Peloton Customer Demographics
Peloton equipment consumers in Canada are likely to be 25-64 years old, married, and having household incomes of over CA$60,000. The consumers are likely to be located in cities such as Toronto and Calgary.
- According to a survey conducted by Ipsos--the survey was carried out on behalf of Peloton between October 4-8, 2018--three in four Canadians aged 25-64 say that they find it difficult to make time to get to an exercise class and it is "more convenient for them to exercise on their own schedule".
- According to Peloton co-founder & CEO, John Foley, the target demographic of the brand is individuals who do not have "time to go to the gym". Typically, in the United States, those in their 20s and early 30s find the time to work out in gyms, however, older individuals tend to be busier with family and work and are likely to have lesser time to do so. Peloton's target demographic (in 2016) in the United States was 35-65 years old.
- The Ipsos survey found that "men are more likely than women to mention not having enough time (45% of men vs. 35% of women) or not being able to fit it in with their schedule (30% men vs. 21% women)".
- One in six respondents said they would like to incorporate indoor cycling in their exercise regime, including 28% 25-34-year- olds. However, the survey results do no provide the gender breakdown (probably because there is little or no gender divide).
- Simply based on the fact that men tend to mention not having enough time to work out more than women, and accounting for the income disparity between the two genders, single users of Peloton equipment are more likely to be men. However, given that the majority of the target demographic is married, and that Peloton equipment is used at home (probably by both genders), it cannot be assumed that men make the purchase decisions. The brand's holiday advertising campaign shows the perspectives of both genders.
- There was no information found that clearly indicated the gender demographics of Peloton equipment consumers in Canada.
- In the United States, Peloton is the "go-to exercise regime for everyone from high profile celebrities and CEOs to busy parents who need a more convenient way to exercise". Peloton consumers have nice homes and the money and space for Peloton equipment. The brand targets affluent consumers and the relatively less affluent consumers who are willing to spend the extra bit on fitness.
- While Peloton's price point clearly indicates that they target the upper class, the company's S-1 form (IPO filing) says they target consumers with household incomes over US$50,000. According to the brand's IPO prospectus, consumers under the age of 35 and with incomes under US$75,000 are its largest growing demographic. Therefore, Peloton also targets non-affluent consumers with household incomes between US$50,000 and US$75,000.
- Peloton's survey, conducted by Ipsos, comprised of a sample of 1,000 Canadians with household incomes of over CA$60,000 (approx. US$45,000). The Ipsos survey respondents income can be assumed to be the same as that of the target consumer in Canada as the company claims to target the US$50,000+ demographic (in the US and other developed nations) in its IPO-related documents.
- The Peloton bike is priced at CA$2,950 in Canada and CA$49 for "access to Peloton Digital's unlimited class subscription".
- The typical Peloton consumer in the United States has children. Given that 56% percent of Canadians aged 25-64 are married and 13% live common law, and considering the cultural similarities between the United States and Canada, the Peloton consumer in Canada is more likely to be married or living with a partner. The Peloton holiday campaign (United States) features a couple.
- There is no information related to the education levels of the target demographic available in the public domain. In Canada, income is correlated to education and luxury products are usually purchased by the affluent; however, our findings suggest that Peloton is also targeting non-affluent consumers. While affluent consumers are most likely to have a bachelor's degree or an advanced degree, the same cannot be said about all households with income between CA$60,000 and high-income levels (based on Canada Census data).
- Peloton was launched in Canada in October 2018. At the time of the launch, Peloton has plans to open 10 showrooms over a year or year-and-a-half.
- Currently, Peloton has seven showrooms in the provinces of Ontario (Toronto, North York, Mississauga, and Etobicoke), Alberta (Calgary, Edmonton), and British Columbia (Vancouver).
- In the United States, the typical Peloton consumer has a nice large home in the suburbs.
In order to find the required information, we adopted multiple search strategies. We started out by looking for advertising case studies related to Peloton in Canada as they often provide information related to target audiences. In addition, we also searched for any media coverage of their advertisements. As we learned that Peloton was launched in Canada in 2018, we searched for launch-related news and commentary. While this strategy was fairly successful and led us to the Ipsos survey that was carried out on behalf of Peloton, it did not provide answers to all questions.
Next, we searched the IPO-related filings on the company but failed to find Canada-specific information. Nevertheless, we have presented our findings for greater insights. Lastly, we searched for any interviews by John Foley, the CEO of the company and Kevin Cornils, Managing Director International, but did not meet with any success. The interviews were either dated (from 2016) or did not specifically mention demographic details of the target consumer. Despite adopting multiple strategies there was still information we were unable to obtain. We believe details of some demographic variables are not publicly available.