00:00 President
BFA data showing generation Z and generation Y are increasingly priority their health, leading to bullish comments from the Bank of America. Welcome to Alex Perry, BFA SECURITIES LEISURE Analyst to find out more. Alex, we see you on the set.
00:16 Alex Perry
So, uh, what we see is that we see a generational change towards healthier habits, in particular generation Y and generation Z, which we think, you know, should lead, uh, trends with a certain long -term power. So, in particular in the data, a few things we have seen are, we see that the generation Z spends 2.8 times more than older generations, especially baby boomers, on physical form. So we
00:46 President
How much more, Alex?
00:48 Alex Perry
2.8 times more than baby boomers on fitness. And even more interesting, uh, the millennials, which represent the largest cohort of expenses, uh, for fitness, spend three times more than the formal baby boomers. So we think you know
01:10 President
When you say fitness, we mean going to the gymnasium, like us, what we define the physical form.
01:16 Alex Perry
Yes yes. So we define this as fitness clubs. UM, then think of the physical condition of the planet for life, Uh, a kind of traditional brick and mortar fitness is the way we define this. We are therefore more and more of these young demographic data, not only to prioritize the physical form, but also to prioritize other ways of living healthy. SO
01:41 President
So, is it like eating, drinking?
01:44 Alex Perry
It's exactly true. So, uh, you really focus on a healthy diet, alcohol consumption, aging, recovery. So what we see are the millennials and the gen z are, drink, they drink less and do more exercise. So one of the ways we have examined the data, uh is that we see that non -alcoholic beer expenses and the equivalent of Seltzer are on average 28 points higher than the equivalent of alcohol since 2021. It is therefore a kind of behaving really interesting. They also do other things, you know, focused on other wellness methods. They are focused on healthy aging, healthy recovery. If you look at Google research trends for red light therapy, anti-aging masks, for example, they are considerably increasing.
02:37 President
So light red, no more red light therapy, fewer bars. Is it true?
02:44 Alex Perry
The more red therapy, less alcohol consumption, less bars, more physical shape. UM, and we think it has real power for our coverage in stock also.
03:02 President
What about Alex, if, if the economy simply falls on a recession, you know, many economists come in the series and tell me that the chances of this increase. This would mean what for some of these trends in terms of gym adhesion and biological foods and cold dives.
03:23 Alex Perry
Yeah. No, it's a great question, Josh. I therefore think that what it implies, if we look at the historical data, we would see that the physical form is really, is relatively resilient to the recession. We therefore returned until 2008, 2009, Lifetime was listed on the stock market at that time. Uh, a brick and mortar fitness player and sales of the same stores were relatively flattened during this period, and the margins were actually widened. And I think what it tells us is that physical form is very anchored consumption behavior. And consumers are less willing to drop the physical shape compared to the other discretionary expenditure pockets. So, we actually think that, you know, the fitness players are resilient to the recession and maybe you are going to ask questions about the prices, which we think they are, they are an excellent place for investors, to avoid the uncertainty linked to prices. Uh, you know, they are
04:24 President
A place of resilience relative price.
04:28 Alex Perry
Relative resilience. That's right. So, uh, there is probably a small exposure to the supply of fitness equipment, but no direct exposure to the rates for fitness players. And we think that, you know, this is a very interesting investment feature here.
04:48 President
Let's do, let's give viewers a way to play this. You talk about the camera, the high-level pick-blunder group.
04:59 Alex Perry
Yeah, life. We think they correspond squarely in the middle of what we consider as these, uh, the young generations favoring healthy lifestyles. They were therefore very quick to identify some of the fastest leisure and well-being trends. UM, an excellent example of this is pickleball. We have seen an absolute increase in the popularity of pickleball. And I think that Lifetime quickly identified this trend and they started deploying pickleball by majority of their clubs. So, more than 80% of their clubs now have pickleball, and they are now the largest pickleball supplier in the United States. Exposure therapy to the cold, which we talked about a little earlier, they were, they were quickly on this trend and they deploy cold baths to many of their clubs. So we think that, you know, they identified these trends, they deployed them in the clubs, and then you know, which is justified a really high -end member.
06:00 President
Have you ever thought of the data, how the role of the kind of influencers on these trends? Some of the trends you are talking about, I think of Andrew Huberman. They talk a lot about these trends. I just wonder what kind of, what kind of role could it play here?
06:19 Alex Perry
Yeah, no, it's a great question. I think it absolutely plays a huge role. UM, we have noticed an increased influence on social networks on our coverage in stock. Uh, Tik Tok for example, one of the data of data, you know, one of the data flows that we really look at is the commitment of the social media Tik tok. I think that one of the things we see is that the increase in social media engagement leads to more buzz around different concepts. An excellent example of this and another choice of well-being that we called is Shark Ninja. They are very good.
06:57 President
Why Shark Ninja?
06:59 Alex Perry
Thus, Shark Ninja was, if, if we were to think of the physical form of A, you know, from experience, then from the point of view of consumer products, Shark Ninja really offers, uh, a wallet of well-being in expansion of, of, product. The most recent example is the mask of Glow Kyro Shark, which is a red anti-aging mask. UM, and they are incredibly good to start and build the buzz around their product, on social networks, especially on Tik Tok.
07:38 President
Alex, thank you very much for your time today. Super interesting trend. Enjoy your time and these choices. It was great. THANKS.
07:45 Alex Perry
Thank you very much, Josh. Thank you for doing me.
