Connected fitness was one of the many trends that popped up during the pandemic. Since gyms were temporarily outlawed, people had to workout from home. Naturally, they loaded up on home workout products. Some of these products, like the Apple Watch (AAPL) or Peloton (PTON) bike, allowed people to link and compare their workout scores with friends. Hence, “connected” fitness.
But, unlike remote work, this work out trend has fallen off significantly. People are now exercising away from home more often, calling the future of connected fitness into question.
Many companies that offer connected fitness products or services have experienced a significant slump in sales. Some have already pivoted their strategy.
Lululemon (LULU) acquired the at-home fitness company Mirror for $500 million during the pandemic’s early stage. This combo mirror/video screen product lets people follow guided workout sessions from home.
Sales of Mirror fell off hard as the pandemic waned. Last year, Lululemon slashed its Mirror sales forecast to $130 million from $275 million. In a bid to drive new signups, the company is now launching a subscription service that will only be available for Mirror owners.
For $39 per month, members will be able to access online content from studio partners, stream new classes weekly, sign up for in-person classes at a discount, and receive discounts on Lululemon products.
The partnership is expected to go live on October 5th.
Peloton Pedaling Onward
Peloton, which sells stationary bikes, treadmills, and fitness classes, was another company that thrived during the lockdowns. Peloton is now forming a strategic partnership in hopes of growing sales.
Pelotons used to be available exclusively on Peloton’s website. Then, they were made available on Amazon (AMZN). Now you will soon also be able to buy Peloton’s Bike, Bike+, Tread and Guide in Dick’s Sporting Goods (DKS) stores around the country. With 700 locations, this should expose many more people to Peloton’s products.
Despite the hard dropoff in sales, it doesn’t seem like connected fitness products are out entirely. Just like one of Mirror’s workout coaches might say, connected fitness just has to battle through the adversity.
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