royalties.
2. No one gives guarantees for the development of your business. According to statistics, franchise ems studios are more often sold and closed.
3. Franchise or not, you still do everything yourself
4. I know better the specifics of my city’s clients. I know where the audience I need works and lives.
5. Imposed ems equipment. Every company that sells a studio franchise strives to make money by supplying ems equipment to the new franchisee.
6. Without a franchise, there is freedom and creativity. My partners and I participated in all processes. It was exciting and inspiring!

What were the main issues we had to study: the concept of the fitness studio and the size of the room, the choice of ems

Either a small room and only personal EMS training, or a large room, several showers and the ability to conduct more training for each hour the studio is open.

When we started in the city of Yaroslavl, there were already two ems studios with personal training. Therefore, we chose an option with room for growth. We decided to conduct both personal and pair ems training. The training room itself is 80 m2, twice the size of any personal training studio. And to begin with, we made 3 individual locker rooms with their own showers.

We connected an online recording service, and in it you could choose a trial training for 1 person or a trial training for a couple at once. The so-called split training.

Thus, we increased the number of incoming clients. Also, paired training sessions were additionally sold to those who brought their relatives, friends or colleagues.

And during peak hours, there were 2 trainers working in the gym, each with his own ward. Online registration controlled the flow of clients, and the large hall and three private locker rooms made it possible to do more workouts for every hour the studio was open.

If you have a limited budget to start with, the city has high rental costs, or you want to start small, then an EMS personal training studio is right for you. Hall 15-20m2, one shower, two changing rooms, reception area. And a strict schedule for clients coming and going. And trainers with little traffic can generally work on piecework wages and appear in the studio upon request.

Selection of EMS equipment

For our business, we chose the concept of a large ems studio, where several clients can train in the hall at the same time. Based on this concept, we selected ems equipment. Based on the following criteria:

1. Wireless. To have freedom of movement around our 80m2 hall
2. Possibility of scaling. We bought a set for personal ems training, then bought another set and another.
3. Possibility of simultaneous customization of ems suits for two or more clients.
4. Cost of additional ems suits.
5. Warranty service in Russia. Not every ems simulator in Russia has an official service.

Now that we ourselves produce Noble wireless ems equipment, all these 5 basic qualities are included in the product. And thanks to them, Noble is highly competitive with any European manufacturer.

If you have plans for a personal ems training studio, then the cost of the equipment and its undoubted quality are important to you (after all, if you have a set of equipment for only one client and it breaks, then the whole business will come to a standstill). In this case, any ems trainer with a wired connection will suit you. Preferably new. Or choose the Noble Bluetooth EMS trainer professional kit No. 1. It includes three ems suits of different sizes, one pulse generator that is attached to the suit, a tablet with an application and a branded stand with backlight. No wires or bulky control racks. The trainer has a light tablet in his hands, and the client is in a comfortable ems suit!

Ems trainer training

EMS training in Yaroslavl

You need to understand that there are two stages of learning

1. Teach trainers to work on specific ems equipment, teach how to properly put on an ems suit on clients, and know the answers to basic questions and objections from clients on the topic of ems.

All sellers of ems simulators teach this. For some this is included in the price, for others such an introductory course will cost 40-50 thousand. In general, the guys earn what they can and how they can)

1. Next, it is important to train trainers in the method of training clients using electrical myostimulation. Teach them to combine different impulse settings with specific exercises. Teach them to work within a 25-minute training. What impulses for what tasks. Pulse characteristics: frequency, depth, width, pause time.

Since we didn’t take the fancy route, we were able to learn from different equipment manufacturers using different methods. Which ultimately gave more extensive knowledge and understanding of all processes.

In addition to the production of ems equipment, Noble also offers training from professional ems trainers, our partners.

Marketing and advertising of a fitness studio

So. There is a studio, there is ems equipment, there are trainers. The only thing missing is those for whom this was all created) Attracting clients! It’s good that my partners and I have experience in developing other business projects. Where we started: design of social networks and targeted advertising. Launch in a few days, the fastest result. Plus an online recording service with built-in CRM. Pre-sale of training even before the opening of the fitness studio gave us registrations for the first week of work. We'll talk about the cost of leads and the budget for advertising on social networks in a separate video.

