Fitness Ventures Sports Clubs
We enable NFT-based Memberships, Competitions, and Event Scheduling for the health, sports, and fitness industries.
This post explores technical and business aspects of the Fitness Ventures platform. Herein, the following topics are analyzed:
- Current Functionality: Version 0.1.5-alpha
- Planned Functionality: Versions 0.2.0 – 0.5.0-alpha
- Customer Segmentation & Monetization Strategy
- Fitness Industry Market Analysis: Global Sales & Market Segmentation
- Additional Uses Cases
- References & Additional Market Data
Twelve minute demonstration of Fitness Ventures version 0.1.0-alpha:
Fitness Ventures is part of a portfolio of programmable and utility NFT projects that Code Sport is spinning out. These projects are multichain dApps which explore novel, but real-world use cases of NFTs.
At Code Sport Labs, our goal is to bring Blockchain to the masses by aggressively focusing on specific industry verticals. Verticals where Blockchain technology reduces business costs while driving increased customer engagement.
1. Current Functionality: Version 0.1.5-alpha
The project’s repo is located at: https://github.com/codesport/fitness-club-dao . The project is running on Polygon’s Mumbai Testnet!
The current version supports:
- Fitness club creation (organized as a DAO)
- Companies, entrepreneurs as well as sports and fitness enthusiasts to launch sports teams and fitness groups organized as ERC-721 (NFT-based) DAOs
- NFTs and JSON metadata are pinned to IPFS via Pinata
- Individuals can register and join virtual and real life fitness, workout, and sports teams by purchasing memberships minted as NFTs
- Live Unit Testing Output: New YouTube Video Showing Execution of the Governance Unit Testing Script
- Allows us to keep users on our platform by building our own custom UI for Governance activities
- Negates the use of 3rd party websites for Governance
- Bumped dApp version from 0.1.0-alpha to 0.1.5-alpha
2. Planned Functionality: Versions 0.2.0 – 0.5.0-alpha
Feature upgrades for Fitness Ventures are being actively built for Code Sport’s Builder’s DAO project. Having a common codebase across our projects will yield exponential productivity gains.
Critical Next Step
Priority One: Deploy v0.1.5-alpha to a live website running atop of an NGINX web server
After the website launch, we intend to upgrade Fitness Venture’s NFTs to Programmable Utility ERC-721 tokens. These features are currently being built into our Builder’s DAO project. Features of Programmable Utility ERC-721 tokens include:
- Team Prizes: USDC be “embedded” and withdrawn from the NFT
- Distributing of ad hoc cash rewards or regular income
- Data Integrity: Enforce Unique Club Names and Ticker Symbols for Clubs Generated (store in database)
- Token Upgrades, Downgrades, and Deactivation: An administrator or the DAO (through governance voting) may either upgrade or strip an NFT of its privileges. This is done by changing the
tokenURIto point to another JSON metadata file. An alternative is editing the contents of
metadata.jsonif it’s stored off-chain. Patrick’s and sjuanati’s implementations are typical solid examples
- Authentication & Access Control: Authenticating users to portions of Fitness Venture’s website via their wallet (e.g., event scheduler)
- Off-Chain Data Integration: Workout data recorded by FitBit. Scores and times from sporting events
Other planned features encompass:
- Adding Governance UI
- Transitioning backend from ExpressJS to Next.js
- Integrating DAO Governance privileges (i.e., proposal submittals and voting) into the platform
- Including scores and statistics from sporting events
- API Integration with activity trackers such as Fitbit
- Pre-paying gas fees for individuals minting NFTs (Harmony has a mainnet Faucet which basically eliminates gas fees for users)
- Pinning data to IPFS with NFT.storage
- Store in end users’ contact information (e.g., name and email) in a database.
3. Customer Segmentation & Monetization Strategy
Platform Licensing and Royalty Fees are paths to monetizing Fitness Ventures.
Our target markets are B2B and B2C companies in the the health and fitness industries with established and loyal customer bases.
We envision offering the Fitness Ventures as Software as a Service (SaaS) subscription to established businesses. These businesses would pay a monthly licensing fee to integrate Fitness Ventures into their apps and websites. Fitness Ventures would also collect a small royalty fee for each NFT minted or sold.
A. Upstream Customers: Health Club Management & Fitness Software Vendors
We plan to market our platform to Health Club Management & Fitness Software Vendors. These are B2B companies. We consider these vendors as upstream customers because they supply software to fitness and health clubs of all sizes. This segment is highly fragmented with over 150 market participants .
