Peloton is one of several brands that has experienced a boom-and-bust cycle over the last few years. At the height of the pandemic, the company was thriving, with a stock price hovering around the US$170 mark and a market cap of around $50 billion. But in 2022, the company let go of 5,000 employees and earlier this year, it recalled its original exercise bike and treadmill. Its latest SEC filing showed a $275.9 million loss in the most recent quarter, which was an improvement on the $757.1 milli
llion loss the company had in the same period last year.
So, it’s not surprising that Peloton recently unveiled a plan to turn things around, including a brand relaunch, free app membership tier and new Peloton Gym feature. The company, which once positioned itself as a premium brand with its $2,500 exercise bikes, is essentially declaring itself open and available for everyone to use – even for free.
Chris Gilroy, a brand turnaround expert and former marketing director at Decathlon UK, believes that the new brand strategy will give Peloton much broader appeal, beyond just bikes.
“It’s got so much more to offer across customers across the fitness space, and it’s great to see communications to support this,” he told Inside Retail.
He feels that Peloton previously had limited options for people on a budget, but now it is offering more content that is free to access. He thinks this is crucial, given the current cost of living pressures.
“The new brand communications is fresh but still Peloton. It’s a strong brand, and widening its appeal with accessible pricing is a sure fire to revenue growth,” he added.
For anyone, anywhere
According to Amanda Gilmore, Peloton Australia’s country manager, the company has always recognised that customers value the convenience of Peloton and the access it gives them to live, on-demand fitness content.
As consumers embrace a hybrid fitness routine, the brand refresh “aims to better reflect the true Peloton brand experience that inspires a community of nearly seven million members,” she told Inside Retail.
New features like Peloton Gym and the membership subscription tiers will give Peloton users more choice and the ability to customise their workouts based on their health, lifestyle and budget needs.
The subscription tiers give users access to a library of live and on-demand content across 16 fitness modalities, blending the benefits of personal training, and the ability to keep track of steps and performance metrics in one place.
Things are looking up
Since launching in Australia in July 2021, the brand’s presence and community have continued to grow, and Peloton has continued to introduce new products, like the Peloton Guide, a connected strength unit, and the Peloton Tread, a treadmill.
According to Gilmore, as of May 2023, Peloton members in Australia have completed over four million workouts across 16 modalities , demonstrating the repeat value associated with its connected fitness experience.
“We’re thrilled to see Aussies from Sydney to Perth and in between using the Peloton App, Guide, Bike and our recently launched, Tread, to reach their fitness and wellbeing goals,” she said.
According to her, the first year of operations was focused on setting the foundation, building a team of local experts and introducing connected fitness to Australians. The future of the brand will be focused on providing rich content and product offerings, as well as unique activations and brand partnerships.
“For the first-time since we originally launched the Peloton App in 2018, we are introducing the most expansive collection of free classes in line with our new App subscription tiers,” she noted.
Not standing still
Founded in 2012, Peloton revolutionised the at-home-fitness space with the launch of its stationary exercise bike. Since then, the company has continued to bring together hardware, music, technology and instructors to deliver innovative workout products.
According to Gilmore, the company is well-positioned to keep up with changing consumer behaviour.
“Australians are at the forefront of health and fitness trends, and are taking a holistic perspective on wellness, preferencing platforms that enable them to access health and fitness content in the same way they do with their travel, lifestyle and entertainment needs,” she elaborated.
Peloton has partnered with brands like Qantas, Foxtel and ClassPass to offer access to its content, while member meet-ups see people from all walks of life, ages and fitness levels get together to motivate, inspire and celebrate their diversity.