MEGA TRENDS IMPACTING THE HEALTH CLUB & FITNESS INDUSTRY SPORTEC 2017 TOKYO JAPAN @BRYANKOROURKE

BRYAN K. OROURKE

@BRYANKOROURKE

OUR FAMILY LOVES JAPAN WE ARE HONORED TO BE HERE

DAUGHTER MARGAUX PUBLISHED IN TOKYO POPRISING STARS OF MANGA #7

SONS SHAWN AND WILLIAM LOVE JAPAN

MEGA TRENDS IMPACTING THE HEALTH CLUB & FITNESS INDUSTRY

SPORTEC 2017 TOKYO JAPAN

MEGA TRENDS IMPACTING THE HEALTH CLUB & FITNESS INDUSTRY SPORTEC 2017 TOKYO @BRYANKOROURKE

@edward_kato_fitness_jp

ASIA-PACIFIC 2016: JAPAN #1 4.16 MILLION MEMBERS 5,979 HEALTH CLUBS $5.16B REVENUES

@IHRSA 2016 GLOBAL REPORT

JAPANESE CLUB MARKET LARGEST IN ASIA-PACIFIC PARTICIPATION AROUND 3%

HEALTH CLUB MEMBERSHIPS INCREASED FROM

100 MILLION - 150 MILLION IN PAST DECADE GLOBALLY

GLOBALLY HEALTH CARE SYSTEMS ARE FAILINGALTERNATIVE PREVENTATIVE SOLUTIONS WILL

CONTINUE TO GROW IN IMPORTANCE

NEW ERA OF BETTERMENT LIFESTYLE FITNESS, NUTRITION, HOLISTIC MEDICINE,

MINDFULNESS, SOCIAL INTERACTION, DIGITAL REHABILITATION, TECH & FASHION

BETTERMENT IS HEALTH AS A LIFESTYLE

BETTERMENTFashion

Nutritional Spiritual

Fitness

Medical Communal

NEW ERA OF OUR GLOBAL INDUSTRY

SIGNIFICANT GROWTH IN HEALTH AND FITNESS LIES AHEAD FOR JAPAN AND FOR THE WORLD

GREATEST TIME IN HISTORY TO BE IN OUR INDUSTRY

BIG CHANGES ALSO LIE AHEAD IN OUR INDUSTRY

CONVERGENCECONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

WHAT WILL DRIVE

GROWTH AND CHANGE IN JAPAN AND

GLOBALLY ?

CONSUMERSCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

16 GLOBAL CONSUMER TRENDS

BIFURCATION - DICHOTOMIZATION AFFLUENCE DRIVING NICHE LUXURY MODELS SHRINKING MIDDLE CLASS DRIVING BUDGET

MODELS

LARGE GENERATIONAL GAP IN JAPAN37% OF JAPANESE OVER 65

LOWER LEVELS OF TECHNOLOGY ADOPTION FOR OLDER PEOPLE IN JAPAN

ONLY 6% OF JAPANESE TRUST SHARING PERSONAL INFORMATION ONLINE

INCREASING DIVERSITY - POST DEMOGRAPHIC ERA

CHANGING ROLES FOR WOMENYURIKO KOIKE FIRST FEMALE TOKYO GOVERNOR

CHANGING ROLES FOR WOMENIN THE FITNESS INDUSTRY WOMENINFITNESS.ORG

POWER SHIFTING TO CONSUMERS VIA HYPER CONNECTIVITY

GROWING FOCUS ON HEALTHY LIFESTYLE

GROWING FOCUS ON FASHION LIFESTYLE

GROWING FOCUS ON FASHION LIFESTYLE

CONVENIENCE : TIME AS CURRENCY

3 KEY CONSUMER FITNESS TRENDS

PERSONALIZATION ENGAGEMENT SERVICE REDEFINITION

3 KEY CONSUMER FITNESS TRENDS

JOYNING

HUMANBRANDS

YOUNIVERSE

STATUSSEEKERS

HELPFULL

BETTERMENTUBITECH

WITH EXAMPLES OF RELATED GLOBAL CONSUMER TRENDS BELOW

PERSONALIZATION: GREATER UTILITY, CONVENIENCE & RELEVANCE

BENEFICIAL INTELLIGENCEEnhancing User Experience ThroughBuilt In Intelligence

OMNIPRESENCENew Channels, Nuanced With Context In The Right Place At The Right Time

ENGAGEMENT: ACKNOWLEDGEMENT RECOGNITION MISSION

STATUS:Experiences Via Design, Gamifying, UX, Community

FLAUNT CULTUREAllow Users To Remove Barriers And Celebrate And Flaunt An Authentic Transparent Experience

SERVICE REDEFINITION : DELIVERING NEW AND DIFFERENT

PERSPECTIVESHIFT:Reposition Renew, and Refresh Service Offerings In New Ways

NOT JUST FITNESS:Lifestyle, Mindset, Nutrition, Holistic, Longevity, Rehab

NOT JUST FITNESS - BETTERMENT

SOMADOME MEDITATION MINDFULNESS

BRAIN FITNESS COGNITION AND FUNCTION

PERSONALIZATION ENGAGEMENT SERVICE REDEFINITION

3 KEY CONSUMER FITNESS TRENDS

JOYNING

HUMANBRANDS

YOUNIVERSE

STATUSSEEKERS

HELPFULL

BETTERMENTUBITECH

TECHNOLOGYCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

P H I L O S O P H Y O F E . O . W I L S O N

W E H AV E PA L E O L I T H I C E M O T I O N S , M E D I E VA L I N S T I T U T I O N S A N D

G O D - L I K E T E C H N O L O G Y

47

SINGULARITY 30 YEARS RAY KURZWEIL

DIGITAL IS HERE

THE GREATEST PRODUCTS OF THE NEXT 20 YEARS HAVE NOT BEEN CREATED YET.

