Peloton – NOAH19 London

Peloton – NOAH19 London

Okay, Kevin you used to work or the online optician market and then we bump into each other in a restaurant and you told me about your new venture and I sold you a bike Exactly. Thank you so much Great. Thanks Margo. So excited to be here today to tell you about The journey that we’ve been on at peloton through the seven years of our existence then also good about our launch into the UK here So at peloton we’re changing Fitness Where where Fitness happens and where and how people are working out just a little quick background on the company. So we were founded seven years ago in New York City by John Foley and four other founders We have over 2,000 employees now across the u.s Canada and the UK. We actually launched in the UK September last year We just celebrated our first our first birthday in September is the first major market outside of our home US market We’ve grown quite quickly. I’ll talk a little about that We have over 1.4 million members now around the globe and just under a billion dollars of sales so far so I just wanted to give you a little bit of Context on the fitness market just to kind of back up a little bit to show you where we’ve come from Fitness is actually a relatively young category if 50 years ago if you ask somebody about fitness This is kind of the image that they would have in their mind It was something you were doing in a high school gymnasium or if you’re a professional athlete Then people started jogging and running and doing fitness for their own good. So this is from The 70s here if people saw you running before that, they might think that you’re running from somebody, you know Or somebody was chasing you. Obviously, it’s now become a part of everybody’s daily daily life and Also if you just think about overall well-being, right? so 30 years ago people were drinking Coke eating Cheetos and Your doctor might might have even recommended smoking right to to take some of the anxiety and the stress away That was the good the good old 70s and 80s Today, it’s obviously very different, right everybody’s focused on their well-being on their diet and making sure that they’re living a healthy life So behind that as well people are also much more now focused on working out so you can see here This is data for our home us market, but it’s actually similar Similar trends we see in the UK and in Europe sixty-seven percent growth in American gym membership since the turn of the century Fifty percent increase in time spent working out. This is amongst the top quintile of Americans who are working out So this is in an hour a week And there’s also been an explosion of boutique fitness, right? So people want to have motivation people want to have instructors who are in front of them Telling them what they should be doing motivating them to workout more. So there’s been an explosion and a lot of this In this book tea-caddy, where a lot of it starting in New York City starting in California and certainly coming over Here to Europe as well That being said there are more and more barriers as people are thinking about getting fit people are thinking about being healthy The way that we’re living our lives today makes it actually harder to have harder to actually to realize that here You know, everybody’s working two-thirds of households have have two people in the workplace There’s a 24/7 workday. I don’t know about you guys, but this is definitely true for me You’re kind of always on right this this debt actually surprised me 50% of people check email on weekends I guess I would say amongst this crew. It’s probably closer to 100% but you’re always on you’re always in demand making it difficult to fit in the things that you you want to do and That’s where peloton comes in. So John Foley who’s the founder of the company? Was into fitness he was living in New York City. He loved going to size SoulCycle. He loved going to flywheel He loved the the energy the enthusiasm of that instructor-led fitness, but he was in his 40s. He was working a lot He had two young kids He and his wife used to go to SoulCycle four times a week Then it was three then it was two then as maybe once on the weekend He said there’s got to be there’s got to be a better way to do this. And so he together with a few other founders Started peloton and I’ve got a short video that I’ll show you here that kind of brings that to life. So it stars Emma love well, who’s one of our instructors based out of New York and a few of our hardware and saw Design the product You were absolutely stronger after the class anymore we started Amazing content amazing Attention to detail is minato in building the Holistically it creates what I believe So that that feature the the peloton bike there to make all that happen John the team Decided they had to do everything from scratch, right so they came up with the bike They worked with hardware engineers with supply chain to come up with that with the bike We’ve now been since gone into the tread in the North American market Developed all the software to bring all that together to bring that experience to life on the bike to bring Community and social aspects into it and then also start our own studios. We have a studio in New York City We have a studio here in London. We’re now doing 30 live new rides a day across multiple disciplines So that’s nearly a thousand new rides. So we had to really start the business Entirely from scratch across the whole supply chain So did I gave you a bit