The Gen X Opportunity

Ever since the 1970s, when the Baby Boom generation single-handedly revivified a slumbering health club industry, the industry's leaders have had a love-affair with this immense cohort of 78 million adults. Not surprisingly, the generation that followed the Baby Boomers-the 46 million strong cohort born between 1964 and 1980 and referred to as Generation X-got lost in the shuffle. Like the so-called "silent generation" that preceded the Boomers, Generation X is a vital, crucial market force that must no longer be taken for granted and neglected.

To do so would be foolhardy in the extreme. Consider: First and foremost, this generation, though in absolute numbers 40% smaller than its giant elder sibling, constitutes a full 45% of current health club membership. As a group, Gen Xers are already the single largest component of total health club membership in the U.S. (Figure 13.1).

Second, in the decade between 2000 and 2010, this entire cohort will move rapidly out of young adulthood and into the mainstream of social, cultural, economic and political influence. By the year 2010, the Gen X group, which in 1999 ranges in age from 19 to 35, will range in age from 30 to 45. During this coming decade, the perceptions and preferences, interests and attitudes, values and beliefs of this generation will, at long last, begin to occupy center stage in mainstream American culture.

What do we know about Gen X that bodes well, or ill, for the future of the health club industry? First, and foremost, we know that this generation of young men and women self-consciously resists, and dislikes, all stereotypes and easy categorizations (especially categorizations such as "Gen X"). Second, we know that, as a group, they are the most technologically savvy generation in American society, having become comfortable with computers in early adolescence. They thrive on interactive electronic communication. E-mail and the internet are second nature to them. The video screen and the computer terminal are to them what newspapers and magazines were to their older siblings.

We also know that, in general, this generation is less ideological-less willing to accept labeling them- selves as either liberals or conservatives-than their predecessors. They tend to be skeptical of the left and the right, and are generally less engaged in the causes and campaigns to which their predecessor generation gave themselves so passionately. As such, they are less doctrinaire and less dogmatic about everything, including health, fitness and exercise. Communicating with them calls for a lighter touch: a looser and less imperious style that focuses more on present realities than future promises.

We know that in terms of lifestyle and workstyle, Gen X trends toward being practical and pragmatic, rather than idealistic or altruistic. This is not the Peace Corp Generation of the '60s, nor is it the Wall Street Generation of the '80s. It is a generation of young men and women focused on finding their individual niches in the fast-shifting sands of today's global marketplace.

It is a generation completely at ease with the reality of diversity. More than any previous American generation, they accept diversity and are comfortable with it in all its faces, fashions, and facets. "No judgments," the tagline of Crunch, the New York health club company, captures perfectly this singular dimension of Gen X identity. In addition, as a recent issue of the Yankelovich Monitor put it, Gen Xers are "friend-zied." For a wide variety of reasons, they look less to elder mentors and more to peer perception for guidance, support, and direction. They place an especially high premium on input that they receive from within their own age group.

HEALTH AND FITNESS VALUES

With respect to health and fitness, how is this generation different from those that preceded it? Recently, IHRSA asked American Sports Data to identify a spectrum of characteristics that distinguishes Gen X health club members from members who are 35 to 54, and from members over 55.

As might have been expected of young adults of any generation, they are significantly less focused on the health benefits of regular exercise than are older generational cohorts. They are much less motivated by the prospect of improving their cardiovascular fitness than are those who are only 10 to 15 years older (Figure 13.2). They are much more interested in strength training, toning, and muscle development

than are their older adult colleagues (Figure 13.3). And they appear to attach roughly the same relative importance to the role of exercise in maintaining or losing weight as do younger Baby Boomers (35 to 44), and much more importance to this than do older (45-54) Baby Boomers (Figure 13.4).

It is interesting to note that more than any other generational group, Gen Xers unabashedly admit to being self-conscious about their physical appearance. How they look is immensely important to them. Furthermore, they share an explicit conviction that regular exercise plays a vital role in helping people feel and look more attractive (Figure 13.5).

People who exercise regularly tend be more physically attractive than those who do not exercise 75% 69% 68%

While their interest in physical fitness significantly exceeds that of any other generation, the most sig- nificant, defining feature of Gen X versus other generations is its disdain for physical activities that are dull or tedious. Instead, they prefer physical activities that are fun, interesting, engaging, and exciting (Figure 13.6). It should come as no surprise, then, that they like clubs offering a wide variety of programs much better than clubs having a narrow, or traditional, fitness focus. They place an especially high value on the breadth and contemporaneity of a club's fitness programming (Figure 13.7). And they also place a significantly higher value on recreational activities and sport programs than other generations that appear to be more narrowly focused on fitness itself (Figure 13.8).

I would exercise more if I found an interesting activity 68% 60% 47%

The variety of programs offered by a club is very important relative to my decision to join 57% 50% 43%

It emphasized recreational activities such as tennis, basketball, and volleyball 40% 29% 10%

Because they have a strong sense of their distinct identity, Gen Xers place significant value on a club's social ambiance and, particularly, on finding friends within the membership (Figure 13.9). Gen Xers are extraordinarily sensitive to club appearance, club cleanliness, and the entire visual dimension of the club experience. Just as they place a high premium on looking good themselves, they place a simi- larly high premium on the look and feel of the club to which they belong.

For all these reasons, the industry's present and future opportunities with Gen X appear to be reason- ably well-grounded. The formula for reaching deeper into this market segment will involve further research into their preferences and priorities. The industry will also benefit from the continual bench- marking of those industry leaders, such as Crunch, Frog's, and the Zoo, that have based their entire businesses on connecting with this distinctive market segment.

To date, IHRSA research has focused only on that portion of Gen X that is already committed to fit- ness and committed to clubs. Much more research needs to be done on that much larger segment of Gen X not yet committed to exercising in a club environment. In the decade ahead, we can expect that the next generation of club managers and fitness leaders, who will themselves be Gen Xers, will begin to incorporate Gen X marketing and programming sensitivities into the industry mainstream. As this happens, the industry's ability to reach more deeply into this market should correspondingly increase.