Nightclubs - UK - December 2008

Table of Contents

• Issues in the MarketMain issues
• Definition
• Abbreviations
• Market in Brief
• Tough trading times...
• ...but the battle continues
• Nightclub visiting
• The nightclub crowd
• Visitors habits and attitudes
• What do they want?
• Internal Market Environment
• Key points
• Frequent visitors deserting the dance floors
  • Figure 1: Frequency of visiting nightclubs, 2003-08
• Nearly a million consumers lost
  • Figure 2: Frequency of visiting nightclubs, percentages applied to population numbers, 2003 and 2008
• Industry clampdown on minors
  • Figure 3: Frequency of visiting nightclubs by 15-17-year-olds, 2003-08
• The character of nightclub visitors
• Attitudes towards drinking
  • Figure 4: Frequency of visiting night clubs, by agreement with lifestyle statements on drinking, 2008
• Attitudes towards fashion and events
  • Figure 5: Frequency of visiting night clubs, by agreement with lifestyle statements on fashion and events, 2008
• Other attitudes
  • Figure 6: Frequency of visiting night clubs, by agreement with selected lifestyle statements, 2008
• Regulations
• Broader Market Environment
• Key points
• The faltering economy
• Performance in the last downturn paints a bleak picture
  • Figure 7: Trends in selected areas of discretionary expenditure, at current and constant prices, 1989-1994
• Treats and eating out head spending cutbacks
  • Figure 8: Areas where consumers would cut back spending, July 2008
• Increase in older clubbers over next five years
  • Figure 9: Trends in the age structure of the UK population, 18-34, 2003-13
• Characteristics of 18-24-year-olds
  • Figure 10: Demographic profile of 18-24-year-olds, 2008
• Tuesday? It must be student night
• Competitive Context
• Key points
• Pubs and clubs both see difficult times
  • Figure 11: Consumer expenditure on selected leisure goods and activities, 2002-07
• Huge increase in premises licences
  • Figure 12: Premises licences* by licensable activity, England and Wales, 31 March 2007 & 2008**
• 24-hour drinking remains rare
  • Figure 13: Premises licences with 24-hour alcohol provision by premises type, England and Wales, 31 March 2008
• Regulated entertainment
  • Figure 14: Premises licences by regulated entertainment type*, England and Wales, 31 March 2008
• The picture in Scotland
• Strengths and Weaknesses in the Market
• Strengths
• Vibrant youth scene
• Resilient customers
• Increased opportunities
• Fantastic venues
• New ways of operating
• Weaknesses
• Tough market conditions
• Operational challenges
• Business failures
• Continual investment required
• Struggle to be the ' next big thing'
• Market Size and Forecast
• Key points
• Trends in admissions and turnover
  • Figure 15: Trends in nightclub admissions and turnover, 2003-13
• Licensing Act hits admissions
• Credit crunch takes a bite out of market
• Uncertain future for all
• Factors used in the forecast
• Market Share
• Key points
• Market share by venue
  • Figure 16: Nightclub operators, by brands and number of venues*, December 2008
• Companies and Products
• Key points
• Nightclub companies continue to fold
• Nightclub companies
• Luminar Group Holdings PLC
• Novus Leisure Limited
• 3D Entertainment Group Limited
• Yellowhammer Bars
• G1 Group PLC
• Nexum Leisure Limited
• Tokyo Industries
• Brand Communication and Promotion
• Key points
• Above-the-line advertising falls by almost 50%
  • Figure 17: Advertising expenditure for nightclubs and discotheques, 2004-07
• Press advertising takes over
  • Figure 18: Advertising expenditure for nightclubs and discotheques, by main media type, 2004-07
• Leading advertisers
  • Figure 19: Advertising expenditure by leading nightclub and discotheque operators, 2004-07
• Nightclub Visitors
• Key points
• Types of clubber
  • Figure 20: Type of clubber, October 2008
• Age has biggest effect on attendance
  • Figure 21: Type of clubber, by age, October 2008
• Where to Go?
• Key points
• Which factors rank highest?
  • Figure 22: Ranking of most important factors in choice of nightclub, October 2008
• Play that funky music
• Top three choices
  • Figure 23: Most popular factors in choice of nightclub (ranked three or higher), October 2008
• Regular clubbers more sensitive to added extras
  • Figure 24: Factors in choice of nightclub (ranked three or higher), by type of clubber, October 2008
• What Appeals Most?
• Key points
• Extra features for added attraction
  • Figure 27: Ranking of most appealing features for a night out at a nightclub, October 2008
• Top three most appealing features
  • Figure 28: Ranking of most appealing features for a night out at a nightclub (ranked three or higher) October 2008
• Regular clubbers like to chill-out
  • Figure 29: Appealing features for a night out at a nightclub (ranked three or higher), by type of clubber, October 2008
• Appendix -- Broader Market Environment
  • Figure 39: Trends in personal disposable income and consumer expenditure, 2003-13
  • Figure 40: Trends in the age structure of the UK population, aged 18-35, 2003-13
• Appendix -- Nightclub Visitors
• Type of clubber -- detailed demographics
  • Figure 41: Type of clubber, by demographic sub-group, October 2008
• Appendix -- Where to Go?
• Top-ranked factors in choice of nightclub -- detailed demographics
  • Figure 42: Number one-ranked factors in choice of nightclub, by demographic sub-group, October 2008
• Factors in choice of nightclub, by type of clubber
  • Figure 43: Hardcore/occasional clubbers' ranking of most important factors in choice of nightclub, October 2008
  • Figure 44: Sporadic clubbers' ranking of most important factors in choice of nightclub, October 2008
  • Figure 45: Lapsed clubbers' ranking of most important factors in choice of nightclub, October 2008
• Most popular factors in choice of nightclub (ranked three or higher)
  • Figure 46: Most popular factors in choice of nightclub (ranked three or higher), by demographic sub-group, October 2008
  • Figure 47: Next most popular factors in choice of nightclub (ranked three or higher), by demographic sub-group, October 2008
  • Figure 48: Factors in choice of nightclub (ranked three or higher), by type of clubber, October 2008
• Appendix -- What Appeals Most?
• Features that would appeal, by type of clubber
  • Figure 55: Hardcore/occasional clubbers' ranking of most appealing features for a night out at a nightclub, October 2008
  • Figure 56: Sporadic clubbers' ranking of most appealing features for a night out at a nightclub, October 2008
  • Figure 57: Lapsed clubbers' ranking of most appealing features for a night out at a nightclub, October 2008
• Top-ranked features that would appeal -- detailed demographics
  • Figure 58: Most popular appealing features for a night out at a nightclub (ranked three or higher), by demographic sub-group, October 2008
  • Figure 59: Next most popular appealing features for a night out at a nightclub (ranked three or higher), by demographic sub-group, October 2008
  • Figure 60: Appealing features for a night out at a nightclub (ranked three or higher), by most popular attitudes towards nightclubs, October 2008
  • Figure 61: Appealing features for a night out at a nightclub (ranked three or higher), by next most popular attitudes towards nightclubs, October 2008