SPEAKER: REDOUANE ZEKKRI DATE: 09 / 11 / 2017

Transcription

1 SPEAKER: REDOUANE ZEKKRI DATE: 09 / 11 / 2017

2 2004 THE START Redouane ZEKKRI MOTIVATION 2

3 CLUBS 22 clubs in Belgium 3

4 CLUBS +26 CLUBS 40 clubs in Belgium 4

5 2011 CONVERSIONS OF THE LESS PROFITABLE HEALTHCITY CLUBS 5

6 TEAM 1 CONCEPT 6

7 2014 EXPANSION IN BELGIUM FRANCE AS NEXT FOCUS 7

8 2015 EXPANSION IN BELGIUM + START IN FRANCE 8

9 2016 EXPANSION IN FRANCE & NATIONAL COVERAGE IN BELGIUM 9

10 REDOUANE ZEKKRI International Strategy & Expansion Director / Managing Director France 2017 : 174 clubs in BeLux & 135 clubs in France More than 80 conversions made More than 250 clubs opened This was just the warm up Let s now see together how we will reach 600 clubs in France in the near future 10

11 AGENDA Expansion strategy Expansion process: what allows us to open 80 clubs in France per year? How is Basic-Fit increasing the fitness penetration? Competition: our competitive position Results Conclusion 11

12 STRATEGY FOR FRANCE Highly fragmented franchise focused fitness market inhabitants 8% fitness penetration rate is a great opportunity Expansion based on new openings and not acquisitions Plan & strategy were needed 12

13 EXPANSION STRATEGY Cities with more than inhabitants Ile-de-France Region (excluding Paris) Paris Cities with less than inhabitants (regional clubs)

14 EXPANSION STRATEGY REGIONS IN FRANCE Identifying all cities with more than 30K inhabitants is just a starting point to find out where we should go Detailed demographic analysis, ROI s & potential are analysed by our Business Control department. 14

15 EXPANSION STRATEGY NORD-PAS-DE-CALAIS Dunkerque Calais Tourcoing Boulogne-sur-Mer Roncq Wattrelos Marcq-en-Baroeul Roubaix Lille Villeneuve d Ascq Lens Noyelles-Godault Douai Arras Valenciennes Cambrai Maubeuge 26 CLUBS 15

16 EXPANSION STRATEGY NORD-PAS-DE-CALAIS : 26 CLUBS Club opened or contract signed Location in negotiation Still looking for a good location 1. Lille inh. 2. Roubaix inh. 3. Tourcoing inh. Dunkerque Calais Tourcoing Boulogne-sur-Mer Roncq Wattrelos Marcq-en-Baroeul Roubaix Lille Villeneuve d Ascq Lens Noyelles-Godault Douai Arras Valenciennes Cambrai Maubeuge 4. Calais inh. 5. Dunkerque inh. 6. Villeneuve-d Ascq inh. 7. Boulogne-sur-Mer inh. 8. Douai inh. 9. Wattrelos inh. 10. Valenciennes inh. 11. Arras inh. 12. Marcq-en-Baroeul inh. 13. Lens inh. 14. Cambrai inh. 15. Maubeuge inh. 16

17 EXPANSION STRATEGY ALL IDENTIFIED CITIES WITH MORE THAN INHABITANTS 17

18 EXPANSION STRATEGY GREEN: CLUB(S) ALREADY OPENED OR LEASE CONTRACT(S) SIGNED 18

19 EXPANSION STRATEGY RED: LOCATIONS IN NEGOTIATIONS 19

20 EXPANSION STRATEGY RED: LOCATIONS IN NEGOTIATIONS 20

21 EXPANSION STRATEGY 332 CLUBS COULD BE OPENED IN CITIES WITH MORE THAN 30K INH

22 EXPANSION STRATEGY Cities with more than inhabitants Ile-de-France Region (excluding Paris) Paris Cities with less than inhabitants (regional clubs)