There were two ems studios in Yaroslavl, but they did not actively advertise like we did. We offered people a new type of fitness; no one knew what EMS was. And we were able to attract people to record a trial workout. And after a month of work, we had already built up work with word of mouth from our clients. Plus work with local media: magazines and TV programs.

Hello, friends. Do you want to lose weight and at the same time get a beautiful figure, but don’t have time to spend an hour and a half three times a week in the gym?

EMS training will come to your aid! Are they really as effective as they say and can they become a worthy alternative to conventional fitness? Or is this just another way to profit from those who want to lose weight? And what is this anyway?

Charge your muscles

EMS training (Electrical Muscle Stimulation) or otherwise electromyostimulation is a new trend in losing weight and fighting for a beautiful figure.

It consists of influencing the muscles with a special device through electrodes attached to the surface of the body.

In other words, the impulses generated by the device force the muscles to contract in much the same way as occurs during physical exercise.

The method was invented in the USSR - scientists carried out the rehabilitation of astronauts who returned to earth after a flight in approximately this way.

Western scientists adopted the technology back in the 1970s, and the first muscle stimulators appeared in the United States in the late 1990s.

Principle of classes

Barely noticeable micropulses

• Allows you to significantly increase the intensity of muscle contractions.
• About 600 muscles are activated and used (versus 100 during regular gym exercises).

In general, the benefits of EMS training are as follows:

• Helps you lose weight
• Strengthen muscles
• Build muscle mass and get ripped
• Improve
• Restore muscle function after injury

What you need

• Personal trainer

He must have a good understanding of biomechanics. Determine whether the body is positioned correctly during exercise. Clearly navigate the depth and strength of the impulses coming from the simulator.

It is he who regulates the power of current supply to certain parts of the body, taking into account the sports training of the subject.

• Costume

We are talking about a special suit: a T-shirt with sleeves, leggings (shorts) and a special vest with electrode plates in strategically important places - current is supplied there.

The suit is sprayed with water (as they explain, to improve electrical conductivity). It is sometimes jokingly called the Lara Croft costume for some similarity to the equipment of this heroine in films and video games.

• Training apparatus

Just like a suit, this is special equipment. Both will be provided to you by the studio or gym where you will work out.

Exercise machines include, for example, Miha Bodytec (Germany) or X-body (Hungary). The difference between them is quite insignificant; it lies in the depth and strength of the impulses they produce and is not of great importance for training.

Workout plan

Divided into three stages

• Warm-up – 5-7 minutes
• – interval training: work for 4 seconds – rest for 4 seconds. And so on for 15-17 minutes.
• – just lie down and enjoy the light tingling current pulses.

Set of exercises

Everything here is individual - at the discretion of your coach.

Typically, squats, push-ups, lunges, leg swings, abdominal exercises, with small weights, on an elliptical or treadmill are used.

The duration is generally 20-25, no more than 30 minutes.

Intensity of classes – 2-3 times a week.

During classes, your body receives a double load - both from performing the exercises and from the current charge. As a result, even simple exercises cause significant tension throughout the body, and in one set you break seven sweats.

The dangers of losing weight

Passing electricity through yourself is dangerous and can cause harm, and therefore the method has a number of serious contraindications:

• Heart diseases
• Implants in the heart area
• Metal plates in the body
• Pregnancy
• Any circulatory disorders
• Diseases of the gastrointestinal tract
• Kidney failure
• Any tumors (both benign and malignant)
• Colds

Fitness for the lazy

Many probably remember, and some may have tried on themselves the so-called “butterflies” - myostimulators - attach them to your stomach and lose weight.

Ems training is based on the principle of action that is reminiscent of these simple devices. It just looks much more serious, convincing and weighty.

But is there any effectiveness behind this method? Or is the benefit questionable, is this another scam, a desire to make money on those who want to lose weight (EMS training sessions are not cheap)?

