Peloton, the fitness company known for its connected exercise equipment, recently announced a collaboration with TikTok in an effort to attract a broader range of customers and change its public perception. This partnership, named “#TikTokFitness Powered by Peloton,” aims to create a new fitness hub on the popular social media platform. By leveraging TikTok’s wide reach and diverse audience, Peloton hopes to boost its sales and profits, which have been falling in recent times. In this article, we will explore how this strategic partnership can revitalize Peloton’s brand and expand its customer base.
Peloton’s vice president of consumer marketing, Oli Snoddy, believes that the collaboration with TikTok can change the public’s perception of who Peloton is for. By tapping into TikTok’s younger and increasingly diverse audience, Peloton aims to position itself as a fitness company suitable for multiple types of customers. The viral nature of TikTok’s content can help Peloton break free from the image of being solely focused on expensive connected fitness equipment. This partnership allows Peloton to showcase its instructors, offer short-form fitness videos, longer live classes, and even collaborate with popular TikTok creators. By doing so, Peloton hopes to attract new customers who may not have been able to afford its equipment but are interested in its fitness content.
The announcement of the partnership with TikTok had an immediate positive impact on Peloton’s stock price, with shares surging more than 15% and closing 14% higher. This surge in investor confidence signals the market’s enthusiasm for Peloton’s new strategy. The short-term goal of the partnership is to boost metrics such as app downloads and conversions, as Peloton aims to recover from the decline in demand experienced during the Covid-19 pandemic. When gyms reopened and consumers returned to their pre-pandemic routines, Peloton faced a significant drop in membership and revenue. In the three months leading up to September 2021, Peloton lost 30,000 members, and its revenue fell to $595.5 million compared to $757.9 million three years earlier. Hence, the partnership with TikTok is a crucial step for Peloton’s recovery.
Barry McCarthy, the CEO of Peloton, has been actively working to set the company on a path of long-term growth and profitability. McCarthy has recognized the importance of increasing Peloton’s subscriber count and offering new pathways to owning its fitness equipment. In addition to the rental service and refurbished options, partnerships with companies like TikTok and Lululemon are seen as critical for Peloton’s success. While Peloton has a large user base, the company is still not generating significant profits from its existing members. Therefore, forging strategic alliances with companies that can reach diverse audiences like TikTok is a strategic move to drive future revenue growth.
The partnership between Peloton and TikTok aims to go beyond traditional workout videos. Sofia Hernandez, TikTok’s global head of business marketing, highlighted that the collaboration will offer glimpses behind the scenes of Peloton, including “get ready with me” clips and other fitness-adjacent content. This approach provides TikTok users with an inside look into the Peloton community and introduces them to the instructors. Initially, the content will feature well-known instructors such as Cody Rigsby and Ally Love. However, the collaboration also hopes to shine a spotlight on Peloton’s lesser-known instructors, thus giving them exposure to a wider audience and boosting their following. By showcasing the diverse range of instructors and the sense of community within Peloton, the partnership can effectively engage TikTok users and create a sense of connection with the brand.
Peloton’s partnership with TikTok represents a strategic move to revitalize its brand and attract a broader array of customers. By leveraging the viral nature of TikTok’s content and its diverse audience, Peloton aims to change its public perception and position itself as a fitness company accessible to all. The collaboration will not only include workout videos but also provide a behind-the-scenes look into Peloton’s community and instructors. By introducing lesser-known instructors to a wider audience, Peloton can expand its pool of loyal customers. This partnership is a significant step for Peloton as it strives to recover from the pandemic slump, drive long-term growth, and ensure its profitability in the highly competitive fitness industry.