Pandemic Opportunities
We have not been blogging much lately about the pandemic – as there is a lot of information available on this topic. But, as a vaccine is on the horizon, and there is light at the end of the tunnel (though plenty of pain first) – we thought it might be helpful to explore where opportunity lies.
A key question, of course, is: what current trends are short term (and the behaviors associated with them) – and what trends reflect longer term changes in behavior?
A quick and dirty list:
Likely Temporary:
Reduction of indoor restaurant dinning
Reduction in leisure travel (though reduced air travel probably w/ us for a while)
Reduction in spa/hair care services
Potentially longer lasting – jury is still out:
Increase in home gardening
Increase in home meal preparation (vs. quick prepared meals)
Increase in home work outs (individually, w/ a virtual trainer, and/or via streamed classes)
Likely Permanent:
Increase in flexible/remote work
Decrease in business travel
Increase in home schooling
Increase on online/delivery purchases for just about everything
This is not an exhaustive – or for that matter – authoritative list. You can make your own. However, once you have settled on your list – what does it say about business opportunities?
The Relentless Management Group has a number of portfolio companies with several very well positioned to take advantage of these emerging trends. We will tackle Off Day Trainer first.
Off Day Trainer is an engagement platform for individual fitness pros or gyms to use to keep connected with their clients.
On the one hand, the current restrictions on gyms could be seen as a major headwind. Or – if Off Day Trainer is able to help gyms/individual fitness pros whether the storm – they can actually be a growth driver.
Gyms that plan to re-open need to stay connected to clients. Many are offering virtual or outdoor options to maintain that connection.
And, as some clients decide that they prefer to work out alone and do not intend to return to the gym – there is a growth opportunity for the individual fitness pros if they can find and engage with these potential new clients.
Given the massive financial hit to the fitness business, per CEO Geoff Chaney, Off Day Trainer decided to make their service free. AND while doing so, committed to gathering as much data as possible on how product was used, demand, etc. – so that they could rethink their revenue model longer term.
And VOILA!
As noted in the long term trends section above, while we believe gyms are not “dead,” we also believe that there will be some substantial proportion of their former clients who will have migrated to at home individualized training programs that will not return to the gym any time soon.
Off Day Training can target that trend somewhat by better supporting individual trainers – but it is still a very challenging revenue environment. OR - they can target a whole new market: Corporate Wellness programs (but for individualized, remote work outs).
Meet Vitality – a 1:1 coaching platform for corporate wellness.
Built on Off Day Training’s platform, it reflects the end user feedback they have been receiving during the pandemic. Many end users loved Off Day Trainer but wanted to know how they could provide it to their company/employees. Not only are employers a stronger, more stable revenue source - with increased remote working, ongoing concerns about social distancing, etc. – traditional corporate wellness programs centered around gym memberships may no longer be as desirable. But a program designed to support your remote workers – safely – could be a big winner.
As Geoff says:
“Off Day Trainer was created to influence client behavior remotely. The founder was a trainer, and he saw that two essentially identical clients, with essentially the same training regimes, had very different outcomes – because of their behaviors outside of the gym. But pre-pandemic, the ability to support remote behaviors was perceived as a “nice to have.” But now, it is essential.”
By creating Vitality, the team now has the vehicle to grow faster – while also aligning themselves with one of the most powerful new macro-economic trends.
Job well done, team!
To learn more about The Relentless Management Group, Off Day Training, Vitality, or any of their other portfolio companies go to: www.BeRelentless.com.
Still working out at home (probably for good),
Joel