Digital fitness continues to surge.
- Peloton’s Q4 earnings showed a 172% YoY jump in revenue, and its connected subscribers were up 113% YoY.
- Apple just announced its virtual fitness product (Fitness Plus), available to the 1B+ Apple devices out there.
- Lululemon has already upped its projected revenue for Mirror from $100m to $150m.
- Zwift, an indoor training app, reached unicorn status yesterday after a $450m funding round.
- Tonal, a wall-mounted system that costs $2,995, lets users lift up to 200 pounds in “digital weights” raised $100m
The pandemic has exploded the market for digital fitness
There are 62m gym memberships in the US and 183m globally, according to a 2019 report. But many people shifted to online workouts during the pandemic, and gyms have been slow to reopen.
Data from Thinknum shows while 46 states have re-opened gyms, Facebook location mentions have “remained utterly stagnant for gyms.” Thinknum flags one outlier — Planet Fitness, which has tons of locations and is cheap.
Why it’s hot:
With new technology capabilities and the need to move to digital, now is a time where fitness can truly be democratized. And it’ll also be interesting to see how this impacts fitness-adjacent categories (e.g. tech, wellness, etc.). Our phones have become the centerpiece for making every single aspect of our lives easier and more affordable. Fitness is no exception.