60 percent of event companies have financial problems, fitness is doing even worse

60 percent of event companies have financial problems, fitness is doing even worse

Almost 80 percent. fitness companies have financial problems, photo: Shutterstock

The value of the Polish event industry is around 3 billion PLN, but more than 60%. companies are in financial difficulty. The situation for the fragmented fitness industry looks even worse.

  • The events industry is responsible for 1.5 percent. Polish GDP, but its current situation is bad – more than 62%. of the business is in poor or poor financial condition, according to the latest analysis from the National Courts Registry.
  • The situation in the fitness industry is even worse, in which almost 80% have more or less serious financial problems. businesses.

An analysis of how individual industries have changed and undergone digital transformation over the past two years can be found in the latest e-book from Polish e-commerce software house Advox Studio.

Only one in three companies in the events sector are at least in good financial condition

Currently, there are almost 5,000 companies dealing with the organization of fairs, exhibitions and congresses and almost 34 thousand. treating the organization of meetings and events as supporting their core business, according to a new National Court Register analysis by global business intelligence agency Dun & Bradstreet. In the years leading up to the pandemic, this market grew at an average rate of 15-16%. annually, but in 2020 there was a sharp downturn – in 2021 it was only 2%. It’s not surprising – in Poland, on average, every year from 6,000 to 8,000. events such as concerts, events and all kinds of festivities. The value of this sector is around PLN 3 billion, and the events industry is responsible for 1.5%. Polish GDP. The cancellation of events due to pandemic restrictions has undermined its financial situation – currently less than 38% are in good or very good financial condition. companies in this sector, and more than 62%. – in weak or bad.

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Cultural institutions have survived the pandemic well

– In 2020, revenues for event companies decreased by 78%. Many companies however had no intention of giving up and decided to organize events in a remote form, even if their number was obviously much lower than before the pandemic – he says Rafal Gadomsky, CEO of Advox Studio, a software company with headquarters in Poznań and branches in Europe, which has implemented more than 200 online store projects – Culture has also shifted to online business. In Poland, the first performance with the use of streaming was staged by the Nowy Theater in Poznań on March 12, 2020, and other institutions did not wait long. In total, no less than 89%. theaters and musical institutions have made performances available in this form. Poles have barely started to prefer online culture if they have the opportunity to enjoy it live, but it has certainly allowed them to discover places and works that were not accessible to them before. Moreover, the pandemic has highlighted the importance of culture and that it can start to be lacking. The opportunities to support the process of making culture available on the internet are growing and this is certainly an area worth investing in – especially as the audience that can be gathered in front of a screen of laptop cannot be hosted by any cinema, theater or music hall.

The number of cultural activities operating in Poland is estimated at almost 26.5 thousand. Their financial situation seems good – according to Dun & Bradstreet up to 55.5%. is in a good financial situation, and 37.5 percent. in low. He is in a very bad financial situation less than 5 percent. entities, and in a very good 2 percent.

Almost 80 percent. Fitness companies have financial problems

In recent years, the growth of the fitness industry has also slowed down significantly. Over the past year, the number of companies operating there in the national court register has increased by only 2.5%. and currently stands at almost 3 thousand. registered entities with approximately 4,000 premises. The Polish fitness market is fragmented – apart from a few big players, there are many micro-networks.

– The digital revolution has also affected this market – adds Rafał Gadomski, CEO of Advox Studio. – During the confinement and afterwards, live training sessions were carried out on streaming platforms, many previously recorded materials were made available, trainers carried out individual and collective exercises via applications such as Skype , Zoom or ClickMeeting. Fitness channels, platforms and mobile apps that allow you to regularly track your progress and interact with other users using VR technology are the future of this industry. For now, however, customers still want to exercise outside the home. Online training, even in the pandemic era, was less than 1%. company turnover. It is expected that this sector will take 5 to 7 years to recover from the pandemic. We will see if technology will speed up this process. In the fitness industry, only less than 16%. companies are in a good financial position, and just over 4 percent. very good. Nearly 80 percent entities have financial problems – 63 percent is in a weak situation and up to 16.4 percent. in very bad.

In the latest eBook, How Has the Pandemic Changed the Market? Digital Transformation in Selected Industries” prepared by e-commerce industry experts, you can see the analysis of the situation of industries most changed by the pandemic, especially in the field of digital transformation. The experts also indicate the trends that will shape the situation and the market in the coming years.

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