The fact is that muscle stimulation was originally developed:

• for rehabilitation after injuries and training,
• as a way to treat muscle atrophy and relieve spasms in bedridden patients,
• to increase muscle endurance and increase strength.

But attempts by manufacturers to certify these products as equipment focused on figure correction, weight loss, targeted fat loss, and cellulite elimination have not been successful. This is referenced by a number of serious sources on the Internet dedicated to healthy lifestyle.

What Science Says

In addition, EMS training has been studied quite little at the scientific level and, accordingly, there is practically no basis on which one could talk about any special effect of this method. Although a number of studies have still been carried out.

Thus, scientists from Taiwan tried to determine how much more calories were consumed during a 30-minute stimulation session.

As a result, the difference between the indicators at rest and the maximum level of intensity was only 11 kcal upward.

Scientists have come to the conclusion that EMC exercise machines can only be used as an auxiliary tool for weight loss.

Other scientists from the University of Wisconsin tested how effective the drugs were in increasing strength and reducing body weight and fat percentage.

For 2 months, they arranged myostimulation sessions for the experimental subjects three times a week. The researchers' conclusion is that EMS have no effect on any of the above.

The only benefit was found in the case of elite, very well trained athletes. Training with muscle stimulation allowed to increase strength indicators. Results in the vertical jump and reduce sprint times.

At the same time, it was noted that such a good result could be achieved in combination with plyometric exercises (a high-intensity type of bodyweight training) or weight training.

What to remember

• EMS can be useful for bedridden patients and as a method of rehabilitation after injury or surgery.
• Improvement of body contours with their help and a significant effect on the process of losing weight has not been scientifically proven and is not confirmed by certificates.
• If you want to take a risk, then they are best suited for those who are busy and cannot afford to spend a long time in the gym.
• At the same time, you shouldn’t rely heavily on them - EMS can never replace real fitness and good old training with dumbbells and barbells. And the charge of positive emotions cannot be replaced by any current discharges through the body!

Be slim and healthy, friends, do not forget to subscribe to blog updates. With this I say goodbye to you. Until next time.

* The calculations use average data for Russia

1. INTRODUCTION

Fitness is an area of ​​sports services that actively developed in Russia in the late 90s – early 2000s. The first fitness clubs appeared in Moscow in the early 90s. In the narrow and generally accepted sense, fitness is a health-improving technique that allows you to change your body shape and weight and permanently consolidate the achieved results. It includes physical training, in some cases combined with a properly selected diet. The main and most popular types of fitness include the following:

• Step aerobics
• Water aerobics
• Fitness roller skating
• Pole dance
• Pump aerobics
• Belly dance
• Callanetics
• Nordic walking
• Crossfit
• Fitball aerobics
• Pilates
• Fitness yoga
• Slide aerobics
• Fitbox
• Stretching
• Zumba aerobics

2. MARKET ANALYSIS

Fitness is part of the market for sports and health services, which, in turn, is part of the market for paid services. Paid services are an important part of the population's expenditure structure. However, in terms of the share of paid services in the structure of gross expenditures per capita, Russia lags significantly behind developed countries. First of all, this is due to the relatively low level of income and the large share of food costs in it. With an increase in income, the share of expenses on food will decrease, and the share of expenses on paid services will increase.

Experts have noted a steady decline in real disposable income since 2014; in the first quarter of 2016 alone they fell by 3.7%. This fall caused a reduction in household spending by 4.3%, which, in turn, had a negative impact on GDP dynamics - it led to a fall in gross domestic product by 1.2% in annual terms.

At the same time, according to analysts (Rosstat and the Analytical Center for the Government of the Russian Federation), the consumption of paid services is highly stable against the backdrop of falling demand for goods (primarily durable goods) - in 2015, demand for services fell by only 2%, in while retail trade contracted by 10%. The volume of the market for paid services in 2015 (the results of 2016 are still being summed up) amounted to 7.9 trillion rubles, which corresponds to 17.3% of the added value of the country’s entire services market.