23 EXPANSION STRATEGY ILE-DE-FRANCE REGION: 8 DISTRICTS INHAB. BELGIUM ÎLE-DE-FRANCE inhabitants inhabitants KM² km² km² (2,5x smaller) 370 inhabitants / km² inhabitants / km² 23

24 EXPANSION STRATEGY OUR STRATEGY FOR REGION ILE-DE-FRANCE STEP 2 Val-d Oise STEP 1 YVELINES inhabitants Yvelines PARIS Hauts-de-Seine Val-de-Marne Essonne Seine-Saint-Denis Seine-et-Marne PARIS inhabitants HAUTS-DE-SEINE inhabitants SEINE-SAINT-DENIS inhabitants VAL-DE-MARNE inhabitants SEINE-ET-MARNE inhabitants ESSONNE inhabitants VAL-D OISE inhabitants 24

25 EXPANSION STRATEGY HAUTS-DE-SEINE km² INHABITANTS Antony 2. Châtenay-Malabry 3. Sceaux 4. Bourg-la-Reine 5. Bagneux 6. Fontenay-aux-Roses 7. Le Plessis-Robinson 8. Clamart 9. Châtillon 10. Montrouge 11. Malakoff 12. Vanves 13. Issy-les-Moulineaux 14. Boulogne-Billancourt 15. Meudon 16. Sèvres 17. Chaville 18. Ville-d Avray 19. Saint-Cloud 20. Marnes-la-Coquette 21. Vaucresson 22. Garches 23. Rueil-Malmaison 24. Suresnes 25. Puteaux 26. Nanterre 27. Colombes 28. La Garenne-Colombes 29. Bois-Colombes 30. Courbevoie 31. Neuilly-sur-Seine 32. Levallois-Perret 33. Clichy 34. Asnières-sur-Seine 35. Gennevilliers 36. Villeneuve-la-Garenne 62,000 32,000 20,000 20,000 38,000 23,000 28,000 53,000 33,000 49,000 31,000 27,000 64, ,000 45,000 23,000 19,000 11,000 30,000 2,000 9,000 18,000 80,000 49,000 45,000 94,000 77,000 24,000 24,000 85,000 62,000 55,000 60,000 87,000 43,000 25,000 DETAILED MAP PER DISTRICT. 25

26 EXPANSION STRATEGY Cities with more than inhabitants Ile-de-France Region (excluding Paris) Paris Cities with less than inhabitants (regional clubs)

27 EXPANSION STRATEGY Region PARIS : 20 DISTRICTS INHABITANTS. BRUSSELS PARIS inhabitants inhabitants KM² 161 km² 105 km² (35% smaller) inhabitants / km² inhabitants / km² 27

28 EXPANSION STRATEGY PARIS INHABITANTS 1. EXPERIENCE IN THE FRENCH MARKET 2. BRAND RECOGNITION 3. ATTRACTIVE FINANCIAL RESULTS 4. IMPROVED MARKETING STRATEGY DISTRICTS INHABITANTS DISTRICTS INHABITANTS DISTRICTS INHABITANTS DISTRICTS INHABITANTS

29 EXPANSION STRATEGY STRATEGY FOR PARIS A lot of traffic A B 4,13M Travelers per day in Paris 364K Travelers per day in Brussels DIFFERENT CULTURE IN FRANCE METRO 2ND Most frequented metro system in Europe 29

30 EXPANSION STRATEGY DISTRICT 01 DISTRICT 02 METRO - 17 STATIONS METRO 18 STATIONS M 1 5 stations M 8 1 station M 3 5 station M 8 5 stations M 4 3 stations M 11 1 station M 4 3 stations M 9 4 stations M 7 4 stations M 12 1 station M 7 1 station M 14 2 stations RER R A 1 station R B 1 station R D 1 station 30

