Peloton is the word used for the primary group of cyclists packed together in a race: the fit, the fast, the elite. What any cyclist is pedaling toward. It’s no wonder the stationary bike brand Peloton has garnered the popularity and esteem we are hearing about: it’s in the name.
Following the recent news of Peloton’s ball-busting (or pedal-popping) fiscal 4th quarter, it was intriguing to see disinterest among U.S. adults at 67%, while another 28% had never even heard of the brand. This survey, conducted during the first week of September after sales boomed and share prices rose, clearly demonstrates Peloton markets to a niche population.
One thing most people know about Peloton is the price tag. But it’s more than just an exercise bike – it comes complete with a subscription to stream virtual classes straight to the built-in screen mounted between the handlebars. The equipment has a lot going for it. But CivicScience data indicate that even among higher-earning households ownership of a Peloton bike (or usage of just the app for classes) is still very low (3%).
So, when Peloton announced its newest model last week creating a secondary pricing tier for the OG model, it was clear the business was taking a new approach. Having a lower cost model makes sense when looking at interest in owning a Peloton bike by age: Gen Z has the highest intent to purchase. But Gen Z also shows the lowest awareness of Peloton’s brand. Americans in the 35-54-year-old age bracket have the most awareness but the least interest in purchasing a Peloton.
While only 4% of U.S. adults said they would purchase the original model at a lower price, Gen Z was far and away the most likely of all age groups.
In addition, 60% of future customers say brand and price are equally important. A lower price and potentially better brand marketing to a younger audience could be wildly successful. Add in the ability to pay monthly and the bikes could be flying off the shelves.
Additional business moves, (like trade-in credits for the new Bike+ and certified used versions of the original model) foreshadow a wider and more varied customer base in Peloton’s future. The exclusive Peloton club might become a little less exclusive.