With quarterly GMV reaching US$1 billion, fitness platform Peloton is experiencing a new trend

The epidemic has affected many industries, and the fitness industry is in deep trouble. Relevant data shows that as of September 1, 2020, the cumulative losses of the US fitness industry exceeded 13.9 billion US dollars , of which 2,616 fitness venues were forced to close permanently due to the impact of the new crown epidemic . At the same time, many offline gyms quickly transformed online, ushering in a boom in home fitness and virtual online fitness.

Home fitness is booming, but product delivery is in short supply

It is true that the body is the capital of revolution. Under the epidemic, people have been forced to stay at home and work from home has become a common thing. To some extent, more people have realized the importance of health and exercise, which has also brought amazing growth to the indoor fitness industry , especially the high-tech home fitness market with interactive features.

Recently, Peloton, the world's leading interactive fitness platform , said that its sales in the second quarter of fiscal 2021 exceeded expectations, reaching $1 billion. As demand for Peloton's home fitness equipment surged, various problems also followed.

(Picture from Peloton official website)

The surge in online orders has caused some Peloton items to take eight to 10 weeks to deliver. Previously, due to the outbreak of the new crown epidemic and the boom in e-commerce, the unloading time on the West Coast of the United States has increased fourfold compared to a year ago, which is also a major reason for the delay in the delivery of Peloton products, and its supply chain has encountered bottlenecks.

To this end, Peloton said that in the next six months , it will invest more than $100 million in air freight and expedited ocean shipping to speed up the delivery of packages. The additional investment in its supply chain is expected to ease the pressure on product delivery, and its inventory levels are expected to increase and delivery times will be reduced .

Online fitness users reached 1.67 million

Peloton is the world's leading interactive fitness platform. Headquartered in New York, it was founded in 2012 and has more than 4.4 million members. It mainly sells fitness equipment and fitness classes.

Peloton had 1.67 million internet fitness subscribers at the end of its most recent quarter, up 134% from the same period last year. Peloton expects to have 2.28 million or more internet fitness subscribers by the end of fiscal 2021 , up from a previous forecast of 2.17 million subscribers.

(Picture from Peloton official website)

In fact, the popularity of online fitness in the United States not only benefits from the epidemic, but also from the support of the US government. Previously, due to the epidemic, a large number of offline gyms in the United States were forced to close, and American fitness enthusiasts held street protests and collective petitions in order to call for a resumption of work.

To this end, the United States launched the " Health and Fitness Recovery Act of 2020", announcing that it would establish a $30 billion recovery fund to help offline gyms in the United States affected by the new crown epidemic overcome difficulties.

The global outbreak has prompted fitness companies like Peloton to rise rapidly, but in the fitness industry, the stickiness of fitness users has always been a difficult problem to be solved. Sellers must continuously improve the user experience to maintain user stickiness and stand out in the fitness industry.

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