Peloton is reinventing itself as a premium fitness app after seeing a decline in enrollment. The company, which sells high-end exercise bikes and fitness club subscriptions, is transitioning to focus on providing integrated health solutions.
Peloton Lowers Bike Prices, Raises Subscription Fees
“With this brand relaunch we’re showcasing the excitement and fullness of what Peloton has to offer to everyone,” said Chief Marketing Officer Leslie Berland. Press release. The company is offering new products sector membership which starts at $12.99 per month and goes up to $24 per month and adds a number of free classes, boasting that it is the biggest investment since the company was founded in 2018.
Peloton is also offering a new section of Peloton workouts that allows subscribers to choose the type of class that can be done at their own pace and that matches their type of strength group to meet their needs.
Rebrand comes as Peloton’s sales growth has slowed since the rise of its popularity in 2020 during covid-19 pandemic when the share price rose, fivefold since last year, ABC news report. The company’s sales rose 232% in November 2020, bringing in $63.6 million, bringing its total sales to $757.9 million. By the end of that year, Peloton celebrated reaching its first quarter of $1 billion.
The problem came in 2021 when people started to leave their homes again, reducing the need to exercise at home.making the company more efficient was not enough workand around. Next thing the rise and fall of the Peloton That means the company laid off about 800 workers in August of last year and announced in October that it was cutting another 500 jobs. It also closed its North American distribution network and shifted shipments to third-party suppliers.
A former Peloton expert said Price CNBC in February, “I think we were all intoxicated by the growth that Covid brought, and no one stopped to say, Hey, maybe this is a game of musical chairs, and what happens when the music stops?” He added, “Like, we can’t expect people to stay inside and not go to the gym.”
Peloton now seems to be thinking the same with a “new information and creative campaign” targeting people of all ages, fitness, and lifestyle, saying they are committed to bringing fitness to people everywhere. “We’re changing the mindset from home to everywhere,” Berland said in the release, adding, “fitness enthusiasts for people at all levels, including the inclusion of all current and future Peloton members.”