CBE Winter Report.qk - IHRSA

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Interview We will work with our partners in their respective markets to share best practices to clearly position themselves and deliver a product that their target consumers desire and value. In addition, results-orientated programmes, such as weight loss, are on the rise. People are very willing and eager to pay three or five times the amount that they’d normally pay for a monthly membership if they see results. Co-pay programmes and subsidies from insurance companies are also becoming more common. However, insurers are requiring proof of qualified staff. Thus, certification will be increasingly important. CBE: Do you foresee any standards legislation coming from the EU on this, or is it more likely to happen on a country-bycountry basis? HM: I see it happening country by country, initially. European-wide legislation will follow later. CBE: What about VAT? HM: High or low, VAT affects the net amount that a club receives from the member. For example, Austria has a VAT of 20%; Germany is at 19%. Some countries, such as Back to the Future Belgium and, I believe, Sweden, have a reduced VAT. This is a tremendous advantage because they have to pay less tax up front to the government. There is a law in the EU that allows countries to decide whether a lower rate of VAT, which now applies to necessities such as groceries, can be applied to health club memberships as well. Once lobbying becomes more concerted and more professional in Europe, we will see more countries understanding that creating an incentive for prevention, with a reduced VAT on health club memberships, will benefit health, as well as have a positive impact on club net revenue and profitability. CBE: The newly published 2007 IHRSA European Market Report: The size and the scope of the health club industry shows that market penetration rates range from 16.4% in the Netherlands to 3.4% in Russia. What do clubs need to do to improve these rates? Hans Muench is well-known to many IHRSA members—for good reason. He has had a long and varied career in the industry, and, by selecting him as the new Director, Europe, IHRSA has returned to its roots. Muench first became involved with IHRSA in 1984 when he was working on an IHRSA-sponsored study of the European club industry as part of his MBA thesis. He received his degree in international business from the University of South Carolina in 1985. In 1994, he became IHRSA’s first director of international development, and worked out of the association’s US office in Boston, where he established the foundation and strategy for its international activities. He returned to Germany with his family in 1999. A German citizen who is based in Munich, Muench speaks fluent German, French and English. He has a rich history in the fitness industry, ranging from chief development officer of a small chain of health clubs to senior executive positions in major fitness equipment companies, including Life Fitness Europe. Before rejoining the IHRSA staff this year, he was Area Manager for Nautilus in Germany/Austria. “We spent the summer months talking to our European members and partners to learn more about their needs to help us determine the qualities and skills that were necessary in this position,” said Joe Moore, president of IHRSA. “Hans embodies what we were looking for, and we are thrilled to have him back on the team.” 16 Club Business Europe � JANUARY/FEBRUARY 2008 � www.ihrsa.org HM: Each club must reach out to its target consumers and create an image that attracts this group. For more people to consume our product, the perception among consumers must improve. In addition, income levels must rise in developing markets so that the general population can afford to make monthly membership payments. CBE: The 2007 IHRSA European Market Report also details 2006-2007 mergers and acquisition activity. In your view, what do clubs need to do to attract more Private Equity? HM: We need to raise our level of professionalism by recruiting talent from outside the fitness industry. Also, if we collect better numbers, track our growth and communicate our message better, it will help investors make the decision to invest with us. For example, how many potential investors know that, for the last 20+ years, our industry has grown consistently, while proving itself to be recession resilient? CBE: What does the industry need to do to work more closely with the medical community? HM: Europe needs to have a basic level of club standards and certification to demonstrate to the medical community that we are part of the solution and professional enough to be a trusted part of their industry. We must also address the issue of competitiveness, and our industry taking away patients from doctors, hospitals and insurance companies. CBE: In your view, how can the industry become more “professional” in the eyes of the press and various governments? HM: IHRSA is helping clubs present themselves better with studies, statistics and strategies. Leading clubs should know their various representatives and be in touch with them on a regular basis.
Interview We need to raise our level of professionalism by recruiting talent from outside the industry Back again: Hans Muench socializes with Heather Corbett and Burkhard Luben of Cybex and Chuck Leve of IHRSA at the 7th Annual European Congress in Paris CBE: Finally, do you have any advice for fitness industry professionals in emerging markets? What can they learn from countries, such as the UK where the industry is more mature? HM: Newer markets can learn from the experiences of more mature ones. The backbone of our industry and of IHRSA has been to share and learn from each other. That said, European countries develop in different ways. Attempts to apply, for example, the UK model to the European continent has had mixed success. Eastern Europe is growing faster than Western Europe. However, it is worth noting that the UK has done a very good job of promoting the benefits of the industry to the public and to the press. Also, professionals coming from the hotel/ hospitality sector have gotten involved with health club chains in the UK and added a level of professionalism. This is a good example of where the industry can, and should, go in the future. � PATRICIA AMEND is the managing editor of CBE. 10 - 13 April, 2008 · Exhibition Centre Essen · Germany The Leading International Trade Show for Fitness & Wellness FIBO Niederlassung der Reed Exhibitions Deutschland GmbH Völklinger Str. 4 · 40219 Düsseldorf · GERMANY · Tel. +49(0)211-90191-300 · Fax +49(0)211-307578 · info@fibo.de www.fibo.de www.ihrsa.org � JANUARY/FEBRUARY 2008 � Club Business Europe 17
Page 1 and 2: Club Business January/February 2008
Page 3 and 4: The world’s first Adaptive Motion
Page 6 and 7: Club Business EUROPE FEATURES page
Page 8 and 9: ihrsa.org A 2007 Sponsored by Infor
Page 10 and 11: News & Notes 9th Forum Il Nuovo Clu
Page 12 and 13: News & Notes continued Vivafit chai
Page 14: News & Notes continued Velocity and
Page 20 and 21: PART I: LESSONS FROM THE PAST Turni
Page 22 and 23: European success: Kieser Training o
Page 24 and 25: NEW & IMPROVED! continued “ With
Page 26 and 27: Products � Torque Fitness, LLC, (
Page 28 and 29: Calendar of Events 2008 2008 IHRSA
Page 30 and 31: The Finish Line Tracy Powell One Hu
Page 32: Champions train with Technogym ® w

CBE Winter Report.qk - IHRSA

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