Earlier this year, we reported that gyms were on the decline, and that at-home fitness brands were turning living rooms into the new workout centers. That’s only become more true. Personal fitness is riding the coronavirus wave to success, eating up a larger share of the fitness market and likely leaving a lasting impact on the way people across the country work out.
Stationary bike brand Peloton ($PTON) was already leading the pack before the pandemic came thanks to smart app-to-hardware integration, a great product and even better branding. This week, Peloton announced that its flagship stationary bike would be receiving a $350 price cut down to $1,895, and that it would be releasing two new products - a deluxe version of its bike at $2,495 ($250 more than its original bike pre-price cut) and a cheaper version of its treadmill also at $2,495.
Peloton’s move shows that it is banking on fitness behavior changing permanently thanks to COVID-19, and is looking to solidify its claim on the market before others, like Lululemon ($LULU) which bought competitor Mirror ($PRIVATE:MIRROR) earlier this year, have the chance to pounce.
Peloton’s bet is a safe one, too. Its user metrics have been increasing healthily throughout the pandemic. App Store ratings have increased 315% since January, with a notable increase at the start of the pandemic in the spring. While this is likely reflective of increased sales overall, Peloton’s app doesn’t require a bike to be used - there is a membership fee to access classes on the platform. The fact that Peloton’s app has seen such increased traffic, regardless of whether or not people are buying bikes, is again reflective of the change in fitness trends. Another win for Peloton.
Markets reacted relatively well to the news, as they have to Peloton throughout the year. Share price was up approximately $5.5 by market close Wednesday.
Hiring has also ramped up for Peloton as it prepared to leave the pandemic stronger than when it entered. Though there was a significant dip in job listings shortly after the new year, they have since recovered completely and increased 198% since its yearly low. There has been a major increase in hiring in the last month alone, leading up to the new product announcements.
About the Data:
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