@Bryankorourke @Kevin2Kel ly FREE COPY OF THE BOOK

Kevin Kellys View Of What Will Happen With Technology12 Inevitable Forces

51

01 Becoming 02 Cognifying 03 Flowing

04 Screening 05 Accessing 06 Sharing

Upgraded services and subscriptions.

AI from the cloud. You are in the data business.

All surfaces into screen experiences.

Move away from owning assets.

Innovations built on sharing.

BE CO FL

SC AC SH

SCREEN

SCREEN

AC & CO

12 Inevitable Forces

56

07 Filtering 08 Remixing 09 Interacting

10 Tracking 11 Questioning 12 Beginning

Personalization to anticipate needs.

Recombining things in new ways.

Immersing inside computers.

Surveillance for everyones benefit.

Good questions more valuable than answers.

System connecting all humans and machines.

Kevin Kellys View Of What Will Happen With Technology

FI RE IN

TR QU BG

CYBER PHYSICAL SYSTEM:THE HOLOS

CONVERGENCE RESULTS IN DIVERGENT MODELS LONG-TAIL

LARGER NUMBER OFPRODUCTS & SERVICES WITH LOWER VOLUMES

OLD MODEL OF VALUE ASSETS LOSE VALUE

CU

STO

MER

S

TRANSACTIONS / $

60

MASAYOSHI SON SOFTBANK $100B VC FUND

IOT

NEW MODEL OF VALUE ASSETS CREATE NEW VALUE

REC

EPTO

RS

SEN

SOR

S

COGNITION - AI

HOW SMART BRANDS WILL WIN@BRYANKOROURKE

INFORMATION IS KEY: DATA IS KING

DIGITAL FITNESS IS JUST STARTING

PERSONALIZATION + AUTOMATION = PROFIT

LEGACY SYSTEMS WONT WORK

PEOPLE STILL MATTER THE MOST

ECONOMICSCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

ERA OF CHANGING BUSINESS MODELS

DESIGN SUSTAINABILITY

OMNIPRESENCE SERVICE SCOPE

KEY BUSINESS MODEL DRIVERS

VERY IMPORTANT DRIVER PEOPLE

URBANIZATION CITIES DRIVING GLOBAL GROWTH

RISING COSTS : LABOR, UTILITIES, TAXES, INVESTMENT

AUTONOMANIA!AUTOMATED SOLUTIONS COMING MAINSTREAM

ALREADY HAPPENING WITH APPS & SMARTPHONES

S CURVE REINVENTION DISCONTINUITY

77

US CLUB GROWTH 2010-2015

KIOSK, HVLC & STUDIOS LEAD GROWTH

BUDGET SECTOR

My definition of a budget club is 24/7 operations, 50% lower average membership fees, heavy reliance on web sales, fitness only service and the ability to operate with 1 person. @RayAlgar

LOW PRICE HIGH VALUE GROWTH IN US

LOW PRICE HIGH VALUE GROWTH IN EU

Profit Margin

81

EBITDA

SALES ASSETS $1.6M AVG

SALES $1.6M AVG

Asset Turnover

X =34% 100% 34%

GROWTH SEEKS HIGHER FINANCIAL RETURNS

BOUTIQUE STUDIOS

"Highly mobile and self-managing populations will pay much more for a specialized experience, led by experts and available at a time and place to suit them @RayAlgar

CYCLING STUDIO TREND

CYCLING GLOBAL

STUDIOS GROWING

Profit Margin

86

EBITDA

SALES $3M AVG

SALES $3M AVG

Asset Turnover

X =53% 100% 53%

GROWTH SEEKS HIGHER FINANCIAL RETURNS

TRAINING SPORTS PERFORMANCE CENTERS GROWING

88

INTEGRATED CARE

HEALTHY WAY OF LIVING SOLUTIONS MAGAZINE, DIGITAL, REAL ESTATE

89

INTEGRATED CARE

PURE DIGITAL OFFERINGS : RETROFIT

ENTIRELY NEW CONCEPTS FASHION - BANDIER

FASHION + FITNESS = LIFESTYLE

COMPLETELY NEW MODELS - HILTON

COMPLETELY NEW MODELS - AIRPORT

S CURVE REINVENTION

GLOBALISMCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

HUMAN COOPERATION LEADS TO GREATER SUCCESS

SUSTAINABILITY INCREASINGLY IMPORTANT

INCREASINGLY INTERNATIONAL MARKET

@EQUINOX LONDON

CROSS BOARDER COMPETITION AND CONSOLIDATIONS

ASIA PACIFIC AMERICAS EUROPE

BEST PRACTICES AND COOPERATION

GLOBAL COOPERATION TO IMPACT HEALTH POLICY

SIGNIFICANT GROWTH IN HEALTH AND FITNESS LIES AHEAD FOR JAPAN AND FOR

THE WORLD

GREATEST TIME IN HISTORY TO BE IN OUR INDUSTRY

CONVERGENCECONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

WHAT WILL DRIVE GROWTH AND CHANGE IN

JAPAN AND GLOBALLY ?

CONSUMERSCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

TECHNOLOGYCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

ECONOMICSCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

GLOBALISMCONSUMERS | TECHNOLOGY ECONOMICS | GLOBALISM

@BRYANKOROURKEBRYANKOROURKE@GMAIL.COM