In the first half of 2016, the rate of decline in demand for paid services slowed down – the decline in demand amounted to 0.9% in annual terms. During certain months (February and May) positive growth rates were observed.

Figure 1. Dynamics of the real volume of paid services to the population in annual terms and the share of costs for services in consumer spending, %, 2013 – 2016.

The largest volume of consumption of paid services falls on three areas: housing and communal services (27.5%), transport services (19%), communication services (16.1%). About 11% comes from household services (vehicle maintenance and repair, home repair and construction, and others). The share of medical services (including sanatorium and resort services) was about 8%, educational services – 6.8%. There is a decrease in the share of three key types of paid services from 65.3% in 2013 to 62.6% in 2015, while in the same period the shares of medical (from 6.9% to 8%) and educational (from 6.9%) increased. 2% to 6.8%) services.

Figure 2. Structure of paid services to the population, quarterly, %, 2013 – 2016

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The sports services market as a whole is experiencing certain difficulties, leading to a decline in its volumes. The decline that began in 2014 continues to this day. This is caused by the general deterioration of the economic situation in the country. The annual growth until 2014 was more than 25%, and the potential market capacity was estimated at $2 billion, despite the fact that the market is very far from saturation.

A significant part of the physical culture and sports system is traditionally financed by the state. Until 2014, budget allocations grew steadily, although they were significantly lower than the level of developed countries, where about 2% of GDP is allocated to the industry. In Russia this figure is almost ten times lower. Private investors are showing interest in the market, however, it was not very large even in the pre-crisis period. For the most part, the interest of private investors is more related to personal interests and hobbies than to the formation of a profitable business.

All organizations operating in the sports and health services industry can be divided into two categories: commercial and non-profit. The former are created for the purpose of making a profit, the latter are aimed at making sports services accessible to the poor. There is currently an imbalance in the market. State funding is aimed primarily at the implementation of large-scale projects (construction of infrastructure for the 2018 FIFA World Cup), as well as small sports structures and institutions (usually financed from the regional budget). Private investors invest money in fitness clubs, the share of which reaches 75% of total investments.

The financial crisis and the fall in real incomes in 2016 also had an impact on the fitness services sector. However, despite this negative impact, the market continued to grow. At the same time, its growth rate, according to some estimates, is very significant for the Russian economy. According to RBC Market Research, in 2015 the fitness services market grew by 14.1% in monetary terms and by 3.6% in real (natural) terms. The total market volume, including related areas (crossfit, individual training) amounted to about 101.5 billion rubles at the end of the year.

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Figure 3. Dynamics of the volume of the fitness services market in Russia in 2015 prices, billion rubles, % (data from RBC Market Research, CPI - Rosstat)

Despite the fact that the first fitness clubs appeared in the country in the early 90s, for a long time the market experienced certain difficulties in development. This is largely due to the fact that most fitness clubs developed in high price segments - “Premium” and “Luxury”, household incomes were relatively low, and the fitness services themselves were in little demand due to their low popularity. The target audience of fitness clubs was very narrow until the mid-2000s.

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Prices for fitness services this year have increased by 4.8% compared to last year, which is not much compared to the increase in prices in the product segment and in the field of paid services in general. In general, the services market is characterized by rather inertial pricing - during a crisis, prices rise quite smoothly, which, however, is compensated by their rapid growth after the crisis ends and the economy stabilizes. Experts also attribute the low rate of price growth in the fitness industry to their artificial containment by market players who are afraid of losing a significant part of the audience.

According to a survey of RBC experts, today 12.5% ​​of residents of Moscow and the Moscow region are engaged in fitness. At the same time, the involvement of residents of other world capitals (primarily developed countries) reaches 20-25%. This suggests that the market for fitness services in Russia has significant development prospects, and its volume can be increased at least twice.

According to various estimates, today there are 3.5-3.7 thousand fitness clubs operating in Russia, and the volume of the Russian fitness industry market is no more than 1% of the global market.

The fitness services market in Russia has pronounced geographic diversification. There are four main areas: the capital region, where the market is most developed, St. Petersburg with a high level of development, million-plus cities with a young and relatively underdeveloped market, and other Russian cities.

