Recently, top execs at fitness brand, Peloton, stated the company will focus more on its classes instead of namesake equipment. The new direction is a big risk for the business — as it has already dropped 97% from its highest valuation…
This article covers Peloton’s ups and downs as well as its decision to switch gears. After which, you can decide whether this change of direction will keep them on course…
What the Brand Learned Flying Too Close to the Sun…
The 2020 pandemic was a financial disaster for many industries. Nevertheless, everyone stuck indoors caused a boom in home fitness.
Peloton classes checked all the boxes to stay in shape during the age of social distancing. The brand’s equipment and programs became so popular that their valuation skyrocketed to $50 billion!
Yet as of December 2023, the exercise equipment enterprise is valued at $2.1 billion.
So, what happened and how do they plan to bounce back? Well, the brand is taking notes from the past in order to prevent repeating its mistakes…
Needless to say, Peloton has some growing pains along with its massive success. Including but not limited to:
- Time and money in legal battles with competitors over similar designs.
- Supply chain complications.
- Recalls of both models of treadmills.
LONG STORY SHORT, THE HEAVY HARDWARE WAS A HEAVY LIABILITY.
And as it turns out, fans of the fitness conglomerate were not sticking around for the bikes or treadmills anyway…
It Was Never the Machines — It was Peloton’s Classes
No matter the bells and whistles, stationary bicycles and treadmills have existed for decades. The competitive edge Peleton has always had is its virtual classes.
The guided sessions are based on your fitness level, workout intensity, or music preferences!
For that reason, the instructors of more popular Peloton classes became celebrities in their own right.
Case and point: fitness class fan favorite, Cody Rigsby, earned a spot on “Dancing with the Stars.”
With that in mind, the brand has decided to spotlight the “community” Peloton users have built. CEO, Barry McCarththy told The Verge:
“We faced many challenges in the past year, almost in every aspect of the business — except for content. Content is the golden goose. Is the bike a great experience from a hardware perspective and better than things that came before? Absolutely, but the magic and the glue that binds the community with almost religious fervor amongst our members is the content and the instructors.”
But, how are they planning to make this drastic change?
Leaning into the Community of Peloton Classes
Although the company has faced numerous challenges, getting in shape is not going out of style anytime soon.
To that end, Peloton supports ways for users to take their classes everywhere. Because you certainly can’t drag a treadmill around…
Now, the fitness enterprise offers:
- Motivational audio
- Tips for using other equipment
- Extra Peloton Classes on social media
In short, Peloton is putting all its eggs into becoming a 360-degree lifestyle brand. Nonetheless, there are already some new problems arising…
The Challenges of a New Direction
As we mentioned, Peloton customers love its classes for customizable features — including music.
So, when Universal Music Group pulled its artists from TikTok, it affected some users’ favorite workout playlists.
Additionally, relying more on its subscriptions when streaming services are feeling the heat is risky.
That being said, Peloton may be relying on the oldest fitness adage in the book…
No pain, no gain.
Be Great,
GCTV Staff
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