31 RESULTS OF 2 TEST CLUBS IN PARIS. AVERAGE MEMBERS +/ HIGHER THAN IN THE OTHER CLUBS PARIS TEST 1 Opened in Q members PARIS TEST 2 = GREAT RESULTS (Without brand recognition or big marketing investment) Opened in Q members 31

32 EXPANSION STRATEGY Cities with more than inhabitants Ile-de-France Region (excluding Paris) Paris Cities with less than inhabitants (regional clubs)

33 CLUBS IN CITIES WITH LESS THAN INHABITANTS? IN BELGIUM Areas with low population + Very limited fitness offer = Opening clubs the fitness penetration HOME Prospects are willing to travel CLUB up to 8 km or even 12 km to go to shops, cinema, Cities with less than inhabitants = More than members Apply the same strategy in France HOW TO OPEN REGIONAL CLUBS? LOCAL INTELLIGENCE (Regional coverage ) TECHNOLOGY (Business control analysis) ALREADY TESTED IN 2 CITIES IN FRANCE 33

34 EXPANSION STRATEGY STEP 4: CITIES WITH LESS THAN 30K INHAB. (REGIONAL CLUBS) X X X X X X X X X X X X X X X X X X X X X X X X 34

35 EXPANSION STRATEGY NORD-PAS-DE-CALAIS: ONLY 23 % REACHED BY THE WHITESPOTS OF OUR STEP Inhabitants reached Inhabitants not reached 35

36 EXPANSION STRATEGY WE ONLY REACH 25% OF THE INHABITANTS WITH OUR 332 CLUBS Inhabitants reached Inhabitants not reached 36

37 STRATEGY ALREADY TESTED IN 2 CITIES IN FRANCE TEST 1 TEST 2 Analysis made Analysis made INHABITANTS INHABITANTS Opened in March 2017 Opened in March MEMBERS MEMBERS

38 EXPANSION STRATEGY Conclusion & potential for French

39 EXPANSION STRATEGY CONCLUSION & POTENTIAL FOR FRANCE STEP 1: CITIES WITH MORE THAN 30K INHABITANTS STEP 2: ILE-DE-FRANCE REGION (EXCLUDING PARIS) OPPORTUNITY TO OPEN AT LEAST 600 CLUBS IN FRANCE 39 STEP 3: PARIS STEP 4: CITIES WITH LESS THAN 30K INHABITANTS

40 EXPANSION PROCESS 15 steps expansion process What allows us to open 80 clubs per year The first 3 steps of our expansion process Our expansion room

41 OUR EXPANSION PROCESS = 15 STEPS APPLIED IN ALL COUNTRIES 41

42 EXPANSION PROCESS 15 steps expansion process What allows us to open 80 clubs per year The first 3 steps of our expansion process Our expansion room

43 WHAT ALLOWS US TO OPEN 80 CLUBS PER YEAR? 1 EXPANSION STRATEGY & COMPETITION ANALYSIS 2 DETAILED WHITE SPOTS ANALYSIS 3 REAL ESTATE AGENTS WE HAVE A CLEAR OBJECTIVE & IMPLEMENTATION STRATEGY DYNAMIC MANAGEMENT APPROACH ENSURES QUICK POSITIONING AROUND NEW OPPORTUNITIES WE KNOW EXACTLY WHAT WE HAVE TO DO AND WHERE IMPORTANT TO DEFINE HOW WE CREATE OUR CLUSTERS OUR APPROACH PROVIDES A DETAILED UNDERSTANDING OF A NEW CITY/REGION WITHIN 2 WEEKS THIS ENSURES OUR EXPANSION MANAGERS ARE ABLE TO RAPIDLY ESTABLISH MARKET PRESENCE 43

44 EXPANSION PROCESS 15 steps expansion process What allows us to open 80 clubs per year The first 3 steps of our expansion process Our expansion room

