Peloton Is Stepping Up Its Game with a New Athleisure Collection
Good news for Peloton enthusiasts - the company is diving into the world of fashion with its very own athleisure line, Peloton Apparel. This is the tech giant's first foray into developing and designing its own clothing line.
While entering such a competitive market might appear daunting with established players like Lululemon, Nike, and Athleta, as well as newcomers like Brooks Brothers, Peloton is not without its strategies.
Jill Foley, Peloton's Vice President of Apparel, spoke with CNN Business about the brand's approach to gaining customers.
Q: Why debut this line now?
JF: This was a response to our members' requests... In the spring of 2015, we began selling clothing online. Over time, my models continued to buy non-branded clothing and added our logo to it. Our sales reached a level where several designers and brands wanted to create exclusive products for us. Soon, Lululemon started selling Peloton-branded products as well.
However, we found ourselves selling clothing that frustrated our members because they never knew the "small" Peloton fit different from the "small" Beyond Yoga or Terez, and their "small" from Spiritual Gangster.
Moreover, we had no real influence on the quality or design... In 2018, we realized we could simply do it ourselves. We wanted our own production and technical design teams to provide our members with exactly what they wanted... We've received a wealth of data from our members over the years – what works, what doesn't, this belt is too tight, shows too much, when I bend over on the bike. Men want more colors… and we've integrated this feedback into our new Peloton-Apparel line.
Q: What lessons have you learned from the pandemic that have helped in the development of Peloton Apparel?
JF: I've learned that a well-fitted sweatshirt – high neck, half-zip – can sometimes feel elegant and professional for work. Many people are beginning to bring more relaxed styles to the office, and I wanted to ensure we developed styles that could do the same. We're going to create beautiful blazers for men that can be worn over button-down shirts with collars. When people return to the office, we want them to feel comfortable, but professional and well-groomed.
Q: The sports and leisure apparel market is already quite crowded. How do you plan to differentiate your product line?
JF: My strategy is twofold. We're focusing on our members. We have six million members. These pieces would be great for members who truly enjoy riding a bike, using the treadmill, or the app and want to feel more connected to Peloton. They can't buy anything with the "Peloton" label elsewhere.
Furthermore, we're incorporating subtle messages on many of our items to remind people why they love their bike or their treadmill. "Together we go far" is one of our mottos. For others, it's about leaving a mark. We aim to enhance the Peloton experience and make their day more enjoyable... And as for the pricing, we're working to diversify the range and democratize certain components. We're aiming to keep the tanks between $38 and $42. The high-end price is $54.
We place a high value on inclusivity – not just in terms of pricing, but also size and style.
Q: Who is Peloton Apparel for? What expansion opportunities do you see within this group?
JF: The pandemic has definitely changed things. Initially, our demographic was equally divided between men and women, aged between early 30s and early 50s.
Now, we see opportunities for young people in their 20s. College students began wearing Peloton clothing. Previously, we had never sold short jackets, but now we do.
I had been focusing solely on our members in the past. Now, we're starting to see people who don't even have a Peloton bike or treadmill purchasing our clothes... I can't say too much about this for future projections, but yes, we want to be as inclusive as possible… Including sizes for larger people, and clothes for pregnant women... People want to take Peloton with them throughout their day – from home, to coffee, to the office, to going out, even to the beach.
Q: What's Peloton's apparel marketing strategy? How do you plan to attract attention?
JF: Our instructors are our ambassadors. They've been instrumental in creating great products for us over the years, and they wear the brand with pride.
They test all the clothes for us, and I receive feedback from at least one instructor a week. No compensation is given for wearing Peloton.
They wear it during classes. They're even allowed to wear other brands' clothes. Some are sponsored by other fitness brands, which is great. We don't dictate what our trainers wear, but we do ask them to wear Peloton whenever they can.
Q: What's Peloton-Apparel's launch plan?
JF: It's available online and in select stores in North America, the UK, Germany, and Australia. We'll be launching eight new seasonal items (two per season). We'll also create capsules that are relevant to our brand and content.
For instance, during Pride Month, we created pieces that matched our Fitness content and integrated their input from our content and creative teams. We will do the same for Black History Month and with musicians.
We even created a great "Grateful Dead" collection, where we took classes and my team created the costumes for it. Members can put on their gear and ride along, creating a concert-like atmosphere.
Q: How will you incorporate the Peloton logo on new clothing? Will it be the same size as the current logo on existing items?
JF: Many of our members have asked for the logo to be smaller, and we're now addressing this. Initially, we created a smaller logo, but it didn't sell well. Our member base is already so large, and our high-quality pieces are their primary draw.
On some items, you'll see very small logos, especially on the core items we're developing.
Note: Peloton has announced that their new athleisure line will be available at Brooks Brothers' stores, expanding their reach beyond their existing platform.
Enrichment Insights:
- Peloton Apparel is targeting male millennials, a demographic increasingly interested in fitness and wellness
- By offering its apparel and accessories through platforms like Target and Nordstrom, Peloton leverage its existing customer base and expands its reach beyond just fitness equipment
- Peloton's strong brand identity in the connected fitness space can translate into brand loyalty in the apparel market
- Peloton has implemented cost-cutting measures to improve its financial performance, which can be translated into competitive pricing strategies for Peloton Apparel
- By offering a wide range of products including towels, resistance bands, water bottles, and cycling shoes, Peloton aims to provide a comprehensive solution for fitness enthusiasts.