The most promising areas for the development of the fitness industry include cities with large populations. The market of million-plus cities (excluding Moscow and St. Petersburg) is estimated at the end of 2015 at 28.4 billion rubles or 28% of the total volume. This suggests that the regional market is still far from saturation and has significant development prospects.

A characteristic feature of the Moscow region is a significant degree of market consolidation - a significant part of it is divided between several large players. In the regions, the situation is still different - the market is diversified, there are a large number of small players, including regional ones. However, with further development of the market in the regions, we should expect the development of a capital scenario with market consolidation and its division between several large network players.

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Also a popular scenario for the development of the fitness industry in the regions is a high share of franchising. The share of fitness clubs opened under franchise in the regions is about 25%. The role of franchising can become decisive in conditions of saturation of capital markets and the need to develop regional markets. The advantages of working under a franchise are obvious: a recognizable brand, loyalty of landlords, assistance from the franchisor with the supply of equipment and staff training, automation of the management system, assistance in organizing a sales department and even, in some cases, advertising support.

The advantage of a franchise - like large chains - is also that they have more tools to solve emerging problems, for example, a more flexible pricing system, a system of discounts on club cards and others, which allows them to attract more customers.

One of the main factors limiting the development of the fitness industry in the regions has long been the lack of suitable space for rent, weak interest and low income levels. Since the late 2000s, more and more premises have begun to appear that meet the requirements of tenants - both through the construction of new commercial real estate properties and through the renovation of the old stock; household incomes have reached a level sufficient to consume the services of the fitness industry, while players in low price segments have begun to enter the market.

As for highly competitive metropolitan markets, research has shown that even when highly saturated, they still have growth opportunities. First of all, this applies to fitness clubs with a subscription price of up to 50,000 rubles, that is, representatives of the Comfort, Economy and Low-cost segments. Speaking about Moscow, we should also note the high saturation within the Central Administrative District, while the outlying residential areas are practically not covered.

Table 1. Classification of fitness clubs in the capital region by prices

Figure 4. Structure of the fitness services market in Moscow and the Moscow region, % of total revenue

The level of investment in opening a fitness club varies significantly depending on the price segment in which it plans to operate. Launching a project in the Premium segment may require more than 200 million rubles; for the Business and Comfort segments this amount may be in the range of 80-100 million rubles, and for a small fitness studio – 5-7 million rubles.

Recently, related areas have also been actively developing - crossfit, individual training, EMS (electrical stimulation). EMS today is considered one of the most promising areas for franchise development. This segment developed from a medical field in which electrical stimulation was used to rehabilitate people with problems of the nervous system and musculoskeletal system. However, this direction is only gaining momentum; the revenue of EMS studios is significantly lower than that of classic fitness clubs. However, the area is actively developing; the increase in the number of EMS studios is significantly ahead of this figure for fitness clubs.

Current events and changes in the fitness industry market include numerous closures and openings of clubs, as well as changes in locations, which are associated with changes in rental conditions, cost and other factors. Many landlords do not accommodate their anchor clients, which are often fitness clubs. Prices are often fixed in conventional units, which led to an increase in rental costs by 25-30% in 2015 alone. Of course, not all players can compensate for such growth through their own profitability or translate the increase through higher prices for their services, and are forced to leave the market.

Factors contributing to further market growth include the following:

Weak penetration of fitness services into the domestic market - according to the latest data, only 3% of the Russian population is involved in fitness, while in developed countries this figure reaches 15%

The growing popularity of fitness as a global trend; annual audience growth rates are ahead of global indicators

State policy in the field of sports promotes a healthy lifestyle, which contributes to the penetration of fitness services

Poor development of fitness services in the regions

• For a significant part of the target audience, visiting a fitness club and purchasing an annual subscription is a demonstration of social status and belonging to a certain social group; even in a crisis, this group of people is not ready to give up the services of fitness centers; This primarily applies to the Luxury and Premium segments.

According to experts, the annual growth of the fitness services market can reach 22-25%. Based on the results of 2016, the figure is +15%.

