"Fitness Netflix" sells happiness: Peloton hopes to create great consumer products

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✍ This article “Selling Happiness Marketing Technique” was originally published in Economic Daily

One day, when all my working friends were busy making up their shifts, I was also preparing to leave for an appointment. When I got on the bus and looked at the scenery outside the window, a sweet voice suddenly appeared in my ears, “Are you the teacher Vista?” I turned around and saw a girl wearing sports and leisure clothes giving me a faint smile.

Well, it’s such a small world! I happened to meet a friend on the bus who had heard me speak before. Just like that, I started talking to her. It turns out that her job is very flexible. She doesn’t have to work on make-up days, and can still make appointments with her coach to work out. After watching her get off the bus, I continued my journey. At this moment, I suddenly remembered [Peloton] (https://en.wikipedia.org/wiki/Peloton_\(company\)), which is known as the “Fitness Netflix”.

Peloton was founded in 2012 and has quickly taken the U.S. fitness industry by storm, with 1.4 million members and revenue of US$915 million as of June 2019. The company has just been listed on the NASDAQ in the United States. Although the stock price fell 11% on the first day of listing, it seems that its enthusiasm has not diminished, and many people are flocking to it. CEO John. John Foley (John Foley) boldly stated in the prospectus, “Peloton sells happiness.” The company’s red logo has attracted a large number of followers who have dreams of fitness, and has been described by foreign media as “as magical and mysterious as a cult.”

Peloton’s business model is very simple. It mainly sells treadmills and flywheel bicycles with screens, priced at The price is respectively US$3,995 and US$1,995; in addition, there is a monthly fee of US$39 per month for membership. After paying these prices, members can freely exercise at home or in the office, receive guidance from remote fitness coaches at the same time, and enjoy tailor-made and considerate services, without having to travel all the way!

In addition to having a clear business model, it focuses on “[blitzscaling](https://www.books.com.tw/exep/assp.ph p/vista/products/0010825216?utm_source=vista&utm_medium=ap-books&utm_content=recommend&utm_campaign=ap-201911)”’s operating strategy is also one of the keys to the company’s growing valuation. Headquartered in New York, Peloton has expanded its business territory to the United Kingdom and Canada in 2018. In May this year, it also announced that it will enter Germany by the end of the year.

Peloton positions itself as a technology company and absorbs the operating model of the entertainment industry, which not only subverts the sports and fitness industry, but also brings new opportunities. They acquired Atlanta-based music technology manufacturer [Neurotic Media] (https://www.neuroticmedia.com/) last summer, and also opened a yoga studio in New York at the end of the year to record streaming content of yoga classes for members.

John. Foley said: “We are not a traditional fitness company. We are probably more like Apple, Tesla, Nest or GoPro, because these are all great consumer products built on sexy software and hardware technologies.”

Seeing the rise of Peloton, many people may feel envious, but you know what? The contract manufacturer behind the sports and fitness equipment that the company is famous for is [Rexon Industrial] (https://www.rexon.net/home01.aspx?ID=1) from Taichung. Lishan originally only focused on the research and development of traditional machine tools. In recent years, it has actively invested in the fitness equipment industry, and now it has finally tasted the fruits of success.

In addition to the solid manufacturing skills of the Chinese people and the skilled foundry model, can Taiwan’s proud information technology and cultural and creative soft power manage to break through? What inspirations can Peloton’s cross-border development model bring us? These questions are worth pondering, and I fell into a long test again on the bus.

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★ Photo Credit: bruce mars

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Further reading

• I watched “Detonating the Membership Economy”: Creating an entrance that connects community and business logic
• [“Grasping New Business Opportunities in the Rapidly Growing Subscription Economy: Taiwan’s Practical Combination of World Trend
• “Detonating the Member Economy”: Creating an Entrance to Connect Community and Business Logic

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