key point
. The interactive fitness market is very crowded, but Peloton and IFIT have no problem in achieving a lot of growth.
. Although the percentage of income of the marketing expenditure is much smaller, the Peloton grows much higher than ifit.
. IFIT has some differential factors to play an advantage, but Peloton is clear to leaders so far.
The growing interactive fitness market has become crowded recently. Peloton (NASDAQ: PTON) is fighting for several major brands, including Apple’s Fitness +, Nike’s Training Club Application, Lululemon’s Mirror. Although there are still many other brands that have not been listed, investors should pay attention to IFIT Health &; Fitness, company NORDICTRACK and PROFORM brands, is the direct competitor of Peloton’s interaction fitness products.
IFIT has recently applied for listing and is intended to be launched in Nasdaq in Nasdaq in the sign. When the company applies for IPO, the company will provide a large number of information for potential investors to the US Securities Exchange Commission (SEC) to provide large amounts of information for investors for investors.
The following is some of the key points for IFIT’s listing applications, as well as companies compare with Peloton.
Peloton has obvious marketing advantages
In the past few years, Peloton and IFIT expansion speed are quite fast. From the fiscal year of FY2019 to 2021 (end in May), the total total revenue of Fit rose once, from 700 million US dollars to $ 1.745 billion. Most of the increase from the epidemic. The IFIT revenue increased by only 22% before the epidemic of 2020 fiscal.
Peloton’s performance is another league. From the fiscal year to 2021 fiscal year (Peloton), the income was 3 times, from $ 915 million to $ 4 billion. In the fiscal year of the 2020, Peloton revenue rose 1 times.
Interestingly, although the two companies spend relatively high in marketing, IFIT’s expenditure is more than income. Peloton’s sales and marketing expenditures in fiscal year were 26%, which was 18% in fiscal 20021. In contrast, IFIT spends more than 30% in sales and marketing in the past two years, but the growth rate is slower than Peloton.
Peloton clearly knows which buttons to create a brand in TV commercials. It returns much more than ifit, considering that IFIT has differentiated products to provide customers, this is impressive.
IFIT is a powerful competitor
The interactive fitness market is similar to the string video stream. Peloton and IFIT have interest to hardware equipment profits, it is better to have more interest as a growing user with growing users.
Hardware is a low profit business, but IFIT and Peloton only need to purchase a sports bike, and then two companies can earn high profit recurrent income streams from many years of subscriptions.
However, these companies are dealing with this opportunity in different ways. Peloton’s Bike and Bike + are basically high-tech rotary bicycles. Peloton is mainly for an indoor experience. Most of the content is recorded, and the instructor training in a studio in New York or London. Peloton said it offers thousands of courses, 40 teachers lead 11 different types of activities, such as cycling, indoor / outdoor running, bicycle training camp, yoga and strength training.
IFIT said it provides more than 17,000 interactive exercises involving more than 60 exercise projects. A key difference is that IFIT is more focused on simulating outdoor training courses. For example, NordICTrack S22i has an inclined function, analog climbing, and a Peloton device. IFIT users can follow professional bicycles from the world’s scenic highways because NordICTrack manufacturers provide contents filmed in more than 50 countries.
IFIT’s Nordictrack prices are very competitive relative to Peloton, which may explain why the latter has recently lowered the price of bicycles. The price of IFIT’s Nordick S15i and S22i bikes is $ 1,599 and $ 1,999, while Peloton’s basic Bike price is $ 1,495, Bike + price is $ 2,495.
Win the competition of the most subscribers is going on
Peloton has passed a series of TV commercials in this competition in recent years. For people looking for fitness alternatives, this is greatly considered a default choice, but IFIT can use IPO earnings to further invest in marketing or product innovation to catch Peloton. Keep in mind that IFIT produces a wider range of products on different brands, such as rowing, rock climber, strength equipment, fitness mirror and yoga equipment. It is more able to sell potential customers than Peloton.
IFIT seems to be ahead of Peloton in 120 countries around the world. Peloton is currently invested in expanding the company’s distribution system in the United States, Canada, United Kingdom, Germany and Australia.
In addition, IFIT estimates, interested in purchasing company products or subscribes to exercise products, involving $ 2.4 trillion in the global market. Specifically, the US market value is estimated to be $ 1092 billion.
At present, the market size is large enough, and both companies can grow, but the company will determine which company can get the most user, as this may translate into the best return of investors. So far, Peloton has won 5.9 million users, including its independent digital applications, far ahead of the 1560,000 users of IFIT. For IFIT, this gap may have been too high, unable to overcome relatively limited resources, but in IFIT gets new capital after IPO, the situation may change.
This article is from the financial network network