Denis Miroshnichenko
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Conducting trainings with psychological maps. 35 atmospheric trainings. Turnkey work training. Everything you need to open your own Psychological Salon.

Elizaveta Shepelskaya created Russia's largest network of 75 fitness studios for training with electrical stimulation. The network is growing steadily, and its turnover in 2016 exceeded 240 million rubles.

Elizaveta Shepelskaya

“At first I didn’t believe it, I thought it was another magic pill. I decided to try it on myself, and it simply amazed me,” Elizaveta Shepelskaya recalls her first training session using the new method. “I could hardly bend my elbows in front of me, as if there was a weighty barbell in them, but there was nothing in them.”

Shepelskaya created her first business - a real estate agency, as well as an advertisement website - in Yekaterinburg immediately after receiving a sociological education at a local university. In three years, she opened five representative offices of the company in Yekaterinburg, Chelyabinsk, Novosibirsk and Krasnodar. But the real estate business quickly became boring. In 2011, in search of new opportunities, Shepelskaya decided to move to Moscow and sold the business to her partner, who remained in Yekaterinburg.

It took a year to find a new business idea: Shepelskaya analyzed the Moscow market and traveled around the world. However, after a class at Express-Fit, the first Moscow sports club at that time that specialized in training using electrical muscle stimulation (EMS), she realized that the idea had been found. And again I went abroad with a purpose - to study how such studios work. It turned out that Europe is experiencing a boom that has not yet reached Russia.

Muscles in 20 minutes

Elizabeth already knew that she would focus on the premium segment - people with high incomes and an eternal lack of time. “The concept was this: come, train quickly and leave. It wasn't supposed to be a big club with a pool and sauna. But there should be a lot of them so that the journey takes no more than five minutes,” says Shepelskaya. She decided to promote her Fit-n-go brand with the slogan “20 minutes instead of three hours in the gym.”

The format is new and unusual, so the entrepreneur for a long time could not decide on the size and internal structure of the clubs. The fact is that the EMS studio is not like an ordinary fitness club. The area is an order of magnitude smaller. One Fit-n-go studio with one training room and shower is staffed by only four employees - two trainers and two administrators. If the studio consists of two training rooms, then there are six employees. For comparison, in a fitness club, where the training area is on average 500-800 sq. m, usually 15-20 people work. The Fit-n-go studio is visited by an average of 26 people per day, each of them is given only 30 minutes, including time for changing clothes and showering.

But since large areas are not needed, there is a choice. The first studio measures 53 sq. m opened in the Federation Tower in Moscow City in November 2013. Investments amounted to about 2.6 million rubles. Shepelskaya’s personal funds. Half of them were spent on the purchase of two sets of EMS equipment. According to Shepelskaya, no additional equipment is required for such training. Studios also have light dumbbells, moderate weight barbells, body bars and resistance bands, but you can do without them. “We noticed that psychologically a person is more accustomed to performing certain exercises, say, for the arms, holding some weights in them,” Shepelskaya explains.

Elizaveta Shepelskaya (Photo: Vladislav Shatilo / RBC)

At first, she found it difficult to tell people about an unknown technology and convince them that it works. “We said: come for free, try it,” she recalls. — We worked for such free training for a month. Every client who tried it, leaving the studio, said: Wow! It inspired me a lot." She expected that people from neighboring offices would come to the studio first. But those who live and work in other areas also became clients. They learned about Fit-n-go from social networks. The key tool for promoting the project was the Instagram account.

The first studio paid for itself in four months. In the spring of 2014, Shepelskaya opened a second one, on Zemlyanoy Val. The parent company's revenue for 2014 amounted to about 31 million rubles. In 2015, this figure reached 127.4 million rubles, at the end of 2016 - 241 million rubles.

How it works

EMS technology (electrical muscle stimulation) is based on the fact that muscles are affected by electrical impulses that are generated by a special device and cause them to contract. The technology comes from the space industry and is widely used in medicine and sports rehabilitation.

