The Influence ofGen Y and Gen Z onthe Fitness IndustryHow Generations Y and Zare Impacting the GlobalFitness Industryclub intelInsight Inspiration ImpactThe Awakening of a New EraOur world finds itself at the precipice of one of the most dramatic generational shifts in themodern history of our planet;one that is positioned to dramatically change consumerpurchasing behavior over the next few decades.As the 21s Century quickly approaches itsthird decade of existence,what was once the most influential generation in the history ofmankind,Baby Boomers,are now being replaced by Generation Y(Millennials)andGeneration Z(Gen Z)as the most influential consumer generations around the globe.By2030 Boomers will all have reached age 65,and despiterepresenting a larger percentage of the global population thanthey do today (9%in 2019 and rising to 16%by 2050),theirinfluence on consumer purchasing behavior is waning.By2030,over 80%of the global workforce will be be derived fromMillennials and Gen Z and over 80%of consumer purchaseswill be driven by these same two generations.According toIHRSA's 2019 Health Club Consumer Report,Millennials and Gen Z now represent 38%ofU.S.health/fitness club members,a percentage that will likely rise to over 50%in the nextdecadeThis shift in generational dynamics,especially as it relates to the rising purchasing influenceof Millennials and Gen Z,or digital natives,is part of a much larger set of generationalupheavals we refer to as"Intergenerational Darwinism."Intergenerational Darwinism speaksto the laws of evolution from a generational perspective,wherechallenges brought on by intergenerational differences arecreating an environment where businesses must adapt quicklyand regularly or lose marketplace relevance.In the case of this whitepaper,our focus is to explore thebusiness challenges and opportunities inherent in thisgenerational power shift,more specifically looking at theinfluence being brought to bear on the fitness industry by Millennials and Gen Z.www.Club-Intel.comPg.2The Beliefs and Behaviors of Millennials and Gen ZFor fitness operators to effectively market,program and design fitness experiences thatleverage the purchasing power of Millennials and Gen Z it's imperative to understand theunderlying attitudes,behaviors and lifestyle choices ofeach.What follows in this section isan in-depth look at the attitudes and behaviors of Millennials and Gen Z.MillennialsMillennials,born between 1980 and 1999(Pew Research puts the cut off at 1996),are thefirst digitally native generation in the history of mankind,having grown up concurrent withthe introduction and evolution of computers and digital technology.At present,MillennialsFigure 1represent slightly less than 32%of theMillennials as Percent of Populationglobal population.Figure 1 sharesGlobal■32%South Africa■32%information on the percentage ofIndiaU.S.■27%various national populations comprisedU.K25%Chinaof Millennials.As of 2020,theAustralia22%Germany■22%Millennial Generation will representFrance19%Japan17%adults 21 to 40 and by 2030 adults 41 toSpain17%17%55.So what characteristics,attitudinaland behaviorally,speak to the generalized persona of the Millennials around the globe?.By 2025 they will represent 75%of the global workforce and by 2030 they willrepresent 50%of the U.S.workforce.Millennials will represent 50%of consumer spending by 2020.Collectively theyaccount for $200 billion in purchases and indirectly for $500 billion in purchasesannually.They spend an average of $838 annually on non-essential items,nearly $300 morethan Generation X and $200 more than Boomers.When asked what influences their spending practices,43%say friends and family,33%said it helps to overcome boredom and 21%said social media was an importantinfluencer.www.Club-Intel.comPg.3Millennials are more likely than other generations to incur credit card debt for non-essential spending (49%report doing this).They are masters of self-expression with 75%having a profile on at least one socialmedia platform,20%having posted a video of themselves online,38%having one tosix tattoos,and 23%having at least one body piercing..94%of Millennials in the U.S.own a smartphone and 80%sleep with it.Millennialsspent an average of 5.7 hoursFigure 2How U.S.Millennials Spend Time on their Phoneon their phone with 13%Taken from Americans spend far more time on their smartphonesthan they think by Eileen Brown April 29,2019ZDNetreporting they spendYou Tubeupwards of 10 hours a day onTwitterMusic (e.g.Apple or Spotify)their phone.Figure 2Snapchat27Podcasts34provides an overview of howInternet40Phone41U.S.Millennials allocatedTextingInstagram52their time on a smart phone.Facebook69.40%of Millennials reportinteracting with their phone more frequently than with other humans.90%of Millennials are on social media,spending an average of 1.8 hours eachworkday immersed in the social media universe.Millennials love their mobile apps.On average,they spend between 2.6 and 3.2hours a day immersed in a mobile app.Among U.S.Millennials,the top fiveessential mobile apps are Amazon(35%),Gmail (30%).Facebook (29%).FacebookMessenger(18%).and You Tube(16%)..60%of Millennials produce and/or upload content to the internet,the majority beingvideo content..40%of Millennials said their favorite social influencer understands them better thantheir friends.55%of Millennials claim to experience FOMO if they are not constantly connectedto social media.www.Club-Intel.comPg.4.86%of Millennials report a willingness to share brand preferences online,especiallyon social media.They indicate social media is the primary way they engage withbrands.80%of Millennials only want to work for firms that have cutting edge technology..47%of Millennials indicate work-life balance is essential,considerably differentthan previous generations such as Boomers who tended to sacrifice balance for acareer.Millennials want to have 24/7/365 dialogue capability with the brands they loveThey are significantly more trusting of brands than previous generations,yet aremore likely than previous generations to terminate a relationship due to trust issues.When it comes to starting a relationship with a business the three most importantconsiderations for Millennials are the ethical behavior of the business (36%),business's ability to protect their data(28%)and the type of ad campaigns thebusiness runs(28%).Conversely,when it comes to dumping a business relationshipthe three leading reasons are:ethical behavior (38%),company style changes(29%)and the failure to protect their personal data(25%)..68%of Millennials desire an integrated shopping experience,meaning they want aseamless journey through the virtual and brick and mortar elements of the journey.Millennials are more likely than previous generations to be living at home with 22%having boomeranged back home and 36%reporting they still receive financialsupport from parents..They are delaying or putting off marriage.Only 46%indicate they are marriedcompared to 57%of Gen X,62%of Boomers and 83%of the Silent Generation.Millennials are far more accepting of women's rights;equal pay for equal work;diversity;more likely to come from an ethnically mixed marriage;more likely toenter into a relationship with a different ethnicity or ideology,and finally accept and.80%of Millennials indicate the Gig economy appeals to them (freelance and contractwork).www.Club-Intel.comPg.5