45 EXPANSION PILOT ROOM 45

46 OUR EXPANSION FOLLOW-UP Our pilot room leads to : Transparency Full pipeline visibility Good Capex control and good cashflow management Great visibility for planning We have good discipline regarding our expansion strategy that ensures us : 46 To grow quickly (speed) To open clubs at the best locations To open clubs that will provide attractive financial results To maintain an efficient level of Capex to reach low breakeven points

47 FITNESS PENETRATION How is Basic-Fit improving the fitness penetration rate?

48 HOW IS BASIC-FIT IMPROVING THE FITNESS PENETRATION RATE? 1 OPENING CLUBS IN CITIES WITH LESS THAN 30K INHABITANTS 2 COMPLEMENTARY CUSTOMER PROPOSITIONS TEST inhabitants Opened in March members TEST inhabitants Opened in March members Opening clubs for the inhabitants living in cities with less than 30K inhabitants is a huge opportunity members members More than 50% have never been members of a fitness club Customer proposition is complementary : Large clubs (1.500 m²) >< Small clubs Virtual group classes >< Live group classes Cluster strategy & Flexibility (FLEX membership) 48

49 COMPETITION Low-cost competitors in France & our competitive position. Why are we succesful in France? Our clubs are not impacted by market leaders

50 CREATION DATE (LOW-COST CHAINS WITH AT LEAST 5 CLUBS) Competitor A Competitor B Competitor C Les Cercles de la Forme Competitor D Gymstreet Competitor E Neoness Competitor F Competitor G Competitor H Competitor I Competitor J Competitor K Competitor L Competitor M Competitor N Basic-Fit COMPETITOR A & COMPETITOR B 1 COMPETITOR C LES CERCLES DE LA FORME *No-franchise gyms

51 NUMBER OF CLUBS (PRESALES CLUBS INCLUDED) Competitor A 320 Competitor B Basic-Fit Competitor C Competitor D Competitor E Competitor F Competitor G Competitor H Competitor I Neoness Competitor J Les Cercles de la Forme Competitor K Competitor L Competitor M Competitor N Gymstreet Basic-Fit Neoness Cercles de la Forme Gym Street COMPETITOR A 1 COMPETITOR B 2 Non-franchise low-cost clubs BASIC-FIT 3 80 openings in one year 51 *No-franchise gyms

52 SIZE OF THE CLUBS Basic-Fit Competitor A Neoness m² m² m² BASIC-FIT COMPETITOR A / NEONESS GYMSTREET / COMPETITOR B Gymstreet Competitor B Les Cercles de la Forme Competitor C Competitor D m² m² m² m² m² LES CERCLES DE LA FORME 2 1 COMPETITOR C 3 Competitor E 900 m² Competitor F Competitor G 800 m² 700 m² LET S TAKE A LOOK BACK AT THE NUMBER OF CLUBS Competitor H Competitor I Competitor J 700 m² 600 m² 500 m² COMPETITOR J 1 80 openings in one year Competitor K Competitor L Competitor M 500 m² 450 m² 400 m² COMPETITOR M 2 BASIC-FIT 3 Competitor N 300 m² 52 *No-franchise gyms

53 ADVERTISED MEMBERSHIP FEE Competitor A 4,95 Competitor B 9,95 Neoness 10,00 Competitor C 13,95 Competitor D Competitor E Competitor F 19,90 19,90 19,90 COMPETITOR A 1 Gymstreet Competitor G Competitor H 19,95 19,95 19,95 COMPETITOR B 2 NEONESS 3 Competitor I 19,95 Basic-Fit 19,99 Competitor J 29,90 Competitor K - Competitor L - Competitor M - Les Cercles de la Forme - Competitor N - 53 *No-franchise gyms