The first simulator that allowed ordinary people to practice EMS was created by the German company Miha Bodutec more than ten years ago. This company still remains the largest player in the EMS equipment market. Today there are hundreds of EMS studios in Germany, and in Berlin alone there are about 300 such clubs. One of the largest German EMS networks is Body Street. Today there are about 250 studios operating under this brand.

During training, a person performs all exercises in an EMS suit with sewn-in electrodes. Training in it allows you to improve blood circulation, restore lymphatic drainage, increase muscle tone, and also speed up the process of burning fat.

People describe the sensations from the influence of electrical impulses in different ways: some compare them to tapping on the muscles, others say that “it’s like a lot of ants are running all over you.” “The effect is that resistance is given to the muscles, which makes performing even the simplest exercise more difficult,” says Elizaveta Shepelskaya. “So, for example, if you do five burpees in an EMS suit, you will get the same load as if you did this exercise 15-50 times.”

However, many industry professionals are skeptical about EMS technology. “EMS training has not yet proven itself. I am more conservative in matters of training, although perhaps this technology will begin to be integrated into regular fitness clubs in the near future. In any case, the result will be maximum if you combine EMS with standard training,” says Vladimir Antonenko, network manager of gyms in the X-Fit network.

Franchise for acceleration

Shepelskaya immediately expected to develop the business using a franchising model. Having launched two studios, she began to think through the conditions for future franchisees. The first franchise studio opened in the summer of 2014 in Podolsk. “Of course, there was a big risk; Podolsk is not Moscow after all. They almost forcibly dragged everyone they knew into the studio until word of mouth started working,” recalls Daria Titova, managing director of the Fit-n-go studio in Podolsk. Investments in this studio paid off in about two years.

During 2014, Fit-n-go launched a total of 15 partner locations. The rapid growth of the network began in 2015 and continued in 2016, when about 60 more studios opened. As a rule, within a year or two, investments in them paid off, and the network grew like a snowball.

“Our main mistake was that we did not think through ways to protect intellectual property. This led to the appearance of a large number of clones on the market, says Elizaveta Shepelskaya. “For example, two entrepreneurs joined us from the very beginning, found out everything, and then decided to work under their own brand.” According to her, during the entire period of Fit-n-go’s operation, only one point was closed, and another one had to be moved. “We launched a studio in the Snezhkom ski complex in Krasnogorsk,” she says. — We thought that there were active people there, but it didn’t work out: everyone came to ski. Then we moved to a residential complex on Ilyinsky Boulevard. Things immediately went much better.”

Business is fast. It takes on average about two months to open one studio. If there is a ready-made room where no repairs need to be made, then even two weeks. Two to three weeks before the opening of the studio, the franchisee undergoes training. Additionally, the parent company offers a number of services - from recruiting personnel to organizing the flow of clients signed up for trial training. The price of the franchise depends on this, as well as on the region of opening. The lump sum contribution starts from 500 thousand rubles. and can reach 2 million rubles. (in this case, the parent company itself is engaged in attracting clients). Royalties average 45 thousand rubles. per month. “99% of our franchisees had never encountered the fitness industry before coming to us,” admits Shepelskaya.

Fit-n-go in numbers

1850 clients visited 22 630 training sessions in all network studios in February 2017

34 thousand rubles. — average check for the network in February 2017

800 thousand rubles. — The average monthly turnover of a Moscow studio, the break-even threshold is about 500 thousand rubles.

RUB 241 million - Oturnover of the entire network based on the results of 2016

250% - Withaverage annual network growth rate

Franchisee's view

One of the Moscow Fit-n-go franchisees in 2016 was entrepreneur Andrey Khlypkovka. He came from the construction industry, where he spent 15 years - first as an employee, then as an individual entrepreneur. I learned about EMS training from a friend who was a member of the Fit-n-go club. Andrey was interested in the unusual format. “After the first workout, I didn’t feel anything other than a little pain in my muscles. After the second, I realized that I had spent little time, and my muscles were very sore. There was a state identical to a good workout in the gym,” says Andrey.