of that context you can understand the product market fit then that we’re trying to achieve for peloton So if you think about where people were getting their fitness before there’s been traditional home fitness equipment for a long time. What’s that? Good for right so it’s very convenient. It’s in your home You can do it when you want to it’s right there next to you Very flexible about when you can when you can use it not quite as motivating though There’s you might be watching the news or something like that It’s not the same energy that you get in a studio If you then think about boutique fitness, which also like I talked about is really expanding. It’s got tremendous energy, right? So it’s got a ton of motivation you’re in the class with a lot of people you’re pushing each other on But it’s not as convenient, right? You have to travel there sometimes and one of the biggest issues is if you’ve got a great instructor the class gets full, right? So you’re don’t even have the chance to work out with the instructor that you want Peloton actually takes the best of both of those right so it brings the energy in the excitement of that instructor-led fitness and class Into the convenience and comfort of your own home. So you don’t have to sacrifice on either convenience or on the quality of the workout It’s in a lot of ways. What we’re doing is disrupting that that that retail and that that fixed asset market, right? So we’re time shifting consumption. We’re giving you more selection We’re improving the experience and that’s happening quite a few other categories, right? So that’s that’s really been a big trend over the last 20 or 30 years You’ve seen what Netflix is doing to to local theater operators. You’re seeing what? Nintendo the Xbox are doing to arcades right? There aren’t really any arcades anymore you sing what Spotify is is doing to Two CD stores and and and music stores what Amazon is doing to two traditional retail, right? So it’s this disruption in this disconnection and use of technology that’s allowing us to actually create this disruption in the market That being said we had to build the entire business like I talked about with the bike from beginning to end ourselves We’ve actually become a hardware company a software company a media company a retail company and a logistics company we’ve had to develop that expertise as we’ve as we built out the business and then if I didn’t think about how our Challenge of my team here is to bring that to the UK We’ve been replicating that entire vertical stack as we’ve launched into the into the UK market From a retail perspective from a studio perspective Marketing and operations. I’ll show you some examples of that We do have a stand out here. I encourage you to come visit it and do a test ride It’s really important for a product like peloton. That’s so experiential for people to try out the bike So our strategy here is called bums on bikes. It’s kind of our marketing strategy in the UK We want people to come and experience the bike when we launched we had Peloton house in Covent Garden where you could come within you can see here in sits you in a home environment Try out the bike to see for yourself what it was like we launched with five retail stores in London We’re now up to eight retail stores with three outside of London already in the UK We hired our own instructors here. We’ve got Ben and Leanne who are two British instructors who are teaching out of our interim studio here in London super important to be able to have live classes at the right time here in the UK and make sure that we do that with the British accent and with British focus on music We also had a 360 launch campaign coming into the market video is really important to show Peloton, so we launched with a full brand campaign as well And I think this is something that people are surprised about we built out our own logistics infrastructure We have three warehouses across the UK. We want to make sure that every single touch point with peloton is amazing So if you order a pallet within our coverage area Somebody in a peloton van a peloton jumper will come into your home hook the bike up put on the Wi-Fi get you logged on And show you how to use the bike find some of your favorite instructors and gets you started We really have a member first monitor within the company. That means investing Across all the aspects of the experience and also one of the things that we’ve seen in the u.s Is that we have some real passion that comes out for peloton and it’s been fantastic to see that translate over here I think the thing I was most excited about was the first peloton Tattoo that we saw in social media here in the UK. You can see there that’s That’s the mantra of one of our instructors and you’ve really seen a lot of Let the community come together a lot of that passion Translate over here in the UK And just lastly exciting for us where I like I said, we’re year into the UK We’re launching in Germany in the 20th of on the 20th of November again with a nationwide retail footprint so if any of you are visiting from Germany Recommend you go over to our stand you can leave your email and make sure that you’re you’re one of the first on the list So just I do recommend if anybody’s interested in seeing the product come over do a test ride that we’re just over in the back in Ng5. Thank you very much You

You May Also Like

About the Author: Oren Garnes

Leave a Reply

Your email address will not be published. Required fields are marked *