Health and efficiency
One of the few positive consequences of the lockdowns last year was people's increased appetite for exercise and wellbeing. But during 2020 gyms, swimming pools and exercise studios had to be closed for about half of the year, and as we enter New Year – a time when many people traditionally make resolutions to get healthier - they are closed once again.
So what are consumers doing instead to get healthy, and which brands are benefitting?
Home fitness apps are one of the major beneficiaries. Downloads grew an incredible 46% worldwide in the first half of last year, (25% in Europe) and daily active users increased by 24% (11% in Europe). Many of these interactive platforms are built around a subscription model, whereby you can trial a certain number of classes for free and then pay a fixed amount annually or on a monthly basis to access content. The most well-known of these is Peloton which requires consumers to invest in a bike and then have access to spin classes for a subscription of £12.99 a month. Peloton is forecast to have doubled its sales by the end 2020. Other brands offering similar subscription models include NordicTrack, Echelon, MYX and Bowflex.
Online social platforms such as YouTube, Instagram and TikTok have also been highly popular platforms, with influencers offering free workouts to gain popularity and followers. Those which have gained traction over 2020 include Chloe Ting, Adriene Mishler, Joe Wicks and Kayla Itsines. Itsines has 11.5m Instagram followers and there have been over 30m downloads of her app. Success in such a crowded market is often a combination of good marketing and an ability to utilise social platforms: Chloe Ting gained 15m subscribers on YouTube alone in 2020 and many of her followers are uploading her "Two week shred" progress videos on TikTok.
Retail brands have also seen this time as an opportunity to gain brand awareness, with sportwear brands offering free classes which can be supplemented by subscription options. Nike Training Club offer 185 free workouts through their app, with consumers able to create bespoke workouts and Lululemon have been live streaming yoga classes through Instagram. However, there is huge variety in price point and the exercises available. Options range from free services with the choice of additional in-app purchases such as Fiit and yoga focussed apps Daily Yoga, Down Dog, Glo and Gaia; pay per class models such as Kobox and Frame; and more premium services such as Phsycle and Barrecore for between £25 to £35 a month.
Outdoor pursuits such as walking, running and cycling also became more popular during lockdown. Whilst outdoor clothing retailers' overall performance has been challenged due to lack of visibility from store closures, those retailers with stronger multichannel platforms have fared better. Online growth has increased for GoOutdoors (+19%) and Regatta (+92%). This is also reflected in the popularity of fitness tracking apps: Strava and Fitbit were two of the top grossing fitness apps on Googleplay in September. Bicycle retailers such as Halfords, Wiggle, Evans Cycles, alongside independents have also hugely benefitted from this changing shift in 2020: bicycle sales increased 50% in April according to the Bicycle Association trade body.
We believe home workouts and digital exercise will continue to be a growing market. Many consumers have bought home equipment and will continue exercising at home even when lockdowns disappear, either as an addition to visiting the gym, or as a replacement.
Olivia Gannon