In March 2016, he thought about opening his own EMS studio. “I decided that developing small fitness studios separately from a large system was quite a risky business,” says Khlypkovka. — And Fit-n-go is a strong brand. A franchise participant enters the market with support, which is very important at the initial stage. It is much easier to solve many problems within a large network.”

At the beginning of September 2016, Khlypkovka acquired a franchise, and a month later his studio opened near the Prospekt Mira metro station. Investments at the time of launch amounted to about 5 million rubles. 30% of them went to the purchase of a franchise, 30% to the purchase of equipment and personnel. The franchisor helped with the search for employees. The most expensive repair was the renovation of the rented premises: all the remaining money was spent on it.

Photo: Vladislav Shatilo / RBC

“I have never dealt with this type of business before. Construction with advances and postpayments is completely different from direct sales,” recalls Khlypkovka. In the summer of 2016, he completed a basic course at the Fit-n-go Academy, which provides training and advanced training for franchisees. “This is not some kind of theoretical course, it is an algorithm of actions, practical knowledge about working in one of the network’s studios. Every detail was interesting to me, because the result depended on each one,” says the entrepreneur.

The opening of the studio was announced via Fit-n-go accounts on social networks. Now the total number of subscribers on Instagram, Facebook, VKontakte and Twitter is 70 thousand people. The first clients came to Andrey through the network’s call center.

The main problem was low conversion - below 50%. “At first the clients were very cold, they were just interested in what it was,” says Khlypkovka. Now the conversion has increased to 75-80%, the number of regular clients has reached 40. “We began to constantly monitor the reaction of clients to the work of the studio, improve the methods of the training process, and make changes to the work algorithms in the shortest possible time. Most importantly, we realized that each client needs an individual approach - from drawing up individual training programs to online support,” explains Andrey.

Most clients are people who already know about Fit-n-go, which means their choice is influenced primarily by the location of the studio. “Our point has a good location - close to the metro, convenient to get there by car. Most clients are local residents and those who come to work in the area,” says Andrey. According to his forecasts, he will return the investment by November 2017.

Electrification of the entire country

“Initially, everything developed quite calmly in Russia, because the market was not very clear. This topic took off sharply thanks to Fit-n-go,” says Dmitry Kovalev, owner of the competing network of JustFit studios. The rapid growth of the market began in 2014-2015.

As experts interviewed by RBC admit, the leader in the number of studios is Fit-n-go. The main competitors are smaller chains JustFit, Fitbox, Body Forming and Newfit. They all operate in approximately the same price segment and offer similar services. A subscription for 12 training sessions costs an average of 30 thousand rubles. “Due to the fact that the service is not cheap, the margins are squeezed between the cost and the market, few people dare to dump. If dumping happens, it doesn’t last long,” explains Dmitry Kovalev.

Competition occurs at the level of equipment selection. Fit-n-go, for example, started working on Hungarian X-Body equipment, and now purchases wireless suits connected to the device via Wi-Fi from the German manufacturer EasyMotionSkin. Control - via an application on iPhone or iPad. The cost of one set is about 800 thousand rubles. The Newfit network also works on wireless equipment. “The trend towards wireless technologies is noticeable. However, Miha Bodуtec, as the main technological structure, believes that wired devices are still more efficient and safer,” says Dmitry Kovalev. JustFit and Fitbox use German wired Miha Bodуtec exercise machines. The Bodyforming network purchases such equipment from the German company Loncego.

“The level of competition today is still far from pushing elbows. As a rule, loners close. Relying on a local client doesn’t always pay off: if you slightly misjudge the location, that’s it, you work at a loss,” says Kovalev. — We are all on the verge of the market transition from the stage of crazy innovators to the stage of the early majority, that is, the niche as a whole will inevitably grow. It’s time to set up a systematic network business.”

In the regions, as Dmitry and Elizaveta admit, the demand for EMS is still in its infancy. In cities with a population of over a million, the market is divided by two or three studios. “In a few years, there will be a dozen EMS studios in any large city,” Kovalev is convinced. — There is a good prospect for the development of large chains using a franchise model. Individuals will not survive in such conditions due to high marketing costs.”