Rosalind Evans
In a bold move to revitalize its brand and expand its customer base, Peloton has announced a groundbreaking partnership with social media giant TikTok. This collaboration revealed on Thursday, aims to transform Peloton’s public image and appeal to a more diverse audience, especially as the company grapples with declining sales and profits.
The newly formed alliance will birth “#TikTokFitness Powered by Peloton,” a dedicated fitness hub on TikTok. This platform is set to feature engaging content, including short-form fitness videos, extended live classes, and exclusive material from Peloton’s acclaimed instructors, alongside creative collaborations with popular TikTok creators.
This announcement immediately positively impacted Peloton’s financial standing, with its shares witnessing a more than 7% surge in morning trading. The partnership aligns with Peloton’s strategic shift six months prior, where it rebranded as a fitness entity “for all,” introducing tiered pricing for its app. This strategy aimed to position Peloton beyond just a high-end bike manufacturer, targeting potential customers interested in affordable fitness content subscriptions.
Oli Snoddy, Peloton’s Vice President of Consumer Marketing, highlighted the dual objectives of this partnership in a conversation with CNBC. “On one hand, there’s a longer-term goal around changing perceptions around who Peloton is for to multiple audiences…In the short term, the partnership will seek to build on what Peloton says has been a successful relaunch by boosting metrics such as app downloads and conversions,” Snoddy explained.
Peloton’s pivot comes from fluctuating fortunes during and after the Covid-19 pandemic. While initially thriving as a preferred home fitness solution, the company faced a stark decline in demand as normalcy resumed. Recent financial disclosures show a concerning drop in membership and revenue, underscoring the urgency for strategic changes.
Barry McCarthy, Peloton CEO, has been at the helm of these transformation efforts since February 2022. His focus has been increasing subscriber counts and diversifying equipment ownership options, including rental and refurbished offerings. Despite early progress, profitability remains a challenge, making partnerships like that with TikTok and Lululemon crucial for Peloton’s sustainability.
Sofia Hernandez, TikTok’s Global Head of Business Marketing, shared her enthusiasm about the partnership’s potential, emphasizing TikTok’s vast and diverse user base. “We have over a billion users across the globe of all demographics,” Hernandez told CNBC. She also revealed plans to expand the partnership beyond workout videos, including “behind the scenes” and other fitness-adjacent content, providing an intimate glimpse into Peloton and its instructors.
As Peloton and TikTok embark on this exciting venture, there is a shared optimism about reaching and engaging a broader audience. “This is really about taking the instructors and the content we have and kind of dimensionalizing it to a broader audience on TikTok,” Snoddy remarked, capturing the essence of this strategic alliance.
The Peloton-TikTok partnership marks a significant chapter in the fitness industry, blending cutting-edge technology with immersive fitness experiences. As Peloton navigates through its challenges, this collaboration could catalyze a redefined fitness journey, touching lives across generations and geographies. With a vision to make fitness accessible and engaging for all, Peloton is poised to redefine what it means to be a fitness company in the digital age.
