- Following intense demand, Peloton bikes will be available to buy in Australia from July 15.
- The company has faced logistics problems over the past year, but Peloton Australia’s country manager Karen Lawson told Business Insider Australia it is committed to ensuring the company succeeds here.
- In an increasingly crowded market for personalised fitness, Lawson said that “there just isn’t a competitor that is comparable.”
- Visit Business Insider Australia’s homepage for more stories.
While the Australian market is crowded with fitness companies, from boutique gyms to a slate of apps that have gained international followings, Peloton is targeting the Aussie market as one it “wants to win”.
That’s according to Karen Lawson, Peloton Australia’s country manager, who told Business Insider Australia it would be wrong to assume that Australia isn’t a huge opportunity for the company simply because it’s smaller than the US and UK.
Since its founding in 2012, the company has grown a cult following across its markets in the US, the UK, Germany and Canada for its high-tech stationary bikes and treadmills fitted with screens that connect users to a global network of 5.4 million users and classes filmed in $50 million studios in London and New York.
Globally, Peloton has said it expects $4.1 billion in revenue this year, with the move into the Australian market seen as a major opportunity for the company.
“Fitness is obviously massive for us in Australia,” Lawson said, adding that the company has seen “adoption a lot higher than many other countries in the world,” making Australia a natural next step for expansion.
She said along with the fact Australians adopt new technology “really, really quickly,” the company was hearing a lot of noise from Aussies demanding access to Peloton products.
Australians will be able to buy the bikes online from July 15, or through showrooms in Bondi and Martin Place in Sydney, as well as Melbourne later this year.
The average Peloton user clocks 26 workouts a month, which is around $2.50 per workout, Lawson said. But the bikes are still a substantial investment, with even the entry-level model costing thousands.
The standard bike will be priced at $2,895 in the Australian market, with the Bike+, which has a larger screen, coming in at $3,695.
On top of that, membership for limitless users amounts to $59 a month, with a monthly subscription to the app that provides access to classes for the bike along with HIIT and yoga for $16.99.
The rise of sweat tech
One resilient pandemic trend has been Australia’s embrace of at-home workouts, Lawson said.
She said while Peloton sees both boutique gyms and internationally popular Australian fitness apps like Sweat and Chris Hemsworth’s Centr as competitors, the company has an offering so comprehensive Lawson said it’s hard to imagine another service that’s on the same level.
“Sometimes it’s a little bit hard to describe what Peloton is, because it’s so many things,” she said, “but maybe the best way to try and describe it is that we’re a global, connected, interactive, digital platform.”
Lawson said the explosion of boutique fitness “in a way that other countries with larger populations just didn’t see,” proved to the company Australians would see an uptake that would justify the investment.
No other company has access to the data of 5.4 million users either.
We’re a company that’s “a design business, a hardware business, a software business, we are a retail organisation, we have a content business and music business, we have an incredible logistics business that sits behind in parallel as well,” she said.
“That all encompassing community experience, the convenience, there just isn’t a competitor that is comparable.”
Peloton has battled delivery delays in 2021, but that won’t be an issue in Australia, Lawson said.
Another challenge for Peloton could be actually getting the bikes here.
Since the pandemic spurred an avalanche of orders for the bikes in North America in 2020, the company’s biggest problem has been too much demand — and how to scale its supply chain to meet it.
For the past year it has faced problems getting bikes to US customers as ports closed. It has been widely reported the company is dealing with a backlog of orders that are set to hurt profits.
Lawson said she doesn’t think this will be a problem when products launch in Australia.
“We made an investment of $100 million quite recently to be able to really double down on getting those delivery times shorter,” she said.
The company has committed to four-week delivery when they launch. Lawson said the company hopes this, along with what she calls a “member-first experience”, will drive substantial growth for Peloton in Australia.
“No one does what we do at the level that we do,” she said.