Peloton’s failure to ship brightens the vacations for rivals
By Christiana Sciaudone
Investing.com – The delivery delays are so long that Peloton (NASDAQ 🙂 skipped Black Friday and Cyber Monday.
Potential customers are fed up with months of waiting for their bikes and are turning to competitors, including the new MYXfitness. Less than a year after the market launch, the company is already recording growth that was expected after three years.
Demand for the Greenwich, Connecticut-based company’s equipment, which was unveiled at the consumer technology show at CES in January, soared in the spring following mandates aimed at preventing the spread of the coronavirus. Although there were some delays in delivery, MYXfitness guaranteed Christmas delivery through the Wednesday before Thanksgiving. The current delay times are between three and five weeks. Peloton says on its website that some deliveries will take longer than 10 weeks.
“We thought this would mature in the next few years,” said MYXfitness President Herbie Calves in a video interview. But sales took them by surprise and continue to rise as Peloton doesn’t deliver and the holiday season is just around the corner. “Home fitness is probably one of the hottest categories for this year.”
With gyms closed and Americans being forced to reinvent home life as work life, gym life, and everything else, fitness at home has been one of the beneficiaries of the Covid-19 virus. Peloton posted third-quarter revenue of $ 757.9 million, up more than 200% year over year. Shares are up nearly 300% since the start of the year.
MYXfitness was funded by a Greenwich venture capital group to bring connected fitness to a “wider group of consumers”, Calves said. That is defined as those who train for life, not to win, i.e. everyday people who are preoccupied with life, parenting, work, etc. Calves compared it to those who go to the soul cycle and those who go to the orange theory.
“We designed everything to accommodate this consumer,” said Calves, who describes the product as a home fitness solution. And while price is a factor, it’s not the only one.
“They don’t want to compromise on quality and they have a certain price sensitivity,” said Calves.
MYXfitness charges $ 1,299 for its standard package, and membership for classes is $ 29 per month. Peloton charges $ 1,895 and a monthly fee of $ 39 for courses.
Despite the overall high cost, for the first quarter of fiscal 2021, Peloton saw subscription growth of 137% to more than 1.3 million, with the total membership rising to over 3.6 million.
That said, MYXfitness isn’t the only rival in town, and doesn’t have the brand awareness of some of its competitors, including NordicTrack, Bowflex, and Pro-Form.
However, with such high demand, MYXfitness can help meet the need. And Calves believes the change is real, as vaccines do little to disrupt the new dynamic of the home gym.
“That change was in the category anyway,” he said. For 2021, “we’re seeing this acceleration of a category, not a one-off thing in a shot.”