Businesses: Benefited From Being a Community Research

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Businesses: Benefited From Being a Community Research

Key Takeaways

  • Peloton has been building a culture around its fitness community to ensure that the brands transcend connected home fitness. The brand’s campaign spotlights members instead of products to spark attention on embracing diversity and encouraging diverse groups to join.
  • Influencer marketing accelerated Gymshark’s exponential growth. The brand leveraged influencer marketing by partnering with fitness influencers with a strong community in their profile to encourage and gain more subscribers, spurring growth.
  • CrossFit community makes members feel good and encouraged to break new limits. This sense of community is extended to welcoming new members and making them feel accepted as part of the international fitness family.
  • Weight Watchers has been using a distributed community model to project itself as making health and wellness accessible to all to inspire and ignite the global community to join.
  • Lululemon’s education and message sharing functionality is drive its rapid growth. Lululemon increased focus on educating and sharing possibilities of life and the benefits associated with healthy living and mindfulness. It concentrated on sending a message about attaining a peaceful life flow through fitness and the lifestyle the brand wants its customers to have.

Introduction

The analysis below presents businesses in the fitness and/or wellness sectors that have seen rapid growth because they are a community/network. The companies covered include Peloton, Gymshark, Lululemon, CrossFit, and Weight Watchers. The analysis addresses how these businesses inspire growth by being a community and growth statistics.

Peloton

  • The business’ website can be found here.
  • Peloton has been building a culture around its fitness community to ensure that the brands transcend connected home fitness. The brand’s campaign spotlights members instead of products to spark attention on embracing diversity and encouraging diverse groups to join.
  • Peloton has added “mood riders” to build a community around health and wellness to increase awareness and encourage more people to join. The “mood rides” are tailored towards various emotions like being happy or calm.
  • Peloton’s CEO Dara Treseder indicates that the practice where its loyal user base has been sharing personal experiences with the brand has been a key driver in Peloton’s exponential growth, particularly during the pandemic. The company has 2.33 million linked fitness subscribers.
  • Peloton has been experiencing an addition of about 540 thousand new members each quarter since 2019. The current membership on Peloton membership stands at over 5.9 million.
  • According to the 2021 annual report and policy statement, Peloton’s revenue in 2021 was $4,021.8, an increment from $1,825.9 in 2020 and $915 in 2019. This revenue comprised of subscriptions which increased from 181.1 in 2019 and $363.7 in 2020 to $872.2 in 2021, and connected fitness products, whose revenue was $3,149.7 in 2021, $1,462.2 in 2020, and $733.9 in 2019.

Gymshark

  • The business’ website can be found here.
  • Gymshark has humanized its brand through its community, inspiring others to join. Athletes, staff, and loyalists at Gymshark would hold large events in big cities to create in-person connections and essential humanization of the brand to encourage more people to join.
  • Influencer marketing accelerated Gymshark’s exponential growth. The brand leveraged influencer marketing by partnering with fitness influencers with a strong community in their profile to encourage and gain more subscribers, spurring growth.
  • According to CNBC, Gymshark has experienced tenfold growth in its turnover since 2017, rising to $550 in July 2021. The company has doubled its staff to over 800 members in the past 12 months.
  • According to the annual; report and financial statements for the year ending on July 31, 2020, Gymshark registered annual profit growth from £14,991,000 in 2019 to £24,432,000 in 2020.

Lululemon

  • The business’ website can be found here.
  • Lululemon incorporates joining local fitness events and yoga sessions in their retail stores as part of in-person fitness activities. The sense of community in Lululemon establishes a physical and spiritual connection, encouraging more customers to join.
  • Lululemon’s education and message sharing functionality is drive its rapid growth. Lululemon increased focus on educating and sharing possibilities of life and the benefits associated with healthy living and mindfulness. It concentrated on sending a message about attaining a peaceful life flow through fitness and the lifestyle the brand wants its customers to have.
  • According to Forbes, Lululemon’s activities causing market expansion and Omni guest experience contributed to the 22% revenue increase in the third quarter of 2020.
  • Based on the consolidated statements in Form 10-K of the US securities exchange, Lululemon’s net revenue increased from $3,979,296 on February 2, 2020, to $4,401,879 on January 31, 2021.

CrossFit

  • The business’ website can be found here.
  • CrossFit community makes members feel good and encouraged to break new limits. This sense of community is extended to welcoming new members and making them feel accepted as part of the international fitness family.
  • The weight of celebrity is the key driver incorporated in the CrossFit community that is accelerating its growth. Influencers who show off strength and hard-earned physiques inspire and pull others, giving the company significant momentum for growth.
  • According to Boxlife Magazine, CrossFit had 245,914 registrations in 2021, with the participation being slightly higher than in 2020.
  • According to Modern Gentlemen Magazine, CrossFit grows at a rate of 2%-5% per year. The growth is projected to hit 23% in the next ten years.

Weight Watchers

  • The business’ website can be found here.
  • Weight Watchers has been using a distributed community model to project itself as making health and wellness accessible to all to inspire and ignite the global community to join.
  • During the rebranding initiative in 2018, Weight Watchers added a personalized weight loss program in its marketing system. However, the new changes have not lived to the expectations in terms of growth.
  • According to Bloomberg, the member growth failed to hit the company’s expectations, with the online subscribers being down 1.9% in the second quarter of 2021 compared to the 2020 period. The company’s annual revenue for 2021 would approach $1.3 billion, trailing the estimated $1.39 billion.
  • According to the Annual Report 2021, WW International, Inc., formerly Weight Watchers, subscription revenues reduced from $1,186.5 million in fiscal year 2020 to 1,063 million in 2021.

Research Strategy

For this research about how businesses benefited from being a community, we leveraged credible sources of data that are publicly available, such as reliable fitness & wellness-related websites, annual and quarterly reports, and sports-related magazines. We also consulted financial-related news sources like Forbes and Bloomberg for information about the businesses’ financial statistics. Based on these sources and the overall research, Peloton, Gymshark, Lululemon, CrossFit, and Weight Watchers are examples of businesses in the fitness and/or wellness sectors that have seen rapid growth because they are a community/network.



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