One of the biggest winners from the pandemic was Peloton. As people found themselves stuck at home, they turned to the exercise bike company for a mental break. The classes are famous for their high energy and positivity. It seemed like everything was going well for Peloton until things started to change drastically.
Peloton went public two years ago — in September 2019 — to a lot of fanfare. The pandemic propelled their growth and helped them overcome price resistance; however, the recent drops in sales and engagement coupled with a safety recall have put a blemish on Peloton’s brand. So, where does Peloton go from here?
There are three lessons to learn from the Peloton story:
1) Passionate consumers are the key to success. The Peloton fan base is strong and willing to support the company. This is the core argument for why Peloton won’t become another Bowflex. In your business, your most passionate consumers can be what helps you sustain growth in good and bad times.
2) Ride the wave for as long as possible. Peloton made the most out of the unexpected pandemic demand, and they now need to adjust to a post-pandemic world. Don’t miss out on these opportunities.
3) Brand matters. The Peloton brand is one of the strongest globally right now, thanks to its technology and customers. Strong brands mean less spending to acquire customers and to convert them. So work on building your brand every day.
While analysts are hammering Peloton, it’s important to remember that the company has done well since going public. Any company would love to have the following stock growth: