German fitness brand Bodystreet is now taking its electrical muscle stimulation concept worldwide
Electrical Muscle Stimulation (EMS) is a new, groundbreaking fitness technology. Light current impulses intensify the training effect and improve training results. The advantage is a considerable saving in time: twenty minutes is all it takes to reach your fitness goals.
EMS has been a clear success: in the last twelve years, more than 1,500 boutique fitness studios dedicated exclusively to EMS have been built in Germany alone.
The first mover and dominant franchise brand is Bodystreet, which entered the UK market in 2017 and is now on course for double-digit growth as of 2019.
With its 300 studios it now has more locations than the next seven top providers together and is a proven business case for franchising.
The Bodystreet studios differ from classic gyms not only in terms of training technology, but the lounge-like locations never have more than two customers training at the same time, creating an intimate personal training experience. With a proven business model break-even can be achieved with 100 members.
Classic gyms, depending their size, need at least 1,000 customers for this. High-performing Bodystreet studios reach 300 members, creating even higher returns.
With over 12 million trainings, Bodystreet has entered seven countries and is exploring other potential markets internationally.
The “Why”
For Bodystreet, it’s simple – our vision is to become the best employer in the fitness sector, in each country we enter. By becoming recognised as a top employer, we attract a larger selection of talent. Better talent equates to meeting, or exceeding, quality standards and expectations.
This results in additional internal opportunities for career growth. Consequently, Bodystreet received its fifth consecutive German Fairness Award in 2018.
Initial expansion
We know it takes more to succeed in a new market than just an innovative fitness concept – so here is how we initiated our global expansion.
First, every franchisor needs to have skin in the game by investing itself in a country and not relying solely on a Master Franchisee. To prove the concept for the U.S. Market, Bodystreet invested in its own corporate studio.
Second, we understood the need to respect the new country by hiring and developing local talent and providing international tools such as a web academy to transfer knowledge. Lastly, we leveraged the IFA tool kit, especially the conventions, boot camps, relationship building and networking with other franchisors.
Supply chain
As we all know, when franchising, it’s important to keep the framework of the system in place – everything from the coffee to the flooring supplied – in other words, the supply chain. This can be an issue when your distribution center is in a different country.
System organization and replicating appropriately are valid concerns when adjusting to a new market. Therefore, we believe attaining a legitimate support center is crucial to a successful business opening. For instance, we needed approximately three to six months’ notice before opening in Italy.
This way we could assure all product and infrastructure was in accordance with the Bodystreet brand. It’s all about checks and balances.
Market adaptation
Adjusting to regional differences can also be challenging. How does a franchisor adjust to the market? As an example, last year, Bodystreet opened its first studio in Tanzania, East Africa. In this market franchisees must be offered a range of marketing materials which can be customized to local needs.
What works in one part of the country and in one demographic, may not in another.
The ability to deal with adversity and transition (e.g. customizing marketing material) is key to making or breaking the business.
Tailored marketing materials can increase sales as local sources are more persuasive.
This benefits the franchisor and group as franchisees are less likely to become more “creative” with their own advertising. Customization of marketing material must be handled carefully as there is always the danger of delivering a confusing or non-conforming message.
Innovation and digitalization
Additionally, to be competitive in the fitness sector we need to be innovative. Acquiring knowledge from other cultures is essential for growth. This means digitalization. To be competitive, we need to stay up-to-date digitally. This means providing the essential tools for growth.
At Bodystreet we strive to improve customer satisfaction through investing in digital trainings and academy services for our talents.
The “How”
When branching out internationally, it is crucial to select a master franchisee that understands the market. Different markets offer different challenges. For instance, Germans tend to be complex and for a country such as the USA, we needed to adapt.
Market adaptation is vital to success in other countries. For the US market we had to streamline processes, leaning toward convenience and selecting investors who are aware of the cultural deviation. This should be understood by your potential master.
To put it simply, it depends on whether the investor is truly the right fit for the company and holds the same views and values as those held by the company.
Branding
Franchising has a lot to do with branding. It’s crucial to carry a strong brand when entering a new market.
We work together to unite a great brand by pro-actively staying on top of our game. To promote sales and increase market share, it’s essential that both franchisor and franchisees are vigilant about protecting and promoting their most precious asset, the brand.
The franchise service provided by Bodystreet includes brand management, advertising and marketing – but franchisees still have a responsibility to help build and protect the brand.
Corporate Identity
Ultimately, our mission, vision, and values align with global expansion. We see potential to provide employment for others, gain experience and transfer knowledge, and most importantly, show the world that cultural integration and comprehension is possible. We are the #1 EMS provider and we will show the world exactly why.
ABOUT THE AUTHOR
Matthias H. Lehner, who studied marketing and gained his professional experience from the advertising industry, founded Bodystreet together with his wife Emma. Bodystreet was awarded the best franchise system in Germany 2016. Since 2012, Matthias has represented German Franchising as the Vice Chairman of the German Franchise Association internationally and is also Senator in the Senate of the Economy in Berlin.