54 ACTUAL MEMBERSHIP FEE Competitor A Competitor B Basic-Fit Neoness Competitor C Competitor D Competitor E 19,90 19,95 19,99 22,00 29,90 29,90 29,90 COMPETITOR A 1 Advertised membership fee = Actual membership fee Competitor F Competitor G Gymstreet 29,90 29,90 29,90 COMPETITOR B 2 BASIC-FIT 3 Competitor H 29,95 Competitor I 29,95 Competitor J 29,95 Competitor K 33,00 Les Cercles de la Forme 35,00 Competitor L 44,00 Competitor M 44,00 Competitor N 49,00 54 *No-franchise gyms

55 FOLLOWERS ON FACEBOOK (NATIONAL PAGES) Basic-Fit 234K Competitor A 70K Competitor B 42K Competitor C 33K Neoness 27K Competitor D 25K Competitor E 17K Competitor F 14K Competitor G 12K Les Cercles de la Forme 12K Competitor H 11K Competitor I 6,7K Gymstreet 5K Competitor J 4K Competitor K 2,5K Competitor L 1,3K Competitor M - Competitor N - BASIC-FIT 1 COMPETITOR A 2 In a few months, we will have more followers than all other fitness chains together COMPETITOR B 3 55 *No-franchise gyms Some fitness chains work with local pages

56 COMPETITIVE POSITION OF BASIC-FIT = CREATED IN CLUBS M² 19,99 234K followers The most recent fitness company 80 clubs opened in 1 year the biggest clubs in France Only 3 fitness companies are charging less than 20 /month the biggest Facebook community 56

57 COMPETITION Low-cost competitors in France & our competitive position. Why are we succesful in France? Our clubs are not impacted by market leaders

58 WHY ARE WE SO SUCCESFUL IN FRANCE? 1 Unique in France (International experience) Historical roll-out of new clubs Replicable model for new markets Unbeatable customer proposition (m2, family pass, GXR, ) OUR ADVANTAGES FACTS ABOUT BASIC-FIT FRANCE Higher average members/club Unique speed Territorial exclusivity is given to the franchisees Improves retention CLUSTER STRATEGY OUR SPECIFICATIONS Uncomplicated: pricing 19,99 / month Execution capabilities: online marketing focus, expansion, Scale Low break-even points : Technology Centralisation Execution capabilities 58

59 COMPETITION Low-cost competitors in France & our competitive position. Why are we succesful in France? Our clubs are not impacted by market leaders

60 OUR CLUBS ARE NOT IMPACTED BY MARKET LEADERS WE HAVE A UNIQUE CUSTOMER PROPOSITION CITY INHABITANTS COMPETITION BASIC- FIT MEMBERS CITY Amazonia + Fitness Park (in the same streets) (2 BF clubs opened in August 2015) CITY Feel Sport (in the same street) (BF club opened in December 2015) CITY L Orange Bleue + Moving Exp (in the same street) (BF club opened in December 2015) 60

61 RESULTS Expansion overview Average members per club / opening year.

62 EXPANSION OVERVIEW NUMBER OF FRENCH CLUBS (PRESALES CLUBS INCLUDED)

63 RESULTS Expansion overview Average members per club / opening year.

64 AVERAGE MEMBERS PER CLUB/ OPENING YEAR (Q3 2017) OUR CLUBS REACH MATURITY AFTER 2 YEARS NUMBER OF NEW CLUBS AVERAGE MEMBERS Higher ramp up than the 2016 clubs H H H H H H

65 CONCLUSION

66 THIS IS JUST THE BEGINNING 2017 EXPANSION BY THE END OF 2017 HISTORICAL YEAR On track with GOOD PIPELINE VISIBILITY with opening of 80 clubs 62 OPENINGS BY THE END OF Q3 for the 2018 clubs > 75 locations confirmed GOOD STRUCTURE to keep control on everything Not impacted by competitors and FITNESS PENETRATION GROWTH is a big opportunity #3 FITNESS CHAIN in number of clubs GOOD RESULTS of our 2014, 2015 & 2016 clubs Opportunity to open at least 600 CLUBS #1 FITNESS CHAIN in number of members 66

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