- Health Club Management & Fitness Software Vendors:
- ABC Fitness Solutions : No public API found, used by Planet Fitness to manage memberships
- Acuity Scheduling : API Available
- iFIT Health & Fitness : No public API found, but…
- has a GitHub Repo and a small hacker community on Stack Overflow and GitHub
- offers a white label streaming fitness app used by the likes of Planet Fitness
- has its own connected fitness streaming platform that integrates with its branded exercise equipment
- owns several fitness machine brands including NordicTrack , ProForm , and Freemotion
B. Downstream Customers: Gyms, Sports Apparel Retailors, Fitness Tracking Vendors
We envision B2C companies using the Fitness Ventures platform to increase customer engagement and generate new revenue streams.
In addition to club management software integration, we envision marketing our platform directly to downstream businesses. Downstream businesses follow a direct to consumer (i.e., B2C) sales model. These include gyms, fitness trackers, and sports apparel retailers. We envision B2C companies using the Fitness Ventures platform to increase customer engagement and generate new revenue streams.
Below is a representative list of potential customers:
- Equipment & Electronics: Fitness Trackers & Wearables
- Planet Fitness: Partnerships with iFit for streaming workouts and ABC Fitness Solutions for Gym Management
- Crunch Worldwide
The global sports apparel market generated about USD $193 billion in revenue in 2021. Rising revenues are forecast to continue and estimated to reach around USD $270 billion in 2028.
- According to this filled job post, an in-house team creates and manages their internal APIs.
- A Large IT Department: Over 180 job openings in IT
- GitHub repo: https://github.com/Lululemon
- Puma SE, Inc (Herzogenaurach, Germany)
- Umbro Ltd (Manchester, United Kingdom)
- Adidas AG (Herzogenaurach, Germany)
- Nike, Inc (Beaverton, Oregon, United States)
- Columbia Sportswear Company (Portland, Oregon, United States)
- Under Armour, Inc (Baltimore, Maryland, United States)
- Anta Sports Products Limited (Xiamen, China)
- Lululemon Athletica Inc (Vancouver, Canada)
- Fila Holdings Corp (Seoul, South Korea)
- Li Ning Company Limited (Beijing, China)
4. Fitness Industry Market Analysis: Global Sales & Market Segmentation
In 2021, the fitness industry’s global revenues exceeded USD $392.9 billion. Sports Apparel accounted for close to 50% of those revenues.
The industry may be carved into the following 5 global market segments:
- Sports Apparel (Global Revenues of USD $193 billion in 2021)1: Fitness related clothing and footware
- Fitness Centers (USD $91.3 billion in 2021)2: Gyms, health clubs, and boutique fitness studios
- Equipment & Electronics (in excess of USD $53.2 billion)2: Fitness equipment and fitness trackers/wearables
- Sports Nutrition (USD $40.0 billion in 2021)3: Nutritional supplements and processed foods (e.g., protein bars, protein powders, and sports drinks)
- Software (in excess of USD $15.4 billion in 2021)2: Online/digital fitness and fitness apps
The sales estimates below exclude those from Sports Apparel retailers such as Lululemon and Nike as well as sales from Sports Nutrition providers.
Figure 1: Pandemic Era Fitness Industry Revenues by Segment: 2019 – 2021 (USD billions)2
Figure 2: Fitness Industry Revenue by Segment 2019 – 20282
5. Additional Uses Cases
The Fitness Ventures dApp is easily customized to satisfy multiple use cases across a variety of industries. It may be used to mint NFT-based certifications and memberships. To illustrate:
- Diplomas & Certifications:
- A community college or even an online certification program may mint diplomas and certificates of completion as NFTs in addition to paper-based wall plaques
- A martial arts academy may award black belt certifications as NFTs
- Meetups & Affinity Groups:
- Groups on Meetup, Facebook, Eventbrite may monetize their userbases by offering membership tokens through NFTs
6. References and Additional Market Data
- Grand View Research
Additional Market Data
NB: RunRepeat’s calculations for 2021 industry revenues of USD $159.9 billion as well as their 2028 growth rate projection of 171.75% exclude Sports Apparel and Sports Nutrition revenues. However, Statista estimates 2028 global revenues from sports apparel sales will be USD $270 billion. A 40% increase from 2021 levels.
Fortune Business Insights: Global Sports Apparel Market Research
Grand View Research: Fitness App Market Research
Breaking Up With Peloton: NY Times article highlighting shift from working out at home to the resurgence in gym and health club memberships.
Growjo: Revenue stats for privately held companies
GetLatka: Another Provider of revenue data on SaaS companies
Policy Advice: A one-off blog-post on fitness club usage and revenue stats
Wellness Creative: Includes stats on largest gyms and fitness clubs by revenue. Expand the accordion below to view their top 10.
- LA Fitness – USD $2.09 billion
- Life Time Fitness – $1.75 billion
- 24 Hour Fitness – $1.51 billion
- Anytime Fitness – $1.73 billion
- Equinox – $1.43 billion
- ClubCorp – $1.11 billion
- Virgin Active – $760m
- Konami Sports & Fitness – $609m
- Planet Fitness – $527.9m
- Central Sports – $489m